MIRA
INFORM REPORT
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Report Date : |
10.07.2007 |
IDENTIFICATION DETAILS
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Name : |
SURANA TELECOM LIMITED |
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Registered Office : |
2nd Floor, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
14.08.1989 |
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Com. Reg. No.: |
10336 |
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CIN No.: [Company
Identification No.] |
U23209AP1989PLC010336 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDS04409G |
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Legal Form : |
Public Limited Liability Company. Its shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturing and Exporting of jelly filled telecommunication cables, optic fibre cables, jointing kits, optical testing and measurement instruments, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 3100000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Directors are reported as experienced, respectable and having satisfactory track records. Trade relations are fair. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
2nd Floor, |
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Tel. No.: |
91-40-27845119 / 5046 / 1198/6013 /
27849988 |
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Fax No.: |
91-40-27848851 / 27818868 |
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E-Mail : |
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Website : |
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Factory 1 : |
Plot No.214, Phase II, |
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Factory 2 : |
Plot No. 12 to 16, Pilerne Industrial Estate, Panaji, |
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Factory 3 : |
Plot No. 212/3 and 4, Phase II, I.D.A. Cherlapally,
Ghatkesar (M), Ranga Reddy District, Andhra Pradesh |
DIRECTORS
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Name : |
Mr. G. Mangilal Surana |
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Designation : |
Chairman |
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Date of Birth/Age : |
08.11.1930 |
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Qualification : |
B. Com., LL.B. |
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Name : |
Mr. Narender Surana |
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Designation : |
Managing Director |
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Name : |
Mr. O. Swaminatha Reddy |
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Designation : |
Director |
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Date of Birth/Age : |
25.12.1930 |
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Qualification : |
B. Com. (Hons.), A.C.A. |
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Name : |
Mr. R. Surender Reddy |
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Designation : |
Director |
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Name : |
Mr. Devendra Surana |
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Designation : |
Director |
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Name : |
Mr. S. R. Vijaykar |
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Designation : |
Director |
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Name : |
Mr. S. Balasubramanian |
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Designation : |
Wholetime Director |
KEY EXECUTIVES
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Name : |
Mr. S. Balachandra |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Exporting of jelly filled telecommunication cables, optic fibre cables, jointing kits, optical testing and measurement instruments, etc. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Jointing Kits |
Nos. (in millions) |
0.634 |
0.490 |
0.076 |
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Jelly Filled Telephone Cables |
CKM (in millions) |
2.675 |
2.675 |
0.657 |
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Optical Fibre Cable |
RKM |
6000 |
6000 |
278.422 |
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Optical Fibre |
FKM |
250000 |
250000 |
96.040 |
GENERAL INFORMATION
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No. of Employees : |
66 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Sekhar and Company Chartered Accountants |
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Address : |
133/4, |
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Memberships : |
Confederation of Indian Industry |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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25,000,000 |
Equity Shares |
Rs. 5/- each |
Rs. 125.000 millions |
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250,000 |
Redeemable Preference Shares |
Rs. 100/- each |
Rs. 25.000 millions |
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TOTAL |
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Rs. 150.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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22,604,400 |
Equity Shares |
Rs.5/- each |
Rs. 113.022 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 |
113.022 |
113.022 |
113.022 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
671.717 |
595.972 |
298.044 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
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784.739 |
708.994 |
411.066 |
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LOAN FUNDS |
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1] Secured Loans |
64.586 |
55.473 |
134.783 |
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2] Unsecured Loans |
67.493 |
65.541 |
67.061 |
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TOTAL BORROWING
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132.079 |
121.014 |
201.844 |
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DEFERRED TAX LIABILITIES |
6.637 |
4.609 |
6.064 |
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TOTAL
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923.455 |
834.617 |
618.974 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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433.823 |
451.590 |
280.952 |
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Capital work-in-progress
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0.370 |
0.000 |
0.000 |
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INVESTMENT
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132.223 |
0.982 |
3.161 |
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DEFERREX TAX ASSETS
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0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
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65.854
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62.939
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64.907 |
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Sundry Debtors
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185.550
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213.278
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119.715 |
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Cash & Bank Balances
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118.287
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89.849
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257.303 |
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Loans & Advances
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76.412
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123.173
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109.260 |
Total Current Assets
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446.103
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489.239
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551.185 |
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Less : CURRENT
LIABILITIES & PROVISIONS
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Current Liabilities
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63.059
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81.269
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203.449 |
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Provisions
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26.005
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25.925
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12.875 |
Total Current Liabilities
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89.064
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107.194
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216.324 |
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Net Current Assets
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357.039
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382.045
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334.861 |
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MISCELLANEOUS EXPENSES
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0.000 |
0.000 |
0.000 |
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TOTAL
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923.455 |
834.617 |
618.974 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
741.147 |
1064.699 |
450.057 |
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Other Income |
42.161 |
22.584 |
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Total Income |
783.308 |
1087.283 |
450.057 |
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Profit/(Loss) Before Tax |
134.877 |
134.175 |
49.775 |
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Provision for Taxation |
12.498 |
9.527 |
6.980 |
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Profit/(Loss) After Tax |
122.379 |
124.648 |
42.795 |
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Earnings in Foreign Currency : |
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Export Earnings |
0.701 |
16.676 |
20.721 |
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Software Earnings |
25.706 |
12.870 |
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Total Earnings |
26.407 |
29.546 |
20.721 |
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Imports : |
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Raw Materials |
234.375 |
280.195 |
257.373 |
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Traded Goods |
0.112 |
0.260 |
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Total Imports |
234.487 |
280.455 |
257.373 |
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Expenditures : |
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Material |
532.836 |
803.432 |
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Interest and Financial Charges |
8.024 |
11.301 |
400.233 |
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Depreciation & Amortization |
22.179 |
28.211 |
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Other Expenditure |
84.911 |
111.164 |
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Total Expenditure |
647.950 |
954.108 |
400.233 |
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SUMMARISED RESULTS
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PARTICULARS |
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31.03.2007 |
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Type |
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Full
Year |
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Sales
Turnover |
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819.600 |
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Other
Income |
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57.200 |
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Total
Income |
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876.800 |
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Total
Expenditure |
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742.700 |
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Operating
Profit |
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134.100 |
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Interest |
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14.000 |
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Gross
Profit |
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120.100 |
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Depreciation |
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23.500 |
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Tax |
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14.500 |
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Reported
PAT |
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81.800 |
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Dividend
(%) |
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|
200.000 |
KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
0.23 |
0.35 |
0.34 |
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Long Term
Debt-Equity Ratio |
0.12 |
0.21 |
0.24 |
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Current Ratio |
2.85 |
2.23 |
2.14 |
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TURNOVER RATIOS |
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Fixed Assets |
1.56 |
2.26 |
0.92 |
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Inventory |
12.80 |
17.95 |
8.63 |
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Debtors |
4.13 |
6.89 |
4.92 |
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Interest Cover
Ratio |
17.86 |
12.87 |
13.77 |
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Operating Profit
Margin (%) |
20.03 |
15.14 |
19.59 |
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Profit Before
Interest and Tax Margin (%) |
17.34 |
12.68 |
12.61 |
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Cash Profit
Margin (%) |
17.55 |
13.33 |
17.03 |
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Adjusted Net
Profit Margin (%) |
14.85 |
10.87 |
10.05 |
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Return on Capital
Employed (%) |
20.85 |
23.38 |
10.13 |
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Return on Net
Worth (%) |
21.93 |
27.06 |
10.81 |
STOCK PRICES
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Face Value |
Rs.10.00/- |
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High |
Rs.23.60/- |
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Low |
Rs.23.35/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Originally incorporated as Surana Petroproducts Pvt Ltd in
Aug.'89, Surana Telecom became a public limited company in Jul.'93. The company
acquired its present name on 5 Aug.'94. The company is promoted by G M Surana,
G P Surana, Narendra Surana and Devendra Surana. It belongs to the Surana group
of companies.
The company is engaged in the manufacture of heat-shrinkable jointing kits,
cable splicing/filling compounds, Jelly filled telecommunication cables, wire
connectors, end caps, modular connectors and HDPE pipes. Its products cater to
the telecommunication sector.
In Nov.'94, the company diversified into the manufacture of optical fibre
cables. It set up facilities with an installed capacity of 4000 FKM pa at the
existing premises at Cherlapally near
Company has plan to increase the installed capacity of Jelly Filled Telephone
Cables for improving sales & Profitability of company. Company has received
orders from PIJF cables for 220 Millions from DOT. Company has offered
14,00,000 Shares out of its Shareholding to Bhagyanager Metal Ltd for buyback
by company.
During the year 1999-2000, the Company has increased its installed capacity for
jelly filled Telephone Cable to 10 LCKM and the next phase of expansion to 12.5
LCKM is underway. The installed capacity of the Optic Fibre cable has also been
increased to 6000 Route Km, These expansions have been funded wholly out of
internal accruals.
The Company has applied to the Department of Telecommunications, for Licence
for providing Internet Services. The Company has entered into a memorandum of
understanding with Sriven Multitech Limited, for setting up a joint venture
company, for providing multimedia applications and broadband network of
touchscreen kiosks providing information and entertainment content.
The company is in the process of establishing a manufacturing facility at
The company has received fresh orders worth Rs.300 Millions for supply of Jelly
Filled Telephone Cables and Optical fibre Cables which has to be executed by
April 2005. The company has also moved into the Handheld segment and has
offered CDMA colour display handheld terminals to MTNL.STL is also setting up
facilities to manufacture switch mode power supply based battery chargers which
can increase the talk time by nearly seven times as against the conventional
battery in case of power failures.
The company is also entering into various products in the Broad Band Digital
Loop Carrier and shall be in the front end technology partner in the various
requirements of BSNL & MTNL.
BUSINESS:
The company is engaged in manufacturing and exporting of
jelly filled telecommunication cables, optic fibre cables, jointing kits,
optical testing and measurement instruments, etc.
The company has started trading in the CDMA and GSM handsets
and is now venturing into the areas of assembling and manufacture of the same.
The company have five units for production of different
products :
·
Heat Shrinkable Cable Jointing Kits
Division
·
Optical Fibre Cables Division
·
Jelly Filled Communication Cables
Division
·
Optical Fibre Test Instruments and Line
Equipment Division
·
Cable Filling Compound and Polythene
Compounds Division.
Awards
˜
Rolling Trophy for Best Internal Market
Development Effort
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Uttam Mukhya Karyanirvahak Award
1989-90, instituted by Press Guild.
˜
Best Export Award 1992, from Government
of Andhra Pradesh
˜
Jawaharlal Nehru Silver Rolling Trophy
for the Best All -Round Performance in
Industrial Activities, in the year 1994-95 from FAPCCI, Hyderabad, Andhra
Pradesh
The company's fixed asset of important value includes
freehold land, building, plant and machinery, office equipment, furniture and
fixture, vehicles and computers.
Product
- Jelly Filled
Communication Cables Division
- Heat
Shrinkable Cable Jointing Kits Division
- Optical Fiber
Division
- Optical Fiber
Cables Division
- Optical Fiber
Test Instruments & Line Equipment Division
- Multimedia
& Software Division
- Net Fone
(New)
- WLL CDMA
Digital Mobile Telephones
OPERATIONS:
The Sales and Other Income for the year stood at Rs.889.783 Millions as against
Rs.1191.726 Millions for the previous year and the Profit Before Tax for the
year was Rs 134.877 Millions as against Rs. 134.174 Millions for the previous
year.
NEW PROJECT INITIATIVES:
In order to sustain and further improve Profitability of the Company, the
Directors are pleased to inform you that, the Company has diversified into new
lines of activities as under :
POWER CABLES:
Company has started manufacturing XLPE and PVC Power Cables
up to 33 KV. The total investment outlay expected to be around Rs. 150 Millions
and the first phase of the Project is already being implemented and the Company
has started the production recently for manufacture of Power Cables upto 400
sq.mm and 1.1 KV capacity. The project also includes manufacture of AAC and
ACSR conductors. In view of impending reforms in Power Sector, the outlook of
the industry is very bright and the Directors are confident that the revenues
generated from the project will improve the profitability of the Company.
ELECTRONIC PARK AT MAHESHWARAM,
The Company has been allotted 2.5 Acres of land in
FUTURE PLANS:
The Company apart from positioning it self as strong Telecom Player in the Industry,
further it intends to diversify into the field of Electronics and Electrical
components .The Company is also planning to launch new products in tune with
market demand such as Broad Band ADSL2+, CPE Devices, smallest size PIJF for
Private Operators for Broad Band Net work, Quad Cables for Railways etc.
RESTRUCTURING:
The Directors recall the restructuring proposal of the Group Companies, which
was on the cards during the year under review, wish to inform you that the
draft Scheme of Reconstruction was filed with Bombay Stock Exchange Ltd., and
National Stock Exchange of India Ltd and the Company received an in-principle
approval from them. In view of the latest developments, the Directors feel it
to be appropriate to keep the Restructuring proposal on hold at present.
EXPORTS:
The Company made Exports on FOB basis to the tune of Rs.0.701 Millions and the
Software Exports to the tune of Rs.25.706 Millions during the year
2005-2006.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company has been incorporated to engage itself in manufacturing of Jelly
Filled Telecommunication Cables (JFTC), Optic Fiber Cables, Jointing Kits,
Optical Testing and Measuring Instruments etc., Assembling and Trading of CDMA
phones. The Company has recently started venturing into Infrastructure business
by investing in IT parks and Entertainment related Projects. The Company has
also expanded its activities to manufacture of Power cables.
The Telecom Services have been recognized the world-over as an important tool
for socio-economic development for a Nation. Telecommunication is one of the
prime support services needed for rapid growth and modernization of various
sectors of the economy. It has become especially important in recent years
because of enormous growth of information technology and its significant
potential for the impact on the rest of the economy. In the past decade or so
the distinction between communications & IT has been diminishing with
emerging common infrastructures blurring the differentiation between content
& carrier methods. At the same time, as has been the case in most of the
developed world, the combination of enhanced computing power and improved
telecommunications-equated by some to the introduction of steam power in the
18th century and electricity in the 19th, has spurred a major improvement in
the productive capacities of the economies.
DEVELOPMENT
The Telecommunication services in
The Financial year 2005-06 appears to be satisfactory as there is stability in
terms of turnover, profit, dividend etc., when compared to the previous
year.
Income from operations for the year stood at Rs.889.783 Millions as against
Rs.1191.726 Millions for the previous year. The Profit before tax for the year
was Rs.134.877 Millions as against Rs.134.176 Millions for the previous
year.
OPPORTUNITIES
The entire Telecom sector is now open to unrestricted competition in all
segments except cellular services where spectrum is a limiting factor. The
reforms process in the telecom sector is still on, aiming to remove the balance
hurdles and limitations. One such hurdle is ensuring expansion of sustainable
connectivity in rural areas. To encourage rural telephony, the government has
set up a universal service fund earlier. Broadband policy has been announced
with a view to providing better quality of services. One of the aims of this
policy is to make rural connectivity remunerative and sustainable which may
give ample opportunity for the Company.
Teledensity per hundred population has grown from 7.08 in March 2004 to 8.95 in
March 2005 and to a level of 12.74 in March 2006. Fully automatic International
Subscriber Dialing (ISD) service is available to almost all the countries. The
total number of stations connected to National Subscriber Dialing (NSD) is over
31,686. The growth in rural demand has outstripped urban demand with telecom
penetration in villages increasing in multiples. Higher telecom dispersal is
indicative of reduced economic disparities, experts point out.
Since beginning of the Ninth Plan, the telecom services have registered a
consistently high growth rate of more than 20 percent per annum. The robust
private sector participation has resulted in unprecedented growth in the
cellular and WLL services. The growth of network has been very encouraging but
still a lot need to be done so that
Government initiatives on power sector reforms have resulted in an increase in
demand for power related products, including cables. Presently the power
shortage in
Keeping the high demand for the Power Cables in the market and availability of
required resources coupled with optimal utilization of existing facilities,
Company started manufacturing Power Cables
A couple of years back it is found that the Real Estate / Infrastructure
business has tremendous potential for growth and it can become a source of
continuous revenue generation to the Company. The Company started to invest the
surplus liquidity in acquiring real estate and infrastructure related projects.
Presently, the Company is planning to expand its activities into the areas of
IT Parks, SEZ's and other industrial and infrastructure ventures. Wherever
found appropriate opportunities, Company is ready to enter into joint ventures,
agreements etc., and formulate the strategies.
The overall strategy of the Company is consolidation and diversification in the
core area of operation. Strategies are formulated keeping in view the
opportunities in the concerned area of operation.
The Company is carrying out Research and Development in the areas of
manufacture of smallest size PIJF Cables for supply to Private Operators for
Broad Band Network, Quad Cable for railways and Cable Assembly to Automobile
Sector. The Company is now looking for newer areas like automobile, railway
signaling etc., for different varieties of Cable requirements therein including
the manufacture and supply of CPE(Customer Premises Equipment) and related
Technical Support Services to the Telecom Sector.
OUTLOOK:
The upward trend in the subscriber base witnessed in the whole year 2004 is
expected to continue in long run. This would largely be driven by mobile
segment. Growth will come from increased penetration in the largely untapped
rural areas . Further decline in ADC and cut in license fees would also
accelerate growth, as the benefit would be passed on the to the consumers which
in turn influence the telecom industry's future in the country positively the
demand for Telecom related products is based on the positive growth in the
Telecommunication Sector.
The Telecom equipment-manufacturing sector in
New
Project Investments
The
Company acquired a land measuring 2.5 Acres at
a
consideration of Rs. 10.117 Millions for its Industrial Infrastructure
Development Activity. The Company has already taken possession of the same
pending Conveyance. As on 31st March 2006 the liability of Capital Commitment
on this activity is Rs. 0.656 Millions towards Registration Charges, which is
subsequently paic in April 2006. The addition is shown in the Schedule V of
Financial Statements.
AS PER
WEBSITE
Communication systems have revolutionized the way the global
economy works. Starting with the traditional means of communication, the
telephone lines to the Internet and the current phenomenon, mobile telephony,
the needs of this sector have both changed and increased manifold. The Indian
telecom sector has matched this worldwide manifestation stride for stride and
has clocked an annual growth rate of over 20% in the five decades since
independence. The Suranas recognized the growth potential in this sector as far
back in 1989. Since its inception in 1989, the company has steadily forged
ahead both in terms of technology and profitability. A massive turnover of over
Rs.860 million in 2000-2001, brought in close to Rs.93 million as profits which
meant a 15% dividend rate and an earning per share of Rs.15, not a mean
achievement by any standards! Today, the company can lay claim to being one of
the foremost producers of Optic Fiber Cables in the country. The emphasis on R
& D, quality and product customization to industry requirements has ensured
that Surana Telecom is a major contributor of critical components for the
Indian Telecom Sector. Flagging off with the Heat Shrinkable Cable Jointing
Kits Division, the company is today a name to reckon with in the niche Optic
Fiber Cables market. The company is making a phenomenal contribution both in
terms of technical expertise and productive excellence to foster the rapid
improvement of the country's communication networks.
- JELLY FILLED
COMMUNICATION CABLES DIVISION
Recognizing
the requirement and need for this product, especially in BSNL &
Railways,the company
undertook to produce Jelly Filled Cables through an auxiliary unit with a
capacity of 3 million CKM.
- HEAT
SHRINKABLE CABLE JOINTING KITS DIVISION
Extensive
R&D and technological integral has led to this unit becoming entirely
self-sufficient today. An annual production capacity of 6,00,000 kits that have
found markets in Europe and South East Asia has put Surana on top of the heap
of manufacturers in this sector. Equipped with the most modern and sophisticated
plant supplied by German centers of excellence, the company has been successful
in totally indigenising the manufacturing process and is instrumental in saving
upwards of USD 1 million in precious foreign exchange every year.
- OPTICAL FIBER
DIVISION
With
the present trend of rapid technological upgradation in the Telecommunication
Sector. Optical Fiber Cable is playing a key role in the communication network.
In order to meet this new challenge, Surana group is proposing to enhance its
production capacity of Optical Fiber (which is the main raw material for
manufacture of Optical Fiber Cables) at Hyderabad, under Backward Integration
Plan with an annual capacity of 2.5 lac kilometers initially, with Optical
Fiber Drawing Tower equipment from KOBELCO of Japan.
- OPTIC FIBER
CABLES DIVISION
The futuristic vision of the Surana group led to the
establishment of this division which today is the preferred supplier for BSNL
and Indian Railways. A sophisticated plant equipped with state-of-the-art
equipment from ROSENDAHL-KOBELCO helps the division produce 6000 route Km of
6,12,24 fiber optic cables and accessories such as branch closures, optical
fiber termination boxes and tool kits.
- OPTICAL FIBER
TEST INSTRUMENTS & LINE EQUIPMENT DIVISION
Experts have estimated the Indian telecom market at Rs.4000
million by the year 2002 with Optical Fiber playing a catalyst's role by
escalating at the rate of 15% per annum. A high-tech plant to produce
ultra-sensitive testing and measuring instruments for Fiber Optical Networks
has been planned.
- MULTIMEDIA
& SOFTWARE
Surana
Telecom Ltd. has made a modest beginning by establishing a Multimedia &
Software Division, in the present scenario of extensive usage of Audio and Video
in day-to-day life. Surana Telecom Ltd. has established a Channel Network
covering several towns in
Press
Release:
SURANA TELECOM LIMITED
Press Release 31 st March, 2005,2005
Surana Telecom Limited, an ISO 9001-2000 certified Telecom Company
engaged in manufacturing of Optic Fibre Cables, Telecommunication Cables,
Jointing Kits and Measuring Instruments etc., CDMA Phones & its
accessories, diversified into infrastructure Business by investing in IT Parks
and Entertainment related projects.
The Board of Directors of the Company at their Board Meeting held
at
The Income from Operations for the year ended 31.03.2005 is
Rs.1146.704 Millions as against Rs.425.762 Millions for the corresponding
previous year indicating a growth of 169 %
The Profit Before Tax for the year ended 31.03.2005 is Rs.134.176
Millions as against Rs.49.775 Millions for the previous year end indicating a
growth of 170 %
The Profit After Tax for the year ended 31.03.05 is Rs.124.649
Millions as against Rs.42.795 Millions for the corresponding period in the
previous year indicating a growth of 191 %.
Earnings Per Share for the year ended 31.03.2005 is Rs.5.52 for
Face Value of Rs.5/- as against Rs.3.79 per share for Face Value of Rs.10/-.
The Board of Directors have recommended Dividend @ 20% for the
year 2004-05 on the paid up capital of the Company which is double when
compared to the previous year Dividend.
The Board of Directors at their Meeting also considered the
proposal of restructuring the Company's Business in order to give adequate
focus to the Telecom and Infrastructure businesses there by positioning the
Company as Telecom Co, creating Strong market capitalization thereon.
The Board of Directors also considered the proposal of Issue of
Partly Convertible Securities/ Preferential Issue of Shares and authorized
Shri.Narender Surana, Managing Director and Shri Devendra Surana, Director of
the Company to initiate further steps in accordance with the statutory
requirements.
NARENDER SURANA
MANAGING DIRECTOR
Press Release 19th January,2005
Surana Telecom Limited an ISO 9001-2000 Certified Telecom
Company engaged in manufacturing of Optical Fiber, Jelly Filled Cables and CDMA
phones and accessories, at the meeting held at Hyderabad by the Board of
Directors on 19th January 2005 adopted the Un-Audited Financial Results of the
Company for the quarter ended 31st December 2005.
The Income from operations for the quarter ended 31st December
2004 is Rs.157.141 Millions as against Rs.45.372 Millions for the corresponding
period in the previous year indicating a growth of 246.34%
The Profit before tax for the quarter ended 31st December 2004 is
Rs.44.147 Millions as against Rs.6.813 Millions for the corresponding period in
the previous year indicating a growth of Rs.547.98% .
The Profit after tax for the quarter ended 31st December, 2004 is
Rs.41.559 Millions as against Rs.5.213 Millions for the corresponding period in
the previous year indicating a growth of 697 %
Earning Per Share for the quarter ended 31st December 2004 is
Rs3.68 as against Rs0.46 per Share for the corresponding period in the previous
year indicating a growth of 7 times.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.38 |
|
|
1 |
Rs.81.88 |
|
Euro |
1 |
Rs.55.52 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
44 |
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 |
|