MIRA
INFORM REPORT
|
Report Date : |
01.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
FINOLEX CABLES LIMITED |
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Registered
Office : |
26/27, Mumbai – |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
05.06.1967 |
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Com. Reg. No.: |
11-016531 |
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Capital
Investment / Paid-up Capital : |
Rs.305.879 millions |
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CIN No.: [Company Identification
No.] |
L31300MH1967PLC016531 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEF00515E |
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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
Electrical Wires, Lain Cables, Coaxial Cables, Auto |
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No. of Employees
: |
1383
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 25724296 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are reported
as fair. Business is active. Payments are reported to be regular. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION PARTED BY
|
Name : |
Mr. Bhushan |
|
Designation : |
Vice President |
|
Contact No.: |
91-20-27506318 |
|
Date : |
31.05.2011 |
LOCATIONS
|
Registered
Office / Corporate
Office / Factory 1: |
26/27, Mumbai – |
|
Tel. No.: |
91-20-27475963 / 27506200 |
|
Fax No.: |
91-20-27472239 / 7470344 |
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E-Mail : |
sales@fclpun.gnpun.globalnet.ems.vsnl.net.in |
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Website : |
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Factory 2: |
L117/118, Verna Industrial Estate, Verna Salcette Goa – 403722, |
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Tel No.: |
91-832-2782002 / 03 / 04 |
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Fax No.: |
91-832-2783909 |
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Factory 3: |
263/2A, |
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Tel No.: |
91-832-344376/78/79 |
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Fax No.: |
91-832-344140 |
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Factory 4: |
Gat No. 344,Village Urse,
Taluka Maval, Dist. Pune – 410506, |
|
Tel No.: |
91-2114-237021-2-3 |
|
Fax No.: |
91-2114-237006 |
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Plant : |
Optic Fibre Division Urse Taluka Maval, Dist Pune-410506 Telephone : 91-2114- 237003/4/5/6/7 Facsimile : 91-2114- 237009 Email: sunil@finolex.com HVPC Urse, Pune Gat No.343, Village Urse, Taluka Maval, District Pune-410506 Telephone : 91-2114- 237001-5 Facsimile : 91-2114-237006 Email : amit_bakhle@finolex.com Urse (Electrical and Communication Cables) Taluka Maval, Dist. Pune 410 506 Telephone 91-2114- 237026/27 Facsimile 91-2114-237025 Email: pm_deshpande@finolex.com Lighting Division (CFL) / Sheets Division Plot No.399, Village - Urse, Taluka - Maval, District-Pune-410506 Telephone : 91-2114- 237035, 237036 Facsimile : 91-2114-237041 / 42 Email : svdeshpande@finolex.com Goa (Communication Cables) Plot No. L123/9A, Verna Industrial Estate, Verna Salcette, South Goa Telephone : 91-832- 2782002/3/4 Facsimile : 91-832- 2783909 Email: YKG@finolex.com Roorkee Plot NosK-1 and K-2 AIS Industrial Estate, Jatherdeva Hoond,
Manglaur, Roorkee, Taluka Haridwar,
Uttarakhand - 247667 Telephone : 91-1332- 224069 Telefax: 91-1332-224068 Email : yyredkar@finolex.com
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Branches : |
Located At:
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DIRECTORS
As On : 31.03.2010
|
Name : |
Mr. P. P Chhabria |
|
Designation : |
Chairman |
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Address : |
9, ICS Colony, |
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|
|
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Name : |
Mr. D. K. Chhabria |
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Designation : |
Managing Director |
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Name : |
Dr. H. S. Vachha |
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Designation : |
Director |
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Name : |
Mr. B. G. Deshmukh
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Designation : |
Director |
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Name : |
Mr. Atul C.
Choksey |
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Designation : |
Director |
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Name : |
Mr. Sanjay K.
Asher |
|
Designation : |
Director |
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Name : |
Mr. P. G. Pawar |
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Designation : |
Director |
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Name : |
Mr. A. J. Engineer |
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Designation : |
Director |
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Name : |
Mr. M. L. Jain |
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Designation : |
Assistant Managing
Director and Chief Operating Officer |
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Name : |
Mr. S B Ravi (Pandit) |
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Designation : |
Director |
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Name : |
Mr. Pradeep R
Rathi |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. R. G. D’Silva |
|
Designation : |
Company Secretary and General Manager (Legal) |
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Name : |
Mr. M Viswanathan |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of promoters and Promoter Group |
|
|
|
1. Indian |
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|
|
Individuals / Hindu Undivided Family |
7875300 |
5.36 |
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Bodies Corporate |
45845777 |
31.22 |
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(B) Public
Shareholding |
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1. Institutions |
|
|
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Mutual Funds / UTI |
6273468 |
4.27 |
|
Financial Institutions / Banks |
11442840 |
7.79 |
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Foreign Institutional Investors |
2803681 |
1.91 |
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|
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2. Non
Institutions |
|
|
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Bodies Corporate |
25615218 |
17.44 |
|
Individual shareholders holding nominal share capital up to Rs. 0.100
million |
31350723 |
21.35 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
15645913 |
10.65 |
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|
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Shares
held by custodians and against which depository receipts have been
issued (C) |
6086425 |
- |
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Total (A) + (B) +(C) |
152939345 |
100.00 |
BUSINESS DETAILS
PRODUCTION STATUS (As on 31.03.2010)
|
Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
|
Electrical Cables |
|
TCKM |
2135.97 |
1152.01# |
|
Communication
Cables Optic Fibre Cables |
|
KM |
58000.00 |
35348.75 |
|
Other
Communication Cables |
|
TCKM |
10648.00 |
516.17 |
|
PVC Sheets and
Accessories |
|
MT |
2100.000 |
1344.16 |
|
Fibre |
|
KM |
1500000.00 |
867911.45* |
|
Cross Linked
Polyethylene and other Compounds (Used for Captive Consumption) |
|
MT |
2500.00 |
---- |
|
Poly coated FRP
Rod |
|
KM |
24000.00 |
22491.91 |
|
Continuous Cast
Copper Rods |
|
MT |
60000.00 |
35583.00@ |
- Installed capacities are certified by the Managing Director and relied upon by the Auditors
- # Equivalent tonnage 32,669 MT (Previous year 28,906 MT)
- Includes captive consumption of 486,685 Kms (Previous Year 473,069 Kms.)
- @ captive consumption of 20,726.556 MT (Previous year 15,439.964 MT) & Job Work done 4,836.880 (Previous year 10,293.541 MT)
- 5,000 TCKM of JFTC Capacity is interchangeable with 332 TCKM of Electrical Cable capacity
GENERAL INFORMATION
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Suppliers : |
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No. of Employees : |
1383
(Approximately) |
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Bankers : |
·
Central Bank of ·
Standard Chartered Grindlays Bank Limited,
Pune, ·
Bank of ·
BNP Paribas, Pune, ·
Citibank N.A., Pune, ·
Corporation Bank, Pune, ·
HDFC Bank Limited, Pune, ·
State Bank of ·
The Bank of · ICICI Bank Limited · Standard Chartered Bank |
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Facilities : |
Secured Loans :
Notes
:
Unsecured Loans
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Banking
Relations : |
--- |
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Auditors : |
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|
Name : |
B. K. Khare and Company Chartered Accountant |
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Address : |
706/707, Sharda
Chambers, 7th Floor, New Marine Lines, Mumbai – 400020, |
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Associates: |
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Other Companies : |
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Joint Venture : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
235,000,000 |
Equity Shares |
Rs.2/- each |
Rs.470.000 millions |
|
15,000,000 |
Unclassified Shares |
Rs.2/- each |
Rs.30.000 millions |
|
|
|
|
|
|
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Total
|
|
Rs. 500.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
152,939,345 |
Equity Shares |
Rs.2/- each |
Rs.305.879 millions |
|
|
|
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|
Note - (Of the above, 146,065,520 Equity Shares are issued as fully paid up bonus shares by capitalization of Reserves)
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 |
305.879 |
305.879 |
305.879 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6125.195 |
5656.294 |
6109.291 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6431.074 |
5962.173 |
6415.170 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2465.690 |
2524.484 |
2112.621 |
|
|
2] Unsecured Loans |
285.491 |
434.160 |
763.450 |
|
|
TOTAL BORROWING |
2751.181 |
2958.644 |
2876.071 |
|
|
DEFERRED TAX LIABILITIES |
319.136 |
221.122 |
174.729 |
|
|
|
|
|
|
|
|
TOTAL |
9501.391 |
9141.939 |
9465.970 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4475.819 |
4557.008 |
3783.724 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
2802.746 |
3140.993 |
3168.470 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2209.498
|
1435.957 |
2360.758 |
|
|
Sundry Debtors |
710.471
|
576.674 |
1075.537 |
|
|
Cash & Bank Balances |
371.621
|
281.224 |
214.014 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.029 |
|
|
Loans & Advances |
857.220
|
864.002 |
822.874 |
|
Total
Current Assets |
4148.810
|
3157.857 |
4473.212 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
532.796
|
592.566 |
792.498 |
|
|
Other Current Liabilities |
1247.614
|
1036.643 |
871.022 |
|
|
Provisions |
145.574
|
84.710 |
295.916 |
|
Total
Current Liabilities |
1925.984
|
1713.919 |
1959.436 |
|
|
Net Current Assets |
2222.826
|
1443.938 |
2513.776 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9501.391 |
9141.939 |
9465.970 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
16187.156 |
13415.072 |
13837.667 |
|
|
|
Other Income |
241.103 |
509.592 |
341.316 |
|
|
|
TOTAL (A) |
16428.259 |
13924.664 |
14178.983 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials & Manufacturing |
12494.466 |
10829.008 |
10976.637 |
|
|
|
Personnel Expenses |
592.256 |
533.204 |
497.153 |
|
|
|
Other Expenses |
1890.711 |
2151.599 |
1033.346 |
|
|
|
TOTAL (B) |
14977.433 |
13513.811 |
12507.136 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1450.826 |
410.853 |
1671.847 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
186.870 |
324.035 |
204.195 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1263.956 |
86.818 |
1467.652 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
372.270 |
387.636 |
264.671 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
891.686 |
(300.818) |
1202.981 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
315.426 |
54.093 |
313.740 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
576.260 |
(354.911) |
889.241 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
32.674 |
423.371 |
152.527 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
100.000 |
0.000 |
300.000 |
|
|
|
Proposed Dividend |
91.764 |
30.588 |
229.409 |
|
|
|
Tax on Proposed Dividend |
15.595 |
5.198 |
38.988 |
|
|
|
Debenture Redemption Reserve |
0.000 |
0.000 |
50.000 |
|
|
BALANCE CARRIED
TO THE B/S |
401.575 |
32.674 |
423.371 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
582.803 |
776.227 |
779.118 |
|
|
|
Other Earnings |
0.000 |
0.087 |
16.258 |
|
|
TOTAL EARNINGS |
582.803 |
776.314 |
795.376 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1377.346 |
1080.664 |
1281.099 |
|
|
|
Stores & Spares |
24.916 |
22.116 |
29.748 |
|
|
|
Capital Goods |
233.031 |
301.587 |
255.123 |
|
|
TOTAL IMPORTS |
1635.293 |
1404.367 |
1565.970 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.77 |
(2.32) |
5.81 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
4930.600 |
4906.300 |
5126.700 |
|
Total Expenditure |
4534.200 |
4491.300 |
4618.200 |
|
PBIDT (Excl
OI) |
396.400 |
415.000 |
508.500 |
|
Other Income |
58.500 |
147.600 |
12.500 |
|
Operating
Profit |
454.900 |
562.600 |
521.000 |
|
Interest |
40.100 |
45.400 |
50.100 |
|
Exceptional
Items |
(35.900) |
(12.700) |
(68.200) |
|
PBDT |
378.900 |
396.500 |
402.700 |
|
Depreciation |
97.800 |
101.200 |
98.300 |
|
Profit
Before Tax |
281.100 |
295.300 |
304.400 |
|
Tax |
51.300 |
106.000 |
42.500 |
|
Reported PAT |
229.800 |
189.300 |
261.900 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
229.800 |
189.300 |
261.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
3.50
|
(2.54) |
6.27 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.50
|
(2.24) |
8.69 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.33
|
(3.89) |
14.57 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
(0.05) |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.72
|
0.78 |
0.78 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.15
|
1.84 |
2.28 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
(Rs. In Millions)
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
532.796 |
592.566 |
792.498 |
HISTORY:
Established in 1967 and promoted by P P Chhabria, the
Pune-based Finolex Cables (FCL) produces a variety of cables and is the pioneer
in jelly-filled telephone cables.
In 1988-89, the company joined hands with Norddeutsche
Seekable Werke, Germany, to manufacture hi-tech special submersible cables. In
1994-95, it transferred all the PIJC manufacturing equipment from Pimpri to
Urse, to attain better economies. It has received the ISO 14002 / ISO 9002
system certification for all product lines and plants.
The Company mainly focusing on a portfolio of products to serve the Information
Age where convergence of technology is bringing voice, Data and Video into one
network. Coupled with the high growth of Internet, the Company is concentrating
on products which will carry and distribute information. The company has
undertaken a restructuring exercise and implemented an Enterprise Resource Planning
Software package (SAP) linking its network of branches with its traditional
headquarters at Pune.
Subject has acquired the 50% shareholding of SX Mauritius Holdings Inc,
Mauritius held in the joint venture company Finolex Essex Industries and hence
Finolex Essex Industries has now become a 100% subsidiary of Subject and has
been renamed as Finolex Wire Products. In Dec. 2000, the company's equity
reduced from Rs.361.100 Millions to Rs.343.400 Millions due to company's 5%
buyback of its shares.
In Oct. 2001, the Company's board approved the purchase of 51% in Finolex
Technologies in order to make it a wholly owned subsidiary. Currently, the
company holds 49% of the Equity Share Capital of Finolex Technologie, which is
engaged in the manufacture of Optic Fiber Cables (OFC).
The Company's Optic Fiber Division has undertaken an expansion in 2001-02 and
the Machinery installation is in progress. In the first stage, 1.2 million
fiber kilometer capacity p.a. will be created. An additional capacity of 1.2
million fiber kilometer will be added in the second stage. The first stage of
the Optic Fiber project has not been flagged off due to some technical problems
encountered by the supplier of machinery. The Project was commissioned in
September 2004. But the Second Phase of the Optic Fiber Project has been
dropped-off by the company.
During 2002-03 the company has launched V-SAT cables for V-SAT application for
connecting the Dish to the base station.
The company successfully launched the CATV trunk cables in the market and this
will be the first of its kind in the market. In June, 2002 the company made a
open offer valuing Rs.750 million for buyback of equity shares. The price has
been fixed at Rs.200 per share. It has completed second buyback of shares at a
consideration of Rs.750 million. After the second buy back the equity capital
stands reduced to Rs.305.88 million.
During 2004-2005, the Company is in the process of setting up Electrical
Switches plant and market them. Its has been planned to introduce two different
ranges of electrical switches one for mass/rural Segment and the another one to
the up-market modular switches segment.
The company has developed and launched a variety of LAN Cables during this
period. These are a high-end communication cable product, for multifarious
network applications.
During 2005-2006, the operations of erstwhile subsidiary namely Finolex Wire
Products Limited and Finolex Finance Limited were merged with the Company,
pursuant to the orders of the Hon'ble High Court of Bombay passed on 21st
October 2005. The Merger came into effect from 1st April, 2005.
The company developed two ranges of electrical switched one for niche market
and the other for mass market during the year.
The company is manufacturing CFLs in the range of 5 MW to 26 W and three
coloured temperatures of 2700 K, 4000 K and 6500 K.
The companies two project namely manufacturing High Voltage Power Cables (up to
66 KV) and MCBs / ELCBs) are in different stages of progress during the year.
The Power Cable Project is also progressing well. The MCB/ELCB Project is in
initial stage of completion.
During 2006-2007, the Company decided to a setup a green field manufacturing
facility for light duty electrical cables and electrical switches near Roorkee
in the Uttara khand State. Estimated capital expenditure for the project is
Rs.2 billion which is planned to be incurred in two stages in equal proportion.
The first stage of this project is under execution and the plant is scheduled
for trial runs before September, 2007. The manufacturing facility will help the
Company to stay close and service the present and potential customers in the
northern and eastern regions of the country.
The company launched Finoglow brand of Compact Flourscent Lamps during August
2006.
The company is also manufacturing insulated, underground usage power cables up
to 66 KV rating. Trail Run is expected to take place before September
2007.
The company has contracted external commercial borrowings in Japanese Yen for
the above projects.
The companies production capacity of Electrical Cables , Communication Cables
Optic Fiber Cables, other Communication Cables, PVC Sheets and Accessories, Fibers expanded from 758.48 TCKM to 1030 TCKM, 21733
KM to 48000 KM, 1746.03 TCKM to 10612 TCKM, 1376.65 MT to 2100 MT and 213813.62
KM to 600000 KM respectively. The company has a new production capacity of 2500
MT of Cross Linked Polyethylene and other compounds and 1500 KM of Polycoated
FRP Rod respectively.
OPERATIONS
2009-10 has been a year of substantial changes – many parts of Asia, led
by India and China have experienced a robust economic recovery from the
downturn experienced in the previous year. While at the global level recovery
has been slow, the picture in India has been much healthier since:
- there is a stable government in place since the middle of 2009
- economic activity has seen improvement in most sectors
- the country has witnessed a robust GDP growth and the economy is
poised for a healthy growth in the coming years
- infrastructure, power, automobile and communication sectors will be
powering the projected growth in the upcoming years
The Company is favorably positioned to take advantage of the
opportunities that the economic growth will provide; however a rather poor
monsoon and lower agricultural output have had an impact on prices, especially
inflation which has been spiraling in recent months. Commodity prices which
were subdued during the early part of this financial year, have surged once
more, nearing pre financial crisis levels in many cases.
During 2009-10 the Company saw significant improvement in sales volumes
across all product lines – electrical cables, optic fibre and coaxial cables
saw robust growth in volumes compared to the previous year. Similarly, the
product offering to various customer sectors automotive, agriculture, real
estate, power and OEM – all saw healthy volume growth during the year.
As mentioned above, commodity prices such as in the case of Copper, have
surged during the second half of the year keeping in mind the need to reach
additional market areas and expand market share, the Company has resorted to
price adjustments in the selling prices as was considered appropriate.
Currency markets continued their volatile trend; at the year end, the
Indian Rupee had appreciated against most other currencies; however in view of
the volatility experienced, the Company had decided not to keep any uncovered
exposures on account of foreign exchange – all its current purchases of raw
materials from outside India are fully covered as soon as the import is
finalized. Foreign currency and interest rate protection measures taken in the
earlier years, however continued to produce negative results and an amount of
Rs. 758.176 million has been charged as an Exceptional Item to the Profit &
Loss Account in the year 2009-10.
Income for the year was significantly higher at Rs. 16,428.26 million
(previous year Rs.13,924.66 million) representing a growth of 18% over the
previous year. Following the robust growth achieved at the sales level, the
Company has recorded a Net Profit of Rs. 576.20 million as against a Net Loss
of Rs. 354.91 million in the previous year. This represents a significant
turnaround in the Company’s operations in almost all areas be it production,
sales or finance. Higher capacity utilization, increase in market share, growth
in sales volumes across all product lines, tight monitoring of costs and
working capital requirement all led to significant improvement in the
financials for the year. Several cost reduction projects were undertaken and
completed successfully during the year incorporating the learnings from the Six
Sigma program that employees went through during the earlier years.
Segmentally, while Electrical Cables contributed 60%, Communication
Cables contributed 16% to the total sale of products. The Electrical Cables
growth was led by the rebound in the Real Estate & Infrastructure sectors
and in the Communication Cables segment, Optic Fibre Cables business continued
to grow and the order book in this business is currently healthy. With the
imminent introduction of 3G services and expansion of internet connectivity to
rural areas, it is envisaged that the Communication Cables segment will witness
considerable growth in the coming years.
FINANCE
To finance the capacity enhancement activities undertaken during the
year, the Company availed of a long term External Commercial Borrowing (ECB) of
USD 10 million. The said loan has an average maturity of 4 years and is
repayable in 3 equal yearly installments from 2013 onwards.
The Company’s short term debt programs continue to enjoy the highest
ratings from CRISIL. Since the last few years these have been accorded the P1+
rating. The Company also holds AA/Negative rating for its Rs. 500 million long
term non convertible debentures which are due for redemption in August 2010. A
similar rating has also been obtained for another Rs. 500 million long term non
convertible debentures to be issued at an appropriate time in future.
The Company follows a balanced policy to manage liquidity and borrowing.
Owing to tight controls on matching fund requirements with availability, the
Company has saved significantly on financial expenses during the year. The
Company has been able to meet its financial commitments in a timely manner
REVIEW OF
OPERATIONS:
- Production of
electrical cables during the year was at 1,152.01 TCKM (thousand core
kilometers) (previous year: 782.48 TCKM). Production of metal based
communication cable was 516.17 TCKM (previous year 896 TCKM). Production
of optic fibre during the year was 8,67,911 fibre kilometers (previous
year: 4,49,320 fibre kilometers).
- The sale
value (including excise duty) of electrical cables was Rs 11,093 million
(previous year: Rs 8,824 million) and of Communication cable was Rs 1,761
million (previous year: Rs 2,569 million).
- The sale of
CCC rods (net of interdivisional transfers) was higher at Rs 3,615 million
(previous year: Rs 2,939 million).
- Exports were
lower at Rs 583 million as against Rs 776 million of the earlier year.
- The income
from operations (including excise duty) was Rs 17,266 million for the year
as compared to Rs 15,015 million for the earlier year.
- High voltage
power cables (up to 66 kV range) produced at the Company’s Urse plant are
now being well received in the market. The plant has now stabilized and
capacity utilization continues to improve. During the year Company
obtained its products approvals from Central Power Research Institute
(CPRI), Electrical Research & Development Association (ERDA). Company
also obtained approvals from various Electricity Boards, Power utility
companies in the private sector, electrical contractors and other major private
users. Looking at synergy opportunities, the Company shifted its Low
voltage power cables operations also to the Urse site from Pimpri. This
has led to better coordination and cost optimization – full benefits of
the synergies will begin to flow from the current financial year.
- Civil work on
the Joint Venture with J-Power Systems Corp. of Japan to manufacture Extra
High Voltage cables (between 60kV to 500 kV) is progressing well. The main
factory building is expected to be ready in a few months from now. The
project is targeted to be completed by the end of the current financial
year.
- The second
production line to manufacture mini CFLs was commissioned during the year.
The 3rd line to manufacture T5 tubelights with a range of fittings will be
commissioned shortly. Upon commissioning the 3rd line, the Company will
have an annual capacity of 30 million pieces to offer to the market.
Efforts are currently on to increase market penetration through
establishment of additional channel partners, introduction of a full range
of lighting solutions as per market needs and increased staffing to manage
the business.
- In the month
of March 2010,the capacity at Roorkee was enhanced by over 50%. Currently
the Roorkee facility is now operating at near pre March capacity levels.
This plant has also established its ability to produce multiple varieties
of cables for various applications in agriculture, construction industry,
electrical panel wiring, auto cables and consumer electrical goods.
- During the year
the Company was awarded the Silver Shield in the category of Large
Enterprises-Highest Exporter in Thrust Markets for Thrust Products- Award
for Special Contribution by the Engineering Export Promotion Council.
- A reference
may please be made to the financial statements.
FIXED ASSETS:-
·
Land
·
Buildings
·
Plant and Machinery
·
Furniture, Fittings
·
Office Equipment
·
Computers
·
Peripherals
·
Dies and Moulds
·
Vehicles.
·
Exchange Fluctuation
·
Intangible Assets
PRESS RELEASE
FINOLEX CABLES LTD
RESULTS
·
Sales grew 16% in the quarter as compared to the
corresponding quarter of the previous year.
·
For the year 2010-11 Sales grew 26% and Profit
After Tax grew 50% as compared to the year 2009-10.
Pune, May 3, 2011
Finolex Cables Limited,
(FCL) at the meeting of its Board of Directors held today approved results for
the fourth quarter and year ended March 31st, 2011.
Net Sales for the
quarter ended March 31st 2011 were Rs 5394.0 million as against Rs
4639.6 million for the corresponding period in year 2009-10. Net Sales in the
current quarter shows an increase of 16% compared to the corresponding period
of the previous year. Profit for the quarter, before taxes, increased to Rs.
191.1 million as compared to Rs. 15.4 million for the corresponding period in
the year 2009-10.
Net sales for the
year 2010-2011 stood at Rs.20357.6 million as against Rs.16187.1 million for
the year 2009-10, registering an increase of 26% over previous year. Profit for
the year 2010-11 before taxes, increased to Rs.1071.9 million as compared to
Rs.891.6 million for the year 2009-2010, registering an increase of 20% over
previous year.
Net profit after
taxes for the year 2010-11 was Rs.867.8 million as compared to a net profit of
Rs. 576.2 million for the year 2009-10 registering a growth of 50%. The Board
of Directors have recommended a Dividend of 35% for the year 2010- 11.
CORNING JV
Finolex Cables
Limited. (FCL) and Corning Incorporated (NYSE:GLW) have executed an agreement
to establish a 50150 equity venture to market select telecommunications
products in India. The venture is expected to be incorporated this year.
ABOUT FCL
Finolex Cables Limited is India's largest and leading manufacturer of
Electrical and Communication cables. Finolex offers a wide range of Electrical
and Communication cables. Its wire and cable products are used in applications
such as automobile, lighting, cable TV, telephone and computers to industrial
applications touching every person in his daily life. Finolex has added
Electrical Switches and Compact Flourescent Lamps (CFL) to its range of
products.
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.45.03 |
|
|
1 |
Rs.74.43 |
|
Euro |
1 |
Rs.64.75 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
60 |
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.