MIRA
INFORM REPORT
|
Report Date : |
31.10.2007 |
IDENTIFICATION
DETAILS
|
Name : |
TAMILNADU TELECOMMUNICATION LIMITED |
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Registered Office : |
No. 16, 1st floor, Aziz Mulk, 3rd Street,
Thousand Lights, Chennai 600 006, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
13.05.1988 |
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Com. Reg. No.: |
18-15705 |
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CIN No.: [Company
Identification No.] |
L32201TN1988PLC015705 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHET00170C |
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PAN No.: [Permanent
Account No.] |
AAACT9920B |
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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 : |
Manufactures of polyethylene insulated jelly-filled cables |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established Joint Venture between Tamilnadu State and Central Governments.
The company continue to incur losses. Its networth has been eroded. Payments
are however reported as slow but correct. In view of strong
promoters, the company can be considered normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
No. 16, 1st floor, Aziz Mulk, 3rd Street,
Thousand Lights, Chennai 600 006, Tamilnadu, India |
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Corporate Office : |
Gee
Gee Complex, 3rd Floor, 42, Anna Salai, Chennai-600 002, Tamilnadu, India |
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Tel. No.: |
91 -
44 - 8572992, 8572652 |
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Fax No.: |
91 -
44 - 8532275, 8420066 |
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E-Mail : |
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Website : |
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Factory 1 : |
Optical Fibre Cable E18B - E24, CMDA Industrial Complex Maraimalai Nagar - 603
209. Tamilnadu |
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Tel. No.: |
91
- 4114 - 53881, 52406 |
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Fax No.: |
91
- 4114 - 54768 |
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Factory 2 : |
Jelly Filled Telecom Cable Tiruvallur Road, Shaw Nagar, Arakkonam - 631 004.
Tamilnadu |
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Tel. No.: |
91
- 4177 - 32793, 32794 |
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Fax No.: |
91
- 4177 - 30291 |
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Website : |
DIRECTORS
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Name : |
Mr. K. Rajaraman |
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Designation : |
Director |
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Name : |
Mr. M. Sengupta |
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Designation : |
Director |
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Name : |
Mr. R. K. Upadhyay |
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Designation : |
Director |
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Name : |
Mr. K. B. Batra |
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Designation : |
Director |
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Name : |
Mr. Vimal Wakhlu |
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Designation : |
Director |
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Name : |
Mr. T. Willington |
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Designation : |
Director |
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Name : |
Mr. S. Susai |
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Designation : |
Director |
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Name : |
Mr. M. K. Jain |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
K. Sainathan |
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Designation : |
Company Secretary Cum Compliance Officer |
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Address : |
E- 188-E-24, CMDA Industrial Complex, Maraimalai Nagar 603 209 |
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Tel. No. : |
91-44-27451095 / 27452406 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters Telecommunications Consultants India Limited Tamilnadu
Industrial Development Corporation Limited |
6951000 6684000 |
30.66 29.49 |
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Foreign Collaborator Fujikura Limited, Japan |
3280000 |
14.47 |
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Banks, Insurance Companies |
106100 |
0.47 |
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Mutual Fund |
2300 |
0.1 |
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Clearing Member |
7350 |
0.03 |
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Private Corporate Bodies |
555906 |
2.46 |
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Indian Public |
5039355 |
22.23 |
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NRIs |
38989 |
0.18 |
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Total |
22665000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufactures of polyethylene insulated jelly-filled cables |
PRODUCTION STATUS
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Particulars |
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Value |
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Raw materials |
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69.073 |
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Stores and Spares |
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0.218 |
GENERAL
INFORMATION
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Suppliers : |
v Ravi Wood
Industries v Sankhla
Industries v Shankhla Polymers v Summo Packages v Narayana Moorthy
Timbers v Venkatachalapathy
Timbers v
Dhingra Polymers and Rainbow Plastics |
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Bankers : |
v State
Bank of India v Andhra
Bank v Punjab
National Bank |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Brahmayya And Company Chartered Accountant |
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Address : |
Masilamani Street, Balaji Nagar, Royapettah, Chennai 600014,
Tamilnadu, India |
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Associates/Subsidiaries : |
v Fujikura Limited,
Japan - Technical Collaborator & Equity Partner v Telecommunication
Consultants India Limited, New Delhi Equity Partner |
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Promoters : |
v Telecommunications
Consultants India Limited TCIL Bhavan,
Greater Kailash -1, New Delhi -110 048 v Tamilnadu
Industrial Development Corpn Limited 19-A,
Rukmani Lakshmipathi Road, Egmore, Chennai - 600 008 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs. 10/-
each |
Rs. 300.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
22665000 |
Equity Shares |
Rs. 10/-
each |
Rs. 226.650
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
226.602 |
226.601 |
226.601 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
10.599 |
10.806 |
11.013 |
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4] (Accumulated Losses) |
[331.502] |
[347.527] |
(372.212) |
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NETWORTH |
[94.301] |
[110.12] |
(134.598) |
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LOAN FUNDS |
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1] Secured Loans |
316.092 |
344.742 |
305.787 |
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2] Unsecured Loans |
0.000 |
0.000 |
80.000 |
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TOTAL BORROWING |
316.092 |
344.742 |
385.787 |
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DEFERRED TAX LIABILITIES |
0.000 |
24.443 |
27.909 |
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TOTAL |
221.791 |
259.065 |
279.098 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
187.804 |
243.162 |
268.024 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
79.683
|
73.660 |
42.943
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Sundry Debtors |
81.528
|
109.572 |
107.813
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Cash & Bank Balances |
11.377
|
21.413 |
17.266
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Other Current Assets |
0.000
|
0.000 |
0.000
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Loans & Advances |
17.774
|
17.027 |
18.740
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Total
Current Assets |
190.362
|
221.672 |
186.762 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
165.708
|
219.015 |
187.531
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Provisions |
3.185
|
2.764 |
1.687
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Total
Current Liabilities |
168.893
|
221.779 |
189.218 |
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Net Current Assets |
21.469
|
[0.107] |
(2.456)
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MISCELLANEOUS EXPENSES |
12.518 |
16.010 |
13.530 |
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TOTAL |
221.791 |
259.065 |
279.098 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
157.379 |
388.902 |
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Other Income |
15.184 |
1.370 |
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Total Income |
172.563 |
390.272 |
276.509 |
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Profit/(Loss) Before Tax |
[8.199] |
21.469 |
(54.546) |
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Provision for Taxation |
7.825 |
3.215 |
1.426 |
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Profit/(Loss) After Tax |
16.024 |
24.684 |
(55.972) |
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Total Earnings |
44.478 |
1.788 |
2.409 |
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Total Imports |
43.829 |
33.452 |
107.549 |
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Expenditures : |
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Manufacturing Expenses |
17.110 |
21.130 |
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Raw Material Consumed |
115.607 |
251.743 |
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Salaries, Wages, Bonus, etc. |
26.131 |
23.470 |
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Financial Charges |
49.081 |
51.285 |
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Depreciation & Amortization |
23.771 |
24.943 |
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Other Expenditure |
0.000 |
0.000 |
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Total Expenditure |
231.700 |
372.571 |
325.392 |
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QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
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|
30.06.2007 |
|
Type |
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|
1 Qtr
|
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Sales Turnover |
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31.6
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Other Income |
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|
0.9 |
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Total Income |
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|
32.5
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Total Expediture |
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30.1
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Operating Profit |
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|
2.4 |
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Interest |
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|
10.5
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Gross Profit |
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-8.1
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Depreciation |
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|
5.5 |
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Tax |
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0.0 |
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Reported PAT |
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-13.6
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KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Current Ratio |
0.49 |
0.40 |
0.33 |
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Fixed Assets |
0.29 |
0.58 |
0.44 |
|
Inventory |
2.04 |
7.29 |
6.63 |
|
Debtors |
1.64 |
3.91 |
3.29 |
|
Interest Cover Ratio |
-0.10 |
1.42 |
-0.07 |
|
Operating Profit Margin(%) |
12.13 |
22.98 |
6.79 |
|
Profit Before Interest And Tax Margin(%) |
-3.06 |
17.13 |
-1.17 |
|
Cash Profit Margin(%) |
-3.77 |
11.67 |
-9.73 |
|
Adjusted Net Profit Margin(%) |
-18.95 |
5.81 |
-17.68 |
|
Return On Capital Employed(%) |
-0.87 |
18.11 |
0.00 |
|
Return On Net Worth(%) |
-12.52 |
48.05 |
0.00 |
STOCK PRICES
|
Face Value |
Rs. 10.00/- |
|
High |
Rs. 8.55/- |
|
Low |
Rs. 8.26/- |
LOCAL AGENCY
FURTHER INFORMATION
Fixed
Assets
v Freehold Land
v Leasehold Land
v Building
v Plant &
Machinery And
v Electrical
Installations
v Office Equipments
v Furniture &
Fixtures
v Vehicles
v EDP Equipment
Review of
operations:
During the year under review, the company's sales and other income was
Rs.36717.000 Millions.. Almost the entire turnover of the year is achieved from
the Optical Fibre Unit in view of the Jelly Filled Telecom Cable Unit's
operations having been suspended since 1.12.2003. Gross sales during the year
increased to 215344 Fiber KMs (Rs.42280.700 Millions) from 166849 Fibre KMs
(Rs.31364.800 Millions) reflecting a growth of over 29% and 35% in quantitative
and value terms respectively over the previous year, despite excess capacity in
the industry and intense competition. The company had to survive in this price
war by implementing various cost-cutting and value engineering measures in the
manufacturing operations.
The company successfully launched the manufacturing of Ribbon type OFC
and exported the same to Kuwait Telecom during the year.
Reduction in operating expenses could be achieved because of curtailment
of overheads and all round optimization in costs by exercising strict
control/regular review mechanism.
Of the petitions filed by two Trade Unions of employees at the PIJF Unit at
Arakkonam against the suspension of operations before the Madras High Court,
the one filed by the majority union has been withdrawn. The High Court lifted
the embargo on sale of PIJF Unit assets. Voluntary Retirement Scheme notified
by Company had evoked positive response. So far 100 Employees out of the total
128 employees have opted for the said scheme.
Based on the ordinary resolution passed by the shareholders in February 2006
through postal ballot for disposal of the company's JFTC Unit, the company
disposed off part of the Plant and Machinery to the highest bidders during the
first quarter of 2006-07 for consideration totaling Rs. 18.700 Millions. The
sale of Land and Buildings and remaining Plant and Machinery through tenders is
in advanced stage and sale orders to highest bidders have been issued for
consideration totaling Rs.79.500 Millions..
In accordance with the requirement of Section 15 of the Sick Industrial Company
(Special Provisions) Act, 1985, the company has made a reference in October
2004 to the Board for Industrial and Financial Reconstruction (BIFR) of the
fact that the accumulated loss of the company at the end of the financial year
2003-2004 had exceeded the entire net worth of the company. BIFR has declared
the company as industrially sick.
Market Scenario and Outlook:
The company expects that OF telecom cables sector to increase in volumes in the
back-drop of the increased plan of BSNL for deployment of high fibre count OFC
for inter exchange links and long-haul projects is likely to provide the much
needed fillip for Ribbon type Optical Fibre Cables. This may reinforce and add
to the competitive strength of the company which is one of the few players
equipped to manufacture Ribbon type of OFC in India.
The demand outlook for the optical fibre cables was much encouraging during the
year under review due to Government's Broad band Policy. The industry also
expects the advent of Conditional Aces System (CAS) and broadband applications
to spur the growth of optical fibre cable networks in the coming years.
During the year under review the company has been able to export Optical Fibre
Ribbon Cables on favorable terms through the Company's promoters, i.e., TCIL
for their projects abroad. The optic fibre industry at home is also poised for
a period of significant growth and the demand is expected to match the current
availability in the months to come. This favorable trend is expected to continue
at least over the next few years with prices also moving up. The company
continues to take all initiatives to retain the competitive edge and be in a
position to meet the requirements of the market. The medium/long-term prospects
will augur well for the company. The company continues to emphasize on cost
cutting through enhanced productivity, reduction in logistics and other costs.
The company has effected substantial reduction in manpower and will continue
its efforts to further prune all its fixed costs including administrative and
discretionary overheads.
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 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. 39.51 |
|
UK Pound |
1 |
Rs. 81.16 |
|
Euro |
1 |
Rs. 56.76 |
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 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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 |
|