MIRA
INFORM REPORT
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Report Date : |
14.11.2011 |
IDENTIFICATION DETAILS
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Name : |
UNIFLEX CABLES LIMITED |
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Registered
Office : |
Apar House, Corporate Park, Sion – |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
14.12.1990 |
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Com. Reg. No.: |
059422 |
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Capital
Investment / Paid-up Capital : |
Rs.249.803 Millions |
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CIN No.: [Company Identification
No.] |
L59422MH1990PLC059422 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMU01285E |
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PAN No.: [Permanent Account No.] |
AAACU0571F |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange. |
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Line of Business
: |
Manufacturing
and marketing of Elastomeric / PVC/XLPE Cables, Fluroplastic Cables, Optical
Fibre Cables and Jelly Filled Telecommunication Cables. |
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No. of Employees: |
Not
Available |
RATING & COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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Status : |
Sick Company |
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Payment Behaviour : |
Slow and Delayed |
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Litigation : |
Clear |
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Comments : |
Subject has been declared as a sick company by the Board for Industrial
and Financial Reconstruction (BIFR) under the provisions of Sick Industrial
Companies (Special Provisions) Act, 1985. Financial position of the company
is week. The networth of the company eroded completely. Payments are reported
to be slow and delayed. The company can be considered for business dealings on a safe and
secured 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 / Corporate Office : |
Apar House, Corporate Park, Sion – |
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Tel. No.: |
91-22-67800400/25263400 |
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Fax No.: |
91-22-2524 6326 |
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E-Mail : |
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Website : |
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Head Office : |
11,
Jorawar Bhavan, 93, |
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Tel. No.: |
91-22-22014141/22065151 |
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Sales and Marketing Office : |
12/13,Jyoti Wire House, 1st Floor, Veera Desai Road,
Andheri (W), Mumbai - 400 053,
Maharashtra, India |
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Tel. No.: |
91-22-2674 0001/2/3 |
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Fax No.: |
91-22-2674
0600 |
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E-Mail : |
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Factory 1 : |
158-163,
G.I.D.C., Umbergaon – 396 171, District Valsad, |
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Tel. No.: |
91-260-2562412/2563412 |
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Fax No.: |
91-260-2562950/2562954 |
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E-Mail : |
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Factory 2 : |
Survey
No. 326/1 and 2, |
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Factory 3: |
Survey
No. 327/2, Jai Harsh Industrial Estate, Bldg. No.1, Gr. Floor, Village –
Athal, Bhilad – |
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Branches : |
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DIRECTORS
AS ON 31.03.2011
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Name : |
Mr. Narendra D Desai |
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Designation : |
Chairman |
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Name : |
Mr. Kushal |
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Designation : |
Director |
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Name : |
Mr. Chaitanya N Desai |
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Designation : |
Director |
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Name : |
Mr. F B Virani |
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Designation : |
Director |
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Name : |
Mr. H N Shah |
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Designation : |
Director |
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Name : |
Mr. N K Thingalaya |
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Designation : |
Director |
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Name : |
Mr. V K Bajaj |
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Designation : |
Manager |
KEY EXECUTIVES
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Name : |
Mr. M C Bhalawat |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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1000 |
-- |
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16353875 |
65.47 |
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(B) Public Shareholding |
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600 |
-- |
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1000 |
-- |
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2292526 |
9.19 |
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4014406 |
16.07 |
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2199208 |
8.80 |
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116940 |
0.47 |
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211 |
-- |
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600 |
-- |
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Total |
24980366 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing
and marketing of Elastomeric/ PVC/XLPE Cables, Fluroplastic Cables, Optical
Fibre Cables and Jelly Filled Telecommunication Cables. |
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Products : |
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Brand Names : |
UNICAB |
GENERAL INFORMATION
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Bankers : |
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Facilities : |
-- |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Rashmi Zaveri and Company Chartered Accountants |
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Address : |
Arham Gr. Floor, |
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Associates/Subsidiaries : (AS ON 31.03.2010) |
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CAPITAL STRUCTURE
As On 12.08.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs. 10/- each |
Rs.300.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
24980366 |
Equity Shares |
Rs. 10/- each |
Rs.249.803 Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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|
SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
249.803 |
249.800 |
249.800 |
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2] Share Warrants and Outstanding |
0.000 |
0.000 |
16.150 |
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3] Reserves & Surplus |
440.970 |
(295.980) |
(37.540) |
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4] (Accumulated Losses) |
(1019.473) |
0.000 |
0.000 |
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NETWORTH |
(328.700) |
(46.170) |
228.410 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
340.850 |
664.520 |
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2] Unsecured Loans |
1772.425 |
981.270 |
152.840 |
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TOTAL BORROWING |
1772.425 |
1322.120 |
817.360 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1443.725 |
1275.950 |
1045.770 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
528.002 |
545.870 |
435.370 |
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Capital work-in-progress |
40.543 |
14.710 |
77.900 |
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INVESTMENT |
23.237 |
23.240 |
23.240 |
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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 |
524.104
|
519.190
|
502.040 |
|
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Sundry Debtors |
590.314
|
482.090
|
389.040 |
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Cash & Bank Balances |
108.288
|
168.830
|
84.460 |
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Other Current Assets |
2.731
|
40.700
|
32.530 |
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Loans & Advances |
236.699
|
165.850
|
132.550 |
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Total
Current Assets |
1462.136
|
1376.680
|
1140.620 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
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Other Current Liabilities |
610.193
|
659.580
|
618.140 |
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Provisions |
|
24.970
|
13.220 |
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Total
Current Liabilities |
610.193
|
684.550
|
631.360 |
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Net Current Assets |
851.943
|
692.130
|
509.260 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1443.725 |
1275.950 |
1045.770 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
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Income |
3112.727 |
1806.185 |
1278.590 |
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Other Income |
38.252 |
26.704 |
23.490 |
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TOTAL (A) |
3150.979 |
1832.889 |
1302.080 |
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|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/Decrease in stock |
(26.160) |
(26.369) |
(146.210) |
|
|
|
Raw materials consumed |
2615.130 |
1499.532 |
1173.360 |
|
|
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Manufacturing and Operating Expenses |
258.143 |
233.933 |
44.940 |
|
|
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Personal expenses |
112.850 |
101.101 |
83.110 |
|
|
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Selling and Administrative expenses |
255.924 |
115.950 |
142.770 |
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TOTAL (B) |
3215.887 |
1924.147 |
1406.160 |
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|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(64.908) |
(91.258) |
23.490 |
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|
|
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|
|
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Less |
FINANCIAL
EXPENSES (D) |
154.499 |
122.041 |
130.270 |
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(219.407) |
(213.299) |
(234.340) |
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|
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|
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
63.120 |
61.283 |
51.710 |
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|
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|
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|
PROFIT BEFORE
TAX (E-F) (G) |
(282.527) |
(274.582) |
(286.050) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
0.000 |
0.000 |
0.700 |
|
|
|
|
|
|
|
|
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|
PROFIT AFTER TAX
(G-I) (J) |
(282.527) |
(274.582) |
(286.750) |
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|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(736.946) |
(462.363) |
(175.620) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(1019.473) |
(736.946) |
(462.360) |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(11.31) |
(10.99) |
(11.48) |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 (1ST
Quarter) |
30.09.2011 (2nd
Quarter) |
|
Net Sales |
|
616.160 |
672.260 |
|
Total Expenditure |
|
664.570 |
694.460 |
|
PBIDT (Excl OI) |
|
(48.410) |
(22.200) |
|
Other Income |
|
16.630 |
10.890 |
|
Operating Profit |
|
(31.780) |
(11.310) |
|
Interest |
|
37.450 |
47.420 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(69.230) |
(58.730) |
|
Depreciation |
|
18.320 |
16.430 |
|
Profit Before Tax |
|
(87.550) |
(75.160) |
|
Tax |
|
0.000 |
0.000 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(87.550) |
(75.160) |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(87.550) |
(75.160) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(8.97)
|
(14.68)
|
(22.02) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(14.99)
|
(11.81)
|
(18.33) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(13.80)
|
(14.28)
|
(18.15) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.86)
|
4.62
|
(1.25) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
(7.25)
|
(43.46)
|
6.34 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.40
|
2.01
|
1.81 |
LOCAL AGENCY FURTHER INFORMATION
REVIEW OF
OPERATIONS
During
the year, the Company has achieved Sales Turnover (net of excise) of Rs.
3112.728 Millions as against Rs. 1806.185 Millions for the financial year ended
31st March, 2010 which is quite substantial, but this was not
sufficient to break-even and Company has incurred a Net Loss of Rs. 282.527
Millions before tax as against a loss of Rs. 274.582 Millions for the previous
year ended 31.03.2010. The various steps taken for improving the operations
were reflected in higher sales turnover and reduced operating loss in year.
SUBMISSION OF DRAFT
REHABILITATION SCHEME (DRS) FOR APPROVAL TO THE BOARD FOR INDUSTRIAL AND
FINANCIAL RECONSTRUCTION (BIFR) ENVISAGING AMALGAMATION OF THE COMPANY WITH
APAR INDUSTRIES LIMITED, THE HOLDING CO. (AIL)
Pursuant to the reference
made by the Company in accordance with the provisions of Sick Industrial
Companies (Special Provisions) Act 1985 (SICA) to the Board for Industrial and
Financial Re-construction (BIFR), the Company has been declared as Sick
Industrial Company by
BIFR vide its' order dated October 26, 2010 and
directed the Company to file a fully tied up Draft Rehabilitation Scheme (DRS)
for it's revival to Syndicate Bank who has been appointed as Operating Agency
(OA) to examine the DRS. After having preliminary discussion with the
management of AIL, the Holding Company, the Company has submitted DRS to OA
which include proposal for amalgamation of the Company with AIL with
cut-off-date as 31st March 2010 for expeditious revival.
In the opinion of the
Management of the Company and also its Holding Company, the above option is
most suitable for expeditious revival of the Company as there is blink
possibility of its revival independently. The Company is pursuing the matter
with BIFR for early approval of the said Rehabilitation Proposal submitted by
the Company. The Company is also proposing appropriate Resolution in the notice
to the members to take the approval of its shareholders in the ensuing Annual
General Meeting (AGM) for the same.
PROPOSAL FOR AMALGAMATION
OF MARINE CABLES AND WIRES PRIVATE LIMITED (MCWPL) - A WHOLLY OWNED SUBSIDIARY OF
THE COMPANY -WITH APAR INDUSTRIES LTD. (AIL), THE PARENT COMPANY
As reported last year, M/s
Marine Cables and Wires Private Limited (MCWPL), a Wholly Owned Subsidiary of
the Company, which was doing job works for the Company, has also been declared
as Sick Industrial Company by BIFR and directed MCWPL to submit a Draft
Rehabilitation Scheme (DRS) for its revival.
The Management of the
Company had discussion on the matter with the management of AIL and also with
MCWPL with regard to revival of MCWPL. As directed by BIFR, MCWPL has already
submitted a Draft Rehabilitation Scheme (DRS) proposing Amalgamation of MCWPL
with AIL for consideration and sanction by BIFR. Syndicate Bank, Mumbai has
been appointed as Operating Agency (OA) by BIFR to monitor/ review and submit
the final Rehabilitation Proposal. The OA is taking necessary steps in the
matter as directed by BIFR.
MANAGEMENT
DISCUSSION AND ANALYSIS
FORWARD-LOOKING STATEMENTS
This report contains
forward looking statements that covers expectations and projections about the
future, including statements about the Company's strategy for growth, product
development, market scenario, expenditures and financial results.
Forward-looking statements are
based on certain assumptions and expectations of future events. The Company
cannot guarantee that these assumptions and expectations are accurate or will
be realized fully. The Company's actual results, performance or achievements,
could thus differ materially from those projected in any such forward-looking
statements. The Company assumes no responsibility to publicly amend, modify or
revise any forward looking statements, on the basis of any subsequent
developments, information or events.
OVERALL REVIEW
The Company is
manufacturing Electrical and Telecommunication cables and markets its cable
under the brand name 'UNICAB' and 'UNIFLEX'. The power cable industry showed
sign of recovery in demand in the domestic market despite continued global
recessionary trends and commodity raw material price volatility. The demand for
elastomeric cable also has been improving due to increased focus on Windmill,
Steel and Mining sector. The demand in international market was generally
stagnant. The Multinational cable manufacturers are looking to enter Indian
cable market and looking for tie-up with domestic manufacturers.
The demand of the
telecommunication cables remained subdued due to wireless technologies getting
higher preference and has also not been showing any major improvement, though
it's outlook remains positive in terms of Fiber optic cable demand.
OPPORTUNITIES AND THREATS
The Indian power sector is
currently dominated by State/ Central utilities. The installed generation
capacity in the country at present is about 1,60,000 MW and is growing. India
still is a power deficient country with a significant energy shortage. As our
country's Annual GDP continues to grow at close to about 9%, energy requirement
is also bound to grow rapidly.
To bridge this deficit and
to cater to future demand, the country needs additional power generation
capacity of approx. 100,000 MW during the next five years. Apart from capacity
shortage, the power sector in the country is having problems of high
transmission and distribution losses, power pilferage and concessional tariff
for certain sectors. Several power generation projects are coming up in private
sector. Many private Discoms are strengthening power distribution network
leading to higher demand for cables. Govt, impetus towards renewable energy
projects is opening several opportunities. All these measures will give a boost
to power sector in the country which will provide good opportunities for
business growth in the power cable segment.
The telecommunication cable
sector continues to witness tough times due to over capacity besides slow down
in decision making at lead telecom operator BSNL due to certain contract award
anomalies in the past. The capacity utilization rates across companies are at
low and uneconomical levels. The surplus capacity relating to demand, has led
to lower realizations, making the business operations for Jelly Filled Telecom
Cable (JFTC] un-remunerative. Therefore the Company has decided to exit this
business.
There is likely to be good
demand for Fiber optic cables coming up at BSNL. With the proposed introduction
of 3G services by the Telecom operators, there is expected to be good demand
for Fiber optic cables in private sector also. There is severe competition in
this sector, which has taken its toll on revenues and profits of all major
fiber optic cable manufacturing companies.
THREATS
Since the Company largely
depends on projects and tenders and any slow-down in the same mainly in core
sector, could effect company's growth. There is significant excess capacity in
the industry both in power cables and in telecom cables, therefore prices are
expected to remain under pressure. Similarly in its Telecom Division major
orders come from internet service providers and its procurement may effect due
to technological advancement in wireless technology. The volatility in the
International Metal prices in optical fiber prices (post earth quake in Japan]
and in polymer raw material prices may affect business performance.
OUTLOOK
The demand for electrical
cable is likely to be emerging stronger as economy is already showing signs of
good growth. The Government is continuing with plans to create significant
additional power capacity, giving major boost to power generation and
distribution sector. The distribution of power is getting better streamlined
for improving its efficiency. Similarly further investment by large industrial
houses in various infrastructure and mining projects gaining momentum, it will
also drive the demand of electrical cables significantly.
The demand for Fiber Optic
cables is also likely to show improvement due to Govt, deciding to create a
country wide parallel telecom infrastructure for Defence services. Higher
penetration of broadband services and also introduction of 3G services, all
resulting in increased demand for fiber optic cables.
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 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.50.27 |
|
|
1 |
Rs.80.07 |
|
Euro |
1 |
Rs.68.44 |
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.