MIRA
INFORM REPORT
|
Report Date : |
07.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
PARAMOUNT COMMUNICATIONS LIMITED |
|
|
|
|
|
|
|
|
Registered Office : |
C-125 Naraina Industrial Area, Phase-l, New Delhi -110 028, Delhi |
|
|
|
|
|
|
|
|
Country : |
|
|
|
|
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
|
|
|
|
Date of Incorporation : |
05.09.1994 |
|
|
|
|
|
|
|
|
Com. Reg. No.: |
55-061295 |
|
|
|
|
|
|
|
|
Capital Investment / Paid-up Capital : |
Rs. 169.014 millions |
|
|
|
|
|
|
|
|
CIN No.: [Company
Identification No.] |
L74899DL1994PLC061295 |
|
|
|
|
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELP04139C / DELP08582A |
|
|
|
|
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACP0969Q |
|
|
|
|
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company’s shares are
listed on the Stock Exchanges. |
|
|
|
|
|
|
|
|
Line of Business : |
Manufacturing of Insulated Wire and Cable. |
|
|
|
|
|
|
|
|
No. of Employees : |
1200 (Approximately) |
||
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (48) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 6383528 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reportede to
be usually correct 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
|
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 : |
C-125 Naraina Industrial Area, Phase-l, Naraina, |
|
Tel. No.: |
91-11-45618800 / 900 / 25897421-30 |
|
Fax No.: |
91-11-25893719 / 20 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
M-4 Bahubali, 59 / 17 New Rohtak Road, |
|
Tel. No.: |
91-11-5723106 / 5734981 / 5789651 / 5764094 |
|
Fax No.: |
91-11-5739191/5761770 |
|
|
|
|
Factory 1 : |
SP-30A, SP-30B, SP-76, E-31, SP-77 AND SP-77A, Khushkhera
Industrial Area, Dist. Alwar – 301 707, |
|
E-Mail : |
|
|
|
|
|
Factory 2 : |
(Jelly Filled Telephone Cable (JFTC) Division) Plot No. 37, Industrial Estate, Dharuhera, District Rewari
– 122 106, |
|
E-Mail : |
|
|
|
|
|
Branch office : |
201, |
|
Tel. No.: |
91-22-26398408 |
|
Fax No.: |
91-22-26390168 |
|
E-Mail : |
DIRECTORS
As on : 27.09.2010
|
Name : |
Mr. Sanjay Aggarwal |
|
Designation : |
Chairman and Chief Executive
Officer |
|
Date of Birth/Age : |
21.10.1962 |
|
Date of Appointment : |
01.11.1994 |
|
|
|
|
Name : |
Mr. Sandeep Aggarwal |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Satya Pal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.P.S. Dangi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vijay Bhushan |
|
Designation : |
Director |
|
Date of Birth/Age : |
22.12.1958 |
|
Date of Appointment : |
22.07.2000 |
KEY EXECUTIVES
|
Name : |
Mr. G. D. Singh |
|
Designation : |
President Operations |
|
|
|
|
Name : |
Mr. Manmeet singh Anand |
|
Designation : |
Head (Business Development) |
|
|
|
|
Name : |
Mr. S. K. Suri |
|
Designation : |
General Manager (Marketing) |
|
|
|
|
Name : |
Mr. Kailash Pareek |
|
Designation : |
Senior Deputy General Manager (Marketing) |
|
|
|
|
Name : |
Mr. |
|
Designation : |
Deputy General Manager (Marketing) |
|
|
|
|
Name : |
Mr. Rajeev Gupta |
|
Designation : |
Deputy General Manager (Marketing) |
|
|
|
|
Name : |
Mr. N. K. Gupta |
|
Designation : |
Deputy General Manager (Marketing) |
|
|
|
|
Name : |
Mr. Sanjay Gupta |
|
Designation : |
Assistant General Manager Commercial |
|
|
|
|
Name : |
Mr. B. P. Bhardwaj |
|
Designation : |
Assistant General Manager Commercial |
|
|
|
|
Name : |
Mr. R. Gourinath |
|
Designation : |
Assistant General Manager Marketing |
|
|
|
|
Name : |
Mr. R. S. Tanwar |
|
Designation : |
Chief Manager Marketing |
|
|
|
|
Name : |
Mr. Amit Gupta |
|
Designation : |
Chief Manager Marketing (Legal Affairs and company Secretary) |
|
|
|
|
Name : |
Mr. Arvind Gupta |
|
Designation : |
Assistant General Manager- Production Planning |
|
|
|
|
Name : |
Mr. Ratan Aggarwal |
|
Designation : |
Chief Compliance
Officer |
|
|
|
|
Name : |
Mr. Ratan Aggarwal |
|
Designation : |
Chief Executive Officer and Company
Secretary |
|
|
|
|
Name : |
Mr. D. S. Muchhal |
|
Designation : |
President
Operations (Dharuhera Unit) |
|
|
|
|
Name : |
Mr. |
|
Designation : |
Vice President (Commercial) |
|
|
|
|
Name : |
Mr. R. S. Vohra |
|
Designation : |
General Manager (Quality) |
|
|
|
|
Name : |
Mr. R. K. Marwah |
|
Designation : |
Vice President (Technical) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 01.10.2010
|
Category of Shareholder |
Total No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
22,181,155 |
23.92 |
|
|
10138302 |
10.93 |
|
|
32319457 |
34.74 |
|
|
|
|
|
Total shareholding of Promoter and Promoter
Group (A) |
32319457 |
34.74 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1000000 |
1.08 |
|
|
246047 |
0.27 |
|
|
1246047 |
1.34 |
|
|
|
|
|
|
20722681 |
22.35 |
|
|
|
|
|
|
29749226 |
32.08 |
|
|
5200228 |
5.61 |
|
|
3487576 |
3.76 |
|
|
1085862 |
1.17 |
|
|
43794 |
0.05 |
|
|
2356173 |
2.54 |
|
|
1747 |
-- |
|
|
59159711 |
63.80 |
|
Total Public shareholding (B) |
60405758 |
65.14 |
|
Total (A)+(B) |
92725215 |
100.00 |
|
(C) Shares held by custodians and against which Depository Receipts
have been issued |
|
|
|
Promoter and Promoter Group |
-- |
-- |
|
Public |
301750 |
0.32 |
|
|
|
|
|
Total (A)+(B)+(C) |
93026965 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 Millions BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Insulated Wire and Cable. |
||||||||
|
|
|
||||||||
|
Products : |
|
||||||||
|
|
|
||||||||
|
Exports : |
|
||||||||
|
Products : |
·
Wire ·
Cables and conductors
telecommunication and signaling ·
Power and control, etc. |
||||||||
|
Countries : |
·
CIS ·
·
·
·
Sultanate of ·
·
·
·
|
PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Power Cables* |
KMS |
60000 |
26425*** |
|
Jelly Filled Telephone Cables |
CKM |
5299000 |
420075 |
|
Optical Fibre Cables |
KMS |
20000 |
5985 |
GENERAL INFORMATION
|
Customers : |
· Power Grid Corporation of India Limited (PGCIL) · National Thermal Power Corporation (NTPC) · Bharat Heavy Electricals Limited (BHEL) · Indian Space Research Organisation (ISRO) ·
Department of Atomic Energy, Government of · Indian Oil Corporation Limited (IOCL) · Reliance Petroleum Limited · Reliance Energy Limited · Essar Constructions · Essar Oil and Gas · North Delhi Power Limited · Uttar Pradesh Power Corporation Limited (UPPCL) · Brihanmumbai Electric Supply and Transport Undertaking (BEST) · Jaipur Vidyut Vitaran Nigam Limited (JVVNL) ·
BSES · Jindal Steel · Bhushan Power and Steel · Crompton Greaves Limited · Konkan Railways · Delhi Metro Rail Corporation Limited (DMRC) · Indian Railways · Railtel Corporation of India Limited · Indian Railway Construction Company · Oil and Natural Gas Corporation Limited (ONGC) · Gas Authority of India Limited (GAIL) · Sri Lanka Telecom · Bharat Sanchar Nigam Limited (BSNL) · Bharti Enterprises · Engineers India Limited (EIL) ·
Rail · HFCL Infotel · Tata Consulting Engineers · Telecommunication Consultants India Limited (TCIL) · Hughes Tele · LLoyd's Register Industrial Services (I) Limited · Development Consultants Limited ·
Holtec Engineers - A leading consultant for
cement projects in · Engineering Projects India Limited · Naval Science and Technological Lab · Project Development India Limited |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
1200 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
State Bank of ·
Dena Bank, Karol Bagh Branch, ·
ICICI Bank Limited ·
Yes Bank Limited ·
Standard Chartered Bank ·
The Hongkong and Shanghai Banking Corporation
Limited ·
HDFC Bank Limited ·
State Bank of ·
Barclays Bank ·
The |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
Banking
Relations : |
Satisfactory |
|
Auditors : |
|
|
Name : |
Jagdish Chand and Company Chartered Accountants |
|
Address : |
H-20, |
|
|
|
|
Memberships : |
|
|
|
|
|
Associates : |
Paramount Wires and Cables
Limited |
|
|
|
|
Subsidiaries : |
·
Paramount Holdings Limited, ·
AEI Cables Limited, ·
Paramount Gulf FZE, |
CAPITAL STRUCTURE
As On : 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
175000000 |
Equity Share |
Rs. 2/- Each |
Rs. 350.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
84506965 |
Equity Share |
Rs. 2/- Each |
Rs. 169.014
Millions |
|
|
|
|
|
Note:
15,525,800 equity shares of Rs.2/- each were
allotted as fully paid up by way of bonus shares by capitalizing Securities premium
account during FY 2001-02
As On : 27.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
175000000 |
Equity Share |
Rs. 2/- Each |
Rs. 350.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
93026965 |
Equity Share |
Rs. 2/- Each |
Rs. 186.054
Millions |
|
|
|
|
|
FINANCIAL DATA
[All figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
169.014 |
169.014 |
169.014 |
|
|
2] Share Application Money |
16.250 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1410.619 |
1404.498 |
1782.615 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1595.883 |
1573.512 |
1951.629 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2757.979 |
2138.502 |
1419.680 |
|
|
2] Unsecured Loans |
338.820 |
1382.130 |
1487.996 |
|
|
TOTAL BORROWING |
3096.799 |
3520.632 |
2907.676 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
82.542 |
|
|
|
|
|
|
|
|
TOTAL |
4692.682 |
5094.144 |
4941.847 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1596.392 |
1545.466 |
1272.101 |
|
|
Capital work-in-progress |
82.671 |
369.060 |
313.719 |
|
|
|
|
|
|
|
|
INVESTMENT |
273.971 |
273.971 |
273.971 |
|
|
Foreign Currency Monetary Item Translation Difference Account |
(19.709) |
69.451 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2026.956
|
1899.531
|
2114.720 |
|
|
Sundry Debtors |
1540.566
|
1302.584
|
1483.638 |
|
|
Cash & Bank Balances |
82.642
|
90.540
|
63.826 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
413.864
|
497.597
|
573.884 |
|
Total
Current Assets |
4064.028
|
3790.252
|
4236.068 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
1554.545
|
98.376
|
1094.543 |
|
|
Sundry Creditors |
1197.254
|
834.466
|
|
|
|
Provisions |
7.558
|
21.214
|
59.469 |
|
Total
Current Liabilities |
1304.671
|
954.056
|
1154.012 |
|
|
Net Current Assets |
2759.357 |
2836.196
|
3082.056 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4692.682 |
5094.144 |
4941.847 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3437.700 |
4477.664 |
4424.107 |
|
|
|
Other Income |
491.945 |
35.676 |
65.710 |
|
|
|
TOTAL (A) |
3929.645 |
4513.340 |
4489.817 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material |
2832.963 |
3499.320 |
3924.155 |
|
|
|
Manufacturing Expenses |
525.609 |
606.775 |
487.035 |
|
|
|
Increase/(Decrease) in Finished Goods |
(5.786) |
237.231 |
(862.220) |
|
|
|
Increase/(Decrease) excise duty on stock |
7.974 |
(75.797) |
62.420 |
|
|
|
Payment to and Provision of Employee |
99.435 |
88.349 |
66.298 |
|
|
|
Managerial Remuneration |
6.908 |
4.092 |
57.662 |
|
|
|
Amortization of FCMITDA |
3.715 |
34.726 |
0.000 |
|
|
|
TOTAL (B) |
3470.818 |
4394.696 |
3735.350 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
458.827 |
118.644 |
754.467 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
330.511 |
355.089 |
190.043 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
128.316 |
(236.445) |
564.424 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
120.669 |
115.569 |
61.195 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
7.643 |
(352.014) |
503.229 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
1.350 |
(62.395) |
175.263 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
6.297 |
(289.619) |
327.966 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
550.556 |
844.169 |
NA |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
556.836 |
550.556 |
NA
|
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports on CIF Prices
(In Foreign Currency) |
NA |
751.784 |
431.710 |
|
|
|
Exports on CIF
Prices |
NA |
0.000 |
0.000 |
|
|
|
Deemed Exports |
NA |
7.298 |
7.938 |
|
|
|
Interest Earned
on FDR (Pre-operative) |
NA |
0.000 |
18.054 |
|
|
TOTAL EARNINGS |
NA |
759.082 |
457.702 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
NA |
376.450 |
459.060 |
|
|
|
Stores & Spares |
NA |
0.952 |
0.557 |
|
|
|
Capital Goods |
NA |
12.305 |
13.495 |
|
|
TOTAL IMPORTS |
NA |
389.707 |
473.112 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.07 |
(3.47) |
3.88 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
919.210 |
1060.600 |
906.130 |
1012.420 |
|
Total Expenditure |
1103.170 |
1324.220 |
989.820 |
1059.040 |
|
PBIDT (Excl
OI) |
(183.960) |
(263.620) |
(83.690) |
(46.620) |
|
Other Income |
0.000 |
0.000 |
5.570 |
7.660 |
|
Operating
Profit |
(183.960) |
(263.620) |
(78.120) |
(38.960) |
|
Interest |
74.780 |
109.150 |
64.340 |
77.580 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
(258.740) |
(327.770) |
(142.460) |
(116.540) |
|
Depreciation |
31.470 |
31.680 |
31.550 |
29.790 |
|
Profit
Before Tax |
(290.210) |
(404.450) |
(174.010) |
(146.330) |
|
Tax |
0.000 |
0.000 |
0.000 |
0.820 |
|
Reported PAT |
(290.210) |
(404.450) |
(174.010) |
(147.150) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(290.210) |
(404.450) |
(174.010) |
(147.150) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
0.16 |
6.42 |
7.30 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.22 |
7.86 |
11.37 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.13 |
6.60 |
9.14 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.00 |
0.22 |
0.26 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.75 |
2.84 |
2.08 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.11 |
3.97 |
3.67 |
LOCAL AGENCY FURTHER INFORMATION
Performance Review Of
Operations :
The company has achieved a gross turnover including other income
Rs. 41,774.44 Lacs and profit/(Loss) after tax Rs. 6.280 Millions for the year
2009-2010 as compared to Rs. 4959.559 millions and loss of Rs. (293.613
millions) respectively for the previous year 2008-2009. The company's export
business in foreign currency including deemed exports was Rs. 299.588 millions
during the year as compared to Rs.752.468 millions in the previous year. The
decrease in the exports is due to global meltdown and adverse development took
place world-wide which affected the business of the company. The Company is now
targeting growth in its export business through the network of its wholly owned
subsidiary AEI Cables Limited,
Review Of Operations
The company has added fresh capacity to manufacture domestic wires which commenced production in July, 2009. Domestic wires business is going to be among the important drivers of the top-line and bottom-line growth of the company.
Future Outlook
The pace of anticipated investment in infrastructure, power, telecom, railways and industrial sectors was affected in the past due to the loss in growth momentum resulted from global meltdown, corporate frauds and financial crises reported world over during the last few fiscal, however, the growth seems to be regaining its momentum, the demand for the company's product is expected to improve. The cable industry was also affected due to stiff competition among industry players. The raw material prices recorded exorbitantly high fluctuations in the past and crashed thereafter which affected the turnover of the company in terms of value.
The company has commenced business of domestic copper
flexible and building wires, which are being manufactured at the company's
state of art manufacturing facilities in
Subsidiaries
The company has two wholly owned foreign subsidiaries viz.
Paramount Holdings Limited,
Management
Discussion and Analysis
Financial Performance
:
The Company achieved sales turnover of Rs. 3685.500 millions for the year ended 31st March, 2010 as compared to Rs. 4923.900 millions during the previous year. The sales turnover of the Company has decreased due to recessionary effects coupled with decreased demand, steep fall in major input prices, cutthroat competition and proliferation of inferior, non-approved cables. The Company managed to overcome operational losses, as it was able to reduce the Foreign Currency Convertible Bonds (FCCBs) liability by repurchasing them at a discount and thereby gaining profit. The Company managed to generate a marginal net profit of Rs. 6.280 millions for the year ended 31st March, 2010 as compared to net loss of Rs. 293.600 millions during the previous year, 2008-09.
The Company achieved consolidated turnover of Rs. 702.38 millions and net loss of Rs. 56.500 millions for the year ended 31st March 2010 as compared to Rs. 8402.300 millions and net loss of Rs. 491.600 millions respectively during the previous year. Total financial charges during the year have reduced from Rs. 355.100 millions to Rs.330.500 millions in value but overa11 financial charges burden has increased to 8.97 percent of the total turnover as compared to 7.21 percent during the previous year. This is mainly because of low turnover and low debtor realization during the year.
Telecom cables:
Jelly Filled
Telecom Cables:
The telecom sector continued to clock significant growth during the year
and has emerged as one of the key sectors responsible for
However, the widespread adoption of WLL technology and continued thrust
on mobile telephony globally has reduced the demand of JFTC.
Optical Fibre
Cables:
OFC is mainly
used in long distance telecom and
data networks and generally forms the backbone of all
telecom networks. It is also used in cable TV and local area networks requiring
high-speed connectivity and High
bandwidth. With the proliferation of broadband in India, the telecom
cables industry is
redefining itself with an
increased demand from operators and service providers for the deployment of
broadband services in India.
Overall Review
The fiscal year 2009-10 saw the global economic recovery evolve far better than expected. Economic growth recovered at varying speeds across the globe. Economic growth was tepid in many advanced economies but far more robust in most emerging and developing economies. Policy support provided the required growth stimulus to economies in deep downturn and pushed them into recovery mode.
Among advanced economies, the
Industry Structure
and Developments :
Though the economy witnessed signs of revival, the cables
and wires industry across the globe faced challenging times. As cautionary and
tight-fisted approaches took precedence, longterm infrastructure plans were put
on hold or delayed. Adverse economic conditions also hit the cables and wires
industry in North America and
The fiscal year 2009-10 did not augur well for the Indian
cables industry. The trend of tapering off demand and slowdown in the cable
industry was evident in 2008-09.
Thus, the financial year 2009-10 was challenging in terms of business growth for the cables and wires industry as a whole and the Company was no exception to the rule. High volatility in major input prices and stiff competition prevailing in the industry, added with wide availability of inferior, non-approved cables wiped off operational profitability and has resulted in losses, for the Company. However, this is a temporary phase and improvement due to anticipated demand for cables in the near future is expected.
Looking at the large-scale infrastructural investment plans, progress and revival across the industrial and transportation sector will lead to better growth prospects and thus, better times are forecast for the Indian cables industry.
Opportunities and
Threats
Power Cables :
Cables are a vital part of any project or electrical system and play a crucial part in all the three aspects of the power sector - generation, transmission and distribution.
Major users of power cables are broadly classified into: power sector - central, state and private electricity utilities and major industries such as petrochemicals, mining, steel/metallurgical, ship building, engineering, cement, railway, defence, etc.
A steady rise in electricity consumption, increasing industrialization and fast development across even smaller tier III, tier IV cities and towns is generating further demand for electricity.
The Eleventh Plan target for the power sector aims to supply
at least 1000 units of per capita electricity by year 2012. The Plan envisaged
a capacity addition of 78,700 MW and nine ultra mega power projects of 4000 MW
capacity. Rural electrification, a significant initiative by the Government,
aims to provide access to electricity in remote regions of
Further more, the Government has restructured the APDRP programme (R-APDRP) with specific focus now on strengthening the transmission and substation network and reduce AT&C losses. The total spend is estimated to be Rs. 516 billion.
Taking into account these measures and budgetary allocation along with further provisions to strengthen India's power sector, it is estimated that the Government's- total spending in the power sector will be in the range of Rs. 13-14 trillion over the next 7-8 years. Taking a conservative estimate, approximately Rs. 1.5-2 trillion of this expenditure would be on the acquisition of cables for these projects.
Railways
The Indian Railways aim to add 25,000 route kilometers by
2020 across
Telecommunication
Cables
The Indian telecom market, led by the robust growth in
mobile subscriber base, is one of the fastest growing in the world. Numerous applications
like broadband services, Internet protocol virtual private network (IPVPN),
wireless communications and security technologies are in turn generating demand
for telecommunication cables.
Future Outlook :
With visible signs of demand resurfacing after a challenging period in the past year, the Company believes that the worst could well be over. As opportunities open across key areas of presence and economic and industrial growth momentum picks up, the cables industry and the Company, in turn, are expected to witness a revival in demand.
Power Sector
With rapid growth in the industrial and infrastructure
sectors, the demand for power is growing significantly. The Government is
giving due attention to building power infrastructure to meet the growing
demands of
Railway Cables
The up-gradation and modernization plans of the Indian Railways are expected to create significant demand for power, optical, signaling and instrumentation cables and your Company expects a good volume of business from this sector during next few years.
Telecom Sector
The telecom sector has continued to register significant
growth during the year and has emerged as one of the key sectors responsible
for
In view of the anticipated investment in infrastructure, power, railways and industrial sector, it is expected that the demand for the Company's products will continue to be robust and the turnover of the Company and its profitability will improve substantially during the next financial year; if positive, ongoing policy measures and future large-scale projects outlined, continue their growth momentum.
Risk Management :
Business Risk
The state of the Indian economy and the development in infrastructure, power and industrial projects and expansion have a direct bearing on the performance of the cable industry and therefore the Company. These sectors are expected to grow and drive the demand for the Company's products; however adverse developments or a slowdown in these sectors can have a negative impact on the Company's performance and its financials. The instability in key raw material prices especially of metals such as Copper and Aluminium used for manufacturing cables can also have an adverse impact on the performance of the Company.
Technology Risk
There is no significant change in the basic technology for the manufacture of cables. Ongoing improvements aim to improve performance of products and carve a niche in an otherwise commoditised sector. The Company closely monitors the latest global trends in the cable industry. The Company has an in-built quality assurance system wherein products pass through testing at every stage for quality and technical accuracy. The Management of the Company places the highest priority on quality assurance and research. Continuous improvements in existing products and enhancement of the product offering will enable the Company to emerge as a reliable, cost competitive and quality provider of complete cabling solutions.
Financial Risk
The Company makes investments from time to time after due analysis and study. The Company has an adequate system to control financial risks. The Company also has an adequate system to control and monitor optimal inventory levels, to reduce the cost of capital and the adverse effects of unpredicted price fluctuations.
A portion of the Company's revenue comes from exports and it also imports raw materials for the manufacture of cables, both of which need currency exchange. Hence, excessive volatility in currency rates can significantly affect profitability.
Human Resources :
Human Resource Capital is the most valuable asset of the Company as it holds the key to the success of the organization. The Company places the utmost importance on maintaining cordial employer-employee relations and on promoting a sense of ownership amongst employees. The Company is committed to foster a high performance environment, which is characteristic of an organizational climate that is geared towards delivering the said business targets through innovative and well-formulated strategies. The Company has low labour turnover and has an adequate system to reward and recognize employee contribution towards the growth of the Company.
Profile
Subject, part of the Paramount group of companies, is one of
Subject was the first company to be awarded the National Entrepreneurship Award
1984, by the President of India for outstanding achievement in the field of
Wire and Cable Manufacturing. Other awards such as the IMM Marketing Gold Award
in 1992 and the AIMO Visvesvaraya Entrepreneurship Award in 1994, also add to
their credentials.
Subject has always laid a great emphasis on manufacturing excellence,
technological advancement and customer satisfaction. Their in-house process
control and quality assurance experts ensure that every customer receives a high quality product. Furthermore, their
organizational culture is one that encourages constant growth and improvement.
Right from human capital to production capital, they ensure that their resources
are amongst the best, making them capable of delivering their promises and
surpassing expectations.
Subject is listed on both the BSE and the NSE. The Consolidated Group turnover
for 2007-2008 stood at approximately $170 million.
Fixed Assets :
- Land
- Land (Leasehold)
- Buildings
- Plant and Machinery
- Electrical Fittings and equipments
- Furniture and Fixtures
- Vehicles
- Assets acquired under Hire purchase vehicles
- Software
UNAUDITED
CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED 31st March 2011
|
Particulars |
31.03.2011 (Unaudited) |
31.03.2011 (Unaudited) |
|
a) Net Sales / Income from Operations |
970.388 |
3856.251 |
|
b) Other Operating Income |
42.032 |
52.228 |
|
Total Operating Income |
1012.420 |
3888.479 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
(92.475) |
341.930 |
|
(b) Consumption of Raw Materials |
953.041 |
3363.507 |
|
(c) Purchase of traded goods |
0.000 |
71.892 |
|
(c) Employees Cost |
30.852 |
120.406 |
|
(d) Depreciation |
29.793 |
124.493 |
|
(e) Other Expenditure |
167.614 |
578.522 |
|
Total Expenditure |
1088.825 |
4600.750 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
(76.405) |
(712.271) |
|
Other Income |
7.655 |
23.115 |
|
Profit/(Loss) before Interest and Exceptional items |
(68.750) |
(689.156) |
|
Interest |
77.580 |
325.642 |
|
Profit / (Loss) after interest before Exceptional items |
(146.330) |
(1014.998) |
|
Tax Expenses |
0.815 |
0.815 |
|
Net Profit/(Loss) from ordinary Activities after tax |
(147.145) |
(1015.813) |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.2/- each) |
177.270 |
177.270 |
|
Earning per share |
|
|
|
Basic |
(1.68) |
(11.72) |
|
Diluted |
(1.46) |
(10.27) |
|
Public Share
Holding |
|
|
|
Number of Shares |
60405758 |
60405758 |
|
Percentage of Shareholding |
68.15% |
68.15% |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
25799457 |
25799457 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
92.38% |
92.38% |
|
- Percentage of shares(as a % of the total share capital of the company) |
29.11% |
29.11% |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
2128205 |
2128205 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
7.62% |
7.62% |
|
- Percentage of Share (as a % of the total share capital of the company) |
2.40% |
2.40% |
Note :
1.
The above result review by me Audit Committee have
been taken on record by the Board of Directors at
their meeting held on 13th
May, 2011.
2.
The “limited Review of the standalone results has been completed by me
statutory auditors of the company pursuant to clause 41 of me listing agreement.
3.
Pursuant to changer made in AS-11 vide Companies
(Accounting Standard) Amendment Ruler, 2009, during the quarter and year ended
315, y arch, 2011, foreign exchange difference arising on long term foreign currency monetary Item-
FCCBs have been adjusted with cost of fixed assets and FCMITDA and on ECS has
been fully transferred to FCMITDA.
4.
During year, Corporate Debt Restructuring (CDR) for
the company has been approved by the CDR-EG and the letter of Approval (LOA) has been issued on 2nd
November, 2010. The CDR inter alia restructuring of repayment schedule, reduction in interest rates, additional seamy and pledge of 100% promoter’s
shareholding. Master Restructuring Agreement has been executed by all the CDR
lenders and the CDR Scheme has been implemented.
5.
1% Foreign Currency
Convertible Bonds amounting to USD 7.5 million are outstanding as on 31st
March, 2011. Unless these FCCBs have been previously converted, repurchased and
cancelled, the Company will redeem these FCCBs at price equal to 145.54% of the
outstanding principal amount on the maturity date i. e. November 23, 2011.
Since the redemption of bonds is contingent upon its non-conversion into Equity
Shares and the probability of redemption cannot presently be ascertained, the
Company has not provided for the proportionate premium on redemption for the
quarter and upto the period ended 31st March, 2011 Rs. 8.309
millions respectively. Further, in the eventually of FCCBs not getting
converted, premium on redemption shall be adjusted out of the Securities
Premium Account and would not have any consequential impact on the Profit and
Loss Account.
6.
The Board in their meeting
held an 11th February. 2011 has allotted
2128205 equity shares of Rs. 21/-
each to the promoters company
upon conversion of warrants info
Equity sharers. There sharer have
also been pledged to the lender of the Company on 11th
April 2011 in terms of the approved COR scheme.
7.
Segment reporting as defined in Accounting Standard 17 is not applicable as the Company
operates mainly m one segment i.e. Cables.
8.
The number of investor complaints pending at the beginning of the quarter were Nil. During the 4th quarter no
complaint was received. There were
no investor complaints pending for redressal at the end of the quarter.
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 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
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.