MIRA
INFORM REPORT
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Report Date : |
30.03.2011 |
IDENTIFICATION DETAILS
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Name : |
DELTON CABLES LIMITED |
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Registered Office : |
Delton House, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
26.09.1964 |
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Com. Reg. No.: |
004255 |
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CIN No.: [Company Identification No.] |
L31300DL1964PLC004255 |
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TAN No.: [Tax Deduction & Collection Account No.] |
DELD00125G DELD06408D |
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PAN No.: [Permanent Account No.] |
AAAFD2403L AAACD2482Q |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business : |
Manufacturing and Marketing of Wires and Cables, PVC Compound and
Jelly Filled Telecommunication Cables. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (51) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 977828 |
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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 an established company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as fair.
Payments are reported to be regular and as per commitments. The company can be considered normal for good 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 : |
Delton House, |
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Tel. No.: |
91-11-23273905/ 08 |
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Fax No.: |
91-11-23280375/ 23272178 / 6835550 |
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Telex |
031-63357 DCCL-IN |
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Cable |
DELWIRE |
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E-Mail : |
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Website : |
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Factory : |
Tel. No. 91-129-288 222 / 288225/ 27 Fax No. 91-129-288 220/ 2223998 Email: dclfbd@airtelbroadband.in
24 Shivaji Marg, Tel. No. 91-11-593 1280 / 543 6753/ 41427377 Fax No.: 91-11-25928037 Email: dclngr@deltoncables.com Dharuhera
70th Milestone, Delhi-Jaipur Highway, Village – Malpura, Tehsil – Dharuhera, District – Rewari, Haryana, India Tel. No. 91-1283-2229 / 2296 Fax No. 91-1283-2294 Email: dcldhr@deltoncables.com Noida C-22/23 Sector – 57, Noida – 201301, Tel No.: 91-120-4248987 Fax No.: 91-120-4237435 Email: dclnoida@deltoncables.com |
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Branch Offices : |
Mumbai
83-B, Tel. No. 91-22-493 5178 / 493 6501 Fax No. 91-22-493 6501 Telex: 011-75767 DLTN-IN Cable: DELCAB Email: dclbby@mtnl.net.in Kolkata
Flat No. 1, 6th Floor, `Shantiniketan’, Tel. No. 91-33-242 4388 Fax No. 91-33-242 4153 Telex: 021-2351 DCCL-IN Cable: DELTONCO Email: dclcal@cal2.vsnl.net.in Chennai
Tel. No. 91-44-858 7702 Fax No. 91-44-855 4930 E-mail madras@delton.wiprobt.ems.vsnl.net.in
3rd Floor, Tel. No. 91-80-226 3934 Fax No. 91-80-225 3933 Telex: 0845-2478 DCCL-IN Cable: MYCABWIRE Email: dclblr@vsnl.com |
DIRECTORS
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Name : |
Mr. Ram. Kumar Gupta |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
81 years |
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Qualification : |
Technical Knowledge and Practical Experience |
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Experience : |
61 years |
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Date of Joining : |
16.08.1989 |
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Previous Employment
: |
Industrialist |
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Name : |
Mr. V. K. Gupta |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
61 years |
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Qualification : |
Technical Knowledge & Practical Experience |
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Experience : |
44 years |
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Date of Joining : |
01.09.1969 |
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Previous Employment
: |
Industrialist |
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Name : |
Mr. Vijay Kumar Goel |
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Designation : |
Director |
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Name : |
Mr. B. B. Chadha |
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Designation : |
Director |
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Name : |
Mr. M. P. Mehrotra |
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Designation : |
Director |
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Name : |
Mr. S. S. Malhotra |
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Designation : |
Director |
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Name : |
Mr. A. Karati |
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Designation : |
Director |
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Name : |
Mr. Ravinder Narain |
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Designation : |
Director |
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Name : |
Mr. L. B. Rungta |
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Designation : |
Director |
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Name : |
Mr. A. B. Gersappe |
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Designation : |
Director |
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Name : |
Mr. Anil Kumar Jain |
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Designation : |
Whole-time Director |
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Name : |
Mr. Vivek Gupta |
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Designation : |
Joint Managing Director |
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Date of Birth/Age : |
33 years |
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Qualification : |
B.Com. (Hons.) |
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Experience : |
12 years |
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Date of Joining : |
10.06.1989 |
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Previous Employment
: |
Industrialist |
KEY EXECUTIVES
|
Name : |
Mr. P. C. Joshi |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2010
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group |
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Indian |
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Individuals/Hindu Undivided Family |
749268 |
26.02 |
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Bodies Corporate |
1372955 |
47.67 |
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Public Shareholding |
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Institutions |
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Financial Institutions/Banks |
956 |
0.03 |
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Non-Institutions |
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Bodies Corporate |
90493 |
3.14 |
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Individuals |
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Individual Shareholding holding nominal
share capital up to Rs. 0.100 million |
560476 |
19.46 |
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Individual Shareholding holding nominal
share capital in excess of Rs. 0.100
million |
96430 |
3.35 |
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Any Others |
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Clearing Members |
264 |
0.01 |
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Non Resident Indians |
2464 |
0.09 |
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Hindu Undivided Families |
6594 |
0.23 |
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Total |
2880000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of Wires and Cables, PVC Compound and Jelly Filled Telecommunication Cables. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2010
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Wires and Cables |
MCM |
3003 |
320 |
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Switch Gear |
Nos. |
3,000,000 |
185,653 |
GENERAL INFORMATION
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No. of Employees : |
1200 |
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Bankers : |
· Canara Bank · Punjab National Bank ·
Barclays Bank |
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Facilities : |
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Banking Relations
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- |
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Auditors : |
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Name : |
S. R. Dinodia and Company Chartered Accountants |
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Address : |
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Memberships : |
Confederation of Indian Industry |
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Associates/Subsidiaries : |
v Delton International Limited v Vishranti Trading Enterprises Limited v Saneh Industrial Investments Limited v B & M Trading and Investment Company Limited v Senor Microwave Private Limited v Ram Kumar Gupta & Sons Limited v Delton Cable Company v Srimati Shanti Devi Charitable Trust v Abaskar Constructions (P) Limited v Element Arts (P) Limited v
VIGA Trade Solutions (P) Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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5,400,000 |
Equity Shares |
Rs.10/- each |
Rs.54.000 Millions |
|
40,000 |
10% Cumulative Convertible Preference Shares |
Rs.100/- each |
Rs.4.000 Millions |
|
20,000 |
9.8% Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.2.000 Millions |
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Total |
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Rs.60.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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2,880,000 |
Equity Shares |
Rs.10/- each |
Rs.28.800
Millions |
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Note:
The above includes 399,800 Equity Shares of
Rs.10/- each allotted as fully paid Bonus Shares by capitalization of General
Reserve
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
28.800 |
28.800 |
28.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
215.657 |
200.900 |
187.263 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
244.457 |
229.700 |
216.063 |
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LOAN FUNDS |
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1] Secured Loans |
324.406 |
362.300 |
256.567 |
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2] Unsecured Loans |
2.520 |
25.400 |
82.805 |
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TOTAL BORROWING |
326.926 |
387.700 |
339.372 |
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DEFERRED TAX LIABILITIES |
7.555 |
13.900 |
6.466 |
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TOTAL |
578.938 |
631.300 |
561.901 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
125.370 |
136.700 |
126.059 |
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Capital work-in-progress |
5.685 |
03.800 |
4.280 |
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INVESTMENT |
0.047 |
0.100 |
0.088 |
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DEFERREX TAX ASSETS |
0.000 |
6.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
307.557
|
294.000 |
367.255 |
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Sundry Debtors |
347.295
|
429.200 |
372.143 |
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Cash & Bank Balances |
40.104
|
38.400 |
36.324 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
68.405
|
72.000 |
67.159 |
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Total
Current Assets |
763.361
|
833.600 |
842.881 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
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Sundry Creditors |
191.231
|
282.759 |
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Current Liabilities |
114.128
|
53.541 |
392.750 |
|
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Provisions |
10.166
|
12.600 |
18.657 |
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Total
Current Liabilities |
315.525
|
348.900 |
411.407 |
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Net Current Assets |
447.836
|
484.700 |
431.474 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
578.938 |
631.300 |
561.901 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
|
|
|
|
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Income |
1412.034 |
1642.008 |
1453.043 |
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Other Income |
3.426 |
26.482 |
2.771 |
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TOTAL (A) |
1415.460 |
1668.490 |
1455.814 |
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|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing & Other Expenses |
1285.072 |
1487.093 |
1443.283 |
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Purchase of Trading Goods |
11.545 |
10.341 |
0.000 |
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Increase/(Decrease) in stock |
7.263 |
40.339 |
(119.787) |
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TOTAL (B) |
1303.880 |
1537.773 |
1323.496 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
111.580 |
130.717 |
132.318 |
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Less |
FINANCIAL
EXPENSES (D) |
69.448 |
89.246 |
70.767 |
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|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
42.132 |
41.471 |
61.551 |
|
|
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
13.953 |
14.289 |
11.990 |
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PROFIT BEFORE
TAX (E-F) (G) |
28.179 |
27.182 |
49.561 |
|
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Less |
TAX (I) |
9.806 |
9.682 |
19.083 |
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PROFIT AFTER TAX
(G-I) (J) |
18.373 |
17.500 |
30.478 |
|
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
-- |
-- |
-- |
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|
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|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
2.880 |
2.880 |
-- |
|
|
|
Tax on Dividend |
0.489 |
0.489 |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
15.004 |
14.131 |
-- |
|
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IMPORTS |
|
|
|
|
|
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|
Raw Materials |
80.301 |
27.478 |
NA |
|
|
|
Capital Goods |
-- |
1.505 |
NA |
|
|
TOTAL IMPORTS |
80.301 |
28.983 |
NA |
|
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|
|
|
|
|
|
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|
Earnings Per
Share (Rs.) |
6.38 |
6.08 |
-- |
|
QUARTERLY RESULTS
(UNAUDITED)
|
PARTICULARS |
30.06.2010 (Rs. In
Millions) |
30.09.2010 (Rs. In
Millions) |
31.12.2010 (Rs. In
Millions) |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
287.100 |
330.300 |
295.100 |
|
Total Expenditure |
269.600 |
307.500 |
276.100 |
|
PBIDT (Excl OI) |
17.500 |
22.800 |
19.000 |
|
Other Income |
0.000 |
0.000 |
0.000 |
|
Operating Profit |
17.500 |
22.800 |
19.000 |
|
Interest |
10.500 |
12.200 |
13.500 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
7.000 |
10.600 |
5.500 |
|
Depreciation |
3.500 |
3.500 |
3.500 |
|
Profit Before Tax |
3.500 |
1.700 |
2.000 |
|
Tax |
1.300 |
2.500 |
0.500 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
2.200 |
4.600 |
1.500 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustment |
0.000 |
0.000 |
0.000 |
|
Net Profit |
2.200 |
4.600 |
1.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.29
|
1.04 |
2.09 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.99
|
1.65 |
3.41 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.17
|
2.80 |
5.11 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11
|
0.11 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.62
|
3.20 |
3.47 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.41
|
2.38 |
2.04 |
LOCAL AGENCY FURTHER INFORMATION
History:
The company was incorporated on 25th September,
1964 at
The company was converted into a Public Limited Company pursuant to a Special Resolution passed at an Extraordinary General Meeting held on 30th June, 1981 and obtained the certificate of change of name dated 11th August, 1982 deleting the word “Private” from the name of the company. It was promoted by R. K. Gupta, manufacturer of wires and cables, power cables, radio high frequency cables and PVC compound.
In 1981-82, the company completed modernisation programme at
its
During 1988-89, the company implemented a project to manufacture jelly filled cables at Dharuhera with an installed capacity of 500 million core metres per annum, at an estimated cost of Rs. 220 millions. Manufacture of jelly filled cables in the new unit commenced during 1989-90.
During 1987-88, the company was granted an industrial
licence for the manufacture of 50,000 lines of Electronic Private Automatic
Branch Exchanges (EPANX) and allied equipments per annum in the State of
The company had developed Switchboard Cables and Polythene Insulated Jelly Filled Cables during 2000-2001.
Performance
During the year, the company has achieved a turnover of Rs 1509.656 millions as against Rs.1815.161 millions in the previous year. During the year the management strategy was to focus on profitable business and the company has not participated in the lower margin business. Due to adverse market conditions, turnover has declined by 16.83%, but the company has managed to improve operational profit to Rs. 28.178 millions as against Rs. 5.681milllions in the previous year. The Net Profit after tax for the year has marginally increased to Rs. 18.371 millions against Rs. 17.498 millions in the previous year.
Future Outlook
During the year 2009-10 the Indian Economy witnessed recovery from the global slowdown with strong domestic consumption and demand. Indian Cable and Wire industry playing a major role in infrastructure, power and communication sectors is expected to grow at appx. 10% annum. However, due to intense competition and volatility of input costs, the margin in cable and wire products is likely to be reduced further. However, your company with an experience of 50 years in the industry and a trusted name for high quality products is fully prepared to face the future challenges. Your directors are committed to strive for achieving better performance in the current financial year
Fixed Assets:
· Goodwill and Trade Marks
·
· Building
· Plant and Machineries
· Computers
· Furniture and Fittings
· Vehicles
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.44.67 |
|
|
1 |
Rs.71.62 |
|
Euro |
1 |
Rs.63.09 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
51 |
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.