1. Summary Information
|
|
|
Country |
|
|
Company Name |
NICCO
CORPORATION LIMITED |
Principal Name 1 |
Ms. Pallavi Priyadarshini Kaul |
|
Status |
Moderate |
Principal Name 2 |
Mr. Rajive Kaul |
|
|
|
Registration # |
036362 |
|
Street Address |
Nicco House, |
||
|
Established Date |
31.05.1983 |
SIC Code |
-- |
|
Telephone# |
91-33-66285000 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-33-22309443 |
Business Style 2 |
- |
|
Homepage |
Product Name 1 |
Cables |
|
|
# of employees |
-- |
Product Name 2 |
- |
|
Paid up capital |
Rs.407,146,000/- |
Product Name 3 |
- |
|
Shareholders |
Shareholding of Promoter and Promoter
Group – 21.92 % Public shareholding – 78.08% |
Banking |
Allahabad Bank |
|
Public Limited Corp. |
YES |
Business Period |
28 years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
B
(28) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Associate/subsidiary |
|
Nicco Biotech Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
1,504,371,000 |
Current Liabilities |
1,894,258,000 |
|
Inventories |
425,596,000 |
Long-term Liabilities |
1,903,101,000 |
|
Fixed Assets |
1,012,112,000 |
Other Liabilities |
0 |
|
Deferred Assets |
451,102,000 |
Total Liabilities |
3,797,359,000 |
|
Invest& other Assets |
177,358,000 |
Retained Earnings |
(1,258,627,000) |
|
|
|
Net Worth |
(226,820,000) |
|
Total Assets |
3,570,539,000 |
Total Liab. & Equity |
3,570,539,000 |
|
Total Assets (Previous Year) |
3571,241,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
3,075,705,000 |
Net Profit |
(431,568,000) |
|
Sales(Previous yr) |
3,409,620,000 |
Net Profit(Prev.yr) |
(529,147,000) |
MIRA
INFORM REPORT
|
Report Date : |
25.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
NICCO CORPORATION LIMITED |
|
|
|
|
Registered Office
: |
Nicco House, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
31.05.1983 |
|
|
|
|
Com. Reg. No.: |
036362 |
|
|
|
|
CIN No.: [Company Identification
No.] |
L55101WB1983PLC036362 |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of Cables. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (28) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track. There appears
huge accumulated losses recorded by the company. However, trade relations are
reported as fair. Business is active. Payments are reported to be slow. 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 Office : |
Nicco House, |
|
Tel. No.: |
91-33-66285000 |
|
Fax No.: |
91-33-22309443 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
P.O. Authpur, Shamnagar, 24-Parganas (North) – 743128, West |
|
Tel. No.: |
91-33-66285368 / 5470 / 5471 |
|
Fax No.: |
91-33-25812940 |
|
E-Mail : |
|
|
|
|
|
Factory 2 : |
|
|
Tel. No.: |
91-6792-252454 / 252434 |
|
Fax No.: |
91-6792-252398 |
|
|
|
|
Branches : |
Located at :
|
DIRECTORS
|
Name : |
Mr. Rajive Kaul |
|
Designation : |
Executive Chairman |
|
|
|
|
Name : |
Mr. Udayan Roy |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Narottam Das |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Prabir Chakravarti |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Lakshminarayanapuram Ramier Vaidyanath |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dhirendra Nath Bhattacharjee |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Umesh Kumar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sujit Poddar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjoy Bhattacharya |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Pallavi Priyadarshini Kaul |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shiv Siddhant Narayan Kaul |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Tridibesh Mukherjee (From 18th July, 2001 to 26th
July, 2010) |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. J. S. Paul |
|
Designation : |
Senior Vice President and Company Secretary |
|
|
|
|
AUDIT COMMITTEE : |
|
|
Name : |
Mr. N. Das |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Prabir Chakravarti |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. Sujit Poddar |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. Dhirendra Nath Bhattacharjee |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. J. S. Paul |
|
Designation : |
Secretary |
|
|
|
|
COMPENSATION AND REMUNERATION COMMITTEE : |
|
|
Name : |
Mr. N. Das |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Dr. Lakshminarayanapuram Ramier Vaidyanath |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. Prabir Chakravarti |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. Sujit Poddar (From 18th July 2001 to 26th
July 2010) |
|
Designation : |
Member |
|
|
|
|
SHARE TRANSFER COMMITTEE : |
|
|
Name : |
Mr. Rajive Kaul |
|
Designation : |
Executive Chairman |
|
|
|
|
Name : |
Mr. Udayan Roy |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. Sanjoy Bhattacharya |
|
Designation : |
Member |
|
|
|
|
Name : |
Ms. Pallavi Priyadarshini Kaul |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. S. S. N. Kaul |
|
Designation : |
Member |
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 |
|
|
|
|
|
|
|
|
4,737,108 |
4.23 |
|
|
19,792,338 |
17.69 |
|
|
24,529,446 |
21.92 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
24,529,446 |
21.92 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
12,411 |
0.01 |
|
|
1,524,280 |
1.36 |
|
|
1,160,674 |
1.04 |
|
|
11,761 |
0.01 |
|
|
2,709,126 |
2.42 |
|
|
|
|
|
|
55,618,607 |
49.71 |
|
|
|
|
|
|
21,704,001 |
19.40 |
|
|
5,052,425 |
4.52 |
|
|
2,278,803 |
2.04 |
|
|
448,803 |
0.40 |
|
|
1,830,000 |
1.64 |
|
|
84,653,836 |
75.66 |
|
Total
Public shareholding (B) |
87,362,962 |
78.08 |
|
Total
(A)+(B) |
111,892,408 |
100.00 |
|
©
Shares held by Custodians and against which Depository Receipts have been
issued |
- |
- |
|
Total
(A)+(B)+(C) |
111,892,408 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millions.|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
|
|
Bodies corporate |
|
|
Directors or relatives of Directors |
|
|
Other top fifty shareholders |
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Cables. |
PRODUCTION STATUS AS ON 31.03.2010
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Manufactured Goods |
Metres |
80000 |
80000 |
17896 |
GENERAL INFORMATION
|
Customers : |
|
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
Facilities : |
Notes : (1) Equitable mortgage of immovable
properties ranking pari passu with Term Loans from Banks and Financial
Institutions. (2) First charge on movable fixed assets ranking
pari-passu with other loans & hypothecation of inventories & book
debts against first charge apart from encumbrance referred to in ‘1’ above. (3) First charge on movable fixed assets ranking
pari-passu with term loans of banks, second charge on inventories &
debts, exclusive charge on individual assets financed and first charge on
dwelling unit & office space apart from encumbrance referred to in ‘1’
above.
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Messrs G. Basu and Company Chartered Accountant |
|
Address : |
Kolkata |
|
|
|
|
Associates/Subsidiaries : |
|
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
235000000 |
Equity Shares |
Rs.2/- each |
Rs.470.000 Millions |
|
9090910 |
Optional Convertible Cumulative Preference Shares |
Rs.22/- each |
Rs.200.000 Millions |
|
2200000 |
Cumulative Redeemable Preference Share |
Rs.100/- each |
Rs.220.000 Millions |
|
|
Total |
|
Rs.890.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
94355154 |
Equity Shares |
Rs.2/- each |
Rs.188.710
Millions |
|
2183000 |
Cumulative Redeemable Preference Share |
Rs.100/-
each |
Rs.218.300
Milions |
|
Add : |
Forfeited |
|
Rs.0.136
Million |
|
|
Total |
|
Rs.407.146 Millions |
Notes :
1) Equity Shares subscribed and fully paid-up
relate to following issues during earlier financial year/years for
consideration other than cash.
(a) 4,37,85,098 Equity Shares of Rs 2/- each
were issued as fully paid up against reduction of Capital base by Rs. 350.281
millions.
(b) 4,54,54,545 Equity Shares of Rs. 2/- each
were issued as fully paid up against conversion of 6% optionally convertible
Cumulative Preference Shares.
(c) 14,59,204 Equity Shares of Rs, 2/- each
were issued as fully paid up to Banks/Financial Institutions/Debenture holders
against conversion of their dues.
2) 21,83,000 5% Cumulative Redeemable
Preference Shares of Rs. 100 each were allotted as fully paid up againsl
conversion of loans for consideration other than cash.
These include :
A) 18,46,000
B)
3,37,000 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 |
|
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
407.146 |
399.834 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
624.661 |
622.945 |
|
|
4] (Accumulated Losses) |
|
(1258.627) |
(827.059) |
|
|
NETWORTH |
|
(226.820) |
195.720 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
1578.741 |
1566.834 |
|
|
2] Unsecured Loans |
|
324.360 |
317.138 |
|
|
TOTAL BORROWING |
|
1903.101 |
1883.972 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
1676.281 |
2079.692 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
1012.112 |
1108.582 |
|
|
Capital work-in-progress |
|
1.962 |
1.655 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
175.396 |
215.897 |
|
|
DEFERREX TAX ASSETS |
|
451.102 |
334.570 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
425.596 |
439.205 |
|
|
Sundry Debtors |
|
1255.769 |
1120.596 |
|
|
Cash & Bank Balances |
|
25.841 |
38.279 |
|
|
Other Current Assets |
|
15.204 |
9.746 |
|
|
Loans & Advances |
|
207.557 |
302.711 |
|
Total
Current Assets |
|
1929.967 |
1910.537 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
1835.604 |
1432.273 |
|
|
Provisions |
|
58.654 |
59.276 |
|
Total
Current Liabilities |
|
1894.258 |
1491.549 |
|
|
Net Current Assets |
|
35.709 |
418.988 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
1676.281 |
2079.692 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
3075.705 |
3409.620 |
|
|
|
Other Income |
|
42.691 |
12.045 |
|
|
|
TOTAL (A) |
|
3118.396 |
3421.665 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
|
2252.371 |
2054.754 |
|
|
|
Manufacturing Expenses |
|
119.260 |
146.135 |
|
|
|
Project Engineering Expenses |
|
332.930 |
544.523 |
|
|
|
Expenses on Employees |
|
271.192 |
318.039 |
|
|
|
Selling and Administration Expenses |
|
377.200 |
514.232 |
|
|
|
Miscellaneous Expenses Written Off |
|
0.000 |
0.650 |
|
|
|
TOTAL (B) |
|
3352.953 |
3578.333 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
(234.557) |
(156.668) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
236.177 |
284.311 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
(470.734) |
(440.979) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
|
77.366 |
81.664 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
|
(548.100) |
(522.643) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
|
(116.532) |
6.504 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
|
(431.568) |
(529.147) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
(827.059) |
(297.912) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
|
(1258.627) |
(827.059) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
3.181 |
36.083 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
16.367 |
29.342 |
|
|
|
Capital Goods |
|
0.000 |
0.000 |
|
|
|
Others |
|
53.664 |
18.134 |
|
|
TOTAL IMPORTS |
|
70.031 |
47.476 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
(4.83) |
(5.95) |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
|
Net Sales |
|
571.300 |
744.200 |
|
Total Expenditure |
|
588.800 |
723.200 |
|
PBIDT (Excl OI) |
|
(17.500) |
21.000 |
|
Other Income |
|
2.400 |
70.500 |
|
Operating Profit |
|
(15.100) |
91.500 |
|
Interest |
|
60.000 |
64.200 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(75.100) |
27.300 |
|
Depreciation |
|
18.000 |
17.700 |
|
Profit Before Tax |
|
(93.100) |
9.600 |
|
Tax |
|
(0.600) |
(0.200) |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(92.500) |
9.800 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(92.500) |
9.800 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
|
(13.84) |
(15.46) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
(17.82) |
(15.33) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
(18.63) |
(17.31) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
2.42 |
(2.67) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
(16.74) |
17.25 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.02 |
1.28 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS :
The economic downturn coupled with shortage of working
capital seriously affected the performance of the Company In addition, the
Company faced industrial relation problems connected to payment of bonus in
both factories leading to temporary suspension of work. The margin for all
activities declined sharply due to intense competition. The overall
profitability position could not be protected by increasing volume due to a
shortage of working capital and the industrial relation situation. Further the
loss making projects of IQCL and NALCO were commissioned. The settlements with
the unions and workmen were reached in both factories. The package from
Corporate Debt Restructuring (CDR) was approved and implemented with effect
from 30th June 2009. Some improvement in performance was achieved in
January — March 2010 quarter but the same was not adequate to return to
profitability.
The order book position at the beginning of the financial
year 2010-11 was healthy. Many of the problems faced during the year were
addressed except the working capital situation, which remained critical and
adversely impacted operations.
FINANCE :
The restrictive clauses in the Master Agreement with Prysmian (agreed in
good faith that the deal would go through) and their abrupt and sudden
withdrawal had an adverse influence on the performance of the Company. To seek
redressal the Company had moved a petition to Calcutta High Court and the
Supreme Court. The Supreme Court in a recent judgment has referred the matter
to Arbitration and has also appointed the Arbitrator.
With a view to address the issues, in particular the working capital
shortage, the Company had approached CDR for restructuring of the finances. The
approval of CDR was received on 23rd March 2009.
The Company complied with all the stipulations in regard to creation of
securities, infusion of fresh funds etc and the package was implemented with
effect from 30th June 2009. Simultaneously TDB, WBIDC and Government of West
Bengal were also approached to restructure the Loans and Preference Shares.
The package provided initial support but under present circumstances is
inadequate for long term growth and profitability. The Company is thus
exploring other options for raising funds.
On restoration of facilities as per COR approved package, the Company
could obtain some working capital for operations. In addition, the Company
resorted to stringent cost reduction program. As mentioned earlier the
industrial rotation problems arising out of payment of bonus adversely affected
the production and profitability The settlement with unions/workmen was reached
and both factories are now operational.
FUTURE PROSPECTS :
With the continued thrust in improving internal efficiencies and other
operational measures the directors are planning for a better performance in the
current year.
MANAGEMENT
DISCUSSION AND ANALYSIS
A. Industry
Structure and Development
Power Cables
Division
The Energy Cables sector experienced no growth in 2009 but started recovering
in 2010. However, margins continue to be under extreme pressure in all areas
especially in the Medium Voltage XLPE Cables and Low Voltage Power Cables. This
has been due to over-capacity in the industry and enhanced competition.
Multinational companies are in the process of establishing their base through
Joint Ventures and
Project Division
The Project Division undertakes execution of multidisciplinary
engineering projects and has established itself as an Engineering, Procurement
and Construction (EPC) contractor of repute in the Country. The Division also
provides Engineering Consultancy Services. While major projects have been
planned in the target industries such as Oil and Gas, Petrochemicals,
Refineries, Nuclear Power, Ferrous and Non-Ferrous and Chemical Industries, a
large number of newer competitors have emerged which has led to increased
competition.
B. Segment-wise
Performance
Power Cables
Division
The Cable Division registered a gross sales turnover of Rs. 2010.000
millions. While the sales of’ Speciality Cables rnanufactured in Shyamnagar
remained at levels similar to last year, there was a drop in sales of Medium
Voltage XLPE cables produced at Baripada mainly due to suspension of operations
for 5 months as also a shortage of working capital finance. Operations have
since resumed. Inadequacy of working capital continues to adversely impact the
performance of this division.
Project Division
The Project Division had carried forward orders worth Rs. 1560.000
millions as on 31st March 2010. The Division registered a turnover of Rs.
1190.000 millions. The performance of the Division remained restricted due to a
substantial shortage of working capital. The majority of work at two loss
making projects at IOCL Panipat, and NALCO, Damanjodi has been completed. With
continuing investments in the Steel, Oil and Gas and Power Sectors, the market
for turnkey projects improved. During the course of the year, the Division
secured orders worth around Rs. 900.000 millions with reasonable margins.
C. Business
Strategy
Power Cables
Division
The strategic focus continues to be on increasing the volume of
Speciality Cables especially in the segments of Railways, Ship Wiring, Wind
Energy and Defence industrial applications. Efforts will also continue for
penetrating new market segments.
Project Division
Major focus areas for growth would be in the business areas of Chemical
Plants, Tankage Terminals, Effluent/Water Treatment Plants, Utility packages in
the Steel Sector and Engineering Services.
D.
Financial and Operational Performance
The performance of the Company remained at a very low level
due to the following reasons
1. Delayed implementation of CDR package.
2. Inadequate Working Capital
3. After effect of sudden withdrawal of Prysmian from the
deal as also the negative covenants.
4. Temporary suspension of work at factories.
The approved CUR package was implemented on 30th June 2009.
The performance for the period also suffered due to labour unrest on bonus
issue at both the factories. However, the issues were resolved and the
suspension of operation were lifted after reaching amicable settlement with
unions/workmen.
E.
Outlook
With the implementation of stricter cost control and
productivity improvement measures, it is expected that the performance of the
Company will significantly improve. The Working Capital situation, however,
will remain critical and is a limiting factor The Company is contemplating
several measures for mobilization of funds into the Company by further internal
restructuring. With all these actions, it is expected that the Company wilt be
able to improve its performance in the future.
AUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30th SEPTEMBER, 2010
(Rs. In Millions)
|
Particulars |
30.09.2009 Quarter ended (Audited) |
30.09.2009 Half Year ended (Audited) |
|
Income |
|
|
|
a) Net Sales / Income from Operations |
744.200 |
1315.500 |
|
b) Other Operating Income |
0.000 |
0.000 |
|
Total Operating Income |
744.200 |
1315.500 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
41.200 |
(41.200) |
|
(b) Consumption of Raw Materials |
452.000 |
898.400 |
|
(c) Purchase of traded goods |
31.500 |
73.700 |
|
(d) Employees Cost |
78.000 |
153.100 |
|
(e) Depreciation |
17.700 |
35.700 |
|
(f) Other Expenditure |
120.500 |
228.000 |
|
Total Expenditure |
740.900 |
1347.700 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
3.300 |
(32.200) |
|
Other Income |
70.500 |
72.900 |
|
Profit/(Loss) before Interest and Exceptional items |
73.800 |
40.700 |
|
Interest |
64.200 |
124.200 |
|
Profit / (Loss) after interest before Exceptional items |
9.600 |
(83.500) |
|
Exceptional Items |
0.000 |
0.000 |
|
Profit / (Loss) From
Ordinary activities before Tax |
9.600 |
(83.500) |
|
Tax Expenses |
(0.200) |
(0.800) |
|
Net Profit/(Loss) From Ordinary activities after Tax |
9.800 |
(82.700) |
|
Extraordinary Items |
0.000 |
0.000 |
|
Net Profit/(Loss) for the period |
9.800 |
(82.700) |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
221.800 |
221.800 |
|
Reserves (Excluding Revaluation Reserves) |
353.100 |
353.100 |
|
Earning Per Share |
|
|
|
Before
Extraordinary Items |
|
|
|
-Basic |
0.06 |
(0.79) |
|
-Diluted |
0.06 |
(0.79) |
|
Public Share Holding |
|
|
|
- Number of Shares |
69825708 |
69825708 |
|
- Percentage of shareholding |
78.08 |
78.08 |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
|
9765725 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
|
39.81 |
|
- Percentage of shares(as a % of the total share capital of the company) |
|
8.73 |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
|
14763721 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
|
60.19 |
|
- Percentage of Share (as a % of the total share capital of the company) |
|
13.19 |
Notes :
- The above audited
results were reviewed by audit committee. The Financial Statements were
approved by the Board of Directors during meeting dated 30th October,
2010.
- In terms of
clause 41 of the Listing Agreement, details of number of Investor
complaints for the quarter ended 30th September,2010: Opening - Nil,
Received -11, Disposed of- 11 and Pending – Nil
- Work under
progress amounting to Rs.8.900 Millions towards repair of damage of Nicco
House caused by fire has not been provided for on the ground of expenses
to be reimbursed by insurance company, who have already disbursed Rs.7.000
millions as an adhoc advance.
- 1,10,000 5%
cumulative redeemable preference shares of Rs.100/- each, was due for
redemption on February 1,2010 .The same is expected to be renewed for a further
period with the consent of the preference share holder.
- In line with
the approval of members in AGM of 16th September 2009, 46,56,862 fully
paid Equity Shares of Rs.2/- each were issued at a premium of Rs.4.12 per
share, for a consideration other than cash, against conversion of dues.
- During the
quarter in line with the approval of members in AGM of 16th September
2009, 1,19,00,000 fully paid Equity Shares of Rs.2/- each were issued to
ARCIL at a premium of Rs.4.12 per share, for a consideration other than
cash, against conversion of loan.
- During the
quarter in line with the approval CDR dated 24th September,2010 investment
in wholly owned subsidiary, Nicco Engineering Services Limited, having book
value Rs.3.034 Millions being investment against 37,91,983 equity shares
have been disposed of at a profit of Rs.66.966 millions which has been
accounted for under other income. As such NESL ceased to be a subsidiary
at the end of the quarter.
- Previous period/year figures have been regrouped and rearranged where ever necessary in terms of current period.
STATEMENT OF
ASSETS AND LIABILITIES
(Rs. in Millions)
|
Particulars |
30.09.2010 (Audited) |
|
SOURCES OF FUNDS
: |
|
|
A. Shareholders
funds |
440.260 |
|
Capital |
684.884 |
|
Reserves and
Surplus |
0.000 |
|
B. Loan Funds |
1846.967 |
|
Total |
2972.111 |
|
APPLICATION OF
FUNDS : |
|
|
C. Fixed Assets |
973.663 |
|
D. Investments |
172.363 |
|
E. Deferred Tax
Assets (Net) |
451.982 |
|
F. Current Assets,
Loans and Advances |
|
|
Inventories |
461.665 |
|
Sundry Debtors |
1073.412 |
|
Cash and Bank Balance |
14.223 |
|
Other Current Assets |
22.501 |
|
Loans and Advances |
176.895 |
|
|
1748.696 |
|
G. Less : Current
Liabilities and Provisions |
|
|
Liabilities |
1646.850 |
|
Provisions |
69.026 |
|
|
1715.875 |
|
H. Net Current
Assets |
32.820 |
|
I. Profit and
Loss Account |
1341.283 |
|
Total |
2972.111 |
SEGMENT WISE
REVENUE STATEMENT AS ON 30.09.2010
(Rs. in Millions)
|
Particulars |
30.09.2010 Quarter Ended |
30.09.2010 Half year ended |
|
1. Segment
Revenue (Net Sales / Income) |
|
|
|
Cable Operation |
550.200 |
961.400 |
|
Project and Engineering
Services |
207.000 |
367.100 |
|
Total |
757.200 |
1328.500 |
|
Less : Inter
segment Revenue |
13.000 |
13.000 |
|
Net Sales/Income
from Operations |
744.200 |
1315.500 |
|
|
|
|
|
2. Segment Result
Profit / (Loss) before tax and Interest from each segment |
|
|
|
Cable Operation |
17.400 |
(20.400) |
|
Project and
Engineering Services |
(0.900) |
17.200 |
|
Unallocated |
57.300 |
43.900 |
|
Total |
73.800 |
40.700 |
|
Less : Interest |
64.200 |
124.200 |
|
Profit Before
Tax |
9.600 |
(83.500) |
|
|
|
|
|
3. Capital
Employed (Segment Assets-Segment Liability) |
|
|
|
Cable Operation |
291.300 |
291.300 |
|
Project and
Engineering Services |
113.100 |
113.100 |
|
Unallocated |
276.900 |
276.900 |
|
Total |
681.300 |
681.300 |
FIXED ASSETS :
- Buildings
- Lift
- Plant and Machinery
- Weighing Machines
- Furniture and Fixtures
- Motor Cars / Cycles / Motor Cycles
- Trucks and Heavy Vehicles
- Railway Sidings
- Electrical Installations
WEBSITE DETAILS :
PROFILE :
The diverse and dynamic Group comprises the following
companies and employs over 2000 people
Nicco Corporation Limited (NCL) is the flagship company of the Nicco Group. For nearly over six decades, NCL has been one of the pioneers in the Indian cable manufacturing industry.
NCL's Cable Division produces a
wide range of power cables. NCL's 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.
Nicco
Engineering Services Limited (NESL) was started in 1981 with
On-Line Leak Sealing Services in collaboration with Furmanite International
Limited,
Nicco Parks has
three mega amusement parks in Eastern India and is looking at setting up more
parks in
Nicco Internet Ventures Limited (NIVL) provides HR solutions including recruitment, training and psychometric testing.
Nicco Corporation Limited (NCL) is the flagship company of the
Nicco Group.
For nearly over six decades, NCL has been one of the pioneers in cable manufacturing industry. It
produces a wide range of power, control, instrumentation and telecom cables and
provides a spectrum of engineering services and executes turnkey projects.
Established in 1942, the US$ 67
million Nicco Group is a widely respected Indian industrial powerhouse. It is
involved in a spectrum of activities ranging from power cables to turnkey
engineering projects and services, and from HR activities to amusement parks.
The diverse and dynamic Group employs over 2000 people and comprises Nicco Corporation, Nicco Engineering Services,
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.45.58 |
|
|
1 |
Rs.72.79 |
|
Euro |
1 |
Rs.62.01 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
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 |
|
28 |
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.