NACHMO KNITEX
1. Introduction
Nachmo Knitex Limited (NACHKNIT), BSE-listed, incorporated April 23, 1981 as Nachmo Polyplast; later renamed. Promoted by N.C. Shah, Rajnikant F. Shah, Ashish V. Shah; linked to Ashima Group.
Made 100% cotton knitted fabrics (plain stitch, piece/yarn-dyed, melange) for T-shirts, loungewear, nightwear, undergarments. Also marketed humidification/AC systems. Plants in Ahmedabad/Mehsana, Gujarat.
Critical Notice
Under liquidation per MCA (Zauba Corp). Last BSE trade Feb 25, 2009 at Rs. 0.45. Last MCA filings FY2008.
Ceased ops, suspended 2009, liquidating. Historical analysis from Screener.in/BSE.
2. Company Overview
Background and History
Older Gujarat textile listing from Ashima Group. 100% EOU for unbleached cotton knits (898 tpa capacity) via 1993 public issue (Rs. 5 premium). Added dye house 1997-98; Rights Issue (Rs. 10 premium). Auth. capital Rs. 40 crore; paid-up Rs. 15.03 crore.
Business Segments
Textiles: cotton knits (plain, dyed, melange/blends) for garments. Units Ahmedabad/Mehsana. Exports to UK, South Asia (Bangladesh). Non-textile: humidification/AC/cell air washers.
Collapse and Liquidation
Revenue crashed FY2006 Rs. 94 crore (15-mo), FY2007 Rs. 66 crore, FY2008 Rs. 47 crore. Losses ballooned; FY2008 -Rs. 19 crore other income (write-offs/impairment) drove Rs. 29 crore net loss. Net debt Rs. 55.78 crore (Tijori/MCA). No filings post FY2008. Trading suspended; under liquidation (MCA/Zauba).
3. Promoter Introduction
Promoted by Shah family (N.C. Shah, Rajnikant F. Shah, Ashish V. Shah) as Ashima Group entity. No recent shareholding on Screener.in; Value Research shows zero identifiable promoters. Directors per MCA/Zauba Corp:
Name | Designation | Note |
|---|---|---|
N.C. Shah | Founding Promoter | Shah family; Ashima Group; exited ~FY2009 |
Rajnikant F. Shah | Founding Promoter | Co-promoter; Shah family |
Ashish V. Shah | Founding Promoter | Co-promoter; Shah family |
Chintan Navnitlal Parikh | Director | MCA records |
Saurabh Vikrambhai Shah | Director | MCA records |
Atulkumar Singh | Director | MCA records |
Jayesh Champaklal Bhayani | Director | MCA records |
Table 1: Promoters and Directors
Liquidator holds control amid liquidation. Shah promoters/director activity ended post-FY2008 trading halt. No pledge data post-FY2008 disclosures.
4. Financial Statement Analysis
Note on Data
Screener.in limited to FY2006 (15-month), FY2007-08, no post-Mar 2008 filings. Tables use this only; no FY22-24 data exists.
4.1 Income Statement (FY2006-FY2008)
Revenue dropped Rs. 94 crore FY2006 (15-mo, ~Rs. 75 crore annualized) → Rs. 66 crore FY2007 → Rs. 47 crore FY2008. Ops losses widened Rs. 1 → 6 crore. FY2008 -Rs. 19 crore other income (write-offs/impairments) spiked net loss to Rs. 29 crore (vs. Rs. 5 crore prior). Interest Rs. 1-4 crore, dep Rs. 3-4 crore steady. No dividends.
Particulars (Rs. Crore) | FY2006 (15m) | FY2007 | FY2008 |
|---|---|---|---|
Revenue (Sales) | 94 | 66 | 47 |
Total Expenses | 95 | 67 | 53 |
Operating Loss | -1 | -1 | -6 |
OPM % | -1% | -1% | -13% |
Other Income | 0 | 1 | -19 |
Interest | 4 | 1 | 1 |
Depreciation | 4 | 4 | 3 |
Net Loss | -9 | -5 | -29 |
Table 2: Income Statement: FY2006 to FY2008 (Source: Screener.in)
Last data; no filings post-FY2008
4.2 Balance Sheet (FY2006-FY2008)
Assets contracted Rs. 67 → 63 → 34 crore. Equity Rs. 15 crore; reserves -14 → -19 → -48 crore. Net worth ~ -33 crore FY2008. Borrowings stuck Rs. 56-57 crore—no real paydown. Fixed assets Rs. 25 → 21 → 12 crore (dep/sales). Rs. 14 crore investments static (Ashima group?).
Particulars (Rs. Crore) | FY2006 | FY2007 | FY2008 |
|---|---|---|---|
Equity Capital | 15 | 15 | 15 |
Reserves (accum. loss) | -14 | -19 | -48 |
Borrowings | 57 | 56 | 57 |
Other Liabilities | 9 | 11 | 10 |
Total Assets | 67 | 63 | 34 |
Fixed Assets | 25 | 21 | 12 |
Investments | 14 | 14 | 14 |
Table 3: Balance Sheet Summary — FY2006 to FY2008 (Source: Screener.in)
4.3 Cash Flow
Ops cash positive Rs. 11 to 2 to 1 crore. Investing nil. Financing outflows Rs. -12/-2 crore (debt pay, offset by draws). Net near-zero.
Cash Flow (Rs. Crore) | FY2006 | FY2007 | FY2008 |
|---|---|---|---|
Operating | 11 | 2 | 1 |
Investing | 0 | 0 | 0 |
Financing | -12 | -2 | 0 |
Net Change | -1 | 0 | 0 |
Table 4: Cash Flow Summary — FY2006 to FY2008 (Source: Screener.in)
4.4 Key Ratios
Ratio | FY2006 | FY2007 | FY2008 | Observation |
|---|---|---|---|---|
ROCE % | N/A | -7% | -22% | Sharp drop |
OPM % | -1% | -1% | -13% | Deterioration |
Debtor Days | 89 | 120 | 9 | Forced collections |
Inventory Days | 21 | 39 | 70 | Buildup |
Cash Conv. Cycle | 81 | 99 | -30 | Liquidation signal |
Net Loss (Rs. Cr) | -9 | -5 | -29 | FY08 spike |
Net Debt (Rs. Cr) | ~57 | ~56 | ~55.8 | Static, unserviced |
Table 5: Key Financial Ratios - FY2006 to FY2008 (Source: Screener.in)
No post-FY2008 data
5. Key Insights and Interpretation
Revenue Halved Rapidly
Revenue plunged Rs. 94 crore FY2006 (15-mo) to Rs. 66 crore FY2007 to Rs. 47 crore FY2008 - 50% drop annualized. Knit fabric ops lost export garment clients (UK/S. Asia), capacity idled amid competition.
FY2008 Impairment Blow
- Rs. 19 crore other income FY2008 fueled Rs. 29 crore net loss. Typical asset impairments, investment write-offs, or income reversals. On Rs. 34 crore balance sheet (Rs. 14 crore frozen investments), it marked business death knell, triggered ops halt.
Borrowings Stuck at Rs. 57 Crore
Net debt ~Rs. 55.78 crore FY2008 (Tijori/MCA); borrowings Rs. 56-57 crore unchanged FY2006-08. Positive ops cash ignored debt pay, lenders unpaid, debt piled. Liquidation now targets this.
Under Liquidation Status
MCA/Zauba Corp: 'Under Liquidation'. No AGM post-FY2008; last BSE price Rs. 0.45 (Feb 25, 2009). Court-appointed liquidator winds up remnants for creditors, no trading/filings since.
6. Conclusion
Nachmo Knitex collapsed 15+ years back. FY2008 finale: revenue halved, Rs. 29 crore loss (Rs. 19 crore impairment), Rs. 55.78 crore net debt, -Rs. 48 crore reserves. No filings post-FY2008; BSE suspended 2009; MCA liquidation ongoing.
Zero data beyond Mar 2008 available. Nominal Rs. 0.45 last price, ~zero mcap. Dead business in dissolution endgame.
Sources:
- Screener
- BSE
- Tijori Finance