MIRA
INFORM REPORT
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Report Date : |
01.06.2007 |
IDENTIFICATION DETAILS
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Name : |
MOSER BAER INDIA LIMITED |
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Registered Office : |
43A, Okhla Industrial Estate, |
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Country : |
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Financials (as
on) : |
31.03.2006 |
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Date of Incorporation : |
21.03.1983 |
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Com. Reg. No.: |
55-15418 |
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CIN No.: [Company Identification No.] |
L51909DL1983PLC015418 |
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TAN No.: [Tax Deduction & Collection Account No.] |
DELM08254B |
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PAN No.: [Permanent Account No.] |
AAACM0322J |
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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 CDR, CDRW, DVDRW, Micro Floppy Diskettes, Audio-Video tape. |
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 80000000 |
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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 company having fine track. Directors are reported as experienced, respectable and resourceful industrialists. Their trade relations are fair. Financial position is good. Payments are usually correct and as per commitments. The company can be considered for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
43A, Okhla Industrial Estate, |
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Tel. No.: |
91-11-51635201/02/03/04/05 |
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Fax No.: |
91-11-51635211 |
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E-Mail : |
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Website : |
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Plant Location: |
Tel. No. : 91-120-2567023-25 Fax. No. : 91-120-2562117
Pradesh Tel. No. : 91-120-2460800
Tel. No. : 91-120-2567023-25 Fax No. : 91-120-2562117
Tel. No. : 91-120-2521662
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Branch Office : |
Mumbai Office:
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International Offices : |
Taiwan: US West Coast: |
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Affiliate
Offices (International) |
Europe: US East Coast:
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DIRECTORS
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Name : |
Mr. Deepak Puri |
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Designation : |
Chairman and Managing Director |
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Address : |
A-187, New
Friends Colony, |
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Date of Birth/Age : |
64 years |
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Qualification : |
B.Sc. Hons (Maths), B.Sc (Mechanical Engineering) |
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Experience : |
22 years |
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Name : |
Mr. Ratul Pari |
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Designation : |
Director |
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Address : |
A-187, New
Friends Colony, |
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Date of Birth/Age : |
33 years |
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Qualification : |
Bachelor’s degree in Maths and Computer Science. |
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Experience : |
4 years |
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Name : |
Mr. Harnam D. Wahi |
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Designation : |
Director |
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Address : |
M – 95, Greater
Kailash, Part – 1, |
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Date of Birth/Age : |
79 years |
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Qualification : |
Bachelor of Arts, |
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Experience : |
13 years |
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Name : |
Mrs. Nita Puri |
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Designation : |
Director |
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Address : |
A-187, New Friends
Colony, |
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Date of Birth/Age : |
59 years |
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Qualification : |
B.Ed. |
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Experience : |
22 years |
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Name : |
Mr. Prakash Karnik |
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Designation : |
Director |
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Address : |
902, Glen Eagle, G. D. Ambedkar Marg, Mumbai – 400012 |
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Date of Birth/Age : |
53 years |
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Qualification : |
B.Tech from
Indian Institute of Technology, Diploma in Systems Management from |
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Experience : |
7 years |
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Name : |
Mr. Rajesh Khanna |
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Designation : |
Director |
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Address : |
11, |
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Date of Birth/Age : |
40 years |
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Qualification : |
B.Com from Chartered Accountant and MBA from IIM, Ahmedabad. |
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Experience : |
5 years |
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Name : |
Mr. Bernard Gallus |
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Designation : |
Director |
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Address : |
C/Del Rio
Escalona 9 E-03739 Javea/Alicante |
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Date of Birth/Age : |
73 years |
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Qualification : |
1.
2.
Course
Intercedes Course Suisse de Director d’ Enterprises |
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Experience : |
18 years |
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Name : |
Mr. Arun Bharat Ram |
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Designation : |
Director |
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Address : |
1, |
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Date of Birth/Age : |
65 years |
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Qualification : |
Graduate in
Industrial Engineering from |
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Experience : |
3 years |
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Name : |
Mr. John Levack |
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Designation : |
Director |
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Address : |
1110, Jardine
House, 1, |
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Date of Birth/Age : |
47 years |
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Qualification : |
Degree in
Business Administration from |
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Experience : |
2 years |
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Name : |
Minni Katariya |
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Designation : |
Director |
SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group |
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Indian |
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Individuals/Hindu Undivided Family |
10,353,208 |
9.28 |
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Foreign |
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Individual (Non-Resident Individuals/Foreign
Individuals) |
7,926,886 |
7.11 |
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Public shareholding |
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Institutions |
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Mutual Funds/UTI |
1,498,071 |
1.34 |
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Financial Institutions/Banks |
98,510 |
0.09 |
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Insurance Companies |
18,411 |
0.02 |
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Foreign Institutional Investors |
26,188,394 |
23.48 |
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Anyother |
10,894,483 |
9.77 |
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Non-institutions |
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Bodies Corporate |
5,477,249 |
4.91 |
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Individuals - |
5,931,187 |
5.32 |
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ii. Individual shareholders holding nominal share
capital in excess of Rs. 0.100 Millions |
1,931,263 |
1.73 |
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Any Other |
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(i) Foreign Nationals |
2 |
0.00 |
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Shares held by Custodians and against which Depository
Receipts have been issued |
4,750,000 |
4.26 |
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TOTAL |
111,513,444 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of CDR, CDRW, DVDRW, Micro Floppy Diskettes, Audio-Video tape. |
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Products : |
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Brand Names : |
"Xydan" |
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Exports : |
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Countries : |
U.S.A., UAE, Germany, Luxemburg, Australia, Poland, Italy,
Korea, Russia, Singapore, Spain, The Netherlands, Brazil, Finland and Angola |
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Imports : |
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Countries : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Storage Media |
(Nos.) |
2125820000 |
1608396069 |
GENERAL INFORMATION
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No. of Employees : |
5013 |
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Bankers : |
Ř State Bank of Bikaner & Jaipur Ř State Bank of Travancore Ř
State Bank of Saurashtra, Ř
Indian Bank, P 45/70, Ř
State Bank of |
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Facilities : |
-- |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
K. C. Khanna & Company Chartered Accountants |
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Memberships : |
Confederation of Indian Industry |
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Associates : |
Ř
Global Data Media FZ-LLC, P. O. Box No.
500289, Line of Business : Storage Media Ř
European Optic Media Technology GmbH,
Mainzerhofstrase 12, 99084, Line of Business : Storage Media |
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Subsidiaries : |
Ř
Glyphics Media inc |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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142,500,000 |
Equity Shares |
Rs. 10/- each |
Rs. 1425.000 millions |
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750,000 |
Preference Shares |
Rs. 10/- each |
Rs. 75.000 millions |
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Total |
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Rs. 1500.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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111,510,000 |
Equity shares |
Rs. 10/- each |
Rs. 1115.100 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 |
1115.100 |
1115.100 |
1115.129 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
18933.400 |
18832.400 |
18352.371 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
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20048.500 |
19947.500 |
19467.500 |
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LOAN FUNDS |
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1] Secured Loans |
16465.400 |
16037.900 |
14387.677 |
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2] Unsecured Loans |
89.300 |
168.300 |
132.167 |
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TOTAL BORROWING
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16554.700 |
16206.200 |
14519.844 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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Deferred Credit Liabilities |
0.000 |
0.000 |
345.144 |
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Share Warrants-
fully convertible |
0.000 |
0.000 |
181.440 |
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TOTAL
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36603.200 |
36153.700 |
34513.928 |
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APPLICATION OF
FUNDS
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FIXED ASSETS [Net
Block]
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24319.300 |
24471.700 |
22686.556 |
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Capital
work-in-progress
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1279.500 |
418.300 |
875.651 |
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Incidental
Expenditures
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0.000 |
0.000 |
4.861 |
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INVESTMENT
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879.500 |
2075.200 |
524.469 |
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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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4469.900 |
3435.400 |
1984.976 |
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Sundry Debtors
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3798.900 |
3315.400 |
3059.948 |
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Cash & Bank
Balances
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2837.200 |
4589.900 |
7944.656 |
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Loans &
Advances
|
1661.600 |
2029.100 |
781.489 |
Total
Current Assets
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12767.600 |
13369.800 |
13771.069 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
2370.700 |
3937.200 |
3075.359 |
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Provisions
|
272.000 |
244.100 |
273.319 |
Total
Current Liabilities
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2642.700 |
4181.300 |
3348.678
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Net Current Assets
|
10124.900 |
9188.500 |
10422.391 |
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MISCELLANEOUS
EXPENSES
|
0.000 |
0.000 |
0.000 |
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TOTAL
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36603.200 |
36153.700 |
34513.928 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover
[including other income]
|
18490.600 |
15076.600 |
15571.395 |
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Profit/(Loss)
Before Tax
|
39.600 |
302.400 |
3626.467 |
Provision for
Taxation
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(7.100) |
304.800 |
49.213 |
Profit/(Loss) After
Tax
|
46.700 |
607.200 |
3577.254 |
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Export Value
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NA |
NA |
12347.425 |
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Import Value
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NA |
NA |
11430.983 |
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Total Expenditure
|
14348.000 |
14446.100 |
11944.928 |
SUMMARISED RESULTS
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PARTICULARS |
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31.03.2007 |
|
Type |
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Full
Year |
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Sales
Turnover |
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19819.100 |
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Other
Income |
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|
793.400 |
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Total
Income |
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|
20612.500 |
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Total
Expenditure |
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|
14590.300 |
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Operating
Profit |
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|
6022.200 |
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Interest |
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|
1244.900 |
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Gross
Profit |
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|
4777.300 |
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Depreciation |
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|
3578.700 |
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Tax |
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|
12.000 |
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Reported
PAT |
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|
1097.900 |
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Dividend
(%) |
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|
150.000 |
KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt
Equity Ratio |
0.82 |
0.78 |
0.85 |
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Long
Term Debt Equity Ratio |
0.81 |
0.77 |
0.74 |
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Current
Ratio |
3.25 |
3.06 |
2.05 |
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TURNOVER
RATIOS |
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Fixed
Assets |
0.52 |
0.46 |
0.67 |
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Inventory
|
4.38 |
4.99 |
10.58 |
|
Debtors |
4.87 |
4.26 |
5.43 |
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Interest
Cover Ratio |
1.04 |
1.41 |
6.23 |
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Operating
Profit Margin (%) |
23.92 |
28.53 |
41.76 |
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Profit
Before Interest and Tax Margin (%) |
5.63 |
7.68 |
27.38 |
|
Cash
Profit Margin (%) |
18.56 |
25.34 |
34.90 |
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Adjusted
Net Profit Margin (%) |
0.27 |
4.49 |
20.52 |
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Return
on Capital Employed (%) |
2.68 |
2.96 |
15.09 |
|
Return
on Net Worth (%) |
0.23 |
3.08 |
20.93 |
LOCAL AGENCY FURTHER INFORMATION
History:
The company was incorporated on 21.03.1983 at
The company now shifted from 63, Ring Road, Lajpat Nagar - III, New Delhi - 110 024, India to 43A, Okhla Industrial Estate, New Delhi – 110 020, India.
Incorporated in March 1983 as a private limited company and
was converted into a public limited liability company in September, 1996. It
was promoted by Mr. Deepak Puri and Mrs. Nita Puri. The company manufactures
storage media for data applications and audio/video applications. Today the
company is
The company has established itself as a leading exporter of
5.25 floppy diskettes, in technical collaboration with XYDEX Corporation,
The company also entered into R&D tie up with 4M Technologies. The R&D will focus on developing newer, faster and more reliable CD-ROM products, improving existing CD-ROM process to reduce manufacturing cost and developing new high density storage formats for both digital versatile CD (DVD-R) and higher density DVD formats.
The company acquired Capco
During 2001-02 CAPCO
During the year 1998-99, there was an incidence of fire at one of the company's facilities. Due to the presence of an emergency and disaster management plan and adequate fire fighting and other resources this fire was brought under control. Due to efforts put in by the company's employees and continuous implementation of the recovery plant, the facility restarted operations with a minimum loss of production.
During the year 2001-02 Capco SA of
The company entered a
global strategic tie-up with Imitation Corporation,
The company has joined hands with the Indian
The company has expanded the installed capacity of Storage
Media during the FY 2004-05 by 548.000 millions and this expansion the total
capacity of the product has risen to 3612.500 millions (Nos.). Further the
company has began its production and shipment of Light Scribe – enabled media
in collaboration with Hewlett – Packard. During the year the company has
established its subsidiary in
The company will invest US$ 105 million to increase its disk production capacity form 2.4 billion to to over 2.8 billion deices annually, during 2005-06.
Operations:
Revenues for FY '06 stood at Rs.17026.01 million,
profit before depreciation, interest and tax, but after prior-period items
stood at Rs.4142.62 million, and profit after tax was Rs.46.66 million.
Subsequent to the difficult market environment prevalent over the past two
years, the global optical storage media industry is now on a steady path to
recovery, driven by consolidation of capacity, continued growth in consumer
demand and signs of softening of prices for key inputs.
The Company witnessed a turnaround in the last two quarters of the FY '06 as it
continued its efforts to gradually revert to normal levels of operational &
financial performance. Continuing strong growth in demand for DVD's and a
stable market for CD's combined with consolidation helped create a more
favorable environment during the progress of the year.
Market environment and outlook:
Industry Outlook:
In 2006, Strategic Marketing Decisions (SMD) estimates that global demand for
CDR/RW will remain almost flat as compared to 2005, at 13 billion units, Where
as the European and US markets will show a marginal decline in demand, rapid
growth in the Asian, Latin American, Indian and Chinese markets will offset
this demand decline. In the near term, new corporate applications and emerging
segments like the printable media and Light Scribe will ensure steady growth in
the CDR/RW space.
Global CDR/RW supply continues to consolidate through capacity conversions and
closure of inefficient capacities. This is helping the CDR/RW demand-supply
balance to return to equilibrium, thereby providing a stimulus for firm CDR/RW
prices on the medium term.
DVDR demand is rapidly growing on a global basis, and is expected to touch 6.4
Billion in 2006, as compared to 3.9 Billion in 2005, an increase of 64%. This
demand growth is expected to continue over the next few years, until the next
generation formats (Blu-ray disk and HD - DVD) start to gait a mass market
acceptance.
Next generation optical media formats halve tire potential to provide a price-value
proposition to consumers which could be extremely difficult for alternate
technologies to meet. Over the long terra, these formats could evolve to store
100GB of data at a price equivalent to current retail price of DVDR/RW format.
While BMD expects 2007 to be the first big year for blue laser based
technology, the race has already begun,
Market
development:
For the last few years, the Company has been evaluating various business
opportunities for diversification and broadening its product portfolio. With an
eye to expand the existing market, the Company has started focusing on
value-added products to drive an expansion in margins. As the Company sells
predominantly to OEM customers, who source their products on a global basis,
individual market changes have a lesser impact on the Company's operations. The
share of outsourced volume from an OEM customer has a greater impact on the
Company's operations and, hence the Company's focus is to increase the share of
a customer outsourcing its requirements.
In their coal of maintaining a first to market position the Company introduced
a number of new products during the year, including 16x DVD+/-R disks, 1x/2.4x
Dual Layer disks, 8x DVD +RW disks. These product introductions combined with
continuing growth in the `Wallet share' of existing customers, and new customer
acquisitions allowed the Company to increase it's market share significantly in
the DVDR area.
Over the past three years, the Company has invested significantly in its
R&D programs targeted at developing next generation formats in the optical
media space by leveraging its core skills in base material engineering, thin
film coating, precision sputtering arid deep UV mastering technologies.
Starting from the first quarter FY07, the Company playas to launch a series of
next generation formats, in conjugation with drive and recorder availability,
and expects to be first to market in a majority of these formats. The four
products which they believe will have a significant market potential in the
future are 3x DVDR Dual Layer, ND DVDR (recordable) and RE (re-writable), HD
DVD Dual layer, and Blu-ray Disk (BD)-R and RE.
New projects:
During FY06, the Company spent Rs.3681 Million (USD 87 million) to expand
capacity to 2.8 billion units per annum. A majority of these investments were
made in the DVD format and in next generation technologies to maintain their
leading position in the marketplace.
Photovoltaic (PV)
Cell project:
In October 2005, the Company announced plans to enter the high-growth
Photovoltaic (PV) business. With an initial project cost of Rs.2600 Million
(USD 58 million), the Company is targeting a capacity of 80 MW by year 2007.
This project is on a fast track to implementation and will be executed in Miser
Baer Photo Voltaic Ltd., which has already been established and capitalized.
The contracts for supply of some equipment and technology for cell and module
making have already been executed. The company has also secured part of its
short-term requirements of raw materials and is working towards closing its
medium to long term sourcing agreements.
Subsidiary Companies:
During the financial year, two companies, Moser Baer Photo Voltaic
Limited and Moser Baer SEZ Developer Limited were incorporated as the Company's
100% subsidiaries. While Miser Baer Photo Voltaic Limited has been established
with the objective to develop, manufacture arid market photo voltaic cells,
modules and systems, Moser Baer SEZ Developer Limited has been set up with the
objective to carry on the activity of establishing, developing, maintaining and
operating Special Economic Zones for non-conventional energy.
(Further, the Company's thirst subsidiary, namely European Optic Media
Technology GmbH (Europtic) has been established in
As required under Section 212 of the Companies Act, 1956, the audited accounts
Maser Baer Photo Voltaic Limited for the period 7 December, 2005 to 31 March,
2006 and the audited accounts of European Optic Media Technology GmbH for the
financial year 2005-06 are annexed herewith along with the Auditors' Reports
thereon and the Directors' Reports thereto, together with a statement of the
Company's interest in the said subsidiary Companies.
The first financial year of Moser Baer SEZ Developer Limited, which was
incorporated on 20 February, 2006 and received its Certificate for Commencement
of Business on 25 April, 2006, will end on 31 March, 2007. Thus, its audited
accounts will be included in next year's Annual Report.
Foreign exchange earnings and outgo:
Total foreign exchange earned comprising off FOB value of exports, services,
interest, insurance claim received and dividend received was Rs.14094.74
million, whereas total foreign, exchange used (comprising of CIF value of
imports, dividend remitted and other outgoings) was Rs.13790.15 million. For
and on behalf of the Board of Directors
MANAGEMENT DISCUSSION AND ANALYSIS
Overview:
The year 2005-06 (FY06) has been one of challenge achievement and change. The
company emerged stronger from the difficult industry conditions prevalent over
the last 18 months, which led to a global consolidation of capacities.
Over the past year, the Company has focused its efforts to improve its
manufacturing and supply chain efficiencies, drive R&D and engineering
programs to improve the product and service offerings that they bring to
customers.
This enabled us to offer value added products to their increasing global
customer base of technology OEMs, achieve record level of product shipments,
surpass quality benchmarks and achieve a possible 'first to market' position in
the next generation global formats - the blue laser based Blu-ray disc (BD) or
High Density DVD (HD DVD). Over the next few yearns, they believe that the
company is wall positioned to further enhance their global leadership position
in Optical Media industry.
In line with a long term strategy of creating a multi business - technology led
trans national, the company announced plans to enter the global Photo Voltaic
(PV) industry. The new business has been identified as technology driven,
poised for extraordinary growth and leveraging the company's core strengths in
fine/wet chemical processing, thin film coating, mass manufacturing, and rapid
technology commercialization c& project execution. The PV business is
significantly less capital intensive compared to optical media business and
should contribute to improving overall returns on invested capital.
The company aims at emerging as a key player in this `environment friendly'
alternative energy technology, and to spur reduction of PV cell costs through
innovation in technology and manufacturing to emerge amongst the most efficient
PV cell manufacturers in the world.
The cornerstone for sustaining global leadership and success in the optical
media and PV business will be the company's ability to break barriers on the
operating and technology front.
Global Industry Developments:
Following the difficult industry environment over
the past 18 months which adversely impacted the operating performance of
manufacturers, the global optical storage media industry started on a steady
path to recovery in 2005-06, driven by global consolidation of capacity,
continued growth in consumer demand and signs of softening of prices for key
inputs.
Channel inventories depleted as the industry moved towards better demand supply
balance, accompanied by strong volume growth, with DVDR being the growth
leader. While capacity conversion resulted in firming of CDR prices inter in
the year, DVD prices started following the manufacturing cost curve as the
product attained maturity.
The price of polycarbonate (PC) remained a key factor in driving significant
increases in the input costs for the industry. A sharp rise in global PC prices
severely impacted industry's operating performance. The PC price curve started
to ease from the second half of 2005-06, which should positively influence the
industry in the near term.
The year 2005-06 saw DVDR/RW format emerge as a 'format of choice' for the
consumer, driven by increasing drive penetration and improving price-value
proposition, to grove to 3.0 billion disks in 2005, a 105% growth over the
previous year. Meanwhile global CDR/RW supply continues to consolidate through
capacity conversions and closure of inefficient capacities around the world.
This helping CDR/RW demand-supply balance return equilibrium with global demand
estimated to be 13.6 billion disks in 2005, according to Strategic Marketing
& Decisions (SMD) estimates.
SMID expects global demand for optical media to grow from 17 billion units per annum
in 2005 to 27 billion units per annum by 2006, driven by robust growth in
DVDR/RW formats and stability in CDR/RW. Companies should also start shipping
DD/HD DVD media during 2006.
Product-wise Analysis and Outlook:
CDR/RW:
Global CDR/RW supply continues to consolidate through capacity conversions into
DVDR/RW and closure of inefficient capacities around the world. This is helping
CDR/RW demand-supply balance return to equilibrium, thereby providing a
stimulus for firm CDR/RW pricing environment in the medium term.
Strategic Marketing & Decisions (SMD) estimates global demand for CDR/RW
formats to remain around the level of 13 billion units per annum over the next
couple of years. Consumer demsnd for CDR/RW format continues to grow in As.an
and Middle Eastern markets. There are also certain emerging corporate
applications arid niche segments like the printable media and LightScribe,
which are seeing a rapid growth in the CDR/RW space. The legacy of CD-Audio
disc players and writers will also help extend the CDR/RW life cycle.
DVDR/RW:
DVDR/RW drives are fast becoming a part of standard
product offerings, increasing their penetration rates and growth in the
installed base of drives. As per SMD, DVD-enabled drive sales represented
nearly 75% of all optical drives sold in 2005 and the DVDR/RW writer base is
expanding at over 60% p.a. The growth is being driven by proliferation of new
drives and new users with CE devices (DVD VCR, Camcorder) becoming major
consumers of medla. SMD expects shifting consumer preferences, increasing drive
penetration and improving price value proposition to grow the demand for
DVDR/RW media to over 5 billion disks per annum in 2006 from 3.0 billion disks
in 2005, with 16x media emerging as the dominant variant.
Delayed launch of Blue-laser based formats (BID & HD DVD) should lead to a
larger than expected installed base of DVDR/RW drives and an extension in
lifecycle for DVD-formats. As DVDR/RW manufacturing technology matures and as
format writing speed stabilizes, the DVDR/RW pricing is expected to follow the
manufacturing cost curve in the medium term, which should further aid volume
growth.
Financial Highlights:
Gross revenue for FY 2006 at INR 17319.1 million is an increase of 28.0% over
FY 2005, representing the recovery in volumes and impact of expanded capacity
during the year.
EBITDA (including other income) at INR 4136.0 million grew by 5.6% over FY
2005.
Operating performance turnaround from Q2 of FY '06 as industry variables
started to improve and as company's various programmes on efficiency
improvement were implemented.
The company achieved a profit after tax (including deferred tax impacts) of INR
46.7 million in FY 2006.
Moser Baer - Developments FY 2005-06:
During the year, the company significantly enhanced its position in the global
optical media industry, and emerged against the three largest producers across
both the DVD and CD formats. The company now supplies to all the top twelve
leading technology OEMs in the world. The company has also strengthened its
position in the domestic-market by expanding its market reach and brand
awareness.
During the year, the company continued its efforts to gradually revert to
normal levels of operational & financial performance. The steady
improvement in market conditions and their increasing order books enabled us to
achieve record levels of optical media shipments in FY 2006.
Despite the short term turbulence of the past years, the company remains
positive on the long term potential of the optical media industry, the company
expanded its capacity from 2.4 billion units per annum to 2.8 billion units
during the year.
During 2005-06, DVDR/RW shipment volumes grew at a fast clip, while a sharp
recovery in GDR/RW shipments - in line with their expectations, particularly
during the second half of the year, attributed to a robust growth in optical
media shipments during the year. Overall shipment volumes rose 14%, with
DVDR/RW contributing to as a significant part of the increase.
The Indian market remains one of the fastest growing
markets in the world. During the year, the company continued its efforts to
emerge as a dominant player in this key market with its Moser Baer IRO range of
products. The brand has now grown to capture over 50% market share of the
domestic branded market.
The company spends around 2.1% of its revenues on pure optical media research
and engineering. The multi-pronged approach to R&D at their world class
research labs at Noida and Greater Noida has enabled us to sustain their
competitive edge over the years.
The company continues to drive extensive cost reduction programs, with a focus
on DVD formats, resulting in increasing manufacturing efficiencies.
They have been able to research design arid co-develop equipment which improves
products yields, enabling us to re-set benchmarks for manufacturing costs and
efficiencies.
In a fast evolving market landscape and increasing competition, companies will
increasingly use technology to differentiate themselves and net only launch
innovative products, but also do so through more efficient manufacturing. The
company has embarked on a strategy to transform into a technology developer and
innovator. This should widen the gap between the company and second-tier players.
With proprietary technology and a possible first to market position in the next
generation formats, the company is well placed to further enhance its global
leadership.
Next Generation Formats:
With the phased introduction of high-definition television (HDTV) broadcasts
and increasing emergence of hardware supporting high-definition content, the
variables exist fair introduction of next generation of mass storage media. The
race is already on to successfully develop and commercialize the next generation
format in the industry, namely the BD or the HD DVD. SMD believes that it is
the Blue Laser technology (BD & HD DVD) that has the potential of
significantly mitigating the impact of possible cannibalization of optical
media demand by emerging alternate technologies in the long term. The next
generation optical media formats have the potential to provide a price-value
proposition to consumers which could be extremely difficult for alternate
technologies to meet. Over the long term these formats could evolve to store
100 GB of data at a price point equivalent to current retail price of DVDR/RW
format. While SMD expects 2007 to be the first big year for blue laser based
technology, the race has already begun.
Over the past three years the company has invested significantly in its
research and development programs targeted at developing next generation
formats in optical media space by leveraging its core skills in base material
engineering, thin film coating, precision sputtering and deep UV mastering
technologies. Starting frown 2Q FY '07, the company plans to launch a series of
next generation formats, in conjugation with drive and recorder availability,
and expects to be first to market in a majority of these formats. The four
products which they believe will have a significant market potential in the
future are DVDR Dual Layer, HD DVD (recordable) and RE (re-writable), HD DVD
Dual layer, and BD-R and RE.
The company has developed a unique technology specifically for advanced
generation of BD formats which will not only enable lower manufacturing costs,
but also allow the consumer greater ease of interchangeability of media across
different drives. This is expected to give us a significant competitive edge in
the next generation format race.
The company has also begun collaborative efforts in the Holographic technology
domain in order to work on media and related development of the future disk
with capacities up to 20OGB and beyond.
Optical Market in FY 2006:
CDR/RW in FY 2006:
Demand-supply equilibrium reached as capacity partly converted/Exited
Significant inventory depletion
Demand continued to grow at low single digits
worldwide
CDR pricing stabilizes
Outlook:
Shipment volumes to remain strong
Contribution should normalaize as entire inventory
depleted
Pricing to continue to firm
DVDR/RW in FY
2006:
DVD demand-supply in balance
16x emerging as the format of choice
DVDR/RW prices are broadly tracking the manufacturing cost curve
Outlook:
DVDR/RW pricing to follow the manufacturing cost
curve
New Business
Initiative: Photovolatic (PV) Cell Project:
During the year, the company took a big stride forward in opening new vistas
far future growth with the entry in the emerging Photovoltaic industry. The
company, which plans to make an aggressive entry into the PV business by
manufacturing solar cells and modules, aims to emerge as one of the key
industry players and one of the most efficient manufacturers in the sunrise PV
industry.
This new field of business is synergistic with their existing businesses and
wild leverage on their core competencies in the areas of precision high
technology mass manufacturing, base metal engineering, thin-film coating and
project management.
Globally, energy is fast emerging as a critical issue, especially as existing
power generation options have limitations in terms of growth potential and
long-term sustenance. With the Sun supplying 10,000 tunes the amount of energy
needed every year by Earth, and with technological breakthroughs fast lowering
harnessing and distribution costs, solar power is fast emerging as the most
viable and eco-friendly power generation option for tomorrow - with no moving
parts, no noise and zero emissions.
The PV space is expected to grow five-told to a global market size of $40
billion by Year 2010. Also, the cost reduction potential of PV promises to make
it competitive with grid electricity over the years, which could significantly
increase its applications and growth potential.
As part of its strategy in the new business, the company is targeting the two
segments in PV value chain that are most attractive from a synergy standpoint -
solar cells and modules, It's also leveraging existing core competencies and
R&D to develop cutting edge manufacturing efficiencies and identify and
participate in emerging technologies to establish an early mover advantage and
sustainable competitive edge.
The company is targeting a capacity of 80 MW by Year 2007 with an initial
project cost of INR 2000 million ($68 million). The project is on a fast track
to implementation and will be executed in Moser Baer & Photo Voltaic Ltd.,
which has already been established and capitalizad. The contracts for supply of
equipment and technology for cell and module making have already been executed.
The company has also secured part of its short terra requirements of raw
materials and is working towards closing medium to long term sourcing
agreements. The company plans to start commercial production by 30 FY 2007.
The PV space presents the company with an exciting growth opportunity. Also,
since the business is significantly less capital-intensive than the company's
existing business, it is expected to noticeably improve the overall return on
invested capital.
SWOT:
Strengths:
Integrated manufacturing allowing cost
efficiencies and enhanced speed to market.
Lower capital investment, manpower and overhead costs allow cost
leadership.
Strong focus on R&D and engineering to constantly innovate products and
reduce costs.
Committed shareholders add strength, longevity and sustainability to future
plans.
Strong project management skills and execution and mass manufacturing
expertise.
Well established logistics and supply chain management skills.
Evolving into a multiple technology business
transnational.
Weaknesses:
Need to scale up operations to meet exponential growth opportunities.
Exposed to commodity cycles, especially in the short
term.
Opportunities:
Robust growth in
DVDR market:
With existing top-tier customer tease and efficient in-house technology, the
company is well positioned to increase market share.
Domestic market:
Emerging
Technology:
The Company has invested significantly in its research and development programs
targeted at next generation formats to be first to market in a majority of
these formats.
Solar Photovoltaic
business:
The Company is leveraging upon existing core competencies and R&D to
develop cutting edge manufacturing efficiencies and identify and participate in
emerging technologies to establish an early mover advantage and sustainable
competitive edge in PV space.
Threats:
Emerging technologies:
In a dynamic technology environment, the Company's business could be threatened
from more efficient emerging technologies. A growing drive installed base,
specific applications and an un-matched price value proposition will ensure
continued growth of optical media. The company is all set to capture the
imminent growth in next generation formats through its R&D and product
develop merit efforts. Also, an early mover advantage in the fast growing
global PV business should provide further momentum to growth.
Anti-dumping and
anti-subsidy levies:
The Company derives a significant part of its revenues from international
markets. These have seen a growing protectionist attitude and a tendency by
some local governments to use anti-dumping and trade protection tools to
provide protection to local businesses. However, the Company continues to keep
a close watch on this front and take necessary steps to minimize any
fallout.
Fail in product
prices:
As products move into the mature phase in their life-cycle, they start to
emulate commodity-type characteristics. Also, as the industry is characterized
by high volumes, large capacities and investments, a sharp reduction in product
pricing can impact performance. Pricing could fall due to oversupply, low
demand and cost reduction due to reduction in input costs or setting up of
capacities in low-cost regions.
Sharp increase in
input costs:
The key inputs for optical media and PV cell business are Polycarbonate and
Polysilicon respectively, both of which are commodities. Any sharp increase in
prices of these commodities or demand-supply imbalances could adversely impact
business. The company is working on strategic sourcing agreements for critical
raw materials, and this will help ease the impact of any pricing
volatility.
Change in
Government policies/subsidization programs:
Worldwide, government policies and incentives have provided impetus to the
tremendous growth of PV industry globally. Any change in these policies could
impact the potential growth of this business. Given the rising global concern
for alternate and environment friendly source of energy, PV is being recognized
as a viable alternative, globally.
Short
term:
The Company's near-term strategy is to leverage its world class manufacturing
base, core competencies and R&D to develop cutting edge manufacturing
efficiencies and identify and participate in multiple emerging technologies to
establish an early mover advantage and sustainable competitive advantage in
next generation formats for optical media and the Photo Voltaic business,
Medium term:
Moser Baer believes that in the medium term, the optical storage media industry
offers sufficient growth opportunity with relatively low risks and high returns
on invested capital, driven by next generation formats.
The company's aim is to be amongst the glob leaders in technology evolution in
the Photo Voltaic business and to relentlessly drive down costs to establish
itself as a leading highly efficient manufacturer in the global photovoltaic
industry.
Long term:
Long term strategy of the company is to be amongst the worlds leading
technology manufacturing companies by continuing to leverage upon competencies
in base metal engineering, thin film coating, rapid technology commercialization
and efficient asset creation. The company wi continue to evaluate and grow
business having high growth potential, strong technology barrier and high
return on capital employed.
Overview:
The financial statements have been prepared in compliance with the requirements
of the Companies Act, 1956, and Accounting Standards in
On September 28, 2005 Woodgreen Investment Ltd. (WIL) did not exercise their
option to convert at the exercise price of INR 336/-, 5,400,000 Share Warrants
issued to them on a preferential basis by the Company pursuant to an agreement
dated March 25, 2004. The upfront money of INR 181.44 million, received against
these Share Warrants has been forfeited and accordingly taken to 'Reserves and
Surplus' as capital reserve.
INDUSTRY
RISK MANAGEMENT:
The company operates in an industry where technology towards trends are
constantly changing and evolving which may jeopardize future growth.
The company, however, faces no immediate threat from the dynamic environment in
which it operates. On the contrary, it stands to benefit from the current
growth trends in the DVDR format.
As consumption evolves from analogue to digital technology, if is prompting
legacy recordings to migrate to new media.
Additionally, the company also entered the exciting global photovoltaic
industry which is growing at a rapid pace. This not only mitigates the risk of
exposure to a single industry, but as this industry is significantly less
capital intensive than optical media industry, it is expected to improve the
overall returns on invested capital.
Business:
The company is engaged in the business as Manufacturer and Exporter of CDR, CDRW, DVDR, DVDRW, Micro Flooy Diskettes, Audio-Video Tape under the brand ‘Moser Baer’.
AS PER WEBSITE
Press Release:
Moser
Baer launches next generation format
Tuesday, July 25, 2006
The first company in the world to start volume shipments of HD DVD-R
According
to Ratul Puri, executive director, Moser Baer, “The world is moving towards
High Definition content. This is a significant technology shift in the global
optical media industry and will radically change the consumer’s viewing
experience. According to the
In a
fast evolving market landscape and increasing competition, companies are
increasingly using technology to differentiate themselves. Moser Baer has
embarked on a strategy to transform into a technology developer and innovator
from a technology recipient. Comments Giriraj Nyati, VP R&D and
Engineering, “This is a significant landmark for us. And they are very proud
that an Indian company has emerged in a strong leadership position in the next
generation optical media space and current launch is the first in a series of
many such launches expected throughout the year. This reaffirms their
technology leadership position along with their manufacturing leadership
position.”
The
intensive R&D thrust will help us to further consolidate their global
leadership position in the optical media space.
The
company continues to leverage its core skills in base material engineering,
thin film coating, precision sputtering and deep UV mastering technologies.
Starting from the current quarter and in conjugation with drive and recorder
availability, the company expects to be first to market in a majority of the
next generation formats. The four products which the company believes will have
a significant market potential in the future are DVDR Dual Layer, HD DVD-R
(recordable) and RW (re-writable), HD DVD Dual layer, and BD-R and RE.
About
HD DVD
The HD DVD
format supports a wide variety of resolutions, from low-resolution CIF and SDTV
up to HDTV formats such as 720p, 1080i and 1080p. The HD DVD format is promoted
by Toshiba, NEC, Sanyo, Microsoft, and Intel, among others. In terms of major
studios, HD DVD is currently exclusively backed by Universal Studios, and is
nonexclusively backed by Paramount Pictures and Warner Bros.,
About
Moser Baer India Ltd
Moser
Baer India Ltd, headquartered in
REVIEW
OF OPERATIONS
Demand
and Pricing:
The
global optical storage media industry is now on a steady path to recovery,
driven by consolidation of capacity, continued growth in consumer demand and
signs of softening of prices for key inputs. The company further consolidated
its position and according to Techno System and Research (TSR), Japan, has
emerged as the second largest manufacturer of optical storage media in the
world.
The
company continues its efforts to gradually revert to normal levels of
operational & financial performance, as reflected in a profit before tax of
INR 67.2 million in 1QFY 2007 against a loss of INR 138.7 million in 1QFY 2006.
Lower sales from inventories and the traditional summer demand slackness are
the reasons for a 15% reduction in shipment volumes during the quarter on a
sequential basis. However, improved products mix –with normalization of CDR/RW
sales and increase in DVDR/RW shipments – has led to a 3% increase in the
optical media ASP, helping improve operating parameters during the quarter.
“A
steady improvement in market variables continues. The recovery in CDR/RW media
market pricing since last quarter is a positive, and sustainable. The other
positive during the quarter is a normalization of revenue mix. They expect the
trend to start reverting back to normal operating and financial levels in the
medium term driven by increasing DVDR/RW contribution, improving CDR/RW
pricing, rising production efficiencies and softening of input costs.” Said Mr.
Ratul Puri, Executive Director, Moser Baer India Limited, said.
Costs:
The softening of market purchase prices of PC (poly carbonate) continued during the quarter – which is another major positive factor for the industry. While this did not impact the quarter under review, it will be a major positive influencer of their margins. The company continues to drive extensive cost reduction programs, with a focus on DVD formats, resulting in increasing manufacturing efficiencies. This has ensured margin stability on DVDR/RW formats despite a pressure on pricing. They have been able to research, design and co-develop equipment which improves process yields, enabling us to re-set internal benchmarks for production cost reduction.
Future
trends
The
trend of gradual recovery and improving industry conditions should continue
into the current year. While CDR/RW pricing should remain firm in the medium
term, DVDR/RW prices are expected to continue to follow its cost curve,
enabling us to maintain healthy margins in the optical media business. The
revenue share of higher margin DVDR/RW formats is expected to further rise to a
target of 60% by 4QFY07, thereby improving operating performance.
Moser
Baer emerges as the winner of the 'Golden Peacock Environment Management Award
Friday, June 17, 2005
New Delhi, June
17, 2005: After receiving a flurry of prestigious awards in the recent past,
Moser Baer India Ltd., India's largest and world's third largest manufacturer
of optical media storage, emerged yet again as the winner and brought home the
World Environment Foundation 'Golden Peacock Environment Management Award' for
the year 2005. The award was collected by Mr. S. Rajalingham , Head of the
second largest optical media plant of Moser Baer
Moser
Baer came on top on all the evaluation parameters, which included
Eco-Innovation, Preservation of Natural Resources, Eco-habitation,
Competitiveness in Environment Management and Excellence in Environment
Protection.
The award
was presented at a ceremony held in the serene locales of Palampur. Also
present at the ceremony were Dr Olla Ullsten, former Prime Minister of Sweden,
Dr. Mahadev Mehra, President, World Council for Corporate Governance, Justice
MN Venkatchailah, former Chief Justice of India, Smt Vidhya Strokes, Power
Minister, HP and Shri Shanta Kumar, former Chief Minister, HP
Speaking
on the occasion, Mr. Rajalingham said, "it is indeed a proud moment for
Moser Baer and me, as I am personally very proud of being a part of Moser Baer,
and thereby a contributing member for the preservation of their environment,
through Moser Baer.
Moser Baer has not only set high-quality standards for its products, but is
equally conscious about issues like environment, health and safety. Receiving
this award is not only an acknowledgement of their efforts, but also motivates
us to work even harder and help their environment."
Moser
Baer is the first company in
ABOUT
MOSER BAER
Moser
Baer is a world
leader in the development and manufacture of removable data storage media.
Incorporated in 1983, the company is today one of
A pioneer
among globalizing Indian firms, Moser Baer has a presence in over 82 countries,
serviced through six marketing offices in India, the US and Europe, and enjoys
strong tie-ups with all major global technology brands. Simultaneously, with
the launch of the 'moserbaer PRO' label in
It is this focus on building relationships responsibly that places Moser Baer
at the forefront of digital media technology.
History
Spiralling Growth
A typical CD has a unique spiral
track of data, which, if straightened, would be around 5 km long. It takes a
single-minded, precise and persistent approach to lay such a path. At Moser
Baer, their spiralling growth is a result of the same meticulous approach we
use to make their media, applied to running their company.
The company was founded in
However, it was in 1986 that Moser
Baer found its true calling. This was the time when the data storage field—the
marvel of creating a memory second only to the human brain out of some plastic,
specialty chemicals and dyes— caught the attention of an engineer with a
masters degree in mechanical engineering from the Imperial College, London. So
what if this meant breaking into what was till then the exclusive preserve of
Japanese and Taiwanese manufacturers, questioning the paradigm that no Indian
manufacturer could be competitive in the global space and fighting the image
that India was a country that borrowed technology and did not create it? Such
challenges only further inspired Moser Baer founder and managing director
Deepak Puri to take the company to the forefront of the optical media industry.
Undertaking its first and only
diversification into the data storage industry, Moser Baer initially
manufactured 5.25" Floppy Diskettes, graduating to 3.5" Micro Floppy
Diskettes (MFD) in 1993. Today, Moser Baer is the world's fifth-largest
manufacturer of MFDs. Its unique strength in diskette manufacturing comes from
products conforming to stringent international quality standards with a
cost-effectiveness that few can match.
In 1999, Moser Baer spread its
wings into Recordable Optical Media, setting up a 150-million unit capacity
plant to manufacture Recordable Compact Disks (CD-Rs) and Recordable Digital
Versatile Disks (DVD-Rs). The strategy for the optical media project was
identical to what had successfully been implemented in the diskette
business—creating a facility that matched global standards in terms of size,
technology, quality, product flexibility and process integration. The company
is today the only large Indian manufacturer of magnetic and optical media data
storage products, exporting approximately 90% of its production.
Since inception, Moser Baer has
always endeavored to create its space in the international market, something
that very few Indian manufacturers have been able to achieve. Aiding the
company in its efforts has been a carefully-planned and sustainable model—low
costs, high margins, high profits, reinvestment and capacity growth. Along the
way, deep relationships have been forged with leading OEMs, with the result
that today there are hardly any players in the field that Moser Baer is not
associated with.
Milestones
|
1983 |
Year of Incorporation |
|
1985 |
Production of 8.0"/5.25" disks
commences |
|
1987 |
Production of 3.5" disks commences |
|
1998 |
Moser Baer |
|
1999 |
Production of CD-Rs commences |
|
2000 |
Production of CD-RWs commences |
|
2002 |
Production of cake and jewel boxes begins |
|
2003 |
Entry into DVD-R formats |
|
2004 |
Technology license agreement with
Hewlett-Packard to manufacture optical media using 'Lightscribe' technology |
|
2005 |
ISO 14001 & OHSAS 18001 certification
for Moser Baer plants. |
About Moser Baer
India-based company with nearly two decades' experience in removable data storage
Among the top three media manufacturers in the world #1 in
the fast-growing
Lowest-cost manufacturer of optical media in the world
R&D-focused company
Focused on optical and magnetic data storage media
OEM supplier to all the 12 leading storage media brands in the world
Revenue growing at 5-year CAGR of 42%
Products
Optical Storage Media: Recordable Compact Discs (CD-R), Rewritable Compact
Discs (CD-RW), Pre-recorded CD/DVD, Digital Versatile Disks (DVD-R) and
Rewritable Digital Versatile Disks (DVD-RW), LightScribe enabled media.
At Moserbaer, the means are as important as the end. It is not just reaching the destination that matters. It is equally important that the route they take to success is correct.
Values
Meticulous: To persevere till they reach quality perfection, and beyond
Open: To encourage and be accessible to new ideas and feedback
Selfless: To give back to society
Ethical: To be honest and ethical in their business
Responsible: To fulfill their commitments on time, every time
Corporate Objectives
A commitment to efficient manufacturing that has led to the lowest production costs in the world
A strong R&D focus that has helped develop innovative products on a continuing basis
The highest quality standards that have consistently delivered world-class products
A strong customer focus that has resulted in high customer retention and acquisition
A marketing focus that has kept products contemporary and relevant to emerging needs
A systems-driven approach that has stimulated growth in keeping with institutionalized
protocols and practices
Financial discipline that has led to enhanced shareholder value
A professional approach that translates knowledge and data into better interpretation of market needs
A proactive approach to current and future challenges
Quality
Quality for us is not a feat - it is a habit.
At Moser Baer they believe that their consistent ability to deliver quality products has been their key differentiator. They have instituted a continuous quality improvement culture and a strong systems driven focus to ensure that the quality of their products consistently meet or exceed international benchmarks. The company's processes are certified under ISO 9001:2000 Quality Management System Standard, ISO 14001:2004 Environment Management System Standard and OHSAS 18001:1999 for Occupational Health and Safety Management System Standard.
They define quality as 100% conformance to customer requirement. It's like an attitude with us, a part of every process. This is because they realize that even one in a million error prone disc can spell disaster for the user. So, nothing but 'zero defect' manufacturing is what they target for their products.
Strictly dust free working environments in all of their six state-of-the-art climate controlled plants, the top of line machinery & equipment and benchmarked processes & practices assist us in giving quality products consistently. A strong use of statistical techniques and in-house developed process control methods has enabled defects to approach six sigma levels.
On average, they invest close to 50 man-hours per year in quality training across all manufacturing disciplines to create a high quality conscious culture. Their quality strategy is not control oriented, but preventive in nature thereby enabling us to minimize the cost of quality while simultaneously achieving one of the lowest defect rates within the industry.
Excellence
Moser Baer since inception has consistently strengthened its competitiveness by enhancing capacity at lower incremental expenditure, declining conversion cost, progressive vertical integration and improving material efficiency. As a result they have emerged as one of the lowest cost manufacturers of optical media in the world.
What makes us who they are? A fierce commitment to quality, a dogged determination to take the 'Made in India' Label to the world, constant efforts to offer the best to their customers, their efficiency in manufacturing, their agile change management ability or their love for innovation. It is all of the above and much more that helps set Moser Baer apart. They believe it is their endeavor to outpace change on the basis of the unique result-oriented systems they have in place.
Efficient Manufacturing: The capabilities of their engineering and design, production lines, processes and manufacturing facilities allow us to move quickly from the concept stage to the finished product.
Speed to Market: Using their expertise they develop new technologies rapidly that's to their decentralized yet cohesive organizational structure that makes it easy to take decisions.
Strong Research and Engineering Base: Whether it is producing products with the help of proprietary technologies or developing products that glove-fit their customers' needs, their R&D provides the needed backbone.
Providing High Quality at Optimal Cost: At any point of time, you will find several QICR - quality implementation and cost reduction - programs running simultaneously across their operations.
Customer Focus: As a supplier they aim to be both flexible and innovative when it comes to their customers. They integrate and align theirselves with their customers to understand their requirements and develop programs that exceed expectations.
Supply Chain and Logistics: They were the first Indian company to have dedicated export trains, the first to push for a round-the-clock customs clearance facility at ICDs and one of the few to provide total logistics solutions to their customers. They have even built their own in-house software for managing inbound and outbound shipments to help track documents and containers instantly.
People Skills: The power of their intellectual capital is reflected in process efficiencies, reengineered equipment, enhanced productivity, low manufacturing cost and new product launches amongst others.
Change Managers: With their systems approach to forecasting business cycles, however, they have been able to employ their capital at the right time for the right product in the right market.
Marketing Strategy: Their global marketing offices,
subsidiaries and logistical and distribution centers make it possible for us to
react quickly to customer requirements. In
Financial Strategy: Their prudent mix of equity, debt and internal accruals to finance their expansion plans has yielded significant returns and has helped us achieve a conservative risk
to cost ratio.
European Optic Media Techonology
European Optic Media Techonology Gmbh (Europtic)
incorporated in the city of
The objective of Europtic is to set up green field
manufacturing facility to produce optical media of various types. The Company
has been established with the objective of adressing high-end niche markets. It
will establish manufacturing facilities in
The company is under the visionary leadership of Mr. V.J Prakash, Managing Director and Rainer Schuett, Chief Operating Officer.
Moser Baer Photovoltaic
Moser Baer Photovoltaic incorporated in
The company plans to make the solar power generation business by manufacturing solar cells and modules, is targeting an annual capacity of 80 MW in Phase I. The initial project cost is estimated to be Rs 2600 millions ($58 million), with Moser Baer investing Rs 1120 millions ($25 million) in the new venture.
Moser Baer SEZ
Moser Baer SEZ is a public limited subsidiary, incorporated
by Moser Baer India Ltd in February 2006. The subsidiary will function as a
“developer” of special economic zones in
Moser Baer has made a foray into photovoltaic business in October 2005 and planned to make the solar power generation business by manufacturing solar cells and modules. The “developer” status provides convenience and advantages to the company.
The prospective units expected to settle in this SEZ would be companies upstream and downstream in the business.
Moser Baer announces 1:2 bonus
Wednesday, May 02, 2007
According
to Deepak Puri, Chairman and Managing Director, Moser Baer India Limited, “The
company’s optical media business has reverted back to normal profitability and
the new businesses have successfully taken off. With the positive outlook of
our various businesses, the board felt it appropriate to issue bonus shares.
This underlines the growing confidence in our new initiatives and the value
that these can create for our stakeholders.”
The
company is constantly evaluating various opportunities and special projects
which could be highly value accretive. To be able to respond quickly as these
special projects/opportunities crystallize, the Board of Directors also
approved raising of capital to finance the company’s expansion/special projects
through a mix of debt/equity and convertible instruments up to USD 150 million.
This is subject to shareholders approvals where applicable.
About
Moser Baer
Moser
Baer, headquartered in
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.40.54 |
|
|
1 |
Rs.80.21 |
|
Euro |
1 |
Rs.54.51 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
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 |
|