1. Summary Information
|
|
|
Country |
|
|
Company Name |
Birla Ericsson Optical Limited |
Principal Name 1 |
Mr. H. V. Lodha |
|
Status |
Moderate |
Principal Name 2 |
Mr. D. R. Bansal |
|
|
|
Registration # |
007190 |
|
Street Address |
Udyog Vihar, P O Chorhata, Rewa – 486 006, |
||
|
Established Date |
30.06.1992 |
SIC Code |
-- |
|
Telephone# |
91-7662-500580/ 400580/ 242214 – 16 / 240613/ 254318-19/ 220312-
19 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-7662-400680/ 240614/ 242239/ 254322/ 280680 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Telecom Cables Including
Optical Fibre Cables |
|
|
# of employees |
168 |
Product Name 2 |
Jelly Filled Telecom
Cables |
|
Paid up capital |
Rs.300,000,000/- |
Product Name 3 |
Insulated Cables |
|
Shareholders |
Promoter and Promoter Group- 66.35%, Public Shareholding-
33.65% |
Banking |
State Bank of |
|
Public Limited Corp. |
Yes |
Business Period |
19 years |
|
IPO |
Yes |
International Ins. |
-- |
|
Public |
Yes |
Rating |
B
(29) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Associates
Comapny |
-- |
Universal
Cables Limited (UCL) |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
392,968,000 |
Current Liabilities |
123,214,000 |
|
Inventories |
159,337,000 |
Long-term Liabilities |
240,855,000 |
|
Fixed Assets |
321,063,000 |
Other Liabilities |
0,000,000 |
|
Deferred Assets |
0,000,000 |
Total Liabilities |
364,069,000 |
|
Invest& other Assets |
148,262,000 |
Retained Earnings |
357,561,000 |
|
|
|
Net Worth |
657,561,000 |
|
Total Assets |
1,021,630,000 |
Total Liab. & Equity |
1,021,630,000 |
|
Total Assets (Previous Year) |
1,076,015,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
986,655,000 |
Net Profit |
22,820,000 |
|
Sales(Previous yr) |
1,180,500,000 |
Net Profit(Prev.yr) |
(57,499,000) |
MIRA INFORM
REPORT
|
Report Date : |
14.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
BIRLA ERICSSON OPTICAL Limited |
|
|
|
|
Registered Office : |
Udyog Vihar, P O Chorhata, Rewa – 486006, Madhya Pradesh |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
30.06.1992 |
|
|
|
|
Com. Reg. No.: |
007190 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L31300MP1992PLC007190 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JBPB01003C |
|
|
|
|
Legal Form : |
A Public Limited
Liability Company. The Company's
Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturer of Telecom
Cables Including Optical Fibre Cables, Jelly Filled Telecom Cables and other
items like Insulated Cables, Cords and Flexes. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (29) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 2630000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track. Trade
relations are reported as fair. Business is active. Payments are reported to
be slow but correct. The company can be considered for business dealings with some caution. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered/ Head Office : |
Udyog Vihar, P O Chorhata, Rewa – 486 006, |
|
Tel. No.: |
91-7662-500580/ 400580/ 242214 – 16 / 240613/ 254318-19/ 220312-
19 |
|
Fax No.: |
91-7662-400680/ 240614/ 242239/ 254322/ 280680 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Branch Office : |
Located at: · Allahbad ·
·
·
· Chennai ·
·
· Kolkata · Mumbai ·
|
DIRECTORS
|
Name : |
Mr. Mats O. Hansson [Alternate Mr. S. K. Gada] |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. R. Bansal |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Arun Kishore |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Magnus Kreuger [Alternate Mr. Dinesh Chanda] |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. C. Tapuriah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. H. V. Lodha |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. K. Raghuraman |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Aravind Srinivasan |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Y. S. Lodha |
|
Designation : |
President |
|
|
|
|
AUDIT COMMITTEE |
|
|
Name : |
Mr. R. C. Tapuriah |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Aravind Srinivasan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Arun Kishore |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. Raghuraman |
|
Designation : |
Director |
|
|
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.09.2010)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
72,241 |
0.24 |
|
|
10,583,442 |
35.28 |
|
|
1,000,260 |
3.33 |
|
|
1,000,260 |
3.33 |
|
|
11,655,943 |
38.85 |
|
|
|
|
|
|
8,250,000 |
27.50 |
|
|
8,250,000 |
27.50 |
|
Total
shareholding of Promoter and Promoter Group (A) |
19,905,943 |
66.35 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
500 |
- |
|
|
2,920 |
0.01 |
|
|
3,420 |
0.01 |
|
|
|
|
|
|
1,650,830 |
5.50 |
|
|
|
|
|
|
7,220,531 |
24.07 |
|
|
771,716 |
2.57 |
|
|
447,560 |
1.49 |
|
|
91,240 |
0.30 |
|
|
75,429 |
0.25 |
|
|
7,201 |
0.02 |
|
|
273,690 |
0.91 |
|
|
10,090,637 |
33.64 |
|
Total Public shareholding (B) |
10,094,057 |
33.65 |
|
Total (A)+(B) |
30,000,000 |
100.00 |
|
(C) Shares held by Custodians and
against which Depository Receipts have been issued |
- |
- |
|
Total (A)+(B)+(C) |
30,000,000 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Societies
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Telecom Cables
Including Optical Fibre Cables, Jelly Filled Telecom Cables and other items
like Insulated Cables, Cords and Flexes. |
||||||||
|
|
|
||||||||
|
Products : |
· Optical Fiber
Cables · Copper Telecom
Cables · Insulated
Cables, Cords and Flexes · Other Speciality
Cables · Automotive Wire |
PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
|
Optical
Fibre Cables (Metal Free/Armoured/Aerial) |
KMs |
48000 |
39984 |
12436 |
|
Jelly Filled Telephone Cables |
CKMs |
4325000 |
4027000 |
77971 |
|
Insulated Cables, Cords and Flexes |
Mtrs |
50000000 |
50000000 |
8322502 |
|
Automotive wires and Cables |
KMs |
200000 |
30000 |
10875 |
|
Co-axial Cables |
KMs |
10000 |
1000 |
41 |
GENERAL INFORMATION
|
Customers : |
·
Basic and Cellular Services ·
Railways ·
Information Technology ·
Refineries ·
Coal Fields ·
Defence ·
Gas ·
Power Utilities ·
Cable T.V Operators ·
Internet and Other Value Added Services Providers ·
Export |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
No. of Employees : |
168 |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
State Bank of |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
Notes: a)
Working Capital Loans/ Credit facilities (fund and
non-fund based) and Term Loan from State Bank of India are secured by way of
hypothecation of stock of Inventories, cash and other current assets,
book-debts, outstanding moneys, receivables, claims, bills, invoices,
documents, contracts, etc, both present and future, and are further secured
by way of hypothecation of all moveable fixed assets, both present and
future, and first charge created by way of joint mortgage by deposit of title
deeds of all immovable properties of the company.
Notes : a) Repayment of dues within next twelve months Rs.61.202 Millions (Rs. 47.567 Millions) b) Sales Tax Loans are as per scheme of State Government and for administration of these loans, Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC Limited) has been nominated by the State Government. As per the governing scheme, the deferred Sales Tax loan/ liability subsists upto a period of ten years, commencing from the expiry of each financial year and is payable thereafter within 30 days in one installment. |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
V.
Sankar Aiyar and Company Chartered Accountants |
|
Address : |
|
|
|
|
|
Solicitors : |
International Trade Law Consultants |
|
|
|
|
Associates : |
·
Universal
Cables Limited (UCL) ·
Vindhya
Telelinks Limited (VTL) · Ericsson Network
Technologies AB, Sweden (ENT) (formerly
Ericsson Cables AB) |
CAPITAL STRUCTURE
(As on 31.03.2010)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
42500000 |
Equity Shares |
Rs.10/- each |
Rs.425.000 millions |
|
7500000 |
Preference Shares |
Rs.10/- each |
Rs.75.000 millions |
|
|
|
|
|
|
|
Total |
|
Rs.500.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000
millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
300.000 |
300.000 |
300.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
357.561 |
334.741 |
392.240 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
657.561 |
634.741 |
692.240 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
55.563 |
34.820 |
205.455 |
|
|
2] Unsecured Loans |
185.292 |
232.860 |
232.860 |
|
|
TOTAL BORROWING |
240.855 |
267.680 |
438.315 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
898.416 |
902.421 |
1130.555 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
321.063 |
263.644 |
277.787 |
|
|
Capital work-in-progress |
7.643 |
65.057 |
1.940 |
|
|
|
|
|
|
|
|
INVESTMENT |
140.619 |
140.619 |
140.619 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
159.337
|
208.842
|
359.246
|
|
|
Sundry Debtors |
234.435
|
220.888
|
289.049
|
|
|
Cash & Bank Balances |
91.236
|
111.613
|
147.488
|
|
|
Other Current Assets |
2.703
|
3.399
|
14.427
|
|
|
Loans & Advances |
64.594
|
61.953
|
75.619
|
|
Total
Current Assets |
552.305
|
606.695
|
885.829
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
107.834
|
157.678
|
163.660
|
|
|
Provisions |
15.380
|
15.916
|
11.960
|
|
Total
Current Liabilities |
123.214
|
173.594
|
175.620
|
|
|
Net Current Assets |
429.091
|
433.101
|
710.209
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
898.416 |
902.421 |
1130.555 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
986.655 |
1180.500 |
1280.782 |
|
|
|
Other Income |
18.229 |
15.654 |
45.080 |
|
|
|
TOTAL (A) |
1004.884 |
1196.154 |
1325.862 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
691.051 |
917.940 |
1180.436 |
|
|
|
Cost of traded Goods sold |
60.637 |
3.198 |
0.000 |
|
|
|
Personnel Expenses |
62.844 |
68.585 |
52.058 |
|
|
|
Operating and other Expenses |
107.181 |
125.274 |
120.867 |
|
|
|
Increase or decrease in stock |
10.025 |
81.232 |
(100.429) |
|
|
|
TOTAL (B) |
931.738 |
1196.229 |
1252.932 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
73.146 |
(0.075) |
72.930 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
14.487 |
19.311 |
26.391 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
58.659 |
(19.989) |
46.539 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
35.876 |
37.083 |
35.965 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
22.783 |
(57.072) |
10.574 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
(0.037) |
0.427 |
1.233 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
22.820 |
(57.499) |
9.341 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(25.304) |
32.195 |
NA |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(2.484) |
(25.304) |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
229.751 |
27.771 |
101.819 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
175.995 |
399.020 |
769.184 |
|
|
|
Stores & Spares |
2.898 |
5.056 |
4.975 |
|
|
|
Capital Goods |
15.188 |
59.108 |
17.091 |
|
|
TOTAL IMPORTS |
194.081 |
463.184 |
791.250 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.76 |
(1.92) |
0.31 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
|
Net Sales |
|
145.630 |
187.200 |
|
Total Expenditure |
|
153.820 |
191.170 |
|
PBIDT (Excl OI) |
|
(8.190) |
(3.970) |
|
Other Income |
|
4.340 |
2.880 |
|
Operating Profit |
|
(3.750) |
(1.090) |
|
Interest |
|
1.710 |
2.540 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(5.460) |
(3.630) |
|
Depreciation |
|
9.590 |
9.140 |
|
Profit Before Tax |
|
(15.050) |
(12.770) |
|
Tax |
|
(0.030) |
0.000 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(15.020) |
(12.770) |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(15.020) |
(12.770) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
2.27
|
(4.81)
|
0.70
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.31
|
(4.83)
|
0.83
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.61
|
(6.56)
|
0.91
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03
|
(0.09)
|
0.02
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.55
|
0.70
|
0.89
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.48
|
3.49
|
5.04
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Incorporated on 30 Jun.'92, Subject was promoted by Priyamvada Buta,
Universal Cables, Vindhya Telelinks and Ericsson Cables, Sweden (30%
stake).
The company is engaged in the manufacture of optical fibre cables and Jelly
Filled Telephone Cables. Optical fibre cables are the latest development in the
field of telecommunication cables and are superior to the conventional cables
in many aspects such as lower distortion, wider frequency band, no dampening of
frequency and no electromagnetic interference. Optical fibre cables are
extensively used in the telecom sector in urban area networks for long-distance
trunk routes; intra-city exchanges and subscriber networking and also for
railway signalling and defence systems.
As the number of customers are limited and purchases are made through open
tenders, the product is to be sold directly. The company proposes to utilise
the services of selling agents for providing marketing services. The company
will benefit immensely from the experience of the promoter companies. The
company commenced commercial production and achieved a turnover of Rs.710.800
millions in the first year of operations. The plant is capable of producing a
wide range of telecom cables to meet Indian and international
specifications.
During the year 1999-2000, the company has received SAMMAN PATRA for valuable
contribution to the Customs and Central Excise revenue during the financial
year 1998-99.
The company along with Vindhya Telelinks and Universal Cables has promoted a
new company called Optic Fibre Goa, for the manufacture of Optical Fibre. The
project is under implementation and is expected to be completed by Mar 2002.
GENERAL AND CORPORATE MATTERS
During the year, the Company’s domestic sales was adversely
affected due to significantly lower sales volume in the traditional Jelly
Filled Telephone Cables (JFTC) and also reduced offtake of Optical Fibre Cables
by the majority of telecom operators. Despite the lower turnover, there has
been an inspiring performance of the Company as compared to previous year due
to excellent results in terms of cost management and by launching of new
products like Specialty Cable, CAT-5 Cable, Auto Cable etc. During the year,
the Company has further strengthened its presence in the export market by exporting
JFTC and Optical Fibre Cables to certain prominent customers in South Asia and
expansion of customer base and the spurt in the export
performance of the Company will form a platform for growth in the years to
come.
The gross turnover for the year decreased to Rs.1051.879
Millions as compared to Rs.1328.426 Millions last year. However, inspite of
lower turnover, the Company has earned a gross profit after interest of
Rs.58.659 Millions as compared to a gross loss of Rs.19.989 Millions during the
previous year. The change in product mix, accelerated cost optimization,
general control in the employees cost and efficient working capital management
added to beneficial impact on profitability. Despite the Indian telecom cable
market being currently depressed, the driving forces for the growth to be
experienced will emanate from the impending auction of the 3G spectrum, whereby
the prominent players in the Optical Fibre Cable segment will reap rich
dividends and the Company is in the forefront of it.
The Communication industry is going through a monumental
change with pressure coming from multiple directions. Suppliers from other
industries are combining their wares with mobile and high-bandwidth fixed line
connectivity to provide customer oriented, lifestyle changing goods and
services. Recognizing its core business strength and the influence these
strengths have within an dramatically evolving market, the Company has re-engineered
itself by re-thinking its internal business processes, cannibalizing its
internal systems using the best in class available technologies to take
advantages of the tremendous cost reduction and productivity improvement.
Although the economic and business environment have not completely stabilized,
yet the Directors are confident of the long term business prospects of the
Company with greater emphasis on efficiency in materials, processes and other
areas of business.
The Company regularly measures its
progress and benchmarks itself against different competitors to change business
strategies needed to create new revenue streams in order to keep growing,
prioritize innovations and customer experience to be successful in the future.
The Company has also put great emphasis on applying proven concepts such as
‘5S’ and ‘Kaizen’ to identify further opportunities of cost reduction and
process improvement in order to provide a distinct, simple and responsive way
to serve its customers.
INDUSTRIAL RELATIONS
Industrial
relations remained cordial through out the year. The Board wishes to place on
record its sincere appreciation for the contribution made by the employees to
the significant improvement in operational performance of the Company, their
commitment and dedicated efforts in most difficult and challenging environment
during the year.
The
Company continues to accord a very high priority to both industrial safety and
environmental protection and these are ongoing processes at the Company’s plant
and facilities.
MANAGEMENT
DISCUSSION AND ANALYSIS
BUSINESS
REVIEW AND OUTLOOK
The growth in Indian Telecom sector continues unabated. The
total number of telephone subscribers in
Further, the much awaited process of auction of 3G spectrum
in
In a move that could add to the broadband uptake in the
country, Indian railways is also planning to roll out 15000 route KM of Optical
Fibre Cable through the Public Private Partnership route. This cable
infrastructure will be utilized to offer broadband services across the country
and will allow Optical Fibre Cable manufacturers to partner Railways in the
venture. In addition to this, the tenders floated by BSNL on behalf of Indian
Army & Navy, for laying nation wide Optical Fibre Cable backbone networks
will accelerate the demand for OFC in a sizeable way.
Jelly Filled Telephone Cables (JFTC)
The Company’s sales turnover on account of JFTC reduced from
Rs.297.961 millions in the previous year to Rs.124.304 millions during the
year, mainly due to sharp contraction in demand from BSNL leading to further
erosion in margins and profits in the remaining small business from other
customers. The JFTC business has been undergoing the shift to Specialty Cables
for wireless and broadband applications that has been predicted for in last few
years. In line with the market trends, the Company’s overall revenue share from
JFTC business has come down drastically from 66% to approx. 13% in the last 4
years with a significant shift in turnover to Specialty Copper Cables which
have contributed over 25% of the total sales revenue from manufactured goods
during the year. The Company, has launched a slew of new products keeping
abreast with the demand from customers and to derisk the revenue model and has
successfully executed orders aggregating to Rs.245.535 millions during the
year. The focus by some of the private operators is also shifting towards
Structured Copper cables for giving Broadband connections to both residential
and corporate consumers, where the Company is planning to reap more
opportunities. The upgradation in the production facilities and the capability
of producing different variant of
copper cables as well as the ability to cater to the stepped-up
demand for such products has enabled the Company to spread the customer base in
order to offset impact of rapidly declining traditional JFTC business.
Optical Fibre Cables (OFC)
The drop in revenue from OFC business at Rs.572.809 millions
as compared to Rs. 805.486 millions in the previous year is mainly due to lower
demand from certain key private sector customers and deferment of tender for
high fibre count Ribbon type OFC by BSNL. However, the Company’s strong
emphasis on expanding its product base by launching various customized cables
by leveraging its technical expertise, world class production facilities and
corporate brands have yielded rich dividend resulting in a increased export
turnover during the year under review. The Company has been constantly looking
for export opportunities in order to cope with lower demand in domestic market
which is evident from the Company achieving an export sales of Rs.114.034
millions as compared to Rs.19.072 millions in the previous year. The momentum
in export turnover is expected to continue based on the encouraging response
from the satisfied customers in the overseas markets.
Addressing ‘India Telecom 2009’ the Prime Minister expressed
concern at the digital divide between urban and rural and the said programme
for providing broadband connectivity to all the gram panchayats in the country
will be completed by 2010. Apart from this the auctions for 3G and wireless
broadband spectrum which will be held during the next financial year 2010-11
will provide huge opportunities for your Company to bag sizeable orders.
Despite the increase in demand of OFC, there may not be any
significant improvement in the domestic OFC prices and the bargaining power of
buyers and the existence of overcapacity will constrain the ability of domestic
players to resort to any considerable price hikes in the near future. Keeping
this in view, the Company has taken a strategic decision to participate in
turnkey projects which eventually will lead to additional revenue opportunities
by cross-marketing its business to the customers besides helping in retention
of the customers under the changed business environment.
FINANCIAL
REVIEW
(a) The gross sales decreased by 20.82% to Rs.1051.879
millions as compared to Rs. 1328.426 millions in previous year primarily due to
substantial decline in sales of JFTC/OFC both in value and volume.
(b) The other income has increased to Rs.18.229 millions as
against Rs.15.654 millions in the previous year due to substantial increase in
interest on inter corporate deposits and increased export benefits.
(c) The raw material consumption and other charges were
lower as compared to previous year due to reduction in production
level.
(d) The financial charges decreased from Rs.7.147 millions
in previous year to Rs.7.054 millions mainly due to lower utilization of
working capital limits during the year under review. Also, the interest cost
has come down to Rs.7.433 millions (previous year Rs.12.164 millions) due to
better receivable management throughout the year.
(e) Despite reduction in the turnover from Rs. 1328.426
millions to Rs.1051.879 millions in the financial year the Company has recorded
a gross profit (profit before depreciation) of Rs.586.59 millions as against
the gross loss (loss
before depreciation) of Rs.19.989 millions.
(f) There was no change in the capital structure during the
year. However, the increase in Reserves and Surplus of Rs.22.820 millions is
because of the net profit in the current year.
(g) The additions to the fixed assets of Rs.37.178 millions
during the year mainly comprise of installation of Metal Tape Armouring
attached for Sheathing Line, Wire Armouring machine, Fine Wire Drawing machine,
Double Twist Bunching machine and upgradation of certain machinery, etc.
(h) For detailed information on the financial performance
with respect to operational performance, a reference may please be made to the
financial statements.
FINANCIAL
Financial
risks would include, interalia, low capacity utilization, unremunerative
prices, highly concentrated customers base, shorter delivery schedule and
liquidated damages, foreign exchange exposure and related exchange rates
variation, commodity price including adverse movements in prices of
raw-materials, warranty and security, current or future litigations, working
capital management and interest rate, contingent liabilities, etc. In addition,
the credit risks could increase, if the financial condition of Company’s
customers decline. The Company regularly identifies and monitors the financial
risks as well as potential business threats and develops appropriate risk
mitigation plans. The Company’s crisis management capability is also reasonably
honed to protect its reputation with its stakeholders.
ENVIRONMENT AND SAFETY
The
Company successfully continued with the implementation of industrial safety,
quality and environmental protection measures and these are on going processes
at the Company’s plant and facilities. As a recognition of these objectives,
the entire range of activities of the Company continue to remain certified to
the requirement of international standard IS/ISO 14001:2004 by the Bureau of
Indian Standards. The Company has taken initiative for RoHS (Restriction of
Hazardous Substances Directive) compliance in its products and manufacturing
processes in accordance with existing and anticipated environmental
legislations and relevant market requirements.
UNAUDITED
STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30.09.2010
|
Particulars |
Quarter
ended 30.06.2010 |
Quarter
ended 30.09.2010 |
Half
year ended 30.09.2010 |
|
|
Sales (Gross) |
151.896 |
190.987 |
342.883 |
|
|
Less: Excise Duty on Sales |
10.238 |
10.186 |
20.424 |
|
|
Net Sales / Income from Operations |
141.658 |
180.801 |
322.459 |
|
|
Other Operating Income |
3.971 |
6.396 |
10.367 |
|
|
Expenditure |
|
|
|
|
|
(a) (Increase)/decrease in Stock in Trade and work in progress |
(39.020) |
25.360 |
(13.660) |
|
|
(b) Consumption of Raw Materials |
132.981 |
122.471 |
255.452 |
|
|
(c) Purchase of traded goods |
16.056 |
1.186 |
17.242 |
|
|
(d) Employees Cost |
18.823 |
17.113 |
35.936 |
|
|
(e) Depreciation |
9.591 |
9.142 |
18.733 |
|
|
(f) Other Expenditure |
24.870 |
25.044 |
49.914 |
|
|
Total |
163.301 |
200.316 |
363.617 |
|
|
Profit / (Loss) From Operations before other Income Interest &
Exceptional Items |
(17.672) |
(13.119) |
(30.791) |
|
|
Other Income |
4.336 |
2.882 |
7.218 |
|
|
Profit/(Loss) before Interest and Exceptional items |
(13.36) |
(10.237) |
(23.573) |
|
|
Interest |
1.713 |
2.535 |
4.248 |
|
|
Profit / (Loss) after interest before Exceptional items |
(15.049) |
(12.772) |
(27.821) |
|
|
Exceptional Items |
- |
- |
- |
|
|
Profit / (Loss) From Ordinary activities before Tax |
(15.049) |
(12.772) |
(27.821) |
|
|
Tax Expenses / (Credit) |
(0.032) |
- |
- |
|
|
Net Profit/(Loss) From Ordinary activities after Tax |
(15.017) |
(12.772) |
(27.821) |
|
|
Extraordinary Items |
- |
- |
- |
|
|
Net Profit/(Loss) |
(15.017) |
(12.772) |
(27.821) |
|
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
300.000 |
300.000 |
300.000 |
|
|
Reserves (Excluding Revaluation Reserves) |
- |
- |
- |
|
|
Basic and Diluted EPS (Rs.) [Not Annulized] |
(0.50) |
(0.43) |
(0.93) |
|
|
Public Share
Holding |
|
|
|
|
|
- Number of Shares |
10094057 |
- |
10094057 |
|
|
- Percentage of shareholding |
33.65% |
- |
33.65% |
|
|
Promoters and Promoter group share holding |
|
|
|
|
|
a) Pledged / Encumbered |
|
|
||
|
- Number of Shares |
1250000 |
- |
1250000 |
|
|
- Percentage of share (as a % of the total shareholding of promoter
and promoter group) |
6.28 |
- |
6.28 |
|
|
- Percentage of shares(as a % of the total share capital of the
company) |
4.17 |
- |
4.17 |
|
|
b) Non-encumbered |
|
|
||
|
- Number of Shares |
18655943 |
- |
18655943 |
|
|
- Percentage of Share (as a % of the total shareholding of promoter
and promoter group) |
93.72 |
- |
93.72 |
|
|
- Percentage of Share (as a % of the total share capital of the
company) |
62.18 |
- |
62.18 |
|
SUMMARY OF ASSETS
AND LIABILITIES AS AT 30TH SEPTEMBER, 2010
|
Particulars |
30.09.2010 (Rs. in Milions) Unaudited |
|
SHAREHOLDERS FUNDS |
|
|
(a)
Capital |
300.000 |
|
(b)
Reserves and Surplus |
329.772 |
|
|
|
|
LOAN FUNDS |
282.408 |
|
Total |
912.180 |
|
|
|
|
FIXED ASSETS |
357.408 |
|
INVESTMENTS |
140.619 |
|
CURRENT ASSETS, LOANS AND
ADVANCES |
|
|
(a)
Inventories |
217.147 |
|
(b)
Sundry Debtors |
182.187 |
|
(c)
Cash and Bank balances |
60.411 |
|
(d)
Other Current Assets |
0.516 |
|
(e)
Loans and Advances |
118.262 |
|
Total |
578.523 |
|
LESS :
CURRENT LIABILITIES AND PROVISIONS |
|
|
(a) Current
Liabilities |
147.279 |
|
(b)
Provisions |
17.091 |
|
|
164.370 |
|
NET
CURRENT ASSETS |
414.153 |
|
Total |
912.180 |
Notes:
(1) The
entire operations of the Company relate to single business segment of “Wire
& Cables” for the purpose of Accounting Standard (AS-17) “Segment
Reporting”.
(2)
There were no investor complaints pending or unattended for redressal at the
beginning and end of the quarter. Four (4) investor complaints were received
during the quarter and were duly attended/disposed off.
(3) The
above unaudited financial results duly reviewed by the Audit Committee have
been approved by the Board of Directors in its meeting held on 28th October,
2010 and subjected to a Limited Review by the statutory auditors of the
Company.
(4)
Figures of previous year/periods have been regrouped/rearranged, wherever
considered necessary.
FIXED ASSETS
·
·
Buildings
·
Plant and Machinery
·
Furniture and Office Appliances
·
Vehicles
·
Software
WEB DETAILS
PROFILE
Subject, an IS/ISO 9001:2000 and IS/ISO - 14001:2004 certified company
under the M.P. Birla Group of Industries entered into the field of optical
communication, by way of manufacturing optical fibre cables, in technical and
financial collaboration with Ericsson Cables AB, Sweden (now known as Ericsson
Network Technologies AB, Sweden).
Ericsson is a name in telecommunications for the last 110 years, with
activities ranging from turnkey telecom networks to Cellular Mobile Telephone
Systems and Business Communications. M/s Ericsson Cables AB are the pioneers in
S-Z stranding and Ribbon Cable technologies for Optical Fibre Cables.
Subject has installed capacity of above more than 53,000 cable Kms. per annum
to produce complete range of optical fibre cables including ribbon type optic
fibre cable made to design and construction conforming to national and
international standards. Subject has the capability to produce speciality fibre
optic cables for use in medical equipment, computers and local area networks,
cable TV network or any other type as per customized specification.
Subject also has installed capacity to produce 4.325 millions conductor Kms. of
jelly filled copper telephone cables complying to national and international
standards ranging from 5 pair to 2400 Pair and also has capability to produce
switchboard cables for switching equipment.
Subject has fully computerized system for process monitoring and quality
control to ensure consistency and reliability of its entire product range. All
production activities are carried out as per approved quality assurance plan.
Subject, therefore, provides the best possible solutions with latest state of
the art technology.
Subject has an exclusive marketing agreement with M/s AFL Telecommunications
for sale of hi-tech overhead fibre optic cables, specially OPGW and associated
accessories which find applications with electric power utilities etc.
Subject has marketing arrangement with M/s ILSINTECH Company Limited
Subject has also
entered into strategic marketing alliance with M/s. All optic Inc.,
OVERVIEW
In collaboration with Ericsson Network Technologies AB of Sweden,
Subject is engaged in the production of high quality fiber optic cables. A key
part of the diverse MP Birla Groups; Subject has, over time, emerged as a
leader in optical communications, both in
BOARD OF DIRECTORS:
Mr.Harsh V Lodha (Chairman)
An eminent Chartered Accountant and a Partner of M/s Lodha and Co., Chartered
Accountants. He has served various committees and working groups set up by
Federation of Indian Chambers of Commerce and Industry (FICCI); Indian Chambers
of Commerce, Kolkata; Department of Company Affairs, Government of India;
Reserve Bank of India; apart from being a member of the Accounting Standards
Board set up by the Institute of Chartered Accountants of India and alternate
member of the National Advisory Committee on Accounting Standards set up by
Government of India. He has handled professional advisory assignments in
various fields and has been involved in various Trusts, Educational and
Cultural Institutions.
Mr.Magnus Kreuger (Director)
Company Executive with rich business and Management experience.
Mr.Mats Olof Hansson (Director)
Company Executive with rich business and Management experience.
Mr.R.C.Tapuriah (Director)
Industrialist with wide experience in Business and Industry.
Dr. Aravind Srinivasan (Director)
Administrator of a renowned eye hospital in
Mr. Arun Kishore (Director)
A Practising Chartered Accountant with more than four decades of
professional experience in the various gamuts of audit and other related
areas.
Mr.K.Raghuraman (Director)
Chartered Accountant with more than three decades of professional experience in
various Banks and holding very senior position including executive directorship
of Punjab National Bank. He had held the position of Chairman of India
Cooperation Committee of Master Card International and was also the Honorary
Secretary of "Banks' Sports Board" of the Indian Banks' Association
apart from being the member of various industry level Committees of IBA. He had
participated in various International Conferences/Seminars/Investors' Meet in
Mr.D.R.Bansal (ManagingDirector)
Company Executive having rich and varied experience of over 46 years in
various facets of cable and other Industries including in the field of
administration, production and marketing. His strength also includes strong relationship
management, international alliances/tie ups and business development. He is
actively associated with various cable industry forums in
Management Team
Mr. Y. S. Lodha
(President)
Marketing
Mumbai
Mr. R. Sridharan
Sr.Vice President
Mr. Devesh R. Dakwale
Asst. Vice President
(Marketing)
Mr. Sandeep Chawla
Sr. Vice President (Marketing)
Mr. Roby Sood
General Manager (Marketing)
Rewa
Mr. R.K. Shahi
General Manager (Business
Development)
Mr. URS Baghel
General Manager (Sales
Support and Services)
Kolkata
Mr. Dipankar Chaterjee
Manager (Marketing)
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.45.13 |
|
|
1 |
Rs.71.05 |
|
Euro |
1 |
Rs.59.10 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
29 |
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 |
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 |
|
NB |
New Business |
- |
|
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.