MIRA
INFORM REPORT
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Report Date : |
29.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
FINOLEX CABLES LIMITED |
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Registered Office : |
26/27, Mumbai – Pune Road, Pimpri, Pune – 411 018, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
05.08.1967 |
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Com. Reg. No.: |
16533 |
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CIN No.: [Company Identification No.] |
U31300MH1967PLC016531 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEF00515E |
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Legal Form : |
Public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of Electrical Wires, Lan
Cables, Coaxial Cables, Auto Battery Cables, Winding Wire Score Flat Cables,
Industrial Flexible Cables, Jelly Filled Telephone Cables & Voice Grade
2P / 5P Telephone Cables. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD
21500000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and reputed company having fine track. Available information indicates
high financial responsibility of the company. Trade relations are fair.
Financial position is good. Payments are correct and as per commitments. The company can be
considered good for any normal business dealings. It can be regarded as a
promising business partner in a medium to long run. |
LOCATIONS
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Registered Office : |
26/27, Mumbai – Pune Road, Pimpri, Pune – 411 018, Maharashtra, India |
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Tel. No.: |
91-20-27475963 (5 Lines) |
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Fax No.: |
91-20-27472239 / 7470344 |
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E-Mail : |
sales@fclpun.gnpun.globalnet.ems.vsnl.net.in |
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Website : |
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Corporate
Office : |
26/27, Mumbai – Pune Road, Pimpri, Pune – 411
018, Maharashtra |
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Tel.
No.: |
91-20-27475963 (5 Lines) |
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Fax
No.: |
91-20-27472239 / 27470344 |
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E-Mail
: |
sales@fclpun.gnpun.globalnet.ems.vsnl.net.in sales.ldc@fclpun.gnpun.globalnet.ems.vsnl.net.in |
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Website
: |
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Plants
: |
Pimpri
26/27, Mumbai – Pune Road, Pimpri, Pune – 411
018, Maharashtra. Tel. No.
: 91-20-27475963 (5 Lines) Fax No.
: 91-20-27472239 / 27470344 E-Mail : sales@fclpun.gnpun.globalnet.ems.vsnl.net.in sales.ldc@fclpun.gnpun.globalnet.ems.vsnl.net.in Website
: http://www.finolex.com Urse Taluka Maval, Dist. Pune – 410 506, Maharashtra, India Tel. No. 91-2114-222391 / 222413 Fax No. 91-2114-222865 |
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Branches
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Ø 108, Mahakant, Ashram Road, Opposite V. S. Hospital, Ellis Bridge, Ahmedabad – 380 006, Gujarat, India Tel. No. 91-79-2657 5743 / 2658 4637 Fax No. 91-79-2657 5639 E-Mail fino.ahd@gnahd.globalnet.ems.vsnl.net.in Ø 320, Raheja Chambers, 12, Museum Road, Bangalore – 560 001, Karnataka, India Tel. No. 91-80-2558 8817 Fax No. 91-80-2558 8544 E-Mail fino.blr@gnblr.globalnet.ems.vsnl.net.in Ø 85, Chitrakoot Bldg. 230A, AJC Bose Road, Calcutta – 700 020, West, Bengal, India Tel. No.: 91-33-2287 1048 / 2287 1049 Fax No.: 91-33-2287 1051 E-Mail : fino.cal@gncd.globalnet.ems.vsnl.net.in Ø Pioneer Sudarshan Plaza, 3rd Floor No. 9, Mohan Kumaramangalam Street, Off. Nungambakkam High Road, Chennai – 600 034, Tamil Nadu, India Tel. No.: 91-44-2826 9322 / 2826 9526 Fax No.: 91-44-2826 5768 E-Mail : fino.mds@gnmds.globalnet.ems.vsnl.net.in Ø 13-B, Sathyamurthy Road, Opp. To Ayyappa Pooja Sangham, Ramnagar, Coimbatore – 641 009, Tamil Nadu, India Tel. No.: 91-422-2232033 / 2236023 (C/o.) Ø 101 Aru Plaza, 1st Floor, 582 M. G. Road, Indore – 452 001, Madhya Pradesh, India Tel. No.: 91-731-2533596 / 2432646 Fax No.: 91-731-2533596 E-Mail : fino.indr@gupun.globalnet.ems.vsnl.net.in Ø Kachapilly Chambers, 2nd Floor, Karikkamuri Jn., Ernakulam, Kochi – 682 011, Kerala, India Tel. No.: 91-484-2380453 / 2352589 Fax No.: 91-484-2366428 E-Mail : fino.kochi@gnblr.globalnet.ems.vsnl.net.in Ø 14th Ward, TS No. 81/5, Vaman Kudva Towers, Balmatta Road, Mangalore – 575 001, Karnataka, India Tel. No.: 91-824-2443167 Fax No.: 91-824-2426358 E-Mail : fino.mlr@gnblr.globalnet.ems.vsnl.net.in Ø Mittal Court, 54/55/56, A Wing, Nariman Point, Mumbai – 400 021, Maharashtra, India Tel. No.: 91-22-282 0062 / 283 3626 / 283 3475 Fax No.: 91-22-285 2168 E-Mail : fino.mum@gnbom.globalnet.ems.vsnl.net.in Ø 405-407, BMC House, N-1, Connaught Circus, New Delhi – 110 001, India Tel. No.: 91-11-2331 9744 / 2332 4748 Fax No.: 91-11-2371 5642 E-Mail : fino.del@gndel.globalnet.ems.vsnl.net.in Ø 403, 4th Floor, Minerva Complex, Sarojini Devi Road, Secunderabad – 500003, Andhra Pradesh, India Tel. No.: 91-40-27721224 / 27817463 / 2784 6988 Fax No.: 91-40-27811161 |
DIRECTORS
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Name : |
Mr. P. P Chhabria |
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Designation : |
Chairman |
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Address : |
9, ICS Colony, Ganeshkhind Road, Pune - 411 007, Maharashtra. |
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Name : |
Mr. D. K. Chhabria |
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Designation : |
Managing Director |
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Name : |
Mr. V. K. Chhabria |
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Designation : |
Dy, Managing Director |
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Name : |
Mr. B. J. Rathi |
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Designation : |
Director |
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Address : |
94/13-14 ‘Jayesh’ 11th Lane, Prabhat Road, Pune – 41 1004, Maharashtra. |
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Name : |
Dr. H. S. Vachha |
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Designation : |
Director |
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Name : |
Mr. B. G. Deshmukh |
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Designation : |
Director |
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Name : |
Mr. Atul C. Choksey |
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Designation : |
Director |
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Name : |
Mr. Sanjay K. Asher |
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Designation : |
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Name : |
Mr. P. G. Pawar |
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Designation : |
Director |
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Name : |
Dr. N. A. Kalyani |
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Designation : |
Director |
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Name : |
Mr. M. L. Jain |
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Designation : |
Assistant Managing Director and Chief Operating Officer |
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Name : |
Mr. P. B. Paranis |
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Designation : |
Assistant Managing Director and Chief Financial Officer |
KEY EXECUTIVES
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Name
: |
Mr. R. G. D’Silva |
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Designation
: |
Company Secretary and General Manager (Legal) |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Electrical Wires, Lan
Cables, Coaxial Cables, Auto Battery Cables, Winding Wire Score Flat Cables,
Industrial Flexible Cables, Jelly Filled Telephone Cables & Voice Grade
2P / 5P Telephone Cables. |
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Products : |
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PRODUCTION
STATUS
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Particulars |
Unit |
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Installed Capacity |
Actual Production |
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Electrical Cables |
TCKM |
|
1030.00 |
758.48 |
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Communication Cables Optic Fibre Cables |
KM |
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48000.00 |
21733.00 |
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Other Telecommunication Cables |
TCKM |
|
10612.00 |
1746.03 |
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PVC Sheets and Accessories |
MT |
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2100.00 |
1376.65 |
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Fibre |
KM |
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600000.00 |
213813.62 |
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Cross Linked Polyethylene and other Compounds (Used for Captive Consumption) |
MT |
|
2500.00 |
-- |
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Poly coated FRP Fod |
KM |
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1500.00 |
-- |
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Continuous Cast Copper Rods |
MR |
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60000.00 |
18276.79 |
GENERAL
INFORMATION
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No. of Employees : |
650 |
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Bankers : |
Ø Central Bank of India, Pimpri, Pune – 411 018, Maharashtra Ø Standard Chartered Grindlays Bank Limited, Pune, Maharashtra Ø Bank of Baroda, Pune, Maharashtra Ø BNP Paribas, Pune, Maharashtra Ø Citibank N.A., Pune, Maharashtra Ø Corporation Bank, Pune, Maharashtra Ø HDFC Bank Limited, Pune, Maharashtra Ø State Bank of India, Pune, Maharashtra Ø The Bank of Nova Scotia, Pune, Maharashtra Ø ICICI Bank Limited Ø Standard Chartered Bank |
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Facilities : |
Secured Loans :
Notes :
Unsecured Loans
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Banking Relations : |
Good |
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Auditors : |
B. K. Khare & Company Chartered Accountants 706/707, Sharda Chambers, 7th Floor, New Marine Lines, Mumbai – 400020, Maharashtra. |
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Membership : |
Confederation of Indian Industry |
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Associates/Subsidiaries : |
Associates Ø Finolex Technologies Limited Ø Finolex Essex Industries Limited Ø Finolex Southern Gas Limited Ø Finolex Energy Corporation Limited Ø Corrugated Box Industries (India) Private Limited Ø Plastro Plasson Industries (India) Limited Subsidiaries Ø Finolex Wire Products Limited Ø Creole Holdings Company Limited Ø Finolex Finance Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
47,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 470.000 millions |
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3,000,000 |
Unclassified Shares |
Rs. 10/- each |
Rs. 30.000 millions |
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Total
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Rs. 500.000 millions |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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30,587,869 |
Equity Shares |
Rs. 10/- each |
Rs. 305.879 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
305.879 |
305.879 |
305.879 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
5055.392 |
4702.358 |
5080.319 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
5361.271 |
5008.237 |
5386.198 |
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LOAN FUNDS |
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1] Secured Loans |
1361.035 |
937.450 |
1607.527 |
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2] Unsecured Loans |
982.144 |
383.166 |
272.397 |
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TOTAL BORROWING |
2343.179 |
1320.616 |
1879.924 |
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DEFERRED TAX LIABILITIES |
213.072 |
184.352 |
295.125 |
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TOTAL |
7917.522 |
6513.205 |
7561.247 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2287.839 |
2117.974 |
2015.467 |
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Capital work-in-progress |
0.000 |
0.000 |
990.531 |
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INVESTMENT |
2722.387 |
2490.649 |
3067.280 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Interest Accrued on Investments |
1.873
|
0.000 |
0.000 |
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Inventories |
2084.345
|
1209.087 |
1157.485 |
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Sundry Debtors |
759.138
|
431.083 |
384.896 |
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Cash & Bank Balances |
592.426
|
69.958 |
67.816 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
2907.526
|
2983.493 |
979.328 |
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Total Current Assets |
6345.308
|
4693.621 |
2589.525 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
939.774
|
445.086 |
952.419 |
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Provisions |
2498.238
|
2343.953 |
149.137 |
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Total Current Liabilities |
3438.012
|
2789.039 |
1101.556 |
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Net Current Assets |
2907.296
|
1904.582 |
1487.969 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
7917.522 |
6513.205 |
7561.247 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
7761.664 |
5874.904 |
5064.270 |
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Profit/(Loss)
Before Tax |
616.508 |
371.312 |
325.583 |
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Provision
for Taxation |
112.820 |
63.605 |
30.005 |
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Profit/(Loss)
After Tax |
503.688 |
307.707 |
295.578 |
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Export
Value |
368.402 |
464.899 |
566.409 |
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Import
Value |
1113.210 |
411.824 |
340.618 |
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Total
Expenditure |
7145.156 |
5503.592 |
4701.764 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2006 |
30.09.2006 |
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Sales Turnover |
|
2117.400 |
2761.000 |
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Other Income |
|
135.500 |
9.600 |
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Total Income |
|
2252.900 |
2770.600 |
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Total
Expenditure |
|
1875.000 |
2365.300 |
|
Operating
Profit |
|
377.900 |
405.300 |
|
Interest |
|
33.400 |
38.300 |
|
Gross Profit |
|
344.500 |
367.000 |
|
Depreciation |
|
63.800 |
64.700 |
|
Tax |
|
58.900 |
90.500 |
|
Reported PAT |
|
225.600 |
215.000 |
200606 Quarter 1
Notes
Expenditure Includes
(Increase)/Decrease in stock Rs (597.00) million Consumption of Raw Materials
Rs 2151.90 million Staff Cost Rs 89.10 million Other Expenditure Rs 231.00
million Tax Includes Provision for Current Tax Rs 58.00 million Deferred Tax Rs
(3.80) million Fringe Benefit Tax Rs 0.90 million EPS is Basic & Diluted
Non Promoter includes 4,437,415 shares (14.51%) held by Associate Company-
Finolex Industries Limited Status of Investor Complaints for the quarter ended
June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 03 Complaints disposed off during the quarter 03
Complaints unresolved at the end of the quarter Nil 1. During June 2006, the
Company launched Modular Electrical Switches in the classic range category.
Compact Fluorescent Lamps will be launched in early August 2006. 2. The Board
of Directors approved the Company's plan to invest up to Rs.2,000 million in
the State of Uttaranchal (near Roorkee city) to set up a green field
manufacturing facility for light duty electrical cables, certain types of
communication cables and modular electrical switches. The Investment is
expected to occur in two stages. The first stage manufacturing is planned to go
on stream before and of the current financial year 2006-07. 3. In view of the
merger of the erstwhile subsidiaries Finolex Wire Products Limited and Finolex
Finance Limited with effect from April 01, 2005, pursuant to the order passed
by the Hon High Court of Judicature at Bombay on October 21, 2005, figures for
the quarter ended June 30, 2005 have been recast to include the results of the
said two erstwhile subsidiaries to make them comparable with the quarter under
review. 4. The Limited Review of the financial results of the Company for the
quarter ended June 30, 2006 has been completed by the Statutory Auditors. 5.
The above financial results have been taken on record by Board of Directors at
its meeting held on July 28, 2006.
200609 Quarter 2
Notes
Expenditure Includes
(Increase)/Decrease in stock Rs (405.60) million Consumption of Raw Materials
Rs 2488.90 million Staff Cost Rs 86.40 million Other Expenditure Rs 195.60
million Tax Includes Provision for Current Tax Rs 89.50 million Deferred Tax Rs
(3.20) million Fringe Benefit Tax Rs 1.00 million EPS is Basic & Diluted
Status of Investor Complaints for the quarter ended September 30, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 02 Complaints disposed off during the quarter 02 Complaints
unresolved at the end of the quarter Nil 1. During August 2006, the Company
launched Compact Fluorescent Lamps (CFLs)in different ranges. The CFLs are
branded as 'Finoglow'. 2. The Company has introduced 'premium range' of modular
electrical switches to compliment of 'classic range' already in the market. The
electrical switches are branded as 'Finoswitch'. 3. The Board of Directors has
decided to recommend splitting equity shares of the Company into face value of
Rs 2 per share. The present face value per share is Rs 10. An extraordinary
general meeting of the shareholders will be called to seek their approval to
this proposal. 4. In view of the merger of the erstwhile subsidiaries Finolex
Wire Products Limited and Finolex Finance Limited with effect from April 01,
2005 figures for the quarter / half year ended September 30, 2005 have been
reclassified to includes the results of the said two erstwhile subsidiaries to
make them comparable with the current period. 5. The 'Limited Review' of the
financial results of the Company for the quarter ended September 30, 2006 has
been completed by the Statutory Auditors. 6. The above financial results have
been taken on record by the Board of Directors at its meeting held on October
18, 2006.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.35 |
0.31 |
0.37 |
|
Long Term Debt-Equity Ratio |
0.23 |
0.24 |
0.28 |
|
Current Ratio |
1.38 |
1.31 |
1.28 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.97 |
1.67 |
1.41 |
|
Inventory |
5.23 |
5.52 |
5.06 |
|
Debtors |
14.48 |
16.01 |
10.58 |
|
Interest Cover Ratio |
5.30 |
4.52 |
1.55 |
|
Operating Profit Margin(%) |
11.50 |
11.26 |
10.42 |
|
Profit Before Interest And Tax Margin(%) |
7.86 |
7.30 |
5.33 |
|
Cash Profit Margin(%) |
8.84 |
8.67 |
6.81 |
|
Adjusted Net Profit Margin(%) |
5.20 |
4.71 |
1.73 |
|
Return On Capital Employed(%) |
9.66 |
7.02 |
3.81 |
|
Return On Net Worth(%) |
8.65 |
5.92 |
1.68 |
STOCK PRICES
|
Face
Value |
Rs.10.00/- |
|
High |
Rs.106.50 |
|
Low |
Rs.90.00 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was incorporated on 05.06.1967 at Delhi as a private limited liability company in the name of the Alfa Rubber Company Private Limited. It became a public limited liability company on 30.11.1968. The Certificate of Incorporation was amended by the Registrar of Companies, Delhi on 08.10.1969. The Registered Office of the company was transferred from New Delhi to Pune, pursuant to the Special Resolution passed at the Annual General Meeting held on 10.07.1972, which was confirmed by the Delhi High Court vide its Order dated 19.01.1973. The company changed its name to the present on 07.12.1972. A fresh Certificate of Incorporation consequent on change of name was issued by the Registrar of Companies, Maharashtra on 23.08.1973.
Subject is the flagship company of the Finolex Group. The group has interests in education, energy, irrigation, power, petrochemicals and telecommunications. Subject is India's largest manufacturer of a wide range of electrical and telecommunication cables, with plants at Pimpri and Urse near Pune.
The company's product range includes Lan cables and components, PVC insulated battery cables, flamegard, thin wall auto cables, flexible cables, winding wires and 3 core flat cables, jelly filled telephone cables and co-axial cables.
The company’ fixed assets of important value include land, buildings, plant & Machinery, furniture, fittings & office equipment, computers & peripherals and vehicles.
MERGER
During the year under review, the operations of the erstwhile subsidiary
companies namely Finolex Wire Products Limited (manufacturing continuous cast
copper rods (CCC rods) and certain varieties of optic fibre cables) and Finolex
Finance Limited (a non banking financial company) were merged with the
operations of the Company, pursuant to the Orders of the Honerable High Court
of Judicature at Bombay passed on 21.10.2005. The merger came into effect on
and from 01.04.2005.
Accordingly, the reporting and earlier years' financial results can not
be considered as fully comparable.
The financial statements for the reporting year have been prepared after
taking into consideration the merger effect (as per 'Pooling of Interest'
method) in accordance with Accounting Standard AS 14 - 'Accounting for
Amalgamation'.
OPERATIONS
Income of Rs. 7,761.664 million for the year under review was higher by
32% as compared to the previous year. Net profit at Rs.503.688 million was up
by 64% than in the previous year. The sale of electrical cables was 64%, sale
of communication cables was 23% and sale of other products was 13%, of the sale
of products. The electrical cables sale was up by 25%, whereas the
communication cables sale was higher by 17%.
The year under report proved to be an eventful year. The year witnessed
a secular rise in price of copper, the principal raw material for the Company.
The price of copper at the beginning of the year ruling at about US$ 3400 per
metric ton closed at about US$ 5500 per metric ton with the year ended 31st
March, 2006. The polymer prices also increased during the year. The Company had
to undertake sale price revisions at appropriate times to mitigate the impact
of high raw material costs on its margins. The system of Value Added Tax (VAT)
was introduced by many States for their respective territory. Positive effects
of VAT environment, though non measurable, have been felt. The initiative
undertaken to remodel/convert JFTC capacity at Urse to cater to the growing
market for light duty electrical cables and high end communication cables was
almost completed. The Company has commenced commercial production at the
converted facility at Urse. A similar exercise is intended to be undertaken for
JFTC plant at Goa. To leverage on the high brand equity and the existing well
entrenched distribution network, the Company announced undertaking of new
projects for manufacture of Modular Electrical Switches, Compact Fluorescent
Lamps (CFLs), Miniature Circuit Breakers (MCBs)/Earth Leakage Circuit Breakers
(ELCBs) and High Voltage Power Cables (upto 66 KV). The Company continued to
remain focused on cost management aspects which yielded good results.
PROJECTS
Modular Electrical Switches Project
The electrical cables manufactured by the Company are a conduit for
transmitting power and the wires from these cablesare terminated at and
connected to an electrical switch for controlling the flow of power. The
Company has developed two ranges of electrical switches; one for niche market
and the other for mass market. The electrical switches were displayed by the
Company at the Elecrama Exhibition held in Mumbai during January 2006. The
visitors' response about the Company's electrical switches was encouraging. The
Company received some suggestions relating to the aesthetics of the electrical
switches. The Company, while thankfully acknowledging the suggestions, has
undertaken to implement the worthy ones.
Accordingly the electrical switches will be introduced in the market
during June 2006, under the brand name 'Finoswitch'.
CFL Project
CFL is an energy saving lamp. It can save upto 80% energy as against an
incandescent lamp. The Company will manufacture CFLs in the range of 5W to 26W
and three coloured temperatures of 2700 K, 4000 K and 6500 K. The said range
will be produced in retrofit and non retrofit versions. The life expectancy of
these lamps is about 6000 to 8000 hours. The commercial production is expected
to start during the first quarter of the current financial year. The CFLs will
be introduced in the market under the brand name 'Finoglow'.
Other Projects
The remaining two projects namely manufacturing High Voltage Power
Cables (upto 66 KV) and MCBs/ELCBs are in different stages of progress. The Power
Cable Project has progressed well. The MCB/ELCB Project is still in its initial
stage. Barring unforeseen circumstances, the high voltage power cables will be
available for sale during the fourth quarter of the current financial year.
All of the above projects have been taken up for implementation at the
Urse facility near Pune where the Company has about 140 acres of land and
existing infrastructure.
NEW PRODUCTS
The Company maintained its tradition of product development and added
new products to its portfolio. PVC insulated thin wall winding wire for
submersible, pumps was introduced. 1.1 KV grade armoured control cable with
copper conductor, XLPE insulation and heat resistant PVC jacket was offered to
the customers. Higher size single core copper flexible cable with special PVC
insulation for wind turbine application found acceptance with Wind Mill
manufacturers. RF co-axial trunk cable in 'figure-8' construction in size 500
was developed for aerial application in CATV network. LAN Cat-6 cable with CM
flammability classification, certified by Underwriters Laboratories Inc., USA
(UL) was launched. Ribbon type optical fiber cable with fibre count upto 144
fibers preferred by telecom/service provider companies for networking was
manufactured.
EXPORTS
FOB value of the exports for the year was Rs. 368.402 million as against
Rs. 464.899 million for the previous year. The exports were lower mainly due to
less exports of CCC rods and JFTCs. However the exports of a large variety of
electrical and other communication cables and PVC sheets have shown encouraging
growth. The geographical reach of the Company has widened.
Many of the Company's products are meeting the requirement of the
international specifications. The Company is making efforts to create a customer
preference for its exportable products. The Company continues to remain focused
on export activity and is confident of achieving an impressive export turnover
in due course of time.
FINANCE
The Company fully redeemed its "K" Series Non-Convertible
Debentures on their due date, namely 15.07.2005. Later Company issued
"L" Series Non-Convertible Debentures on private placement basis
which were fully subscribed, and allotted on 11.08.2005.
The Company continues to hold CRISIL accorded P1+ rating, the highest
rating for a Rs. 2 billion short-term debt\ programme and AA+/stable
rating for a Rs. 500 million non-convertible debenture programme. The Company
has pruned down its nonconvertible debenture programme from Rs.1 billion to Rs.
500 million for the time being and accordingly has surrendered the rating for
balance Rs.500 million. The short term rating is utilised by the Company for
judicious cash management. Inspite of rising interest rates and expansion in
business activity, the Company has been able to contain interest cost.
Established in 1967 and promoted by P P Chhabria, the Pune-based subject produces a variety of cables and is the pioneer in jelly-filled telephone cables.
In 1988-89, the company joined hands with Norddeutsche Seekable Werke, Germany,
to manufacture hi-tech special submersible cables. In 1994-95, it transferred
all the PIJC manufacturing equipment from Pimpri to Urse, to attain better
economies. It has received the ISO 14002 / ISO 9002 system certification for
all product lines and plants.
The Company mainly focusing on a portfolio of products to serve the Information
Age where convergence of technology is bringing voice, Data & Video into
one network. Coupled with the high growth of Internet, the Company is
concentrating on products which will carry and distribute information. The
company has undertaken a restructuring exercise and implemented an Enterprise
Resource Planning Software package (SAP) linking its network of branches with
its traditional headquarters at Pune.
Subject has acquired the 50% shareholding of SX Mauritius Holdings Inc,
Mauritius held in the joint venture company Finolex Essex Industries and hence
Finolex Essex Industries has now become a 100% subsidiary of Finolex Cables and
has been renamed as Finolex Wire Products. In December 2000, the company's
equity reduced from Rs.361.1 millions to Rs.343.4 millions due to company's 5%
buyback of its shares.
In October 2001, the Company's board approved the purchase of 51% in Finolex
Technologies in order to make it a wholly owned subsidiary. Currently, the
company holds 49% of the Equity Share Capital of Finolex Technologies, which is
engaged in the manufacture of Optic Fibre Cables (OFC).
The Company's Optic Fibre Division has undertook an expansion in 2001-02 and
the Machinery installation is in progress. In the first stage, 1.2 million
fibre kilo meter capacity p.a. will be created. An additional capacity of 1.2
million fibre kilo meter will be added in the second stage. The first stage of
the Optic Fibre project has not been flagged off due to some technical problems
encountered by the supplier of machinery. The Project was commissioned in
September 2004. But the Second Phase of the Optic Fibre Project has been
dropped-off by the company.
During 2002-03 the company has launched V-SAT cables for V-SAT
application for connecting the Dish to the base station.
The company successfully launched the CATV trunk cables in the market and this
will be the first of its kind in the market. In June, 2002 the company made a
open offer valuing Rs.750 million for buyback of equity shares. The price has
been fixed at Rs.200 per share. It has completed second buyback of shares at a
consideration of Rs.750 million. After the second buy back the equity capital
stands reduced to Rs.305.88 million.
During 2004-2005, the Company is in the process of setting up a Electrical
Switches plant and market them. Its has been planned to introduce two different
ranges of electrical switches one for mass/rural Segment and the another one to
the up-market modular switches segment.
The company has developed and launched a variety of LAN Cables during this
period. These are a high-end communication cable product, for multifarious
network applications.
During 2005-2006, the operations of erstwhile subsidiary namely Finolex Wire
Products Limited and Finolex Finance Limited were merged with the Company,
pursuant to the orders of the Honerable High Court of Bombay passed on
21.10.2005. The Merger came into efffect from 01.04.2005.
The company developed two ranges of electrical switched one for niche market
and the other for mass market during the year under review.
The company is manufacturing CFLs in the range of 5 MW to 26 W and three
coloured temperatures of 2700 K, 4000 K and 6500 K.
The companies two project namely manufacturing High Voltage Power Cables (up to
66 KV) and MCBs/ ELCBs) are in different stages of progress. The Power Cable
Project is progressing well. The MCB/ELCB Project is in initial stage.
Press
Release
Pune, October 18, 2006 : Finolex Cables Limited (FCL) at the meeting of its Board of Directors held today approved results
for the second quarter and half year ended 30.09.2006, of the year
2006-07.
Net sales for the
quarter were Rs. 2,761.0 million (previous year’s corresponding quarter Rs.
1,681.2 million), up by 64%. The half yearly sales were Rs. 4,878.4 million
(previous year’s first half year Rs. 3,111.4 million), also up by 57%.
Net profit for the quarter was Rs. 215.0 million (previous year’s corresponding
quarter Rs. 51.4 million), up by 318%. Net profit for the half year was Rs.
440.6 million (previous year’s first half year Rs. 185.6 million), also up by
137%.
Earnings per share (EPS) for the quarter was Rs. 7.0 and for the half year was
Rs. 14.4 (corresponding quarter and half year of the previous year Rs. 1.7
& Rs. 6.1 respectively)
FCL has introduced ‘premium range’ of Modular Electrical Switches to complement
the ‘classic range’ already in the market. The electrical switches have been
branded ‘Finoswitch’. They have been well received by the market.
During August, 2006,
FCL launched Compact Fluorescent Lamps (CFLs) in different ranges. The CFLs are
called ‘Finoglow’. The market response has been positive.
FCL has an established distribution network across India for its electrical cables and the same is being leveraged to market these two new
products.
The two projects on hand namely High Voltage Power Cable Project undertaken at
Urse near Pune and expansion of LDC capacity undertaken near Rurkee in the
Uttarakhand State (Uttaranchal State) are progressing as per the schedule.
FCL has done well on the export front during the first six months. Exports have
witnessed a sizable jump of 162%. (H1FY 07 - exports are Rs. 367.4 million v/s
H1 FY 06 - exports were Rs. 140.3 million). FCL had received export order from
Europe in Communication Cables
space and is negotiating for larger business in this regard.
At its meeting held today, the Board
of Directors of FCL has taken an
important decision to recommend splitting equity shares of the Company into
face value of Rs.2 per share. The present face value per equity share is Rs.10.
The split is expected to increase availability of the shares in the market. An
extra-ordinary general meeting
of the shareholders will be called soon to seek their approval to this
proposal.
Commenting on the
performance of the Company, Mr Deepak Chhabria, Managing Director said, “Our
quarterly performance has been remarkable and is in line with our expectations.
The products newly introduced and the projects on hand will help them
consolidate and enhance their leadership position in the market.”
About FCL :
FCL is the market leader in domestic cable industry. It offers a wide variety
of cables in Electrical Cables and Communication Cables categories. Its product application range is from
lighting, cable TV, telephone, and computers to industrial applications,
touching every person in his daily life. FCL has recently added Modular
Electrical Switches and Compact Fluorescent Lamps to its range of products.
|
Financial Highlights
(Rs. in Million) |
||
|
|
Quarter Ended 30.09.2006 |
Quarter Ended 30.09.2005 |
|
Sales / Income from Operations |
2,761.0 |
1,681.2 |
|
Other Income |
9.6 |
41.1 |
|
Profit before Interest, Depreciation and Tax |
405.3 |
172.0 |
|
Deductions For: |
|
|
|
Interest |
38.3 |
26.2 |
|
Depreciation |
64.7 |
69.4 |
|
Provision before Taxation |
302.3 |
76.4 |
|
Provision after Taxation |
87.3 |
25.0 |
|
|
|
|
|
Net Profit |
215.0 |
51.4 |
Q2 Turnover at Rs. 2330 millions.
Net profit at Rs.200 millions.
Pune, October 14, 2006:
Finolex Industries Limited
[FIL], the leading PVC Pipes and PVC Resin manufacturer has turned out
excellent results for the quarter ended 30.09.2006 with a net profit of
Rs.199.9 millions, more than double, as compared to Rs.95.7 millions in the
corresponding quarter of the previous year. Net sales soared to Rs.2328.8
millions indicating a 12.32 percent increase over the previous year’s
corresponding quarter level of Rs.2073.4 millions.
Earnings Per Share (EPS) for the quarter was Rs.1.61 (corresponding quarter of
the previous year Rs.0.77).
The Company’s net profit for the first six months of the current financial year
stood at Rs.295.5 millions as compared to Rs.122.7 millions in the
corresponding period of the last year. The sales too indicated a healthy rise
to Rs.5016.9 millions during the latest period as compared to Rs.4116.6
millions in the corresponding period of the previous year.
Commenting on the Q2 performance, Mr. S.S. Dhanorkar, Asst. Managing Director, Finolex Industries Limited, said “sustained demand pull
coupled with better cost efficiencies have resulted in better bottomline as
well as top line growth. The Company’s wide distribution network across the
country is enabling increasing the market share from all the regions”. PVC
Resin prices have witnessed an upward trend during the 2nd Quarter of financial
year 2006 resulting in better margins.
FIL is the largest manufacturer of PVC Pipes and second largest manufacturer of
PVC Resin in India. FIL has ISO/14001 Certification for Environmental
Management System for PVC Resin and PVC Pipes plants at Ratnagiri. The Company
has also been accredited with the new ISO Certification IS/ISO 9001:2000 for
PVC Pipes plant at Pune and Ratnagiri.
Outlook
PVC Resin
The long term outlook for the industry continues to be bright. Global demand
for PVC Resin is growing at around 3.5% p.a. while demand in India is expected
to show double digit growth in the current year. The Company recently completed
expansion of PVC Resin capacity.
PVC Pipes
The demand for PVC Pipes is expected to grow
significantly in the coming years due to various Government initiatives at
Central and State levels. The strong demand growth seen in the 2nd quarter is
expected to continue in future.
|
Financial Highlights (Rs. in Million) |
||||
|
|
Quarter ended
30th September, 2006 |
Quarter ended
30th September, 2005 |
Half Year
ended 30th September, 2006 |
Half Year
ended 30th September, 2005 |
|
Net Sales / Income from Operations |
232.88 |
207.34 |
501.69 |
411.66 |
|
Profit before Interest, Depreciation and
Tax |
49.18 |
31.10 |
85.08 |
51.58 |
|
Deductions
For: Interest/Finance charges |
4.20 |
6.72 |
13.63 |
11.82 |
|
Depreciation |
13.64 |
11.49 |
27.06 |
22.77 |
|
Provision for Taxation |
11.35 |
3.32 |
14.84 |
4.72 |
|
Net Profit |
19.99 |
9.57 |
29.55 |
12.27 |
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
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
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.27 |
|
UK
Pound |
1 |
Rs.86.71 |
|
Euro |
1 |
Rs.57.13 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
56 |
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 and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|