MIRA
INFORM REPORT
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Report Date : |
16.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
NICCO PROJECTS DIVISION OF NICCO CORPORATION LIMITED |
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Registered Office : |
Nicco House, 2, Hare Street, Kolkata - 700 001, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
31.05.1983 |
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Com. Reg. No.: |
36362 |
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CIN No.: [Company
Identification No.] |
U55101WB1983PLC036362 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALN02645G |
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PAN No.: [Permanent
Account No.] |
AABCN0570G |
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Legal Form : |
Public Limited Liability Company. The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of PIJF Telecom Cable, PVC Power Cable, Rubber Cable, Instrumentation Cable, XLPE Power Cable, Building Wires, Switching Cables, Aerial Cable, Railway Traction Winding Wire and Railway Traction Cable. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 2788632 |
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Status : |
Good |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is the flagship company of NICCO Group. Its financial position
is improving and is expected to wipe off previous losses, soon. Trade
relations are fair. Business is active. Payments are reported as slow but
correct. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Nicco House, 2, Hare Street, Kolkata - 700 001, West Bengal, India |
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Tel. No.: |
91-33-22209185 / 22485102 / 7 |
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Fax No.: |
91-33-22209443 / 22486441 |
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E-Mail : |
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Website : |
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Plants : |
Ø Industrial Growth Centre, Block D, Kalyani, West Bengal Ø Shyamnagar, 24 Parganas (North)West Bengal Ø Baripada, District Mayrubhanj, Orissa |
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Regional Offices: |
Mumbai New Delhi Chennai Vadodara Bangalore |
DIRECTORS
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Name: |
Mr. Rajive Kaul |
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Designation: |
Chairman |
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Name: |
Dr. Abhijit Sen (retired on 02.06.2004) |
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Designation: |
Co-Chairman & Managing Director |
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Name: |
Mr. Gopal Krishna |
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Designation: |
Director (Nominee of WBIDC) |
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Name: |
Mr. Amitabh Ghosh |
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Designation: |
Director (Nominee withdrawn on 29.05.04) |
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Name: |
Mr. Pilapakkam Bahukutumbi Ramanujam |
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Designation: |
Director (Nominee of GIC) |
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Name: |
Mr. A. K. Sood |
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Designation: |
Nominee of IIBI |
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Name: |
Mr. Tamal Datta Choudhari |
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Designation: |
Director |
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Name: |
Mr. Narottam Das |
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Designation: |
Director |
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Name: |
Mr. Prabir Chakravati |
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Designation: |
Director |
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Name: |
Dr. Lakshminaryanapuram Ramier Vaidyanath |
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Designation: |
Director |
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Name: |
Mr. Dhirendra Nath Bhattacharjee |
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Designation: |
Director |
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Name: |
Mr. Sanjoy Bhattacharya |
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Designation: |
Joint Managing Director & CFO |
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Name: |
Mr. Udayan Roy |
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Designation: |
Director (Cable Operations) |
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Name: |
Mr. Sujit Poddar |
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Designation: |
Director |
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OTHER
PERSONNEL
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Mr. J. S. Paul |
Sr. Vice
President & Company Secretary |
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Mr. N. Das |
Chairman |
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Mr. Amitabha Ghosh |
Member |
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Dr. T. D. Chaudhari |
Member |
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Mr. Prabir Charkarvarthi |
Member |
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Mr. Sujit Poddar |
Member |
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Mr. D N Bhattacharjee |
Secretary |
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Mr. L R Vaidyanath |
Member |
KEY EXECUTIVES
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Name |
Mr. P. B. Ramanujam |
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Designation |
Director |
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Date of Birth |
25.07.1944 |
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Date of Appointment |
27.10.1999 |
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Qualification |
B. Com |
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Other Directorships |
1.
ITC Limited 2.
BOC India
Limited 3.
General
Insurance Corporation of India 4.
Loss
Prevention Association of India Limited |
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Name |
Dr. Abhijit Sen (retired on 29.05.2004) |
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Designation |
Co-Chairman and
Managing Director |
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Date of Birth |
25.09.1945 |
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Date of Appointment |
31.05.1983 |
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Qualification |
Alumnus of MIT
(USA), Chartered Accountant (England & Wales) and Cost Accountants |
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Other Directorships |
1.
Nicco UCO
Alliance Credit Limited 2.
Nicco Parks
and Resorts Limited 3.
Nicco
Financial Services Limited 4.
BDA Nicco
Parks & Resorts Limited 5.
Nicco
Internet Ventures Limited 6.
Nicco
Engineering Services Limited 7.
Nicco
Jubilee Park Limited 8.
Alliance
Finlease Limited 9.
Alliance
Stock Broking Limited 10.
Alliance
Management and Fiscal Services Limited 11.
Alliance
Ventures Capital Advisors Limited |
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Name |
Mr. Amitabha Ghosh |
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Designation |
Nominee ICICI |
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Date of Birth |
30.08.1930 |
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Date of Appointment |
22.12.1997 |
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Qualification |
Chartered
Accountant |
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Other Directorships |
1.
Assambrooke
Limited 2.
Associated
Cement Companies Limited 3.
Centenary
Leasing Company Private Limited 4.
Kesoram
Industries Limited 5.
Mysore
Cements Limited 6.
Mahavir
Spinning Mills Limited 7.
Orient Paper
& Industries Limited 8.
Piramal
Holdings Limited 9.
Palit
Consultancy Private Limited 10.
Sahara India
Financial Corporation Limited 11.
Saharas
India Life Insurance Corporation Limited 12.
Xpro India
Limited 13.
Zenith
Fibres Limited |
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Name |
Mr. Sanjoy Bhattacharya |
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Designation |
Director |
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Date of Birth |
20.05.1946 |
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Date of Appointment |
28.11.1995 |
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Qualification |
B. Tech (Hons.) |
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Directorship in other companies : |
Nicco Biotech
Limited NE Cables Limited |
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Memberships /Chairmanship of Director of other company: |
Nicco Biotech
Limited |
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Name |
Mr. Udayan Ray |
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Designation |
Director |
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Date of Birth |
01.06.1945 |
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Date of Appointment |
30.07.2003 |
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Qualification |
Post Graduate in Commerce, F.I.C.W.A. |
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Directorship in other companies : |
1. Nicco Engineering Services Limited 2. SBI Home Finance Limited 3. Nicco Biotech Limited 4. NE Cables Limited |
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Memberships /Chairmanship of Director of other company: |
1. Nicco Engineering Services Limited Audit Committee – Member 2. SBI Home Finance Limited Audit Committee - Member 3. Nicco Biotech Limited Audit Committee - Member |
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Name |
Dr. A. K. Sood |
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Designation |
Director |
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Date of Birth |
19.11.1950 |
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Date of Appointment |
28.10.2003 |
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Qualification |
Ph D in
Electrochemical Technology from IIT, Delhi |
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Name |
Dr. L. R. Vaidyanath |
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Designation |
Member |
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Date of Birth |
17th
February, 1924 |
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Date of Appointment |
18th July,
2001 |
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Qualification |
Graduated in
Metallurgy Ph D in Industrial Metallurgy from the University of Birmingham,
UK |
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Name |
Mr. D. N. Bhattacharjee |
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Designation |
Director |
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Date of Birth |
01.03.1935 |
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Date of Appointment |
19.09.2001 |
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Qualification |
Undergraduate |
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Name |
Mr. Prabir Chakravarti |
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Designation |
Director |
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Date of Birth |
30.04.1944 |
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Date of Appointment |
19.09.201 |
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Qualification |
B. A. (Econ), M.
A. (Econ), L.L.B. and MBA (U.K.) |
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Directorship in other companies : |
· Baghmari Tea Company Limited · Bhoruka Aluminium Limited · Nicco Financial Services Limited · Reliance Jute Mills (International) Limited · VCS Consultancy Limited · B.N.K. Capital Markets Limited · Sinclairs Hotels and Transportation Limited · Jayshree Chemicals Limited · SPS Steels Rolling Mills Limited · BESCO Limited · Bally Investment Trust Private Limited · BNK e solutions Private Limited |
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Expertise in Specific functional Areas; |
Wide experience in running of various Industries |
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Memberships /Chairmanship of Director of other company: |
1 . Bhoruka Aluminium Limited a) Audit Committee - Member b) Managerial Remuneration Committee – Chairman 2 BNK Capital Markets Limited a) Audit Committee – Member 3. Sinclairs Hotels & Transportation Limited a) Share Transfer & Investors' Grievances Committee – Member 4. Jayshree Chemicals Limited a) Audit Committee - Member b) Remuneration Committee - Member |
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Name: |
Mr. Narottam Das |
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Designation |
Director |
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Date of Birth |
26.12.1937 |
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Date of Appointment |
12.04.1993 |
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Qualification |
Cost Accountants,
Company Secretary |
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Directorship in other companies : |
· Shibir India Limited · Nicco Engineering Services Limited · Al Champdani Industries Limited · Nicco Biotech Limited |
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Expertise in Specific functional Areas; |
Experience as Co Secretary & Finance Director of large Public
Sector Unit |
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Memberships /Chairmanship of Director of other company: |
Nicco Engineering Services Limited Audit Committee - Member Nicco Biotech Limited Audit Committee - Chairman |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders (as on 31.03.2007) |
No. of Shares |
Percentage of
Holding |
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Promoters
Holding |
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Persons acting in concert |
15731258 |
17.34 |
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Non Promoters
Holding |
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Institutional
Investors |
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Mutual Funds and UTI |
13766 |
0.02 |
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Banks, Financial Institutions , insurance Companies (Central / State
Government Institutions / non governmental Institutions) |
2939425 |
3.24 |
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FIIs |
11761 |
0.01 |
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Others |
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Private Corporate Bodies |
52141612 |
57.49 |
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Indian Public Limited Liability Company. The company shares are listed
on the Stock Exchange. |
17693031 |
19.51 |
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NRIs/ OCBs |
2167994 |
2.39 |
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Total
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90698847 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of PIJF Telecom Cable, PVC Power Cable, Rubber Cable, Instrumentation Cable, XLPE Power Cable, Building Wires, Switching Cables, Aerial Cable, Railway Traction Winding Wire and Railway Traction Cable. |
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Products: |
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Exports to : |
Bangladesh, Middle East, Singapore and South East Asia |
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Imports from : |
Bahrain, Germany, Italy, Japan, Korea, Malaysia, UK and USA. |
PRODUCTION STATUS (as on 31.03.2007):-
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Jelly Filled Telecommunication and Electric Cables |
CKM |
80000 |
80000 |
20173.777 |
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Conductors & Wires |
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20131 |
22156 |
59829 (MT) |
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Steel Wires Rods |
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53600 |
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Steel Wires |
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18000 |
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Steel Cables |
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4500 |
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Turnkey Engineering and Services |
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3000 |
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Galvanised Steel Tape |
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---- |
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GENERAL
INFORMATION
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Customers : |
Public Sector
Industries v Bharat Heavy Electrical Limited (All units) v Heavy Engineering Corporation v Oil and Natural Gas Corporation Limited (ONGC) v Indian Oil Limited (All units) v Hindustan Aeronautics Limited, (All units) v Bharat Electronics Limited v Electronics Corporation of India Limited v Indian Airlines v Indian Space Research Organisation v Department of Atomic Energy v Indian Petrochemicals Limited (IPCL) v Mining and Allied Machinery Corporation v National Aluminium Company Limited (NALCO) v Department of Telecom, Government of India v Indian Telephone Industries v Haldia Petrochemicals Limited v Coal India Limited v Neyveli Lignite Corporation Limited Other Utilities v Bombay Suburban Electronic Company v CESC Limited v Tata Power Corporation v Ahmedabad Electric Company v Surat Electric Corporation v Damodar Valley Corporation v National Thermal Power Corporation Limited v National Hydel Power Corporation Limited Steel Industries Steel Authority of India (All units) Tata Iron and Steel Company Limited Mukund Industries Limited Other Industries v Tata Engineering and Locomotive Company Limited (TELCO) v ESCORTS v Madras Cement Limited v Stone India v Crompton Greaves Limited v Kirloskar v Jyoti Limited v Larsen and Turbo Limited v NGEF v Gujarat Ambuja Cement Limited v Hindalco v Alstom Limited v Philips India Limited v Bharat Aluminium, Korba v Siemens Limited Defence v Army Base v Garden Reach Ship Builders v Indian NAVY Cable Industry v Fort Gloster Industries Limited v Crystal Cables Limited v Universal Cables Limited v Finolex Cables Limited v Vinicab (India) v Crest Cables Limited v Vindiya Telelink Limited v RPG Cables Limited v OMEGA Cables v Hindustan Cables Limited Other v ABP Limited v Andhra Pradesh State Electricity Board v Balaji Amines limited v Birla VXL Limited v CAD CAM Consultants Private Limited v Duncan Glenagles Hospitals Limited v EKO Diagonostic Private Limited v Ananda Bazar Patrika Limited v Assam State Electricity Board v Bata India Limited v BOC India Limited v Duncan Industries Limited v Eveready Industries Limited |
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No. of Employees : |
4000 |
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Bankers : |
Ø Allahabad Bank, Industrial Finance Branch, S. S. Hogg Marg, Nelli Sengupta Sarani, Kolkata – 700 007, West Bengal Ø Canara Bank Ø Central Bank of India, Kolkata, West Bengal Ø State Bank of India, Madame Cama Road, Mumbai – 400 021. Ø State Bank of Bikaner & Jaipur Ø State Bank of Travancore, Kolkata, West Bengal Ø UCO Bank |
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Facilities : |
Other Unsecured Loan
includes payable within a year Rs. 74.200 millions. Previous year Rs. 4.800
millions. |
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Banking Relations
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Satisfactory |
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Auditors : |
G. Basu and Company Chartered Accountants |
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Address : |
Kolkata, West Bengal |
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Joint Ventures: |
Backbone Project Limited |
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Associates/Subsidiaries : |
Ø Nicco Internet Ventures Limited Ø Nicco Financial Services Limited Ø Nicco-UCO Alliance Credit Limited Ø Nicco Parks & Resorts Limited Ø Nicco Engineering Services Limited Ø Nicco Biotech Limited Ø NE Cables Limited SUBSIDIARIES Ø Nicco Engineering Services Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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2200000 |
5% Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs.220.000 millions |
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9090910 |
6% Convertible Cumulative Preference Shares |
Rs. 22/- each |
Rs.200.000 millions |
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235000000 |
Equity Shares |
Rs. 2/- each |
Rs.470.000 millions |
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Total |
Rs.890.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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2183000 |
5% Cumulative Redeemable Preference Shares |
Rs. 100/-
each |
Rs.218.300
millions |
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90698847 |
Equity Shares |
Rs. 2/- each
|
Rs.181.398
millions |
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Add: - |
Forfeited Shares (amount originally paid up) |
|
Rs. 0.136
million |
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Total |
Rs.399.834 millions |
Note:
Pursuant to the
CDR approval and the scheme of arrangement for re-organisation of Share Capital
duly approved
by honorable High Court
Kolkata, Equity Share Capital of the Company has been reorganised during the
year :
1) By reduction of
Rs. 350.281 millions and setting off part of Debit Balance of Profit and Loss
Account and split the remaining Share Capital base by way of issue of 43785098
number of shares of Rs. 2/- each.
2) Equity Shares
of Rs. 2/- each issued as fully paid up for consideration other than cash
include :
A) 45454545 (Nil)
Equity Shares issued against conversion of 9090909 number 6% optionally
convertible cumulative preference share, of Rs. 22/- each allotted during the
year against cash consideration.
B) 1459204 (Nil)
Equity Share allotted against dues to Banks/Financial Institutions/Debenture
Holders.
3) 2183000
(2183000) Preference Shares of Rs. 100 each were allotted as fully paid up
against conversion of
loans being
consideration other than cash.
These include :
A) 1846000
(1846000) Cumulative Redeemable Preference Shares (convertible at the option of
share holders) to be redeemed in three equal annual installments commencing
from March 28, 2012.
B) 337000 (337000)
number of Cumulative Redeemable Preference Shares to be redeemed in three equal
annual installments commencing from February 1, 2010.
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 |
399.834 |
808.092 |
592.343 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
659.686 |
571.714 |
625.123 |
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4] (Accumulated Losses) |
[362.362] |
[773.446] |
(780.216) |
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NETWORTH |
697.158 |
606.360 |
437.250 |
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LOAN FUNDS |
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1] Secured Loans |
1487.297 |
1826.459 |
2163.988 |
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2] Unsecured Loans |
179.518 |
128.107 |
128.610 |
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TOTAL BORROWING |
1666.815 |
1954.566 |
2292.598 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2363.973 |
2560.926 |
2729.848 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1283.201 |
1418.469 |
1603.218 |
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Capital work-in-progress |
0.045 |
0.866 |
3.868 |
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INVESTMENT |
217.602 |
90.102 |
161.567 |
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DEFERREX TAX ASSETS |
392.972 |
456.251 |
481.300 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
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Inventories |
191.429
|
276.600
|
155.915
|
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Sundry Debtors |
1063.185
|
817.105
|
883.919
|
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Cash & Bank Balances |
41.448
|
128.473
|
20.521
|
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Other Current Assets |
5.634
|
158.712
|
31.657
|
|
|
Loans & Advances |
256.492
|
197.612 |
145.487
|
|
Total
Current Assets |
1558.188
|
1578.502 |
1237.499 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
1093.919
|
996.977 |
779.251 |
|
|
Provisions |
0.000
|
0.000 |
0.000 |
|
Total
Current Liabilities |
1093.919
|
996.977 |
779.251 |
|
|
Net Current Assets |
464.269
|
581.525 |
458.248
|
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MISCELLANEOUS EXPENSES |
5.884 |
13.713 |
21.647 |
|
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TOTAL |
2363.973 |
2560.926 |
2729.848 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
3901.676 |
3065.233 |
2745.121 |
|
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Other Income |
27.630 |
296.478 |
0.000 |
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Total Income |
3929.306 |
3361.711 |
2745.121 |
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Profit/(Loss) Before Tax |
128.548 |
36.307 |
(229.984) |
|
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Provision for Taxation |
0.000 |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
128.548 |
36.307 |
(229.984) |
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Export Value
|
NA |
NA |
111.228 |
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Import Value
|
NA |
NA |
153.722 |
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Expenditures : |
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|
|
|
|
Cost of Goods Sold |
2472.637 |
2024.800 |
|
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Manufacturing Expenses |
156.860 |
160.397 |
|
|
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Administrative Expenses |
432.057 |
447.560 |
2618.604 |
|
|
Salaries, Wages, Bonus, etc. |
202.553 |
178.251 |
|
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|
Miscellaneous expenses |
7.829 |
7.935 |
|
|
|
Other Expenditure |
288.936 |
189.171 |
|
|
Total Expenditure |
3560.872 |
3008.114 |
2618.604 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
31.03.2008 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
1089.300 |
1017.300 |
937.700 |
1329.600 |
|
Other Income |
3.000 |
2.300 |
17.300 |
8.200 |
|
Total Income |
1092.300 |
1019.600 |
955.000 |
1337.800 |
|
Total Expenditure |
981.300 |
924.000 |
887.000 |
1224.300 |
|
Operating Profit |
111.000 |
95.600 |
68.000 |
113.500 |
|
Interest |
43.400 |
42.600 |
45. 800 |
49.300 |
|
Gross Profit |
67.600 |
53.000 |
22.200 |
64.200 |
|
Depreciation |
20.400 |
19.700 |
20.600 |
20.800 |
|
Tax |
0.700 |
1.300 |
1.300 |
9.100 |
|
Reported PAT |
26.500 |
12.000 |
0.300 |
29.200 |
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
3.05 |
4.58 |
4.35 |
|
Long Term Debt-Equity Ratio |
1.85 |
3.52 |
3.11 |
|
Current Ratio |
1.07 |
1.22 |
1.18 |
|
TURNOVER RATIOS |
|||
|
Fixed Assets |
1.68 |
1.28 |
1.10 |
|
Inventory |
18.62 |
16.00 |
22.41 |
|
Debtors |
4.64 |
4.01 |
3.44 |
|
Interest Cover Ratio |
1.53 |
0.11 |
0.28 |
|
Operating Profit Margin(%) |
9.36 |
3.27 |
5.68 |
|
Profit Before Interest And Tax Margin(%) |
7.48 |
0.87 |
2.94 |
|
Cash Profit Margin(%) |
3.10 |
-5.10 |
-2.09 |
|
Adjusted Net Profit Margin(%) |
1.22 |
-7.50 |
-4.82 |
|
Return On Capital Employed(%) |
11.01 |
1.00 |
0.00 |
|
Return On Net Worth(%) |
5.73 |
-41.77 |
0.00 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was incorporated on 23rd April 1942 at Kolkata in West Bengal having Company Registration Number 10929.
The company was a joint venture promoted by National Insulated Cables Company and the Industrial Development Corporation of Orissa in technical and financial collaboration with Alfacavi / Temaco, Italy.
The company is a multi-product, multi-location conglomerate operating in many areas. The main divisions are cables (for powers and telephone), projects, steels and software. In manufactures cross-linked polyethylene (XLPE) and PVC Cables. It also manufactures jelly-filled telecom cables, steel wire rods, conductors and wires.
The Nicco group has effected several mergers. The mother company Nicco Insulated Cable Company promoted Nicco Orissa, Telelink Nicco, Furmanite Nicco and Nicco Steels. The new company was called Nicco Corporation. Later, Nicco Corporation merged with Nicco Orissa and the new company was christened Nicco Industries. Nicco Industries merged with Telelink Nicco and was named Nicco Corporation. Two divisions of Nicco Corporation and an associates company have been awarded the ISO 9002 quality system certification.
The Telecom Cable Division at Kalyani has won the prestigious CII productivity award for Sustained level of high overall productivity during the year 1999-2000. The company is pioneering Rs. 360.0 millions project of Electron Beam Irradiation is currently being implemented in collaboration with the Bhabha Atomic Research Centre (BARC) and the Indian Institute of Technology (IIT), Kharagpur, the completion of which is expected to give the company leadership position in the segment of cables business.
BUSINESS
The company is engaged in Manufacturing of PIJF Telecom Cable, PVC Power Cable, Rubber Cable, Instrumentation Cable, XLPE Power Cable, Building Wires, Switching Cables, Aerial Cable, Railway Traction Winding Wire and Railway Traction Cable.
There has been a
significant growth in turnover and also the operating profit in spite of
inflation and increase in metal prices.
The turnover has
increased by 27% primarily due to higher activity level in botji Cable and
Project Divisions. The Project Division has turned around and has_ started
positively contributing to the operating profit in the later part of the year
and has a healthy order book of Rs. 2260.000 millions as on 31st March 2007.
Shortage of working capital finance continued and constrained the Company
achieving better results.
FINANCIAL RESULTS
There has been a
significant growth in turnover and also the operating profit in spite of
inflation and increase in metal prices. The turnover has increased by 27%
primarily due to higher activity level in botji Cable and Project Divisions.
The Project Division has turned around and has_ started positively contributing
to the operating profit in the later part of the year and has a healthy order
book of Rs. 2260.000 millions as on 31st March 2007. Shortage of working
capital finance continued and constrained the Company achieving better results.
As per CDR package
the Company has repaid Rs. 340.000 millions of term loan to the Banks and
Financial Institutions.
TOTAL QUALITY AND
ENVIRONMENT MANAGEMENT
Both the factories
at Baripada and Shyamnagar are accredited to Quality Management System under
ISO 9001 (2004) and Environment Management System (EMS) under ISO 14001 (2004).
Both these Systems continue to be maintained through periodic renewal and
surveillance Audit. The Total Productive Maintenance (TPM) programme at
Shyamnagar factory has already achieved significant cost reduction particularly
in reduction of scrap and is expected to contribute to further cost reduction
in the coming year.
The Total Quality
Management (TQM) of the Project Division has successfully passed the Second
re-certification Audit as per the requirements of ISO-9001-2000 by the Indian
Register Quality Systems last year. The division was approved as on ISO
9001-1994 unit since 1995.
FUTURE PROSPECTS
With the
implementation of the CDR package coupled with improved economic conditions and
continued thrust in improving internal efficiencies your Directors look forward
to the future with a degree of confidence and optimism.
MANAGEMENT DISCUSSION AND
ANALYSIS:
Industry Structure and
Development:
Power Cables Division:
Of the
two main categories of cables i.e. Energy Cables and Telecommunication Cables -
the product range of NICCO's Power Cables Division falls in the energy cable
category.
The main product ranges of energy cables
are:
·
Low
Voltage Power
Cables
·
Medium Voltage XLPE Insulated Power cables upto 66
kV
·
Speciality Cables which includes Conventional
Elastomeric Insulated Cables and special cables made with
·
Electron Beam Cross Linking Technology.
Currently
the Power Cables sector is enjoying a period of resurgence of demand and the
industry has shown a growth of over 20% compared to last year.
The
demand growth has been-fuelled by the 8.5% GDP growth forecast as well as huge
increases in infra-structure spending in Steel, Cement, Petrochem and Real
Estate.
At the
same time, the industry is going through a phase of intense competition with
the larger players embarking on major capital expenditure programmes aimed at
capacity additions in the High Voltage, Medium Voltage and Low Voltage sector
including Building Wires.
With the reduction of import duties competition from abroad is also likely to
increase.
Project Division:
The
Project Division undertakes execution of turnkey contracts and provides
Engineering Consultancy Services for projects.
Today, the division is diversified into multi-disciplinary engineering project
execution and has established itself as an Engineering, Procurement and
Construction (EPC) contractor of repute in the country.
Installation of Chemical Plants, Oil Tankages and Terminals, Municipal Water
Supply System, Effluent Treatment Plant (ETP), Utility Packages have been some
of the major projects executed by the division in diverse industry sectors such
as Oil and Gas, Petrochemicals, Refineries, Nuclear Power, Ferrous and
Non-Ferrous and Chemical Industries.
The division has developed competency in comprehensive project management,
technology sourcing and construction of capital-intensive projects.
Segment-wise Performance:
Power Cables Division:
The
Cable Division registered a gross sales turnover of Rs.3730.000 millions
registering a growth of 29% over the previous year with Shyamnagar growing by
29% and Baripada by 28%.
NICCO - Cables Division is now the largest Speciality Cables manufacturer in
the country.
Project Division:
The
Project Division had carried forward orders worth Rs.920.000 millions at the
start of current year i.e. 1st April 2006. With substantial investment in Oil
and Gas, Petrochemical, Steel and Power Sectors, the market for turnkey
projects improved substantially. The Division secured orders worth Rs.1960.000
millions with reasonable margins and executed orders worth Rs.630.000 millions
during the year. As on 31.03.2007 the division had unexecuted orders worth
Rs.2260.000 millions.
The year witnessed increase in prices of basic raw materials such as Steel and
Cement. However, Inspite of price increase as well as pressure on working
capital, the performance of division has improved due to efficient
operations.
Business Strategy:
Power Cables Division:
The
strategic focus on high value added Speciality Cables has paid rich dividends
and this focus will continue with further penetration in the Railways, Defence,
Mining and Steel sectors. A special thrust will be given to launch products for
high performance safety' cables for large public buildings including Airports,
Shopping Malls, IT Centre, etc.
Project Division:
The
thrust areas would be to increase business in Process Plants, Tankage
Terminals, Effluent/Water Treatment Plants, Multidisciplinary Composite Works
and Engineering Services.
The Division would strongly focus on bidding for projects for Oil, Steel,
Department of Atomic Energy, Defence and Infrastructure. In view of the
improved market condition, it is expected that the Division would be able to
focus on new business with reasonable margins.
Risks and Concerns:
Power Cables Division
Demand:
Investment and
implementation in the power generation/distribution sector is the main driver
of demand for power cable Slippage from targets in this area continues to be a
major area of concern.
Any event which would reduce the growth of industry and real estate sector
could also effect demand for cables.
Raw Material Prices:
Volatility
in the price of non-ferrous metals and Polymers, such as Polyethylene/Polyvinyl
Chloride could put pressure on the margins particularly for fixed price
contracts. Hedging of such commodities may partially reduce the risk.
Competition:
Increased
competition from abroad particularly imports from neighbouring countries and
China may pose a major threat.
Project Division:
Order
book position improved substantially, as a result the mix between old and new orders
underwent change. This would have favourable impact in the performance. In view
of the time lag between receipt and execution of the contract there would be
some adverse impact in the cost because of price increase of raw materials.
With improved economic conditions there had been serious shortage of skilled
manpower. The shortage of manpower may affect the execution programmes. The
major thrust in the year 2007-08 should be timely execution of the contracts to
avoid liquidated damages.
Financial and Operational
Performance:
It was
another year of significant improvement. Gross turnover increased by 27%. Both
Cable and Project Division recorded impressive growth in gross sales. The
Project Division registered operating profit towards the later part of the
year. Continued shortage of working capital restricted the activity level for
both the Divisions.
The CDR package was fully implemented. The benefits of the package helped the
Company in registering better performance in 2006-07. As mentioned earlier the
business restructuring was completed by incorporation of two new Companies
namely Nicco Biotech Limited and NE Cables Limited. by transferring land,
building, infrastructure and machineries of the erstwhile Jelly Filled Telecom
Cable unit at Kalyani.
(i) Subscription of 6% Optionally Convertible Preference Shares of Rs.200.000
millions and conversion of the same into Equity Shares of Rs.2/- w.e.f. 21st
March 2007.
(ii) Restructured Equity Share Capital by write down of face value of share from
Rs.10/- to Rs.2/- and write off of past losses by utilizing the amount so
reduced.
(iii) Issue of shares to Banks and Fls for an aggregate value of Rs.34.700
millions.
The
employees continued to contribute 10% of their salary to the equity.
The total
contribution towards equity/advance against equity upto 31st March, 2007,
aggregated a total amount of Rs.45.700 millions.
The year ended with a profit before tax of Rs.128.500 millions and compared to
Rs.36.300 millions for the last year.
Outlook:
A buoyant demand scenario for cables and a possibility of increasing
capacity utilization augurs well for the prospects for Cable Division in the
coming year.
The known business perils for the Project Division had been internal fund
crunch, exodus of execution personnel and the sudden unabated spurt in steel
and cement prices.
The situation has started turning in favour of the division recently with
intake of fresh remunerative contracts.
The performance of the Project Division is expected to improve through
execution of larger volume of new orders. A substantial positive change in
their net worth will also improve the competitiveness of their Project Division
to enhance the prospects of getting orders from Public Sector Undertakings and
State bodies.
The company is in
trade terms with :-
· SND Power and Company
· P. P. Engineering
· Grand Prix Fab (Private) Limited
· Kalpana Plastic Private Limited
· Technoprint
· Ashoke Ghosh and Brothers
· Jinesh Chemicals Private Limited
· Laxmi Chemicals
· Espee Engineers
· Heating House
· Okay Engineering
· Patra Industries
· Process Precision Instrument
· S. R. Udyog
· Sahu Enterprise
· Sona Plastic
· Sredhar Precision Work
· Union Wood Product
· Uttkal Furniture and Allied Industries
· Vijay Engineering
· Sona Plastic Industries
· Vijay Engineering
· Mimico Vinayal
· Chemico Industries
· Engineers Enterprise
· Essence Chemicals
· Jwalamukhi Industry
· Ma Manasa Engineering
· Okay Engineering Works
· Patra Industries
· M. B. Enterprise
· M. S. Enterprise
· Bhatpar Engineering Works
· K. C. Mohta
· Monerch Enterprise
· Okay Engineering Works
· Das Industries
· Technoprint
· Espee Engineers
· Ashoke Ghosh and Brothers
· M. S. Enterprises
· Bhatpara Engineering Works
· Nihar Engineering Enterprises
· Monerch Enterprise
· Okay Engineering Works
· Das Industries
· Truetools India (Private) Limited
· Ramani Mohan Industries
· Novotech
· P. Kuthe and Company
· Prativa Engineering
· Kalyani Polymers Private Limited
· Ambica Sheet Metal
· Elastomer India
· Hindustan Seals
· Jwalamukhi Industry
· Jhelam Industry
· Mimico Vinayal
· Devika Electrical Industries
· Ratan Engineering Works
· Radha Krishna Controls
· Trio Engineers
· A. N. Instruments
· Industrial Instruments
· Switching Circuits
· Pekon Engineers
· Steam and Mining Industries
· Pauls India
· M. N. Engineering Company
· United Electric Company
· Indcon Project
· Dekon Coast STD Products
· U. S. Company
· T. K. Enterprise
· S. R. Udyog
· Sree Precision
· Sahu Enterprise
· Universe Trade Enterprises
· Utkal Furniture and Allied
· Utkal Lamps
· Union Wood Products
· Vijay Engineering Works
· P. P. Engineering
· Deco Enterprise
· U. S. Company
· Kalpana Plastic Private Limited
· Roy and Company
· D. K. Engineering Works
· Esskoy Jassu
· Prativa Engineering
· Heating House
· Roy and Company Electric
· Alpine Enterprise
· Kumar and Company
· Anadi Nath Manna
· Nihar Engineering Works
· True Tools (India) Limited
· J. K. Diamond
· Nonotech
The company is in
collaboration with :-
ÿ Agrochem, France
ÿ Alfacavi, Italy
ÿ Aquatechno, Thailand
ÿ Arthur D' Little, USA
ÿ Furmanite International, UK
ÿ General Cables, USA
ÿ Monsanto Enviro, USA
ÿ SA Couppe Laulin, Belgium
ÿ Simon Carves, Australia
ÿ SNPE, France
ÿ Swemco, UK
ÿ Vicarb SA, France
ÿ Walker Engineering, UK
Subject has been accredited with ISO 9001, ISO 9002 and ISO 14000 Certification.
The company’s fixed
assets of important value includes
· Land (Leasehold and Freehold),
· Building (Freehold and Leasehold),
· Lift,
· Plant and Machinery,
· Weigh Bridge,
· Weighing Machines,
· Furniture and Fixtures,
· Motor Cars/Cycles,
· Trucks and Heavy Vehicles,
· Railway Sidings And
· Electrical Installations.
MEMBERSHIPS
Ø Confederation of Indian Industry
WEBSITE DETAILS:
Nicco Project Division, a part of the Rs. 5000 million flagship company.
Subject is one of India's most prominent business houses. Nicco Project
Division is an ISO 9001 certified Engineering, Procurement and Construction
(EPC) contracting company serving the refining, gas handling and processing,
petrochemicals and chemical process industries amongst others. Services offered
include process design, detailed engineering, project management, worldwide
procurement, fabrication and assembly of process modules, construction,
commissioning and operation of diverse types of process plants.
Founded in 1986, the Project Division has grown progressively
establishing a strong presence in the Indian turnkey contracting and
engineering business by virtue of its inherent capabilities and strengths.
Catering to a wide spectrum of core sector / industries, the Division
has, over the years, built up a formidable reputation in comprehensive project
management, technology sourcing, planning and implementation of large value contracts.
The company enjoys participative technical association with the world's
leading Consultants, with continuous access of their updated know-how and
working standards, and offers only the most proven design with state-of-art
technology.
In addition to EPC contracting services, the division has a full
-service Engineering facility through which subject is in a position to perform
full range of engineering services of international quality at a reasonable
cost to overseas customers who are looking for reliable engineering
sub-contractors/partners.
Overview:
The Project
Division is engaged in providing the following:
· Turnkey execution of projects comprising engineering and design, project management, procurement, construction and start-up.
· Technical Consultancy services including engineering, procurement assistance, construction supervision and project management.
· Detail Engineering Services, covering all disciplines:
o Process
o Civil
o Structural
o Mechanical
o Instrumentation
o Electrical
o Piping
· Shop and site fabrication works involving plate work, structural steel work and piping.
· Civil works of all types covering foundations, superstructures, building work, water retaining structures, road work etc.
· Export of technical services, plant and machinery and turnkey projects.
· Mechanical, piping, electrical and instrumentation erection and installation work
Collaborations :-
|
Associate/Collaborator |
Area of
Association |
|
Lurgi-Bamag, Germany |
High Rate Pressure Filtration Plants |
|
Motherwell Bridge, U.K. |
Gas Holders, Floating Roof Tanks |
|
Vicarb S.A. France |
Incineration Technologies including |
|
BEFS Prokem, France |
Coke Oven By Product Plants, |
|
Simon Carves, Australia |
Coal Handling Plants, Coal Washeries etc. |
|
Coppee Lavalin, Belgium |
Phosphoric Acid Plants |
|
Prayon Ruper Technologies, Belgium |
Phosphoric Acid Plants |
|
Kvaerner Chemetics, Canada |
Sulphuric Acid Plants, Retrofitting Grassroot
of existing plants |
|
Arthur D Little, U.S.A. |
Basic Know-how and Detail Engineering for
Dual Alkali Scrubbing Plants. |
|
Kvaerner Process, U.K. |
Nano-filtration for Oil Well Water
Injection. |
|
ITT-Kirchner Italia Branch S.P.A., Italy |
Fabrication and Erection of Hydrogen
Reformer Package. |
|
CT Environment Limited, Switzerland |
Evaporation Plants. |
|
Envirotech Pump Systems, Netherland BV |
Red Mud Slurry Disposal System. |
|
Ventech Engineers Inc., U.S.A. |
Basic Know-how for Skid Mounted Mini
Refinery. |
|
Weir Westgarth Limited |
RO Plant, Condensate Polishing Unit, |
|
Rautaruukki Steel Engineering |
Coke Oven By Product Plants |
|
BIAZZI SA Switzerland |
Nitroglycerine and Other Nitro-ester
Plants |
|
Israel Military Industries |
Propellant Manufacturing Plants |
Milestones Achieved:
· 80000 Man-hour Engineering in a single project
· Rs. 2350.000 millions worth single project executed in 15 months for Birla Copper
· 5,50,000 inch-meter Piping executed in a single contract - NALCO, Damanjodi
· Over 100000 inch-meter Low Alloy and Stainless Steel Welding in a single contract for IOCL, Barauni
· Largest diameter tank designed and fabricated 79m Double Deck Floating Roof Tank
· Heaviest Single Piece Equipment supplied and erected - 100 MT Multi Layered Surge Vessel
· 1800 MT Structural Work for TISCO
· 16000 CuM Concreting in any Single Project - MRPL
· 4000 MT Plate Work in a Single Contract - IOCL, NRL
Oil and Gas and
petrochemicals
· Oil and Natural Gas Corporation
· Indian Oil Corporation Limited , Barauni Refinery
· Gas Authority of India Limited
· Hindustan Petroleum Corporation Limited
· Indian Petrochemicals Limited
· Mangalore Refinery Projects Limited
· Numaligarh Refinery Limited
· Assam Petrochemicals Limited
· ICI, Rishra
· IBP Company Limited
·
Chennai Petroleum Corporation Limited
Metallurgical
· Steel Authority of India Limited, Durgapur Steel Plant
· Steel Authority of India Limited, Rourkela Steel Plant
· Steel Authority of India Limited, Bokaro Steel Plant
· Steel Authority of India Limited, Bhilai Steel Plant
· Visakhapatnam Steel Plant
· Hinsdustan Copper Limited Khetri, Ghtshila and Taloja
· Hindustan Zinc Limited Vidaipur and Visakhapatnam
· National Aluminium Company Limited, Damanjodi
· Jindal Vijaynagar Steel Limited, Bellary
· Ispat Annaba, Algeria
· Tata Iron and Steel Company Limited, Jamshedpur and West Bokaro
Chemical Process Plant
· EID Parry (India) Limited
· IPCL, Gandhar
· Birla Copper
· Hindustan Copper Limited
· Hindustan Lever Chemicals Limited
· Sudarshan Chemicals Limited
· Kothari Sugars and Chemicals Limited
· Deepak Nitrite Limited
· Heavy Water Board
· Nuclear Power Corporation of India Limited
· Coromandal Fertilisers Limited
· U.P. Petrochemicala - GAIL
· Madras Refinery Limited
· Nagarjuna Fertilisers Limited
CMT REPORT
(Corruption, Money Laundering and 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.42.64 |
|
UK Pound |
1 |
Rs.83.00 |
|
Euro |
1 |
Rs.66.00 |
SCORE and RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
63 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial and 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 and 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 |
|