MIRA
INFORM REPORT
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Report Date : |
30.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
KEI INDUSTRIES LIMITED |
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Registered Office : |
D-90, Okhla Industrial Area, Phase – I, New Delhi – 110020 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
31.12.1992 |
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Com. Reg. No.: |
051527 |
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CIN No.: [Company
Identification No.] |
L74899DL1992PLC051527 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELK05368G DELK05577F |
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PAN No.: [Permanent
Account No.] |
AAACK0251C |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business : |
Manufacturing of cables, non-ferrous metals and jelly
filled telecom 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 6074400 |
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Status : |
Very 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.
Available information indicates high financial responsibility of the company.
General financial position is good. Fundamentals are strong and healthy.
Payments are reported as usually correct and as per commitments. The company can be considered good for any normal business dealings. It can be regard as a promising business partner in a medium to long –
run. |
LOCATIONS
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Registered Office/ Head Office : |
D-90, Okhla Industrial Area, Phase – I, New Delhi – 110020, India |
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Tel. No.: |
91-11-26818810/26818642/26815558/59/26815197/26818840/2681024/699 |
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Fax No.: |
91-11-26811959/ 26817225 |
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E-Mail : |
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Website : |
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Factory : |
· SP-920, RIICO Industrial Area, Phase - III, Bhiwadi, District Alwar - 300019, Rajasthan · 99/2/7, Madhuban Industrial Estate, Village Rakholi, Silvassa- 396230, Dadra and Nagar Haveli, Union Territory |
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Overseas Office : |
Dubai Post Box No. 261739, Jebel Ali Free Zone, Dubai, U.A.E. Tel: 97143689336 Fax: 97143689337 e-mail: keidubai@emirates.net.ae |
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Regional Marketing Office : |
Mumbai (Marketing Office) 101/102, Vastu Shilp, Vastu Enclave, Andheri Pump House,, Andheri
(East), Mumbai – 400093, Maharashtra, India Tel: 91-22-28239673, 28375642. Fax: 91-22-28258277 E-mail: kei.mum@kei-ind.com · No. 27/F, 1st Floor, Chakrapani Street, West Mambalam, Chennai - 600033, Tamilnadu Tel. No. 91-44-4836781 · 3F, III Floor, Siddhi Vinayak Chambers, Gandhi Nagar, Opp, MIG Ground, Kala Nagar, Bandra (East), Mumbai – 400051, India Tel. No. 91-22-6428125 Fax No. 91-22-6436547 |
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Branch Office : |
Mumbai 101/102, Vastu Shilp, Vastu Enclave, Andheri Pump House,,
Andheri (East), Mumbai-400093, Maharashtra, Idnia Tel: 91-22-28239673, 28375642. Fax: 91-22-28258277 e-mail: kei.mum@kei-ind.com Jaipur Tel: 91-141-2221707 Pune Tel: 91-9822048426 Baroda Tel: 91-265-6539719 Fax: 91-265-2334161 Mobile : Tel: 91-9824087943/9824676443 e-mail: baroda@kei-ind.com Bangalore Tel: 91-80-22111187 e-mail: hzakee@kei-ind.com Chennai Tel: 91-44-42009120. Telefax: 91-44-42009130 e-mail: keichn@kei-ind.com Hyderabad Tel: 91-40-32405522. Telefax: 91-40-25504358 Kolkata Telefax: 91-33-24121065 e-mail: keikol@kei-ind.com |
DIRECTORS
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Name : |
Mr. Anil Gupta |
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Designation : |
Chairman cum Managing Director |
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Name : |
Mr. Sunil Gupta |
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Designation : |
Director |
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Name : |
Mrs. Archana Gupta |
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Designation : |
Director |
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Name : |
Mr. Pawan Bholusaria |
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Designation : |
Director |
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Name : |
Mr. K G Somani |
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Designation : |
Director |
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Name : |
Mr. Vijay Bhartia |
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Designation : |
Director |
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Name : |
Mr. Vikram Bhartia |
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Designation : |
Director |
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Name : |
Mr. Rajeev Gupta |
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Designation : |
Executive Director (Finance) |
KEY EXECUTIVES
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Name : |
Mr. Kishore Kunal |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.09.2007)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter and
Promoter Group |
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Individuals/ HUF |
18873820 |
31.94 |
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Bodies Corporate |
2180000 |
3.69 |
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Public
Shareholding Institutions |
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Mutual Funds/ Axis |
5572724 |
9.43 |
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Foreign Institutions Investors |
12560375 |
21.25 |
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Non -
Institutions |
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Bodies Corporate |
11672252 |
19.75 |
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Individual Shareholders Holding Nominal Share Capital up to Rs.0.100
Million |
6503680 |
11.00 |
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Individual Shareholders Holding Nominal Share Capital in excess of
Rs.0.100 Million |
1336430 |
2.26 |
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Any Others |
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NRIs/ OCBs |
230651 |
0.39 |
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Clearing Members |
168479 |
0.29 |
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Trust |
600 |
0.00 |
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Share Held by custodians and against which depository receipts have
been issued |
500 |
0.00 |
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Total |
59099511 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of cables, non-ferrous metals and jelly
filled telecom cables. |
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Products : |
· Non-ferrous metals · Jelly
filled telecom cables · Control
Cables · LT
power cables · Instrumentation
cables · Engineering
Consultants · State
Electricity Boards · Thermocouple
Extension/Compensating |
GENERAL
INFORMATION
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Suppliers : |
Department of Telecommunication, Government of India. |
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Customers : |
· Bombay
Stock Exchange (BSE) · National
Stock Exchange (NSE) · Delhi
Stock Exchange · Kolkata
Stock Exchange · GDR · FCCB |
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Bankers : |
· Dena Bank, New Delhi · Punjab National Bank, New Delhi |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Jagdish Chand and Company Chartered Accountant |
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Memberships : |
Confederation of Indian Industry |
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Associates/Subsidiaries : |
KEI International Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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11793900 |
Equity Shares |
Rs.10/- each |
Rs.117.939 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
117.900 |
100.900 |
79.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1400.700 |
851.500 |
201.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1518.600 |
952.400 |
281.100 |
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LOAN FUNDS |
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1] Secured Loans |
1166.000 |
532.200 |
219.100 |
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2] Unsecured Loans |
1929.500 |
235.100 |
229.700 |
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TOTAL BORROWING |
3095.500 |
767.300 |
448.800 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4614.100 |
1719.700 |
729.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1210.700 |
744.100 |
280.800 |
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Capital work-in-progress |
198.900 |
60.600 |
8.000 |
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INVESTMENT |
3.600 |
2.300 |
0.300 |
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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 |
1760.700
|
984.300 |
503.600 |
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Sundry Debtors |
1741.100
|
757.200 |
499.900 |
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Cash & Bank Balances |
1374.800
|
140.800 |
49.800 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
414.100
|
126.100 |
57.000 |
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Total
Current Assets |
5290.700
|
2008.400 |
1110.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
2044.700
|
1069.800 |
650.600 |
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Provisions |
45.100
|
25.900 |
18.900 |
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Total
Current Liabilities |
2089.800
|
1095.700 |
669.500 |
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Net Current Assets |
3200.900
|
912.700 |
440.800 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4614.100 |
1719.700 |
729.900 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
6818.900 |
3424.500 |
2302.300 |
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Other Income |
9.400 |
16.500 |
22.400 |
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Stock Adjustments |
673.000 |
370.800 |
66.500 |
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Total Income |
7501.300 |
3811.800 |
2391.200 |
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Profit/(Loss) Before Tax |
579.500 |
336.500 |
123.900 |
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Provision for Taxation |
178.100 |
76.400 |
40.000 |
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Profit/(Loss) After Tax |
401.400 |
260.100 |
83.900 |
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Expenditures : |
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Raw Material Consumed |
5057.500 |
2401.500 |
1568.100 |
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Excise Duty |
808.600 |
430.500 |
270.700 |
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Power & Fuel |
117.600 |
79.500 |
52.600 |
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Manufacturing Expenses |
159.900 |
114.900 |
73.000 |
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Employee Cost |
82.000 |
62.800 |
46.900 |
|
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Selling and Administrative Expenses |
350.200 |
231.400 |
143.600 |
|
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Miscellaneous Expenses |
45.000 |
26.100 |
20.800 |
|
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Interest and Financial Charge |
244.500 |
101.700 |
71.700 |
|
|
Depreciation & Amortization |
56.500 |
26.900 |
19.900 |
|
|
Other Expenditure |
0.000 |
0.000 |
0.000 |
|
Total Expenditure |
6921.800 |
3475.300 |
2267.300 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
|
|
|
|
|
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Sales turnover |
1830.400 |
1983.900 |
2335.100 |
|
Other income |
36.800 |
(0.500) |
0.000 |
|
Total income |
1867.200 |
1983.400 |
2335.100 |
|
Total expenditure |
1590.800 |
1704.900 |
2035.900 |
|
Operating profit |
276.400 |
278.500 |
299.200 |
|
Interest |
85.500 |
97.400 |
104.100 |
|
Gross profit |
190.900 |
181.100 |
195.100 |
|
Depreciation |
19.100 |
18.500 |
19.200 |
|
Tax |
40.500 |
46.500 |
40.900 |
|
Reported PAT |
119.300 |
116.100 |
135.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
1.56 |
0.99 |
1.55 |
|
Long Term Debt Equity Ratio |
0.97 |
0.27 |
0.43 |
|
Current Ratio |
1.57 |
1.18 |
1.08 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
5.96 |
5.33 |
5.95 |
|
Inventory |
4.97 |
4.60 |
5.64 |
|
Debtors |
5.46 |
5.45 |
6.33 |
|
Interest Cover Ratio |
3.37 |
4.31 |
2.73 |
|
Operating Profit Margin (%) |
12.91 |
13.58 |
9.36 |
|
Profit Before Interest and Tax Margin (%) |
12.08 |
12.80 |
8.50 |
|
Cash Profit Margin (%) |
6.72 |
8.38 |
4.51 |
|
Adjusted Net Profit Margin (%) |
5.89 |
7.60 |
3.64 |
|
Return on Capital Employed (%) |
26.02 |
35.78 |
31.61 |
|
Return on Net Worth (%) |
32.49 |
42.17 |
34.43 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Subject was incorporated on 31st December, 1992 at New Delhi having Company Registration Number 51527.
Subject was established in the year 1968 as a partnership concern under the name and style of Krishna Electrical Industries.
It was later converted into a public limited liability under the name and style of subject in December, 1992.
Subject was promoted by Mr. D. N. Gupta, Mr. Sunil Gupta and Mr. Anil Gupta, the Managing Director of the company.
In the year 1992, the company ventured into manufacturing of stainless steel wires in New Delhi on a small-scale basis. As the product developed in stages and the company gained confidence to manufacture the product for the international market, the company started exploring the business potentials overseas. The assessment gave the impetus to venture into the project for manufacturing wider range of stainless steel wires, with capacities to match the international demand. Deploying contemporary project management skill the company commissioned its 3600 MTPA manufacturing unit in Bhiwadi in 1996.
REVIEW
VIEW OPERATIONS
Due to buoyancy in economy, huge investment in infrastructure and power
projects and overall improvement in industrial scenario, demand for power,
control and instrumentation cables picked-up during the year due to which
Company achieved substantial improved financial results. In Stainless Steel
Division, the Company's focus on quality has yielded results, which has
resulted in increased capacity utilization and sales.
The company in earlier year had started producing Rubber Cables, which during
the current year met with increased demand and resulted in increase in turnover
and profitability of the Company. The Company expanded its existing product
range by installing balancing equipment and modernization.
The Company's New Project for HT Power Cable which was commissioned towards the
end of the year 2005-06 has contributed Rs.445.100 Millions in the total
revenue of the Company.
In view of volatility in input prices (Copper and Aluminium) the company
undertook several measures to reduce consumption and improve price realization.
The Management also took proactive steps to cover its raw material supplies at
the lowest rates.
The Company started its Overseas Marketing office in Dubai catering to
the markets of Africa and Middle East, which has also resulted in increased
turnover from this region.
FOREIGN CURRENCY CONVERTIBLE BONDS (FCCB)
The Company has raised USD 36, 000, 0000 (thirty six million) by way of
allotment of 1% Foreign Currency Convertible Bonds (FCCB) due 2011. The Bond
has a maturity of 5 years and one day. It is convertible at a conversion price
of Rs.430/- at the option of bondholders.
Post-split conversion price is adjusted at Rs.86/-. The
Bonds are listed and traded at Luxembourg Stock Exchange. The FCCE were issued
and allotted by the Board of Directors on 29th November, 2006. The members of
the Company had approved the said issue at its Extra-ordinary General Meeting
held on 23rd November, 2006. The FCCB proceeds are being utilized for setting
up New Project and Modernization and Expansion of existing facilities / units.
As per the terms and conditions of FCCB, 1% interest is payable semi-annually
on 30th June and 31st December every year. Unless, the Bonds have been
previously redeemed, repurchased and cancelled or converted, the Company shall
redeem the Bonds on 30 November 2011 (the 'Maturity Date') equal to the
outstanding principal amount of a Bond together with redemption premium and
accrued but unpaid interest thereon to the Maturity Date. All outstanding bonds
on the date of redemption would be redeemed at a price of USD 7.277 per Bond,
providing a Yield to Maturity (YTM) of 8.5% compounded semi-annually.
GLOBAL DEPOSITORY RECEIPTS (GDR)
The Global Depository Receipts (GDR) representing same number of equity shares
were issued and allotted at a price of USD 4.60 (equivalent to Rs.201.526
millions) during the year 2005-06. This was approved by members in the
Extraordinary General Meeting held on 20th May, 2005.
Company had raised US$ 10 million by way of Global Depository Receipts (GDRs)
for financing High Tension (HT) Power Cable Project and long-term working
capital requirements of the Company. The proceeds of GDR issue have been used
for the objects of the issue and the Company commissioned HT Power Cable
facility in March'06. Due to commissioning of this new range of product, the
Company will be able to offer almost entire spectrum of cables to its
customers. As on March 31, 2007 total outstanding GDR is 500 representing same
number of equity shares of Rs.2/- each.
SUB-DIVISION OF EQUITY SHARES
The Company has sub-divided face value of equity shares of Rs.10/- into five
equity shares of Rs.2/- each. The members of the Company had approved the
sub-division of face value of equity shares on 23rd November, 2006. Pursuant to
resolution passed by the members in general meeting, 29th December, 2006 was
fixed as record date.
EXPORT
ORIENTED UNDERTAKING (EOU)
The Company is setting up New Project for manufacture of existing range of
products viz. LT / HT power cable at Chopanki. The proposed undertaking of the Company
at Chopanki, District Alwar Bhiwadi (Rajasthan) has been registered as 100%
Export Oriented Undertaking (EOU). It is expected to be commissioned by the end
of October, 2007.
FUTURE OUTLOOK
The Company is setting up New Project at Chopanki (Rajasthan)
for manufacture of existing range of products i.e. LT / HT power cable. The New
Project will be commissioned by October 2007. The approximate cost of the
Project is Rs.556.000 Millions which will be executed in two phases. The
Company is expecting an additional turnover of approximately Rs.2500.000
Millions from this Project. In view of the anticipated investments in
Infrastructure, Power and Industrial Sectors, it is expected that the demand
for Company's product will continue to be robust. The New Project for HT Power
Cable, which was commissioned by the end of March, 2006 has contributed
Rs.445.100 Millions of the total revenue of the Company during the year
2006-07. The company is also undertaking modernisation and expansion of its
existing units at Bhiwadi and Silvassa. Keeping in view benefits expected from
HT facilities and expansion in LT Power Cables and ongoing expansion in House
Wire/ Flexible Wire facility at Silvassa, it is expected that barring
unforeseen circumstances there will be substantial increase in sales and profit
of the Company during the year 2007-08.
MANAGEMENT
DISCUSSION AND ANALYSIS
OVERVIEW
The principal business of subject at present is the manufacture and sale of
Cable and Power Cable, House Wire and Flexible Wire, Winding Wire and Stainless
Steel Wire.
Company is aggressively concentrating on infrastructure, power projects and
industrial expansion for sale of its cables. Company also is marketing some of
its cable products through dealer network.
Due to buoyancy in economy, huge investment in infrastructure and power
projects and overall improvement in industrial scenario, demand for power,
control and instrumentation cables picked-up during the year due to which
Company achieved substantial improved financial results. In Stainless Steel
Division, the Company's focus on quality has yielded results, which has
resulted in increased capacity utilization and sales.
The Company has raised USD 36,000,0000 (thirty six million) by way of allotment
of 1% Foreign Currency Convertible Bonds (FCCB) due 2011. The Bond has a
maturity of 5 years and one day. It is convertible at a conversion price of
Rs.430/- at the option of bondholders.
Post-split conversion price is adjusted at Rs.86/-. The
Bonds are listed and traded at Luxembourg Stock Exchange. The FCCB were issued
and allotted by the Board of Directors on 29th November, 2006. The members of
the Company had approved the said issue at its Extraordinary General Meeting
held on 23rd November, 2006. The FCCB proceeds have been utilized for setting
up New Project and Modernization and Expansion of existing facilities / units.
As per the terms and conditions of FCCB, 1% interest is payable semi-annually
on 30th June and 31st December in each year. Unless, the Bonds have been
previously redeemed, repurchased and cancelled or converted, the Company shall
redeem the Bonds on 30 November 2011 (the 'Maturity Date') equal to the
outstanding principal amount of a Bond together with redemption premium and
accrued but unpaid interest thereon to the Maturity Date. All outstanding bonds
on the date of redemption would be redeemed at a price of USD 7.277 per Bond,
providing a Yield to Maturity (YTM) of 8.5% compounded semi-annually.
The company in earlier year had started producing Rubber Cables, which during
the current year met with increased demand and resulted in increase in turnover
and profitability of the Company. The Company expanded its existing product
range by installing balancing equipment and modernization.
In view of volatility in input prices (Copper and Aluminium)
the company undertook several measures to reduce consumption and improve price
realization. The Management also took proactive steps to cover its raw-material
supplies at the lowest rates.
The Company started its Overseas Marketing office in Dubai catering to the
markets of Africa and Middle East, which has also resulted in increased
turnover from this region.
OPPORTUNITIES
Cables are the crucial infrastructure backbone of an economy, the critical
elements that wire up the length and breadth of the country. Thus, the
opportunities prevailing in this sector are as follows:
* The government's ambitious targets of 200000 MW generation capacities
by 2012 from 114000 MW are providing a compelling growth environment for the
cable sector.
* A recent report prepared by the power ministry sees 1:1 correlation
between Gross Domestic Product (GDP) growth and addition of power generation
capacity in the initial years of the Eleventh Plan, which starts in 2007.
* After mega thermal power projects, it is now the turn of large
transmission on projects worth approximately Rs.200000 mn which are being
thrown open to private bidders on BOOT (Build, Operate, Own and Transfer)
basis.
* Besides core infrastructure companies, power transmission EPC companies
and power ancillary companies like subject will benefit from the demand.
* The power deficit in the northern and western regions is currently
around 18 to 20 per cent, in contrast to the surplus situation in the eastern
and north-eastern region at 26 and 5 per cent. This disparity has lead the
government to increase its focus on up gradation and expansion of inter-
regional transmission capacity. The ramp up of inter-regional transmission
capacity from 11,500 MW to 37,150 MW by 2012 would also provide a fat order
book for cable companies.
INDUSTRIAL CAPEX
Demand from local industry expansion is currently estimated at around Rs.80000 mn
with a growth potential of 15-20 per cent per annum and expected to generate
huge demand over 5-7 years.
REALTY SECTOR
India's dynamic real estate sector is emerging as one of the fastest growing
sectors with the potential to grow from current USD 12 bn to over USD 45-50 bn
in next 5 years. This augurs well for the cable industry as cabling is an
intrinsic part of any realty structure. The realty sector predominantly uses
the LT cables and house wires for wiring purpose which form 2-2.5 per cent of
the project cost. It is estimated that demand for power cables from this sector
will touch nearly Rs 34 bn over a 5 year period.
EXPORTS
* Industry estimates suggest that Africa and West Asia regions would
spend about USD 20 mn in the next 4 years on power transmission and
distribution infrastructure.
* Countries in the Gulf region have laid heavy emphasis on
infrastructure.
The implementation of the Gulf Electricity interconnection
grid will also provide opportunities to power cabling and EPC companies.
* It is estimated that OPEC member countries have committed a total of
USD 58 bn to various refinery projects over 2005-2011, which translates into
power cable demand of approximately USD 1 bn.
OPPORTUNITIES
FOR CABLES
A well known fact - that in economic term, 1 MW of power
entails an investment of approximately Rs.30-40 mn, of which cables form 2-3
per cent.
Power transmission generates demand for HT cables - an
estimated 3.5 per cent of the total capex. In addition to this, industrial
expansion and power co-generation also generates demand for cables which form
2-2.5 per cent of the total capex.
FUTURE OUTLOOK
The anticipated investments in Infrastructure, Power and Industrial Sectors, it
is expected that the demand for Company's product will continue to be Robust.
The results of HT Power facility, which has been commissioned, will be
reflected in the first full year of production i.e. 2007. The company is also
undertaking expansion of its Silvassa Unit for House Wire for the Retail
Segment. Keeping in view benefits expected from HT facilities and expansion in
LT Power Cables and ongoing expansion in House Wire / Flexible Wire facility at
Silvassa, it is expected that barring unforeseen circumstances there will be
substantial increase in sales and profit of the Company during the year
2007-08.
COMPETITIVE
STRATEGY
The company stands to gain over its competitors due to the following:
* Subject has a strong brand name in the institutional segment. Its sells
70 per cent of its products to institutions.
* The company services esteemed clientele and it has been accredited with
approvals from blue-chip companies nationally as well as internationally.
As per
website:
Genesis
1968: Established as a Partnership Company.
1968: Manufacturing of Switchboard Cables for DOT starts.
1985: Manufacturing of Control, Instrumentation and
Thermocouple Cables begins.
1993: Manufacturing of PVC/XLPE Power cables up to 3.3 KV
added to existing portfolio.
Evolution
1994: Diversified into Stainless Steel drawings with Pilot
Plant
1995: Launch of the First IPO, went Public.
1996: Installation of Major SSW plant at Bhiwadi
1997: Installation of another plant at Bhiwadi for LT PVC /
XLPE Cables.
2001: Scaling up with manufacture of Rubber Cables up to 11
KV.
2002: Established JFTC Plant at Silvassa
2005: Upgraded JFTC Plant in Silvassa to manufacture
existing cable range - Rebalancing Act
2006: Expansion of Bhiwadi unit to manufacture up to 33 kV
HT XLPE Cables with Dry curing inert nitrogen gas and with triple extrusion
(Single cross head) process.
2006: Introduced ERP Baan S/W system in the organization to
ensure Transparency and efficacy.
2007: Upgrading Bhiwadi Unit to manufacture HT power cable
up to 132 kV and LT cable.
2007: Proud recipient of Corporate Governance Rating
2007: Setting up of 100% EOU at Chopanki
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.40.46 |
|
UK Pound |
1 |
Rs.79.99 |
|
Euro |
1 |
Rs.63.09 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--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 |
YES |
|
--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 |
|
