MIRA
INFORM REPORT
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Report Date : |
07.06.2011 |
IDENTIFICATION DETAILS
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Name : |
FCI OEN CONNECTORS LIMITED |
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Registered
Office : |
XXIX/2089, |
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Country : |
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Financials (as
on) : |
31.12.2009 |
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Date of
Incorporation : |
02.06.1981 |
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Com. Reg. No.: |
003348 |
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Capital
Investment / Paid-up Capital : |
Rs.62.991 millions |
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CIN No.: [Company Identification
No.] |
U32104KL1981PLC003348 |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturer of Connectors and Accessories, Suitable for Diverse
Applications. |
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No. of Employees
: |
478
(Approximately ) |
RATING & COMMENTS
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MIRA’s Rating : |
A (65) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 8843000 |
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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 a 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 and as per
commitments. The company can be considered normal 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.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
XXIX/2089, |
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Tel. No.: |
91-484-2303027/28/2301320/2314281 |
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Fax No.: |
91-484-2301973/2304279/2316973 |
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E-Mail : |
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Website : |
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Head Office : |
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Tel. No.: |
91-80-26484460 |
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Head Office : |
29/2089, |
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Factories: |
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DIRECTORS
AS ON 22.05.2010
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Name : |
Mr. S.N. Talwar |
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Designation : |
Chairman |
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Address : |
M/s. Crawford Bayley and Company, |
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Name : |
Dr. M.V. Pylee |
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Designation : |
Vice Chairman |
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Address : |
Asian |
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Date of Birth/Age : |
05.10.1922 |
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Qualification : |
MA. LLM |
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Date of Appointment : |
02.06.1981 |
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Profile : |
He was the founder director of school of management of |
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Name : |
Mr. P. George Varghese |
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Designation : |
Managing Director |
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Address : |
FCI OEN Connectors Limited, Post Box No. 1958, |
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Date of Birth/Age : |
01.02.1982 |
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Qualification : |
B.Sc. Engineering, MBA |
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Experience : |
31 Years |
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Date of Appointment : |
01.02.1982 |
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Previous Employment |
Assistant Manager Ancillaries Development O/E/N India Limited |
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Name : |
Daniel Magne |
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Designation : |
Director (Industrial Electro) |
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Address : |
FCI |
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Name : |
Mr. Thierry Lacarne |
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Designation : |
Senior Vice President and President FCI |
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Address : |
FCI Asia PTE Limited 391B, |
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Name : |
Ms. Ghislaine Bouillet |
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Designation : |
Vice President and Chief Cour |
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Address : |
FCI Asia PTE Limited 391B, |
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Name : |
Ms. Sylvie Richard |
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Designation : |
Vice President and Chief Counsel |
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Address : |
FCI Asia Pte Limited 391B, |
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Date of Birth/Age : |
19.05.1965 |
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Qualification : |
Masters Degree in Business Law, Patent Law and Trade Mark Law |
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Date of Appointment : |
16.10.2004 |
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Profile : |
She is French citizen and holds Master Degree in Business Law, Master Degree
in Patent Law, and Master Degree in Trade Mark Law. She has 15 years of
experience in the industry/ profession. |
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Name : |
Mr. P. K. Kurian |
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Designation : |
Advocate |
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Address : |
Partner, M/s. Menon and Pai
Post |
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Name : |
Ms. Sarah Mathew |
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Designation : |
Director |
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Address : |
O/E/N India Limited VYTTILA 682 019 |
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Name : |
Mr. Gerard Leveque |
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Designation : |
Director |
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Date of Appointment : |
27.02.2008 |
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Name : |
Mr. Gills Ruckstuhl |
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Designation : |
Director |
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Date of Appointment : |
21.07.2007 |
KEY EXECUTIVES
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Name : |
Mr. Biju K. Elias |
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Designation : |
Company Secretary |
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Date of Appointment : |
01.07.2000 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 22.05.2010
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
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97.63 |
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Bodies corporate |
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0.05 |
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Directors or relatives of directors |
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0.07 |
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Other top fifty shareholders |
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0.53 |
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Other |
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1.66 |
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Total
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Connectors and Accessories, Suitable for Diverse
Applications. |
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Products : |
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Brand Names : |
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Agencies Held : |
Framantome
Connectors, France |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
Some of the major
customers of the company are :
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No. of Employees : |
478 Approximately
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Bankers : |
Overseas Branch,
Ravipuram, Ernakulam, Tamilnadu |
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Facilities : |
Rs. In Millions
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
A J Shaikh Chartered Accountant |
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Address : |
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Holding Company : |
145-147, Rue
Yves-Le-Coz, 78035, |
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Ultimate Holding Company : |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.12.2009
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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9000000 |
Equity Shares |
Rs. 10 each |
Rs.90.000 millions |
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Issued Capital :
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No. of Shares |
Type |
Value |
Amount |
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6301755 |
Equity Shares |
Rs. 10 each |
Rs. 63.017 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6297477 |
Equity Shares |
Rs. 10 each |
Rs.62.974 millions |
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Add: Forfeited Share |
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Rs. 0.016 million |
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Rs.62.991
millions |
Of the above:
189000 equity shares of Rs. 10 each were allotted
as fully paid up for consideration other than cash pursuant to a scheme of
amalgamation.
4271332 equity shares of Rs. 10 each are held
by the holding company. FCI France SA. And 1870184 equity shares of Rs. 10 each
are held FCI SA, the ultimate Holding Company.
As on 22.05.2010
Authorised Capital : Rs. 90.000
Millions
Issued, Subscribed & Paid-up Capital : Rs. 63.052 Millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2009 |
31.12.2008 |
31.12.2007 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
62.991 |
62.991 |
62.991 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2147.871 |
1889.466 |
1646.699 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2210.862 |
1952.457 |
1709.690 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
2.270 |
3.372 |
10.663 |
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TOTAL BORROWING |
2.270 |
3.372 |
10.663 |
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DEFERRED TAX LIABILITIES |
17.900 |
24.920 |
30.400 |
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TOTAL |
2231.032 |
1980.749 |
1750.753 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
865.253 |
720.201 |
660.777 |
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Capital work-in-progress |
9.457 |
25.258 |
42.290 |
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INVESTMENT |
361.813 |
222.576 |
500.099 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
215.034
|
241.847
|
247.700
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Sundry Debtors |
591.272
|
534.095
|
351.427
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Cash & Bank Balances |
201.418
|
190.808
|
156.180
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Other Current Assets |
87.645
|
131.277
|
59.241
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Loans & Advances |
466.445
|
450.653
|
63.125
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Total
Current Assets |
1561.814
|
1548.680 |
877.673 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
499.660
|
507.080 |
304.941 |
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Other Current Liabilities |
31.149
|
28.886
|
25.145
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Provisions |
36.496
|
0.000
|
0.000
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Total
Current Liabilities |
567.305
|
535.966 |
330.086 |
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Net Current Assets |
994.509
|
1012.714 |
547.587 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2231.032 |
1980.749 |
1750.753 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.12.2009 |
31.12.2008 |
31.12.2007 |
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SALES |
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Sales |
2522.820 |
2309.679 |
2062.355 |
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Other Income |
262.606 |
299.361 |
253.130 |
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TOTAL (A) |
2785.426 |
2609.040 |
2315.485 |
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Less |
EXPENSES |
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Raw Materials |
1689.503 |
1630.993 |
1420.373 |
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Employee Cost |
186.630 |
159.988 |
134.655 |
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Other manufacturing Expenses |
89.269 |
108.379 |
100.921 |
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Selling And Administration Expenses |
293.274 |
227.052 |
160.356 |
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TOTAL (B) |
2258.676 |
2126.412 |
1816.305 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
526.750 |
482.628 |
499.180 |
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Less |
FINANCIAL EXPENSES (D) |
0.243 |
0.582 |
1.302 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
526.507 |
482.046 |
497.878 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
147.553 |
122.449 |
67.454 |
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PROFIT BEFORE
TAX (E-F) (G) |
378.954 |
359.597 |
565.332 |
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Less |
TAX (H) |
120.550 |
116.830 |
165.871 |
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PROFIT AFTER TAX
(G-H) (I) |
258.404 |
242.767 |
399.461 |
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EARNINGS IN
FOREIGN CURRENCY |
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Export Earnings |
1544.873 |
1451.142 |
NA |
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Commission Earnings |
7.665 |
1.991 |
NA |
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IMPORTS |
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Raw Materials |
402.044 |
472.339 |
NA |
|
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Stores & Spares |
415.541 |
459.508 |
NA |
|
|
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Capital Goods |
145.335 |
83.444 |
NA |
|
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Others |
850.278 |
342.061 |
NA |
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TOTAL IMPORTS |
1813.198 |
1357.352 |
NA |
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Earnings Per
Share (Rs.) |
41.03 |
38.55 |
-- |
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KEY RATIOS
|
PARTICULARS |
|
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
PAT / Total Income |
(%) |
9.27
|
9.30 |
17.25 |
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Net Profit Margin (PBT/Sales) |
(%) |
15.02
|
15.56 |
27.41 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
15.61
|
15.84 |
36.74 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.18 |
0.33 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.26
|
0.28 |
0.21 |
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Current Ratio (Current Asset/Current Liability) |
|
2.75
|
2.88 |
2.65 |
LOCAL AGENCY FURTHER INFORMATION
History
Incorporated in Jun,81, as Subject and subsequently changed its
name to Framatone Connectors OEN and presently known as Subject was promoted by
K. A. Mathew with equity support from the Kerala State Industrial Development
Corporation and OEN India.
The company set up a project to manufacture edge-connectors and euro-connectors
for industrial and electronic appliances in technical collaboration with
Souriau and
It supplies a wide range of connectors for telecom data processing to the
defence sector, industrial control and professional electronics industries. It
has also received several awards including the National Productivity Council's
award for the best productivity in the electronic components group (large
units) for 1989-90 and 1990-91. It is also accredited with the ISO 9002
certification. In 1998, the company received QS 9000 certification from Bureau
of Veritas Quality International for manufacture and supply of automotive
connectors.
In 1998-99, it acquired 60% stake in TVS Berg Limited and TVS Berg's name has
been changed to Framatome Connectors Berg Limited The company has increased its
equity stake in its subsidiary OCL Interconnections from 51% to 100%.
Subsequently, pursuant to an agreement dated 30 Sep 2000, FCOENL acquired the
assets and liabilities (other than cash and bank balances, and tax assets and
liabilities) of OCL for a lumpsum consideration of Rs.360.000 Millions.
The Hon'ble High Court of Kerala has approved the amalgamation of Framatome
Connectors Berg Ltd. (FC Berg) with the company. One equity share of the
company will be allotted for every four equity shares of FC Berg held. The
company has sold its Military,Aeronautics and Industrial(MAI) division to AXA
Priate Equity(AXA),a venture capital company in
The Company has increased its installed capacity of Connectors by 75000000 NOS.
With this expansion the total installed capacity of Connectors has increased
upto 125000000 Nos.
FINANCIAL
RESULTS
Domestic sales
increased by 14% to Rs.978 million (Rs.859 million in 2008). Export sales went
up by 7% to Rs.1545 million (Rs.1450 million in 2008). Net sales thus grew by
9% to Rs.2523 million in 2009 (Rs.2309 million in 2008).
Other income was
Rs.262 million (Rs.299 million in 2008). Profit Before Interest, Depreciation
and Tax (PBDIT) was Rs.526 million (Rs.483 million in 2008). Net profit was
Rs.258 million (Rs.243 million in 2008). Earnings per share was Rs.41.03
(Rs.38.55 in 2008).
BUSINESS
PERFORMANCE
In spite of the
negative growth in the connector industry globally, their performance was
heartening. Their sales was low in the first half; but it gathered momentum
towards the last quarter of 2009.
Product transfers
from FCI group companies in Europe and
The change in the
manufacturing process (GxT Plating) saved us significantly in production cost
when gold prices touched new heights. Material price was soft during the first
half of 2009, but increased during the second half and the trend is continuing.
They did not face any impact on forex fluctuations as the Company's exports and
imports were more or less balanced. Margins were under pressure due to severe
competition as free capacity was available with all competitors. However, their
continued good service levels helped us to retain their existing customers and
also get enhanced share of business.
CURRENTYEAR
Going forward, 2010
should be a better year than 2009. Both domestic and export markets look
bright. The order book is healthy and
will hopefully get better. Govt. of
RESTRUCTURING
PLANS
The proposed
demerger of Automotive Division and Tooling Division of FCI Technology Services
Limited to their Company has been approved by the shareholders and creditors of
both the companies in their meeting on 4m October 2009. The application for
approval of demerger has been filed with the Hon'ble High Court of Kerala and
the final order of demerger is expected soon.
Fixed Assets:
- Land –
Freehold
- Buildings
- Plant
Machinery
- Office
Equipments
- Vehicles
- Furniture and
Fittings
- Computer
Software
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.44.72 |
|
|
1 |
Rs.73.46 |
|
Euro |
1 |
Rs.65.47 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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.