MIRA
INFORM REPORT
|
Report Date : |
02.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
UNIVERSAL CABLES
LIMITED |
|
|
|
|
Registered Office : |
P. O. Birla
Vikas, Satna – 485 005, Madhya Pradesh |
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|
Country : |
India |
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|
Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
06.03.1945 |
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Com. Reg. No.: |
10-1114 |
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CIN No.: [Company
Identification No.] |
L31300MP1972PLC001114 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JBPU00023C |
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PAN No.: [Permanent
Account No.] |
AAACU3547P |
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Legal Form : |
It is a public
limited liability company. The company’s shares are listed on the Stock
Exchanges. |
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Line of Business : |
Manufacturing and
selling of electrical cable wires, conductors, strips of all types,
telecommunication cables & cables/
wires for telecommunication switching equipment, aluminium rods, grooved
copper contact wire & cadmium copper catenary wire, capacitors and cross
linked polyethylene. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 6400000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory
track. Available information indicates high financial responsibility of the company.
Trade relations are fair. Payments are usually correct and as per
commitments. The company can be considered good for any normal business dealings at
usual trade terms and conditions. It can be regarded as a promising business partner in a medium to
long-run. |
LOCATIONS
|
Registered Office / Factory: |
P. O. Birla
Vikas, Satna – 485 005, Madhya Pradesh, India |
|
Tel. No.: |
91-7672-257121 to
27 |
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Fax No.: |
91-7672-225344 |
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E-Mail : |
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Website : |
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Branches : |
49-A, Hastings
Road, Opposite Circuit House, Allahabad – 211 001, Uttar Pradesh Tel. No. 91-532-2623 646 / 2622 232 Fax No. 91-532-2624 390 No.287, R. M. V.
Extension, 15th Main, Near Nagasena School, Bangalore – 560 080,
Karnataka Tel. No. 91-80-2334 2484 / 2331 5425 / 2346 0211 Fax No. 91-80-2331 5425 E-mail unistar@bg1.vsnl.net.in Satyam, 1st
Floor, Opp. State Bank of India, Fatehgunj, Baroda – 390 002, Gujarat Tel. No. 91-265-2791 794 Fax No. 91-265-2793 128 E-mail unistar@lwbdq.lwbbs.net 57, Malviya
Nagar, Bhopal – 462 001, Madhya Pradesh. Tel. No. 91-755-2551 183 / 2551 375 Fax No. 91-755-2554 806 N3/12 Nayapalli, Bhubaneshwar – 751 015,
Orissa. Telefax No. :
91-674-2557 152 27-B, Camac
Street, 5th Floor, Kolkata – 700 016, West Bengal. Tel. No.
91-33-22474351–4354/22476198/22401302/22805043-46 Fax No.
91-33-2240 4587 / 2248 7988 20, Greams Road,
P. B. No. 77, Chennai – 600 006, Tamilnadu. Tel. No. :
91-44-2829 2551 / 2829 2427 / 2829 2451 Fax No. :
91-44-2827 8581 E-mail : unistar@md3.vsnl.net.in Rathore Mansion,
Dhanbad – 826 001 Tel. No. :
91-326-2303 858 / 2305 714 Fax No. :
91-326-2305 714 Plot No. 1201,
Road No. 59, Jubilee Hills, Hyderabad – 500 034, Andhra Pradesh. Tel. No. 91-40-2360 8218 / 2354 3213 / 2354 3214 Fax No. 91-40-2334 7652 Industry House,
159 Churchgate Reclamation, P. B. No. 11003, Mumbai – 400 020, Maharashtra Tel. No. 91-22-2202 6340 / 2284 4481 Fax No. 91-22-2202 7854 E-mail : unistar@bom5.vsnl.net.in UCO Bank
Building, 4th Floor, Parliament Street, New Delhi – 110 001. Tel. No. 91-11-2371 4851 / 2371 0205 / 2335 0867 Fax No. 91-11-2371 1561 E-mail : unistar@del3.vsnl.net.in Door No.
50-121-10, Balaji Hills, Seethammadhra, Vishakhapatnam – 530 013, Andhra
Pradesh Tel. No. 91-891-2536 821 / 2543 412 Fax No. 91-891-2543 412 |
DIRECTORS
|
Name : |
Mr. R. S. Lodha |
|
Designation : |
Chairman |
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|
Name : |
Mr. Harsh V. Lodha |
|
Designation : |
Director |
|
Date of Birth/Age : |
13.02.1967 |
|
Date of
Appointment : |
24.04.1998 |
|
Profile : |
He is an eminent
and young Chartered Accountant and Partner of M/s Lodha & Co., Chartered Accountants,
which is the Member Firm of EDO International, the 5th largest Accounting and
Consulting Firm in the world. He has been actively involved in significant
assignments in the areas of takeovers and mergers/ reconstructions and
rehabilitations, international and domestic financing, project structuring
capital mobilisation, joint-ventures and collaborations. He is serving on the
Managing Committee of Assocham. He has served on the Executive Committee of
FICCI and as Chairman of its Corporation Laws & Governance Committee and
Co-Chairman of its Young Leaders Forum. He has served as a Member of Working
Group on Corporate Governance set by the Department of Company Affairs,
Government of India and Working Group to frame guidelines for the registration
and operations of-the Securitisation Companies and Asset Reconstruction
Companies constituted by the Reserve Bank of India. He has served as Member
of the Accounting Standards Board of The Institute of Chartered Accountants
of India and alternate member of the National Advisory Committee on
Accounting Standards set up by Government of India. He has served as Vice
President of the Indian Chamber of Commerce, Calcutta and as Chairman of its
Economic Affairs Committee, Banking & Finance and Director Tax Committees.
He has served as Honorary Consul of the Government of Romania for West
Bengal, Orissa and Bihar. Also served as the Vice Consul of the Republic of
Philippines for Eastern India. |
|
List of outside Directorships held* |
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Name : |
Mr. S. N. Prasad |
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Designation : |
Directors |
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Name : |
Mr. S. C. Jain |
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Designation : |
Director |
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Date of Birth/Age : |
01.08.1940 |
|
Date of
Appointment : |
27.10.2004 |
|
Profile : |
He did his
graduation from Lucknow Christian College in 1958 and he is also a Law Graduate
of Calcutta University. He obtained the Master's degree in Social work with
specilisation in Labour Relations and Personnel Management from J.K.
Institute, University of Lucknow. He is life member of National Institute of
Personnel Management and was Examiner and Paper Setter for the DPM Course of
the Institute. He was also Chairman of the Labour Sub-Committee of the
Chamber of Commerce and a nominee of the Chamber on the Minimum Wages
Advisory Board constituted by the Government of West Bengal. He has over 40
years experience in Management of Industrial Relations. He has also written a
book on "Calcutta High Court 50 years Digest of Important Labour
Cases" which is an unique digest of such cases and a very useful
guideline to employers, employees, trade unions and to practicing managers. |
|
List of outside Directorships held* |
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|
Name : |
Mr. S. S. Kothari |
|
Designation : |
Director |
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|
Name : |
Mr. S. R. Jain |
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Designation : |
Director |
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Date of Birth/Age : |
29.10.1934 |
|
Date of
Appointment : |
05.09.2006 |
|
Profile : |
He is an expert
in the Management of Steel and Heavy Industries and has over 40 years of
experience in this field. He has also been the Chairman of Steel Authority of
India Limited and Heavy Engineering Corporation Limited. He has also served
as the President of Indian Institute of Metals and is currently the Chairman
of Consteel India (P) Limited, a Consultancy Company based in Delhi. |
|
List of outside Directorships held* |
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|
Name : |
Mr. J. C. Sharma |
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Designation : |
Director |
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Date of Birth/Age : |
03.07.1944 |
|
Date of
Appointment : |
27.10.2006 |
|
Profile : |
He began his professional
career as a Commissioned Officer in the Indian Army (1967-72) and
was awarded with the "Sena Medal" for Gallantry in 1971 Indo-Pak
War. He joined the elite India Foreign Service in 1972 and has served as
First Secretary (Consular & Political) and First Secretary (Commercial)
in the Indian Embassies in Tokyo and Jakarta respectively. A brilliant
Organizer, he was Director (Protocol) for the 7th Non-Aligned Summit and the
Commonwealth Heads of Government Meeting in Delhi in the year 1983. First Foreign
Service Officer to be deputed as Joint Secretary Defence Exports; he prepared
the blue print for Defence Exports from India and for first Aero India in
Bangalore. He also served on the Board of Bharat Earth Movers Limited (BEML),
a large public sector undertaking manufacturing defence and earth moving
equipment and railway coaches. He has served as Secretary, External Affairs
and Member Secretary of the High Level Committee on Indian Diaspora. He was
the brain behind the idea of celebrating 'Pravasi Bhartiya Divas' and
organized first two Pravasi Divas in Delhi. He was advisor in the PHD Chamber
of Commerce during its centenary year January 2005 to 31st January, 2006. |
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|
Name : |
Mr. Dinesh Chanda |
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Designation : |
Director |
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Date of Birth/Age : |
26.10.1936 |
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Date of
Appointment : |
23.05.2007 |
|
Profile : |
He did his BE
(Electrical) from University of Roorkee in 1958 and also is a Chartered
Engineer from Institution of Engineers (I), since July 1995. He has served the
important positions in companies like Tata Power Co. Limited, BHEL, Heavy
Engineering Corporation Limited and has been associated with Birla
Corporation Limited since 1995. He is a member of the Institution of
Engineers (I) (MEI), from 1973 and is also a member of the Indian Institute
of Welding (MIIW) from July 1976. He has over 46 years of experience of
working in Govt/PSU and Private Industries, especially in the sectors of
power generation, steel & cement. |
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Audit Committee
: |
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|
Name : |
Mr. S. N. Prasad |
|
Designation : |
Chairman |
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|
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|
Name : |
Mr. S. C. Jain |
|
Designation : |
Director |
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|
Name : |
Mr. S. S. Kothari |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. D.R. Bansal |
|
Designation : |
Chief Mentor & Manager |
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|
|
|
Name : |
Mr. Pankaj Kalani |
|
Designation : |
President (Commercial) & Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters' holding |
|
|
|
Promoters |
8205840 |
40.96 |
|
Persons acting in Concert |
2507857 |
12.51 |
|
Non-Promoters holding |
|
|
|
Institutional Investors |
|
|
|
Mutual Funds and UTI |
1200 |
0.00 |
|
Banks, Financial Institutions, Insurance
Companies, (Central/State Govt. Institutions/Non-Govt.
Institutions) |
2638875 |
13.17 |
|
FIIs |
11490 |
0.06 |
|
Others |
|
|
|
Private Corporate Bodies |
1349774 |
6.74 |
|
Indian Public |
5217306 |
26.04 |
|
NRI's/OCBs |
61328 |
0.30 |
|
Any other (Please specify) |
44274 |
0.22 |
|
Total |
20037944 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
selling of electrical cable wires, conductors, strips of all types,
telecommunication cables & cables/
wires for telecommunication switching equipment, aluminium rods, grooved
copper contact wire & cadmium copper catenary wire, capacitors and cross linked
polyethylene. |
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Products : |
|
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Electrical Cables Wires, Conductors, Strips of all types
(excluding Tele-communication Cables, Wires, Conductors, Strips of all types
connected with telecommunication & items reserved for small scale) |
KM MCM MT |
14500 200 6000 |
11500 150 3000 |
4514 20 338 |
|
Cable End Seals of
Plastics |
Nos. |
500000 |
250000 |
-- |
|
PVC Insulated Single/
multicore unsheathed cables with Cu./Al. Conductor for 650/1100 V. |
CKM |
200000 |
150000 |
-- |
|
Flexible Cables [for House Wiring] |
KM |
500000 |
-- |
-- |
|
Optical Fibre Cable |
KM |
50000 |
-- |
-- |
|
Optical Fibre Cable Accessories |
Nos. |
200000 |
-- |
-- |
|
Jelly Filled Telephone cables and other telecommunication cables |
CKM |
5000000 |
2500000 |
-- |
|
Pigtail and
Patchcords |
Nos. |
450000 |
-- |
-- |
|
Fibre
Re-inforced Plastic Rod |
KM |
200000 |
-- |
-- |
|
Optical Fibre |
FKM |
6000000 |
1000000 |
316337 |
|
Fibre Ribbon |
KM |
50000 |
50000 |
|
|
Aluminium Rods |
MT |
4800 |
8000 |
675 |
|
Grooved Copper
Contact Wire and Cadmium Copper Catenary Wire |
MT |
On Job Basis |
-- |
-- |
|
Capacitors - MFD |
Pcs |
5000000 |
1000 |
40 |
|
Capacitors - LT
& HT |
KVAr |
1500000 |
1500000 |
957604 |
|
Cross Linked
Polyethylene compound including insulating, semiconducting and other special
grades |
MT |
1000 |
2000 |
-- |
GENERAL
INFORMATION
|
Customers : |
Department of Telecommunication
and Mahanagar Telephone Nigam Limited |
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No. of Employees : |
1821 |
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Bankers : |
State Bank of
India |
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Facilities : |
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|
|
|
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Banking
Relations : |
Moderate |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi
and Company Chartered
Accountants |
|
|
|
|
Collaborators : |
ABB High Voltage
Cables AB of Sweden |
|
|
|
|
Associates/Subsidiaries : |
|
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000 |
Preference Shares |
Rs. 10/- each |
Rs. 5.000 Millions |
|
24500000 |
Equity Shares |
Rs. 10/- each |
Rs. 245.000 Millions |
|
|
TOTAL |
|
Rs. 250.000
Millions |
Issued
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
23136074 |
Equity Shares |
Rs. 10/- each |
Rs. 231.361 millions |
Subscribed
& Paid-up Capital
:
|
No. of Shares |
Type |
Value |
Amount |
|
23130254 |
Equity Shares |
Rs. 10/- each |
Rs. 231.303 millions |
|
Add : |
Forfeited Shares |
|
Rs. 0.029 million |
|
|
TOTAL |
|
Rs. 231.332 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
231.332 |
200.409 |
200.409 |
|
|
2] Share Application Money |
0.000 |
30.923 |
0.000 |
|
|
3] Reserves & Surplus |
1363.422 |
1210.088 |
757.737 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1594.754 |
1441.420 |
958.146 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
905.483 |
350.944 |
301.871 |
|
|
2] Unsecured Loans |
88.988 |
180.441 |
360.802 |
|
|
TOTAL BORROWING |
994.471 |
531.385 |
662.673 |
|
|
DEFERRED TAX LIABILITIES |
94.652 |
67.305 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2683.877 |
2040.110 |
1620.819 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1114.691 |
667.109 |
383.918 |
|
|
Capital work-in-progress |
140.845 |
26.727 |
1.151 |
|
|
|
|
|
|
|
|
INVESTMENT |
283.342 |
283.342 |
323.542 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
8.103 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
927.048
|
738.702 |
733.238
|
|
|
Sundry Debtors |
608.988
|
488.300 |
373.343
|
|
|
Cash & Bank Balances |
26.628
|
61.982 |
49.796
|
|
|
Other Current Assets |
18.778
|
11.298 |
7.697
|
|
|
Loans & Advances |
179.257
|
179.553 |
45.163
|
|
Total
Current Assets |
1760.699
|
1479.835 |
1209.237 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
498.913
|
319.598 |
231.889
|
|
|
Provisions |
116.787
|
97.305 |
73.243
|
|
Total
Current Liabilities |
615.700
|
416.903 |
305.132 |
|
|
Net Current Assets |
1144.999
|
1062.932 |
904.105
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2683.877 |
2040.110 |
1620.819 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
|
|
|
|
|
|
Sales Turnover |
3772.095 |
2975.205 |
1966.671 |
|
|
Other Income |
70.579 |
43.399 |
0.000 |
|
|
Total Income |
3842.674 |
3018.604 |
1966.671 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
339.786 |
263.117 |
67.889 |
|
|
Provision for Taxation |
120.047 |
97.418 |
28.667 |
|
|
Profit/(Loss) After Tax |
219.739 |
165.699 |
39.222 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
72.588 |
17.730 |
|
|
|
Claims from Suppliers |
0.000 |
2.155 |
26.177 |
|
|
Other Earnings |
0.431 |
0.000 |
|
|
Total Earnings |
73.019 |
19.885 |
26.177 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
342.982 |
283.111 |
|
|
|
Stores & Spares |
9.488 |
7.631 |
247.223 |
|
|
Capital Goods |
259.796 |
21.715 |
|
|
|
Others |
13.167 |
15.574 |
|
|
Total Imports |
625.433 |
328.031 |
247.223 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Materials Consumed |
2716.042 |
1913.503 |
|
|
|
Cost of Accessories
purchased for sale |
66.165 |
48.938 |
|
|
|
Personnel Expenses |
240.035 |
208.545 |
1851.733 |
|
|
Operating and Other
Expenses |
512.882 |
444.014 |
|
|
|
Decrease/increase) in
Inventories |
[193.592] |
14.797 |
|
|
|
Financial Expenses |
79.008 |
62.374 |
|
|
Total Expenditure |
3420.540 |
2692.171 |
1851.733 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 |
30.09.2007 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
1170.100
|
1135.000
|
|
Other Income |
|
13.000
|
15.100
|
|
Total Income |
|
1183.100
|
1150.100
|
|
Total Expediture |
|
1109.900
|
1011.200
|
|
Operating Profit |
|
73.200
|
138.900
|
|
Interest |
|
29.100
|
35.800
|
|
Gross Profit |
|
44.100
|
103.100
|
|
Depreciation |
|
28.300
|
31.800
|
|
Tax |
|
6.400
|
24.700
|
|
Reported PAT |
|
8.300
|
46.600
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
0.51 |
0.51 |
0.59 |
|
Long Term Debt
Equity Ratio |
0.23 |
0.15 |
0.20 |
|
Current Ratio |
1.58 |
1.62 |
1.62 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.34 |
2.43 |
1.81 |
|
Inventory |
5.20 |
4.66 |
3.80 |
|
Debtors |
7.90 |
7.97 |
7.98 |
|
Interest Cover
Ratio |
5.30 |
5.22 |
2.33 |
|
Operating Profit
Margin (%) |
11.56 |
11.33 |
6.86 |
|
Profit Before
Interest and Tax Margin (%) |
9.66 |
9.48 |
5.29 |
|
Cash Profit
Margin (%) |
6.97 |
6.67 |
3.32 |
|
Adjusted Net
Profit Margin (%) |
5.07 |
4.83 |
1.74 |
|
Return on Capital
Employed (%) |
18.55 |
18.36 |
8.10 |
|
Return on Net Worth (%) |
14.85 |
14.28 |
4.24 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was incorporated
on 6th March, 1945 at Satna in Madhya Pradesh having Company
Registration Number 1114 under the name & style of Hindustan Woollen Mills
Limited and received its certificate of commencement of business on 20th
April, 1945 from Registrar of Companies at Kolkata.
The
company was renamed Universal Cables (UCL) in 1961. It manufactures and markets
electric cables, wires and conductors. It also co-promoted Vindhya Telelinks
which manufactures jelly-filled telephone cables. Along with Vindhya Telelinks
and Ericsson Cables, Sweden, Universal Cables promoted a new company, Birla
Ericsson Opticals, to manufacture fibre optic cables.
The company tied up with BICC, UK, world's largest cable producer, for
production of paper-insulated power cables. The company has since expanded to
produce bare overhead conductors, copper alloy trolley wires and catenaries for
electric traction, thermoplastic cables upto and including 11 kV, elastomeric
cable upto 35 KV, continuous cast and rolled aluminium, aluminium alloy rods,
etc.
Its capacitor division tied-up with Toshiba, Japan, and General Electric, US to
manufacture paper-insulated power capacitors. The cable division, in
collaboration with Asea Kabel, Sweden, manufactures polythene power cables upto
33 kV, which was extended to extra-high tension cables upto 145 kV and
fluoroplastic cables. The company has developed several new products for the
Defence sector as well as electronic equipment and has also embarked on
collaborative research in specific hi-tech areas in association with BARC and
IIT.
The company is planning to diversify its product range and enter into
manufacture of Telecommunication Cables. It also came out with Rights Issue in
April, 1999 at a premium of Rs 10 per shares. Vindhya Telelinks Limited and
Birla Ericsson Optical Limited, promoted by the company have shown improved
results.
During the year 2000-01, the company's turnover increased about 26% inspite of
trying times due to the company's strategy to diversify into Polythene Insulated
Jelly Filled (PIJF) Telephone Cables. The company along with Vindhya Telelinks
Limited, and Birla Ericsson Optical Limited, has promoted a new company called
Optic Fibre Goa Limited, for the manufacture of Optical Fibre which is under
implementation and is scheduled to go into production in the coming year.
YEAR
EVENTS 1945 - The Company was Incorporated on 6th March, at Calcutta. The
company manufactures and deasl in wires, cables and lines of all kinds
including A.C.S.R. and all-aluminium and copper conductors, etc.
-
91,800 shares taken up by Directors, etc. 2,58,200 shares offered
to public. 275 shares forfeited.
1961 -
The name of the company was changed from Hindustan Woollen Mills, Limited, to
Universal Cables, Limited, effective from 15th May
1983 - The
imported plant for the manufacture of cross-linked polyethylene compounds was
received and it was under installation The Company proposed to manufacture
high-performance speciality cables for aerospace, electronics,
telecommunications, transportation oil exploration and defence industries.
- A letter of
intent was received from the Government of India for production of irradiated
heat shrinkable products and irradiated heat trace cable.
- The Company's
technical collaboration with General Electric Company of USA for the
manufacture of capacitors expired during the year.
1984 - The
Company signed a collaboration agreement with General Electric, USA, for the
manufacture of capacitors with superior quality non-toxic impregnant.
1987 -
27,34,280 shares issued (prem. Rs 25 per share); 26,04,077 shares as rights in
prop. 1:1 and 1,30,203 shares to employees under Stock Option Scheme. (All were
taken up).
1990 -
Development efforts were afoot for the manufacture of new products, such as,
CATV cable, cables for telephone switching systems LAN for computers and aerial
bunched cables.
- The Company
incurred a capital expenditure of Rs 72.400 Millions for expansion, manufacture
of new products and updating of technology. New products such as water-cooled
DC high voltage reactor cable, Geo-phone, Tethar cable etc, were being
developed.
1991 - The
Company also issued another 7,00,000-14% redeemable non-convertible debentures
of Rs 100 each to financial institutions on private placement basis. These are
to be redeemed premium of 5% in three yearly instalments commencing from 28th
October, 1996.
1992 - With the
help of R&D, it was proposed to develop special cables for elevators,
electronic equipment etc.
- The Company along
with Vindhya Telelinks Limited, and Ericosson Cables AB of Sweden, promoted a
new company viz., Birla Ericsson Optical Limited, for the manufacture of fibre
optic cables.
1993 - Several
new products were developed for defence production and electronic equipment.
- 1,00,000-15%
redeemable non-convertible debentures of Rs 100 each were privately placed with
UTI. These debentures are redeemable at par by August 1st.
The financial
institutions were allotted 1,50,000-15% redeemable non-convertible debentures
worth Rs 15 millions. These debentures are redeemable at 5% premium on the
expiry of 7th year from 21.8.1986.
- The Company
issued 26,69,179 No. of equity shares of Rs 10 each for cash at a premium of Rs
75 per share on Rights basis in the proportion 1:2 (only 26,67,879 shares taken
up).
Another
1,33,459 No. of equity shares at a premium of Rs 75 per shares were also issued
to the employees on an equitable basis (only 11,650 shares taken up).
- During
September, 2,818 Rights equity shares part of 1988 issue were forfeited for
non-payment of calls.
1994 - The
Company entered into a joint venture agreement with the world-renowned
multinational power equipment company ASEA BROWN BOVERI (ABB) to set up a new
company viz. `Universal-ABB Power Cables Limited' for the manufacture of High
Voltage Cross linked Polythene insulated power cables.
- 80,15,489
bonus shares issued in prop. 1:1.
1997 - The
Company received a letter of intent for the manufacture of cross-linked
polytheylene (XLP) compounds.
2002-
Universal Cables Limited has informed that M A Alagappan a Director of the
company has resigned from the Board of Directors of the company w.e.f January
30, 2002.
UCL
tied up with BICC, UK, world’s largest cable producer, for production of paper
– insulated power cables. The Company has since expanded to produce bare
overhead conductors, copper alloy trolley wires and catenaries for electrician
traction, thermoplastic cables upto and including 11 KV, elastomeric cable upto
35 KV, continue cast and rolled aluminium, aluminium alloy rods, etc.
The
Company is planning to diversify its product range and enter into manufacture
of Telecommunication Cables. It also came out with Right Issue in April, 1999
at a premium of Rs. 10 per shares.
GENERAL
& CORPORATE MATTERS
The Directors are happy to report that the company, in its consistent pursuit
to maximise the shareholders' wealth, has registered the highest ever Gross
Income of Rs.4403.300 Millions and Net Profit of Rs.219.700 Millions.
Although
there has been stiff competition in the market resulting in severe pressure on
the margins, a well crafted strategy involving aggressive marketing,
coordinated material planning, and greater thrust on overall operational
efficiencies have resulted in achieving this landmark.
The
Company, which has significant presence both in the niche and mass market
segments since its inception, has continuously moved on to expand, upgrade and
diversify to stay ahead as one of the leading manufacturers of Power Cables in
India. The Company, which markets its products under the brand name 'UNISTAR',
enjoys great respect and recognition from all its valued customers.
The
upturn in the economic scenario has contributed to a sturdy growth in the
demand for power cables. Although the National power programme has not lived-up
to the industry's expectation, nevertheless, the investments from other
infrastructural segments and industries have compensated for the shortfall in
demand from Power Sector. The Company is hopeful that the growth in demand
would continue in the coming years. It has also anticipated that once the power
programme in the generation segment is in full swing, the demand is likely to
increase substantially. To take advantage of this situation, the Company has
augmented the capacity in its expansion project.
The Technological Upgradation-cum-Expansion Project using State-of-the-art
Vertical Continuous Vulcanization (VCV) technology for manufacture of XLPE
Power Cables has commenced production during the year under review. The Company
has also entered into a technological tie-up with The Furukawa Electric Co.
Limited, Japan for complete solution in Extra High Voltage (EHV) underground
Power Cable transmission system involving design, manufacture, laying, cable
jointing and installation. The adoption of VCV technology has unveiled a new
road map for entering into the 220 KV and 400 KV power cable market. The new
facility, the only of its kind in India, has positioned the Company way ahead
of its competitors.
The
Company maintains an exceptionally strong commitment in strengthening its
product lineup of speciality cables through in-house development. The R&D
cell, with its relentless effort, has successfully developed the new generation
Thin Wall Chemically Cross-linked Cables for the Indian Railways.
During
the year, the Company has shown impressive turnaround in the performance of its
Optic Fibre Goa Unit, which was amalgamated with the Company last year. The
sales volume of 316307 Fibre KMs showed an increase of more than 60% as
compared to 195730 Fibre KMs in the previous year. As the surge in volume is
observed since the second half of the year under review, the same trend is
expected to continue through the Financial Year 2007-2008 and further. We
expect the expansion project to commence commercial production by end of June,
2007. With this the capacity would become 15 Lacs Fibre KMs, which is three
times the existing capacity. With the launching of latest Fibre to the Home
Services by service operators in selected localities initially, requirement of
Optical Fibre is only going to go up.
The
new Shares of the Company issued and allotted to the Shareholders of erstwhile
Optic FibreGoa Limited on amalgamation have been listed and admitted for
trading on BSE and NSE from 03.01.2007 and 15.01.2007, respectively.
The Company is in the final stage of implementation of SAP (ERP) in all
business segments of the Company at all work centeRs.ERP implementation will
enable new levels of business process and technology integration, while
ensuring faster and efficient services to the valued customers.
DIRECTORS
Dr. S.R. Jain has been appointed as a Director of the Company on 5th September,
2006 to fill up the casual vacancy on the Board arising upon the sad demise of
Dr. V. Gaurishanker and being eligible, is proposed to be re-appointed as
Director liable to retire by rotation in the ensuing Annual General
Meeting.
Shri J.C. Sharma has been appointed as Additional Director of the Company with
effect from 27th October, 2006, and being eligible, is proposed to be
re-appointed as Director liable to retire by rotation in the ensuing Annual
General Meeting.
Shri Dinesh Chanda has been appointed as Additional Director of the Company with
effect from 23rd May, 2007, and being eligible, is proposed to be re-appointed
as Director liable to retire by rotation in the ensuing Annual General
Meeting.
Shri H.V. Lodha and Shri S.C. Jain retire by rotation and,
being eligible, offer themselves for re-appointment.
JOINT
VENTURE
While the market conditions are not very much favourable, Birla Ericsson
Optical Limited, a venture promoted by the Company in association with Vindhya
Telelinks Limited and Ericsson Cables AB, Sweden has shown satisfactory
performance during the year under review.
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENTS
The Company is
recognized as the leading manufacturer of power cables and capacitors in the
country having an enviable product portfolio. The Company's brand 'UNISTAR'
enjoys a long track record of having a distinctive quality edge and positions
itself as a premium brand in the market.
The present
Power Cable market is segmented into Low Voltage (LV), Medium Voltage (MV) and
High Voltage (HV) category.
The LV, MV and
HV power cables have continued to register a consistent growth in demand
notwithstanding the fact that the power sector, an important demand driver of
power cables, has largely slipped from its target of capacity addition in power
generation. Nevertheless, it has been supplemented by the large investments in
the industrial segment, which have given a strong impetus in boosting the
demand for power cables.
The Company is
optimistic that the market is resilient and growth would continue with the fast
expanding industrial scenario and the inevitable demand from the power sector,
which is imperative to sustain the growth of the Indian economy. In
anticipation of this demand, some of the active players of the industry are realigning
their strategies by adding capacities, while a few more players are expected to
make a foray in the power cable market.
In HV Capacitor
range most of the players are having multi product range in Electrical field,
and have advantage in Turnkey orders involving number of products. In LV
Capacitor range there are a number of unorganized and organized manufacturers
and some more are being added. The Company has updated its technology and
manufacturing facility to have an edge over competitors.
PRODUCT-WISE PERFORMANCE, OPPORTUNITIES, THREATS
& BUSINESS OUTLOOK
Power Cables & Capacitors
Gross revenue
from this segment during the year was Rs.4252.100 Millions as compared to
Rs.3387.300 Millions during the previous year. The increase is attributed to
the strong demand emanating from large investments in the industrial
segment.
The Company has
been focusing its energies to continuously increase its market share of
High-Value-Added Speciality Cables, the thrust areas being non-conventional
energy sector, steel plants, cement plants, mining, shipbuilding and heavy
engineering. It is also augmenting its manufacturing capacity to meet the
increasing demand. Responding to the technological changes, the Company's
Research & Development has scored a break-through in developing thin walled
chemically cross-linked cables for the Railways, which has been approved by
Research Design & Standards Organisation (RDSO), Ministry of Railways,
Govt. of India. This will add to the Company's product lineup and unfold an additional
business potential from the Railways.
In view of the
overwhelming demand for 220 kV power cables emanating from the Electricity
Boards and other Power Utilities for injecting power to the metro cities and
fast developing towns, the Company has already implemented the state-of-the-art
Technological Upgradation-cum-Expansion project being the advanced Vertical
Continuous Vulcanizing (VCV) line, the only of its kind in India. This
technology will enable the Company to be the first in India to extend its capability
to manufacture power cables upto 400 kV.
With the
increasing urbanization, leading to non-availability of the right-of-way for
constructing overhead power transmission lines the only solution to transport
bulk power is through underground power cables. Amidst this backdrop, it is
evident that the existing demand, though quite large, is in its embryonic stage
and is poised for an exponential growth. In this market segment there has been
a technology void in the country, as a result of which the demand was met
through imports.
The Company has
also entered into a technical collaboration with The Furukawa Electric Co.
Limited, Japan, one of the world leaders in Extra High Voltage Power Cable
Technology. In addition, the Company has forged a long-term strategic alliance
with VISCAS Corporation, Japan (a Power Cable Alliance of Furukawa &
Fujikura) for sourcing new generation EHV cable jointing accessories. With this
tie-up the Company will be in a position to provide customers with the complete
solution package in EHV Underground Power Transmission System involving cable
design, manufacture, cable jointing and installation.
The VCV Plant
promises to fuel the strategic growth plans of the Company.
Moreover, this
technology would catapult the Company in the elite group of global
players.
The competitive
climate in the MV and HV cable market is overheating with some players
resorting to aggressive pricing strategies. The Company is aiming at a larger
slice of the market share with a dynamic and integrated strategy involving
marketing projections, material planning, reduction of procurement cost,
continuous manufacturing cost control and reducing asymmetric inventories. The
Company's preference as a quality producer remains an added advantage
especially in the HV cable market segment. In addition to the existing Plant,
the VCV Plant would also cater to meeting the additional demand of HV power
cables. The Company expects to steal a march over its competitors and garner a
better share of business using the techno-economic advantages of the VCV line.
The demand in this market segment has been registering an impressive growth and
all pointers indicate that a robust growth would continue for the years
ahead.
LV power cables
remain a crowded market, with a competitive glut amongst players from both the
organized and unorganized sector leading to price erosion and declining
margins. The Company expects that the cut-throat competition would continue. In
this segment the Company will maintain its market share by focusing mainly on
quality conscious large Engineering Procurement Construction (EPC)
contracts.
Regarding
Capacitors, in HV range, Company has established itself as supplier of Harmonic
Filter banks consisting of Capacitors with other associated equipments. The
Company is now regularly supplying Harmonic filteRs.Sure protecting Capacitors
of 33 kV voltage have been supplied and further orders are in process. The
Company has taken orders for Turnkey jobs involving number of associated
equipments, their erection, commissioning etc. and the orders are under
execution. The Company has also taken Export orders from Indonesia and
Bangladesh and are supplying to Gulf countries and Yemen through Siemens. For
LV Segment, Company has established new dealers and distributors.
While the present economic upturn is offering opportunities to the Indian
industry, in the same breath, the Foreign Trade Policy which is aiming at an
integrated global market are likely to usher in competition from overseas
playeRs.Free Trade Agreements (FTAs) and reduction of import duty can be seen
both as an opportunity as well as a threat. To face the challenges, the Company
is mobilizing its resources towards cost effective manufacture. At present a
few foreign players have been making sporadic attempts to enter into the Indian
market, however, their success rate has not been alarming. The Special Economic
Zones has given a boost to the infrastructural growth generating power cable
demand. The Company has successfully executed a large contract from the
Reliance Infrastructure Limited:, the largest SEZ Industry.
Metal prices,
mainly copper and aluminium have climbed to unprecedented heights defying
speculations. The Company's procurement decisions have been made in close
coordination with the marketing projections and by and large protected the
attrition of the margins.
The Company, a
One Star Export House, has increased its level of export business.
The weakening
of the US dollar against the rupee will have a marginal impact on the
competitiveness in export business, however the Company does not consider it as
a threat.
FINANCIAL
REVIEW
The financial performance of the Company during the year
20006-07 can be ascertained from the following key indicators :
* The gross income for the year at Rs.4403.300 Millions was higher by
almost 27% as compared to Rs.3474.700 Millions in the previous year mainly due
to upsurge in demand in the power cable sector.
* Financial expenses during the year increased to Rs.79 Millions from
Rs.62.400 Millions in the previous year due to increase in borrowings to meet
the enhanced working capital requirements of the Company and increase ire
Interest rates.
* Total Borrowings increased by Rs.463.100 Millions mainly due to borrowings
for the expansion project.
* Addition to Fixed Assets during the year includes Rs.477.900 Millions
on account of commissioning of the 1st phase of the Technological
Upgradation-cum-Expansion project (XLPE Cables).
* The market value of quoted investments was Rs.474 Millions as against
the book value of Rs.280 Millions as ore 31st March, 2007. The market value
decreased substantially from Rs.752.900 Millions as on 31st March, 2006 mainly
due to temporary decline in the market value of investments.
* Inventories increased from Rs.738.700 Millions as on 31st March, 2006
to Rs.927 Millions as on 31st March, 2007 mainly due to increase in
turnover.
* Sundry debtors aggregated to Rs.609 Millions as at 31st March, 2007 as
compared to Rs.488.300 Millions as at the end of the previous year. This
increase is due to increase in turnover.
* Current Liabilities aggregated to Rs.498.900 Millions as at 31st March,
2007 as compared to Rs.319.600 Millions as at the end of the previous year.
This increase was due to increase in volume of production.
The company is in
trade terms with:
·
Universal
Isolators
·
Universal
Magnoflux Private Limited
·
Shri Hans
Electricals Private Limited
·
Western
Electrical Private Limited
·
Western
Hivolts Equipments Private Limited
·
Danke
Switchgears and MPI Machines Limited
The company’s fixed
assets of important value includes Land, Buildings, Plant & Machinery,
Railway Siding, Furniture & Office Equipments and Vehicles
WEBSITE DETAILS :
Profile
Subject is located
at Satna a well known station of Central Railway which is about 180 km away
from Allahabad & Jabalpur. The nearest Airport is Khajuraho, which is about
125 km by road.
|
Commenced Production Established in 1962 for manufacturer of PILC
Cables.
·
Radio frequency co-axial cables (TV
cable) |
1964 1965 1966 1967 1977 1979 1981 1985 1991 1999 |
|
Technology
Up-gradation |
|
|
1965 1969 1977 1985 1989 |
VENTURES PROMOTED
Vindhya Telelinks
Limited, Rewa
Leading manufacturer
of Jelly filled telephone cables in the country.
Joint venture of
Universal Cables Limited And Madhya Pradesh
Audhyogik Vikas
Nigam (MPAVN). 1983
Birla Ericsson
Optical Limited, Rewa
Manufacturer of Optical fibre and jelly filled telephone cables.
Joint venture of Universal Cables Limited And Vindhya Telelinks Limited
Products
UCL covers a broad range in the field of
cables, conductors and capacitors. Apart from the cables of standard designs to
various national and international specifications, special cables are tailor
made to suit customers requirement.
Copper conductors
are made from high conductivity CC rods and aluminum conductors from EC grade
aluminum rods. The aluminum rods are also made in company’s own properzi plant.
The Product range includes:
- PILC Cables
up to 33 kv
- XLPE Cables
up to 145 kv
- High temp.
fluoro-plastic cables
- Winding wires
& Flat cables
- PVC Cables up
to 11 kv
- Elastomeric
cables up to 30 kv
Mixed
dielectric and all PP Power Capacitors upto 145 kv
Apart from the traditional cables Unistar manufactures wide range
of special cables for various applications.
Recognitions
The company has
received recognition from various independent authorities as under:
- Quality
system accreditation as per IS/ISO-9001 from Bureau of Indian Standards.
- Environmental
Management Systems as per IS/ISO 14001 certified by Bureau of Indian
Standards.
- Accreditation
of our R&D Laboratory by Department of Scientific and Industrial
Research, Govt. of India.
- Representation
in CIGRE, Paris for development of extra-high voltage cable
technology.
- Approval of
Quality System by South Afrcian Bureau of Standard(SABS)
- Certification
of our product by Tariff Advisory Committee for equitable rate
structure and risk in insurance sector.
- Approved
under in-process quality control system by export inspection council,
Govt. of India.
- Representation
in technical committee of Bureau of Indian Standards for making
specifications and R&D work related with cables and capacitors.
- Awarded
Export Excellence certificate during 1989-90 for achieving highest
export performance.
- National
safety awards for longest accident free period.
- Approval from BARC for N.P.P. Cables
Cables
Electricity Boards and Other Power Co’s.
Transmisson Corporation of A.P. Limited
A.E.Co. Limited, Ahmedabad Electric Co. Limited
BSES Limited , BEST Mumbai.
CESC Limited
Delhi Vidyul Board
Gujarat Electricity Board.
Gujarat Industries Power Co. Limited
Haryana State Electricity Board.
Karnataka Power Transmission Corporation.
Kerla State Electric Board.
Maharashtra State Electricity Board.
Madhya Pradesh Electricity Board.
National Thermal Power Corporation Limited
Orissa State Electricity Board.
Punjab State Electricity Board.
Surat Electricity Co. Limited
Tamil Nadu Electricity Board.
Tata Power Co. Limited
Karnataka Power Corporation Limited
Mining
Bharat Coking Coal Limited
Central Coalfields Limited
Eastern Coalfields Limited
Northern Coalfields Limited
Neyveli Lignite Corporation Limited
Singareni Collieries Limited
South-Eastern Coalfields Limited
Western Coalfields Limited
Steel plants
Steel Authority of India Limited
Tata Iron & Steel Co. Limited
Malvika Steels Limited
Refineries & Petrochemicals
Andhra Petrochemicals Limited
Bharat Petroleum Corporation Limited
Cochin Refineries Limited, Cochin
Hindustan Petroleum Corpn. Limited
Haldia Petro-chemicals Limited
Indian Petrochemicals Corpn. Limited
Indian Oil Corporation Limited
Manglore Refinery & Petrolchemicals Limited
Reliance Petroleum Limited, Jamnagar
Southern Petrochemicals Industries Corpn.
Limited
Railways
Chittaranjan Locomative Works.
Diesel Locomative Works.
Diesel Component Works.
Integral Coach Factory.
Rail Coach Factory.
All Zonal Railways
Calcutta Metro & Delhi Metro.
Atomic Energy
Bhabha Atomic Research Centre.
Nuclear Power Corporation
Fertilizers
Chambal Fertilizers and Chemicals Limited
Fertilizers Corpn. Of India
Gujarat Narmada Valley Fertilizer Company Limited
Indian Farmers and Fertilizer Co. Limited
Indo-Gulf Fertilizers & Chemicals Corpn Limited
Nagarjuna Fertilizers Corpn. Limited
Paradeep Phosphates Limited
Zuari Agro Chemicals
Port Trust & Ship Building Industry
Calcutta Port Trust
(Haldia Dock Complex)
Mangalore Port Trust
Cochin Naval Dockyard
Cochin Port Trust
Garden Reach Ship builders & Engineers Limited
Kandla Port Trust
Madras Port Trust
Mazagaon Dock Limited
Mumbai Port Trust
Vizag Port Trust
Paradeep Port Trust
Goa Ship Yard
Heavy Industries
Bharat Earth Movers Limited
Bharat Heavy Electricals Limited
Bharat Electronics Limited
Metallurgical & Engineering Consultants Limited
Heavy Engineering Corpn.
Bharat Heavy Plates and Vessel's Limited
Special Aircraft Industry
Hindustan Aeronautics Limited
Indian Space Research Organisation
Other Industries
ABB Limited
Birla Copper Limited
Larsen & Toubro Limited
National Aluminum Company Limited
Reliance Industries Limited
Siemens Limited
Tata Chemicals Limited
Hindustan Industries Limited
& various other industries.
Some of its satisfied overseas customers are :
|
Name of the
Party |
Country |
|
Ministry of Electricity & Water |
Kuwait |
|
Kuwait Oil Co. |
Kuwait |
|
Shroff (Malaya) Limited |
Singapore |
|
Crown Agents |
London |
|
People’s Oil Industries Rangoon |
Burma |
|
Tanzania Elec. Supply Company |
Tanzania |
|
ME Wright & Co. A/c.Dubai El. |
Dubai |
|
Abdulla Contracting & Trading |
Kuwait |
|
Indothai Synthetics Limited |
Bangkok |
|
Dhahran Elec. Power Co |
Saudi Arabia |
|
Nepal Electricity Corpn. |
Nepal |
|
Public Utility Board |
Singapore |
|
Air Technic Corpn Bombay |
(for Libya) |
|
Raznoimport |
Moscow |
|
Govt. of Bhutan |
Bhutan |
|
Indo-Phil Textile Mills |
Philipines |
|
Ministry of Electricity & Water |
Dubai |
|
VVO Sovbunker |
USSR |
|
VTF ‘Sovkabel’ of NPO ‘VNIIKP’ |
USSR |
|
Federal Power Telecom SDN BHD For BEB, |
Malaysia |
|
General Dept. for Co-Opn.of the min.of Foreign Economic Relations of
the USSR |
|
|
Central Electricity Board |
Mauritius |
|
Ceylon Electricity Board |
Sri Lanka |
|
Durban Electricity |
South Africa |
|
Captown Electricity |
South Africa |
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON DESIGNATED
PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is or
was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.37 |
|
UK Pound |
1 |
Rs.81.82 |
|
Euro |
1 |
Rs.56.83 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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. |
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 |
|