MIRA
INFORM REPORT
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Report Date : |
01.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
PARAMOUNT COMMUNICATIONS LIMITED |
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Registered Office : |
C-125 Naraina Industrial Area, Phase-l, Naraina, New, Delhi -110 028 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
05.09.1994 |
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Com. Reg. No.: |
55-61295 |
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CIN No.: [Company
Identification No.] |
L74899DL1994PLC061295 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELP04139C / DELP08582A |
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PAN No.: [Permanent
Account No.] |
AAACP0969Q |
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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 of Insulated Wire and Cable such as
Enamelled or Anodized, Coaxial Cable and other Insulated Conductors, Insulted
Strip as is used in large capacity machines or control equipment and optical
fibre cables. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 6700000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track.
Fundamentals are strong and healthy. Trade relations are fair. Business is
active. Payments are reported as usually correct and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in a medium to long
– run. |
LOCATIONS
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Registered Office / Corporate Office : |
C-125 Naraina Industrial Area, Phase-l, Naraina, New, Delhi -110 028,
India |
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Tel. No.: |
91-11-25897421 – 30 |
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Fax No.: |
91-11-25893719 – 20 |
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E-Mail : |
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Website : |
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Head Office : |
M-4 Bahubali, 59 / 17 New Rohtak Road, New Delhi – 110 015,
India |
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Tel. No.: |
91-11-5723106 / 5734981 /
5789651 / 5764094 |
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Fax No.: |
91-11-5739191/5761770 |
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Factory 1 : |
(Optical Fibre Cable Division) SA30A, RIICO Industrial Area,
Village Karoli, Post Khushkhera, Dist. Alwar – 301 707, Rajasthan, India |
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Tel. No.: |
91-1493-50221 – 23 |
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Fax No.: |
91-1493-50125 |
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E-Mail : |
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Factory 2 : |
(Jelly Filled Telephone Cable (JFTC) Division) 37, Industrial Estate, Dharuhera, District Rewari – 122
106, Haryana, India |
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Tel. No.: |
91-1274-42690 / 42531 |
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Fax No.: |
91-1274-42552 |
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E-Mail : |
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Factory 3 : |
(Paramount Cable Corporation) SP 30A, RIICO Industrial Area, Village Karoli, Post
Khushkhera, District Alwar – 301 707, Rajasthan, India |
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Tel. No.: |
91-1493-50221 – 23 |
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Fax No.: |
91-1493-50125 |
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E-Mail : |
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Branch office : |
201, Royal Plaza, New Link Road, Andheri [West], Mumbai – 400053,
Maharashtra, India |
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Tel. No.: |
91-22-26398408 |
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Fax No.: |
91-22-26390168 |
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E-Mail : |
DIRECTORS
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Name
: |
Mr. Sanjay Aggarwal |
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Designation
: |
Chairman and CEO |
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Date
of Birth/Age : |
21.10.1962 |
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Date
of Appointment : |
01.11.1994 |
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List
of Outside Directorship : |
1. Paramount Wires and Cables Limited 2. Paramount Gulf FZE 3. .Foresight Exim Limited 4. Paramount Realty Private Limited 5. Paramount Infratech Private
Limited |
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Chairmanship/Membership
of the Committee of Board of Directors of the company : |
1. Member-Shareholders/lnvestors Grievance Committee 2. Chairman-Share Transfer Committee |
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Chairmanship/Membership
of the Committee of Board of Directors of other company : |
Member-Audit Committee, Paramount Wires and Cables Limited |
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Name
: |
Mr. Sandeep Aggarwal |
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Designation
: |
Managing Director |
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Name
: |
Mr. Satya Pal |
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Designation
: |
Director |
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Name
: |
Mr. S.R S. Dangi |
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Designation
: |
Director |
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Name
: |
Mr. Vijay Bhushan |
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Designation
: |
Director |
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Date
of Birth/Age : |
22.12.1958 |
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Date
of Appointment : |
22.07.2000 |
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List
of Outside Directorship |
1. Bharat Bhushan Equity Traders Limited 2. Bharat Bhushan Share and Commodity Brokers Limited 3. Bharat Bhushan Insurance Brokers Private Limited 4. Bharat Nidhi Limited 5. KEI Industries Limited 6. Bharat Bhushan Technologies Private Limited |
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Chairmanship/Membership
of the Committee of Board of Directors of the company |
1. Chairman-Shareholders/lnvestors Grievance Committee 2. Member-Audit Committee 3. Member-Remuneration Committee |
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Chairmanship/Membership
of the Committee of Board of Directors of other company |
1. Member-Audit Committee, Bharat Bhushan Share and
Commodity Brokers Limited 2. Chairman-Shareholders/lnvestors Grievance Committee,
KEI Industries Limited 3. Member-Remuneration Committee, KEI Industries Limited |
KEY EXECUTIVES
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Name : |
Mr. Ratan Aggarwal |
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Designation : |
Chief Compliance Officer |
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Name : |
Mr. Ratan Aggarwal |
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Designation : |
Vice President (Finance) and Company
Secretary |
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Name : |
Mr. D. S. Muchhal |
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Designation : |
Sr. Vice – President (Dharuhera Unit) |
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Name : |
Mr. G. D. Singh |
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Designation : |
Vice President (Khushkhera
Unit) |
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Name : |
Mr. R K. Agarwal |
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Designation : |
Vice President (Marketing) |
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Name : |
Mr. Mrinmoy Chaudhury |
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Designation : |
Vice President (Business
Development) |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Insulated Wire and Cable such as
Enamelled or Anodized, Coaxial Cable and other Insulated Conductors, Insulted
Strip as is used in large capacity machines or control equipment and optical
fibre cables. |
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Products : |
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Exports : |
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Products : |
Wire, cables and conductors telecommunication and
signalling, power and control, etc. |
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Countries : |
CIS, Ghana, Russia, Sri Lanka, Sultanate of Oman,
Tanzania, UK, Ukraine and Zambia |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Power Cables* |
KMS |
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26500 |
**28335 |
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Jelly Filled Telephone Cables |
CKM |
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5299000 |
***196746 |
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Optical Fibre Cables |
KMS |
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20000 |
8832 |
* Includes all types of electric cables viz, LT/HT Power Cables, Control
Cables, Instrumentation Cables, Thermocouple Cables, Railway Signaling Cables
etc.
** Includes 0.217 Kms (Previous year 6.050 Kms) consumed during testing/
reprocessing.
*** Includes 3.16 CKM (Previous year 103.120 CKM) consumed during
testing/ reprocessing.
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
1200 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Jagdish Chand and Company Chartered Accountants |
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Address : |
H-20, Green Park (Main), New Delhi – 110 016 |
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Memberships : |
Confederation of Indian Industry |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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175,000,000 |
Equity Shares |
Rs. 2/- each |
Rs. 350.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
84,506,965 |
Equity Shares |
Rs. 2/- each |
Rs. 169.014
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 |
169.014 |
108.681 |
108.700 |
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2] Share Application Money |
0.000 |
14.580 |
0.000 |
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3] Reserves & Surplus |
1494.655 |
432.736 |
244.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1663.669 |
555.997 |
353.000 |
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LOAN FUNDS |
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1] Secured Loans |
640.087 |
436.869 |
108.800 |
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2] Unsecured Loans |
1250.028 |
105.774 |
60.600 |
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TOTAL BORROWING |
1890.115 |
542.643 |
169.400 |
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DEFERRED TAX LIABILITIES |
44.860 |
47.307 |
0.000 |
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TOTAL |
3598.644 |
1145.947 |
522.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
550.831 |
302.294 |
268.600 |
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Capital work-in-progress |
257.590 |
26.796 |
0.000 |
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INVESTMENT |
28.038 |
29.289 |
30.500 |
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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 |
1260.133
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555.213 |
295.900 |
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Sundry Debtors |
819.866
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588.805 |
153.000 |
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Cash & Bank Balances |
1088.903
|
37.551 |
23.600 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
291.972
|
166.794 |
34.200 |
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Total
Current Assets |
3460.874
|
1348.363 |
506.700 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
698.689
|
560.795 |
283.300 |
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Provisions |
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|
0.100 |
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Total
Current Liabilities |
698.689
|
560.795 |
283.400 |
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Net Current Assets |
2762.185
|
787.568 |
223.300 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3598.644 |
1145.947 |
522.400 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
3183.158 |
1958.526 |
1126.200 |
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Other Income |
16.312 |
6.079 |
4.400 |
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Total Income |
3199.470 |
1964.605 |
1130.600 |
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Profit/(Loss) Before Tax |
585.245 |
328.567 |
18.100 |
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Provision for Taxation |
205.430 |
113.979 |
5.200 |
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Profit/(Loss) After Tax |
379.815 |
214.588 |
12.900 |
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Earnings in Foreign Currency : |
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Total Earnings |
232.802 |
105.433 |
NA |
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Imports : |
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Raw Materials |
275.320 |
355.006 |
NA |
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Stores & Spares |
0.247 |
0.000 |
NA |
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Capital Goods |
3.852 |
0.000 |
NA |
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Total Imports |
279.419 |
355.006 |
NA |
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Expenditures : |
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Materials |
2566.422 |
1425.008 |
765.500 |
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Manufacturing,
Selling & Other expenses |
407.942 |
210.075 |
92.900 |
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lncrease/(decrease)
excise duty on stock |
51.894 |
11.423 |
0.000 |
|
|
lncrease/(Decrease) in stock |
[600.613] |
[113.280] |
[7.200] |
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Payment to and
Provision for Employees |
41.027 |
34.020 |
26.600 |
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Managerial
Remuneration |
5.466 |
3.569 |
0.000 |
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Financial
Charges |
106.241 |
41.117 |
23.800 |
|
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Depreciation |
35.847 |
24.107 |
20.600 |
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|
|
0.000 |
0.000 |
190.300 |
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Total Expenditure |
2614.226 |
1636.039 |
1112.500 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
768.800
|
1160.400
|
1233.900
|
|
Other Income |
31.600
|
21.000
|
1.100
|
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Total Income |
800.400
|
1181.400
|
1235.000
|
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Total Expenditure |
637.300
|
980.000
|
1020.400
|
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Operating Profit |
163.100
|
201.400
|
214.600
|
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Interest |
35.000
|
37.700
|
48.100
|
|
Gross Profit |
128.100
|
163.700
|
166.500
|
|
Depreciation |
12.700
|
10.000
|
11.300
|
|
Tax |
26.100
|
52.800
|
53.400
|
|
Reported PAT |
80.300
|
100.900
|
101.800
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
1.11 |
0.82 |
0.57 |
|
Long Term Debt-Equity Ratio |
0.63 |
0.20 |
0.23 |
|
Current Ratio |
2.03 |
1.31 |
1.31 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed Assets |
5.88 |
5.04 |
2.71 |
|
Inventory |
4.00 |
5.30 |
3.74 |
|
Debtors |
5.16 |
6.09 |
7.78 |
|
Interest Cover Ratio |
6.51 |
9.00 |
1.76 |
|
Operating Profit Margin(%) |
20.01 |
17.45 |
5.55 |
|
Profit Before Interest And Tax
Margin(%) |
19.03 |
16.38 |
3.72 |
|
Cash Profit Margin(%) |
11.33 |
10.57 |
2.97 |
|
Adjusted Net Profit Margin(%) |
10.34 |
9.51 |
1.15 |
|
Return On Capital Employed(%) |
29.95 |
46.63 |
7.94 |
|
Return On Net Worth(%) |
34.41 |
49.12 |
3.84 |
LOCAL AGENCY
FURTHER INFORMATION
PERFORMANCE
REVIEW OF OPERATIONS & FUTURE PLANS:
The company has achieved a turnover including other income of Rs. 3650.69 Millions
and profit after tax of Rs. 379.82 Millions for the year 2006-07 as compared to
Rs. 2263.39 Millions and Rs. 214.58 Millions respectively for the previous year
2006-06, a growth of 61.29% in turnover including other income and 77% in
profit after tax.
During the year, the company has shown excellent performance in Power Cables
segment. Bharat Sanchar Nigam Limited (BSNL) did not place any bulk order for
supply of JFTC with the cable industry during the financial year 2006-07. BSNL
annual tender for procurement of Jelly Filled Telephone Cables has been opened
in March, 2007, against which bulk orders are expected in the financial year
2007-08.
For the 1st phase of the expansion project, the company commissioned 1,500 KM
per annum HT power cable capacity at its Dharuhera plant during the financial
year under review, The company had earlier commissioned 5,000 KM per annum LT
power cables capacity during the year 2005-06, The company has been able to
increase its business by 267% in Power Cables during the financial year
2006-07. The company is confident of continuing its excellent growth in power
cable business in future in view of the strong order book and ongoing expansion
in this sector.
The 2nd phase of expansion was planned to set up additional capacity of 30,000
KM per annum of LT Power Cables and 2,000 KM per annum of HT Power cables at
the Khushkhera plant of the company, The implementation of this expansion
project is progressing well and is expected to be completed by September, 2007.
The company has raised USD 15 million in April, 2006 by way of Global
Depository Receipts (GDRs) listed on the Luxembourg Stock Exchange for
financing the 2nd phase of expansion project and to meet out the enhanced
long-term working capital requirements. The total number of GDRs issued was
3,333,333, each GDR representing one equity share of Rs.10/- each (pre-split)
at a price of LISD 4.5 each equivalent to INR 202/-.
The 3rd phase of expansion envisages the setting up of a new facility with a
proposed capacity of 35,000 KM per annum of LT Power Cables and 2,500 KM per
annum of HT Power cables. The company is in the process of acquiring land for
this project. The company has raised USD 27 million in November, 2006 through
Foreign Currency Convertible Bonds (FCCBs) listed on the Luxembourg Stock
Exchange for financing this 3rd phase of capex plans. The company has issued
5,400 FCCBs of USD 5,000 denomination each with an initial conversion price of
Rs 265 per equity share of Rs 10/- each (pre-split) at a fixed currency
conversion rate of INR 44,99=USD
During the year, the Board of Directors has allotted
13,500,000 equity shares of Rs.2/- each upon conversion of warrants. Funds
received towards conversion of warrants have been utilized as per the object of
the issue.
The
resultant equity shares were not, listed at the end of financial year 2006-07.
However the same got listed with NSE and BSE in the month June 2007.
FUTURE
PLANS:
The Indian economy is booming and above 9% growth rate is expected in the coming
years. This will lead to overall development in the Country. The cable industry
in India is witnessing a good demand due to heavy investment in infrastructure,
railways, I.T sector, power sector & new industrial projects. This trend is
expected to continue during the years to come.
SUBSIDIARY:
Company's wholly owned subsidiary M/s. Paramount Gulf FZE is functioning in
LAE. The purpose of the subsidiary is to deal and trade in various commodities
and to cater to cable export business for its parent company.
ISO
CERTIFICATIONS:
The company has ISO 9001 and ISO 14001 certifications for both of its plants at
Khushkhera, Rajasthan and Dharuhera, Haryana.
MANAGEMENT DISCUSSION AND ANALYSIS:
OVERALL REVIEW:
Paramount
Communications Limited (Paramount) ranks amongst the most prestigious and
largest Manufacturing of diverse types of cables in India, The company has
presently two state of the art manufacturing units located at Dharuhera,
Haryana and Khushkhera, Rajasthan. Both the units of the company are ISO-9001
and ISO-14001 certified. Paramount is uniquely positioned as a company which
provides complete cabling solutions to almost all sectors of the economy -
Power, Telecom & IT, Railways, Petrochemicals and Industrial Sector.
Due to buoyancy
in the Indian economy, huge investments in infrastructure, industrial
expansions and new projects picked up during the year and is expected to
continue in coming years too, which is expected to drive further demand for
power, control and instrumentation cables.
The company has
successfully raised US$ 15 million by issue of Global Depository Receipts
(GDRs) in the international market in April, 2006. The funds were raised to
finance the expansion plans to manufacture Low & High Tension Power cables
at the Khushkhera plant of the company and also to meet the additional
long-term working capital requirements, Each GDR underlying one equity share of
Rs. 10/- each (pre-split) is listed at Luxembourg Stock Exchange. The proceeds
received from the GDR issue have been used for the objects of the issue.
During the year under review, the company has successfully raised US$ 27
million by issue of Foreign Currency Convertible Bonds (FCCBs) in the
international market, The funds were raised to set up a new manufacturing facility
for manufacture of Low & High Tension Power cables and expansion of
capacities in the existing units of the company or for such other uses as may
be permitted by ECB Guidelines as amended from time to time.
In order to provide
more liquidity to the company's stock, the company went for a stock split sub
dividing the face value of each equity share from Rs.10/- (ten) each to 5
(five) equity shares of Rs.2/- (two) each. After stock split the subscribed,
issued and paid up share capital of the company stood at Rs.142,013,930 divided
into 71,006,965 equity shares of Rs. 2/- each.
Further, the
company has issued and allotted 13,500,000 equity shares of Rs. 2/- each
(post-split) upon conversion of Zero Coupon Convertible Warrants (ZCCWs) to the
ZCCW holders during the year under review and after making necessary adjustment
as to the number of shares to be issued after giving effect to the stock split.
After the said allotment the subscribed, issued and paid up share capital of the
company stands at Rs. 169,013,930 divided into 84,506,965 equity shares of
Rs.2/- each.
The 2nd phase
of expansion project of the company is in full swing, which will add additional
capacity of 30,000 KM LT Power Cables and 2,000 KM HT Power cables at the
existing plant of the company located at Khushkhera Industrial Area, District
Alwar, Rajasthan. The implementation of this expansion project is expected to
be completed by September, 2007, The said project is financed from the proceeds
received from the Global Depository Receipts (GDRs) issued by the company in
the month of April, 2006.
The 3rd phase
of expansion has been planned to set up a new project with additional capacity
of 35,000 KM LT Power Cables and 2,500 KM HT Power Cables, The company is in
the process of acquiring land for this project.
The said
expansion shall be financed through the proceeds received from Foreign Currency
Convertible Bonds (FCCBs) issued by the company,
During the year
under review the prices of metals remained highly volatile, which affected the
profitability of cable manufacturers to a great extent as the prices of main
inputs Aluminium and Copper were quite unstable.
However, the
company undertook various control measures to minimize risk and secure
profitability. The management took proactive steps to cover its raw material
supplies at lowest cost.
The company's
sales increased to Rs. 3634.37 million from Rs. 2257.31 million in the previous
year showing a growth of more than 61%. Net profit increased to Rs 375.86 million
from Rs. 214.60 million in the previous year showing a growth of more than
75%.
INDUSTRY STRUCTURE AND DEVELOPMENTS:
With the high
growth witnessed in developing countries such as India, huge investments in
infrastructure, power, railways and industrial projects shall continue to drive
robust demand for cables. The financial year 2006-07 was an excellent year for
cable manufacturers as their sales and profits zoomed due to increased demand
and better realizations.
BUSINESS
ANALYSIS & PRODUCT WISE PERFORMANCE:
Power & Railways Cables:
Paramount sold 25,165 KMs of Power Cables having a total value of Rs.3093.21
million during the year as compared to 12,151 KMs having a total value of
Rs.842.99 million during the previous year, a growth of more than 3.5 times.
Power cables sales constitute 85% of the total turnover of the company for the
year 2006-07. Power, Infrastructure and Railway sectors are poised for
substantial growth due to the ongoing reforms process, which has assumed prime
importance of late. Paramount is well positioned to take maximum advantage of
the boom in the Power sector because of its long-standing and prestigious track
record with major players in the Power Sector including National Thermal Power
Corporation (NTPC), Bharat Heavy Electricals Limited (BHEL), Power Grid
Corporation of India Limited (PGCIL), Areva, L&T, various Electricity
Boards, Reliance Energy, North Delhi Power Limited, ECC, ABB. Alstom, Siemens
amongst many others. Additionally, Paramount is the single largest supplier of
cables including Axle Counter Cables and Signaling Cables to the Indian
Railways. Paramount by virtue of its high quality and delivery record expects
to gain substantially from demand that will arise in the coming years.
Paramount has already implemented the 1st phase of expansion plan and the 2nd
phase of expansion plan for power cables shall be implemented during September,
2007.
Jelly Filled Telephone Cables
(JFTC):
The wide-spread adoption of WLL technology and continued trust on mobile
telephony globally hit the demand of JFTC badly. The major client for JFTC,
Bharat Sanchar Nigam Limited (BSNL) finalized its annual tender for JFTC in
March, 2007 for the year 2006-07 and hence no bulk orders for JFTC have been
received from BSNL during the year under review. However bulk orders for
procurement of cables by BSNL are expected in the financial year 2007-08. The
company has sold 2.22 Lac conductor kilometer (LCKM) of JFTC having a total
value of Rs. 238.39 million during the year as compared to 15.20 LCKM having a
total value of Rs.1,136 million during the previous year
Optical Fibre Cable (OFC):
The OFC is used in long distance networks and generally forms 'the backbone of
all telecom networks. It is also used in local area networks requiring high
speed connectivity and high bandwidth. Paramount sold 8,276 KMs of Optical
Fibre Cables having a total value of Rs.83.17 million during the year as
compared to 12,769 KMs having a total value of Rs.184.31 million during the
previous year.
Swing Capacity:
Paramount has developed a unique product range along with a substantial 'Swing
Capacity' that can be used to shift the focus of manufacturing from one
segment/type of cable to another most efficiently and productively. The
cyclical nature of various segments of the economy is not a 'act that can be
wished away Fortunately, however, ups and downs of individual sectors have
different time cycles. Paramount is strongly positioned in the Power Sector,
Railways, infrastructure Projects, Industrial Sector and Telecom & IT
Sector Even within a sector the demand for some of the products can be quite
seasonal e.g. the annual Jelly Filled Telephone Cable orders (JFTC) are
normally received only with 4 to 6 month delivery period.
Paramount, with its substantial Swing Capacity is able to utilize a good
percentage of this capacity in manufacturing power cables when the Jelly Filled
Telephone Cable orders are exhausted, The reverse happens when bulk orders are
received for JFTC. The overall impact is that at a given point of time one or
two sectors of the market might be at the lower end of the cycle while at least
one of two other sectors would be doing better and the company shall therefore
take advantage of its swing capacity. Paramount therefore is confident of
continuous growth without being affected by the ups and downs of any one sector
of the economy/market/product range. The Swing Capacity helps in focusing on
the sector which is having better demand.
Future Outlook:
In view of the anticipated investments in infrastructure, power, railways and
industrial sector, it is expected that the demand for the company's products
will continue to be robust. Capacity expansion for LT and HT power cables will
further add to the turnover in the coming years. It is expected that the
turnover of the company and its profitability will increase substantially
during the next financial year if the developments 'taking place in the
infrastructure, power and industrial sector continues to grow at the current pace.
Exports:
Paramount's export revenue is Rs. 82.68 million and deemed exports, Rs.130.88
million during the year ended 31st March, 2007 as compared to Rs.37.69 million
and Rs. 67.74 million respectively during the last year.
Exports have
picked up during the current fiscal and the company expects strong export
growth in future.
Financial Performance:
The company
achieved total sales turnover of Rs. 3634.37 million for the year ended 31st
March, 2007 as compared to Rs. 2257.31 million during the previous year. The
total turnover of the company has increased by more than 61 percent over the
previous year.
The company has
achieved a net profit of Rs. 375.86 million as compared to Rs. 214.60 million
for the previous year 2005-06.
Total financial
charges during the year hive increased by 158.37% from Rs. 41.2 million to
Rs.106.24 million. This is because of increased average utilization of working
capital limits from the bank during the year as compared to the previous year
The working capital limits of the company have been substantially enhanced
during the year under reporting. The levels of current assets have also gone up
due to increase in total business volume during the year.
Borrowing position:
Borrowings excluding
working capital facilities as at 31st March, 2007 are Rs. 1295.86 million as
compared to Rs. 157.32 million during the previous year. These borrowings
include sales tax deferment loan of Rs.49.84 million, term loan from banks Rs.
41.00 million, hire purchase finance Rs.2.13 million and Inter- corporate
deposits Rs. 18.40 million. The substantial increase in the borrowings is due
to the outstanding foreign currency convertible bonds issued by the company on
22nd November, 2006, which accounts for Rs. 1181.79 million. The total debt
equity ratio of the company as at 31-03-2007 is 1.14:1 as compared to 0.98:1 as
at 31-03-2006.
It is
in trade terms with:
·
Bharat Sanchar Nigam Limited (BSNL)
·
National Thermal Power Corporation Limited (NTPC)
·
Bharat Heavy Electricals Limited (BHEL)
·
Research, Development & Standards Organisation (RDSO)
·
Indian Space Research Organisation
·
Power Grid Corporation of India Limited (PGCIL)
·
Indian Oil Corporation Limited (IOCL)
·
Gas Authority of India Limited (GAIL)
·
Engineers India Limited (EIL)
·
Project Development India Limited (PDIL)
·
Oil and Natural Gas Corporation Limited (ONGC)
·
Centre for Development of Telematics (C-DOT)
·
Department of Atomic Energy (DAE)
·
Naval Science and Technological Lab (NSTL)
·
Lloyd’s Register Industrial Services (India) Limited (LIS)
·
Tata Consulting Engineers (TCE)
·
Desein Engineers & Consultants (Private) Limited (DECL)
·
Development Consultants Limited (DCL)
·
HOLITECH
·
Engineering Projects India Limited (EPIL)
·
Mahanagar Telephone Nigam Limited (MTNL)
·
Telecommunication Consultants of India Limited (TCIL)
·
Indian Railway Construction Company (IRCON)
·
Rail India Technical & Economics Services Limited
(RITES)
·
Bharti
·
Hughes Tele.com
·
HFCL InfoTel
·
Shyam Telelinks
Fixed assets
- Land
- Land
(Leasehold)
- Buildings
- Plants and
Machinery
- Electrical
Fitting & Equipments
- Furniture and
Fixtures
- Vehicles
- Assets
acquired under Hire Purchase: -Vehicles
CONTINGENT LIABILITIES
- Guarantee of
Rs. 50.000 Millions given to a Bank for credit facilities given to
Paramount Wires & Cables Limited. Credit facilities availed by the
said company as on 31.03.2007. Rs. NIL (Previous year Rs. 9.402 Millions)
for fund based limits and Rs. 36.731 Million (Previous year Rs. 49.922
Millions) for non-fund based limits.
- Unused letter
of credit outstanding Rs. 113.575 Millions (Previous year Rs. 90.926
Millions)
- Financial
Bank Guarantees outstanding Rs. 28.703 Millions (Previous year Rs. 35.436
Millions)
- Effect of
Income tax demands/disallowances against which appeal/rectifications have been
filed by the
- company is
Rs. 3.774 Millions (Previous year Rs. 3.593 Millions)
- Claims
against the company not acknowledged as debts Rs. NIL ( Previous year Rs.
0.481 Million)
- Outstanding
Bills discounted Rs. 136.461 Millions (Previous year Rs. 20.104 Millions).
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.39.39 |
|
UK Pound |
1 |
Rs.78.40 |
|
Euro |
1 |
Rs.58.73 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
|