|
Report Date : |
10.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
FINOLEX CABLES LIMITED |
|
|
|
|
Registered
Office : |
26/27, Mumbai – |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
05.06.1967 |
|
|
|
|
Com. Reg. No.: |
11-016531 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.305.879 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L31300MH1967PLC016531 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEF00515E |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of
Electrical Wires, Lain Cables, Coaxial Cables, Auto |
|
|
|
|
No. of Employees
: |
1484 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 28000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are
reported as fair. Business is active. Payments are reported to be regular. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
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 : |
26/27, Mumbai – |
|
Tel. No.: |
91-20-27475963 / 27506200 |
|
Fax No.: |
91-20-27472239 / 7470344 |
|
E-Mail : |
sales@fclpun.gnpun.globalnet.ems.vsnl.net.in |
|
Website : |
|
|
|
|
|
Factory 1: |
L117/118, Verna Industrial Estate, Verna Salcette Goa – 403722, |
|
Tel No.: |
91-832-2782002 / 03 / 04 |
|
Fax No.: |
91-832-2783909 |
|
|
|
|
Factory 2: |
263/2A, |
|
Tel No.: |
91-832-344376/78/79 |
|
Fax No.: |
91-832-344140 |
|
|
|
|
Factory 3: |
Gat No. 344,Village Urse,
Taluka Maval, Dist. Pune – 410506, |
|
Tel No.: |
91-2114-237021-2-3 |
|
Fax No.: |
91-2114-237006 |
|
|
|
|
Factory 4: |
Optic Fibre Division Urse Taluka Maval, Dist Pune-410506 Telephone : 91-2114- 237003/4/5/6/7 Facsimile : 91-2114- 237009 Email: sunil@finolex.com |
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|
|
|
Factory 5: |
Switches Division Gat No.344, Village Urse, Taluka Maval, District Pune-410506 Telephone : 91-2114- 237021-2-3 Facsimile : 91-2114-237006 Email : MV_Rangwani@finolex.com |
|
|
|
|
Factory 6: |
117/L118, Verna
Industrial Estate, Verna Salcette Goa – 403722, Facsimile : 91-832-2783909 Email : ratnakar_barve@finolex.com |
|
|
|
|
Factory 7: |
S263/2A, Panjim
- Telephone : 91-832-2344376 / 8 Facsimile : 91-832-2344140 Email : knarayanan@finolex.com |
|
|
|
|
Factory 8: |
HVPC Urse, Pune Gat No.343, Village Urse, Taluka Maval, District Pune-410506 Telephone : 91-2114- 237001-5 Facsimile : 91-2114-237006 Email : amit_bakhle@finolex.com |
|
|
|
|
Factory 9: |
Urse (Electrical and Communication Cables) Taluka Maval, Dist. Pune 410 506 Telephone 91-2114- 237026/27 Facsimile 91-2114-237025 Email: pm_deshpande@finolex.com |
|
|
|
|
Factory 10: |
Lighting Division (CFL) / Sheets Division Plot No.399, Village - Urse, Taluka - Maval, District-Pune-410506 Telephone : 91-2114- 237035, 237024 Facsimile : 91-2114-237025 Email : svdeshpande@finolex.com |
|
|
|
|
Factory 11: |
Sheets Division Plot No.399, Village - Urse, Taluka - Maval, District-Pune-410506 Telephone : 91-2114- 237035, 237036 Facsimile : 91-2114-237041 Email : br_kambale@finolex.com |
|
|
|
|
Factory 12: |
Plot No. L123/9A, Verna Industrial Estate, Verna Salcette, Telephone : 91-832- 2782002/3/4 Facsimile : 91-832- 2783909 Email: YKG@finolex.com |
|
|
|
|
Factory 13: |
Roorkee Plot NosK-1 and K-2 AIS Industrial Estate, Jatherdeva Hoond,
Manglaur, Roorkee, Taluka Haridwar,
Uttarakhand - 247667 Telephone : 91-1332- 224069 Telefax: 91-1332-224068 Email : yyredkar@finolex.com |
|
|
|
|
Branches : |
Located At:
|
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. P. P Chhabria |
|
Designation : |
Chairman |
|
Address : |
9, ICS Colony, |
|
|
|
|
Name : |
Dr. H. S. Vachha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B. G. Deshmukh
|
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Atul C.
Choksey |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjay K.
Asher |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. G. Pawar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Adi. J.
Engineer |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. B Ravi (Pandit) |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pradeep R
Rathi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. K. Chhabria |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. R. G. D’Silva |
|
Designation : |
Company Secretary & Vice President (Legal) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding
of promoters and Promoter Group |
|
|
|
1. Indian |
|
|
|
Individuals / Hindu Undivided Family |
7875300 |
5.36 |
|
Bodies Corporate |
46652670 |
31.77 |
|
Sub Total (A)
(1) |
54527970 |
37.13 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
1. Institutions |
|
|
|
Mutual Funds / UTI |
6449576 |
4.39 |
|
Financial Institutions / Banks |
11417745 |
7.77 |
|
Foreign Institutional Investors |
1761135 |
1.20 |
|
Sub Total (B)
(1) |
19628456 |
13.36 |
|
|
|
|
|
2. Non
Institutions |
|
|
|
Bodies Corporate |
25690677 |
17.68 |
|
Individuals |
|
|
|
Individual shareholders holding nominal share capital up to Rs. 0.100
million |
32330224 |
22.02 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
14405593 |
9.81 |
|
Sub Total (B)
(2) |
72696494 |
49.50 |
|
(B) = (B) (1) +
(B) (2) |
92.324950 |
62.87 |
|
|
|
|
|
Shares
held by custodians and against which depository receipts have been
issued (C) |
|
|
|
Promoter and Promoter Group |
|
|
|
Public |
6086425 |
0.000 |
|
Sub Total (C) |
6086425 |
0.000 |
|
Total (A) + (B) +(C) |
152939345 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Electrical Wires, Lain Cables, Coaxial Cables, Auto |
||||||||||||||||||
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|
|
||||||||||||||||||
|
Products : |
|
PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
|
Electrical Cables |
|
TCKM |
2467.97 |
1241.83 # |
|
Communication
Cables Optic Fibre Cables |
|
KM |
58000.00 |
37116.78 |
|
Other
Communication Cables |
|
TCKM |
5648.00 |
634.61 |
|
PVC Sheets and Accessories |
|
MT |
2100.00 |
1331.70 |
|
Fibre |
|
KM |
150000.00 |
779736.33 * |
|
Poly coated FRP
Rod |
|
KM |
24000.00 |
19268.48 |
|
Continuous Cast
Copper Rods |
|
MT |
60000.00 |
33419.75 @ |
Note:
Installed capacities are certified by the Managing Director and relied upon by the Auditors
5,000 TCKM of JFTC Capacity is interchangeable with 332 TCKM of Electrical Cable capacity
GENERAL INFORMATION
|
No. of Employees : |
1484 (Approximately) |
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Bankers : |
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Facilities : |
Notes
:
Security:
Unsecured Loans
Note: * Amount repayable within one year Rs.0393 Million (Pervious Year Rs.
Nil) |
|
|
|
|
Banking Relations
: |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
B. K. Khare and Company Chartered Accountants |
|
Address : |
706/707, Sharda
Chambers, 7th Floor, New Marine Lines, Mumbai – 400020, |
|
|
|
|
Cost Auditors |
|
|
Name : |
Joshi Apte and Associates Cost Accountants |
|
|
|
|
Solicitors: |
Crawford Bayley and Company |
|
|
|
|
Associates: |
|
|
|
|
|
Joint Venture |
Finolex J-Power System Private Limited |
|
|
|
|
Subsidiaries : |
Creole Holdings Company Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
235000000 |
Equity Shares |
Rs.2/- each |
Rs.470.000 Millions |
|
15000000 |
Unclassified
Shares |
Rs.2/- each |
Rs.30.000 Millions |
|
|
TOTAL |
|
Rs.500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
152939345 |
Equity Shares |
Rs.2/- each |
Rs.305.879 Millions |
|
|
|
|
|
Note:
Of the above, 146,065,520 Equity Shares are issued
as fully paid up bonus shares by capitalization of Reserves)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
305.879 |
305.879 |
305.879 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6868.915 |
6125.195 |
5656.294 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
7174.794 |
6431.074 |
5962.173 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2439.892 |
2465.690 |
2524.484 |
|
|
2] Unsecured Loans |
160.564 |
285.491 |
434.160 |
|
|
TOTAL BORROWING |
2600.456 |
2751.181 |
2958.644 |
|
|
DEFERRED TAX LIABILITIES |
310.426 |
319.136 |
221.122 |
|
|
|
|
|
|
|
|
TOTAL |
10085.676 |
9501.391 |
9141.939 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4339.576 |
4475.819 |
4557.008 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
2451.532 |
2802.746 |
3140.993 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2808.420
|
2209.498
|
1435.957 |
|
|
Sundry Debtors |
1293.351
|
710.471
|
576.674 |
|
|
Cash & Bank Balances |
212.846
|
371.621
|
281.224 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
1046.263
|
857.220
|
864.002 |
|
Total
Current Assets |
5360.880
|
4148.810 |
3157.857 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
516.987
|
532.796
|
592.566 |
|
|
Other Current Liabilities |
1380.875
|
1247.614
|
1036.643 |
|
|
Provisions |
168.450
|
145.574
|
84.710 |
|
Total
Current Liabilities |
2066.312
|
1925.984 |
1713.919 |
|
|
Net Current Assets |
3294.568
|
2222.826
|
1443.938 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
10085.676 |
9501.391 |
9141.939 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
20357.520 |
16187.156 |
13415.072 |
|
|
|
Other Income |
259.302 |
241.103 |
509.592 |
|
|
|
TOTAL (A) |
20616.822 |
16428.259 |
13924.664 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials & Manufacturing |
16525.715 |
12494.466 |
10829.008 |
|
|
|
Personnel Expenses |
647.407 |
592.256 |
533.204 |
|
|
|
Other Expenses |
1792.796 |
1890.711 |
2151.599 |
|
|
|
TOTAL (B) |
18965.918 |
14977.433 |
13513.811 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1650.904 |
1450.826 |
410.853 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
191.298 |
186.870 |
324.035 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1459.606 |
1263.956 |
86.818 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
387.758 |
372.270 |
387.636 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
1071.848 |
891.686 |
(300.818) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
204.056 |
315.426 |
54.093 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
867.792 |
576.260 |
(354.911) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
401.575 |
32.674 |
423.371 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
100.000 |
100.000 |
0.000 |
|
|
|
Proposed Dividend |
107.058 |
91.764 |
30.588 |
|
|
|
Tax on Proposed Dividend |
17.367 |
15.595 |
5.198 |
|
|
|
Debenture Redemption Reserve |
250.000 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
795.295 |
401.575 |
32.674 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
393.655 |
582.803 |
776.227 |
|
|
|
Other Earnings |
0.000 |
0.000 |
0.087 |
|
|
TOTAL EARNINGS |
393.655 |
582.803 |
776.314 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
895.495 |
1377.346 |
1080.664 |
|
|
|
Stores & Spares |
21.953 |
24.916 |
22.116 |
|
|
|
Capital Goods |
32.318 |
233.031 |
301.587 |
|
|
TOTAL IMPORTS |
949.766 |
1635.293 |
1404.367 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.67 |
3.77 |
(2.32) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
4607.000 |
4990.100 |
4994.700 |
|
Total Expenditure |
4262.500 |
4591.800 |
4581.600 |
|
PBIDT (Excl
OI) |
344.500 |
398.300 |
413.100 |
|
Other Income |
64.200 |
166.400 |
39.800 |
|
Operating
Profit |
408.700 |
564.700 |
452.900 |
|
Interest |
43.400 |
52.400 |
80.600 |
|
Exceptional
Items |
(19.200) |
(164.400) |
(79.000) |
|
PBDT |
346.100 |
347.900 |
293.300 |
|
Depreciation |
98.200 |
96.900 |
128.200 |
|
Profit
Before Tax |
247.900 |
251.000 |
165.100 |
|
Tax |
45.800 |
53.700 |
28.100 |
|
Provision and Contingencies |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
202.100 |
197.300 |
137.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
202.100 |
197.300 |
137.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
4.21
|
3.50
|
(2.54) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.26
|
5.50
|
(2.24) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.05
|
10.33
|
(3.89) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.13
|
(0.05) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.65
|
0.72
|
0.78 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.59
|
2.15
|
1.84 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
Against the backdrop mentioned above, during 2010-11 the Company saw significant growth in the top line with sales registering a 25% growth in value terms. This increase was most visible in Electrical Cables and Copper segments. In volume terms growth was significant -with star performances from product offering to the following customer sectors – power, automotive, agriculture, real estate and OEM.
As mentioned earlier, commodity prices such as in the case of Copper, have consistently increased during the year – keeping in mind the acute competition, need to reach additional market areas and expand market share, price adjustments in the selling prices were kept minimal and as was considered appropriate. This has resulted in lower margin levels as compared to earlier periods.
As a policy the Company had decided not to keep any
uncovered exposures on account of foreign exchange – all its current purchases
of raw materials from outside
Income for the year was significantly higher at Rs.20, 616.82 million (previous year Rs.16, 428.26 million) representing a growth of 25% over the previous year. Following the robust growth achieved at the sales level, the Company has recorded a Net Profit of Rs.867.79 million as against a Net Profit of Rs.576.20 million in the previous year.
Segmentally, while Electrical Cables contributed 65%, Communication Cables contributed 10% to the total sale of products. The Electrical Cables growth was led by the rebound in the Real Estate & Infrastructure sectors. In the Communication Cables segment, however, the delayed introduction of 3G services had its impact in terms of lower sales volumes. The level of investment in capital expenditure by Telecom service providers has been below the expectations at the commencement of the year. The Company has in the meantime concentrated on network service providers and PSU units to ensure a healthy business continuity. The Company continues to believe that the Communication Cables Segment would be a growth engine, contributing to both revenues and profits, once the air is cleared around the uncertainties mentioned above.
Projects
The current status of the various projects undertaken by the Company is mentioned in the paragraphs below:
Compact Fluorescent
Lamps (CFLs) Project, Urse near Pune
All three lines that were proposed under this project, are now fully operational and the Company now has an annual capacity of 30 million pieces to offer in the market. Additional channel partners have been roped in, new markets have been targeted for penetration and a substantial increase in staffing has now taken place. With the infrastructure now ready, the Company is poised to grow very aggressively in this business.
Urse Plant Projects
In view of the massive investments that are taking place within the country in the power and infrastructure sectors, the Company believes that the demand for power cables will grow substantially in the coming years. As announced in the previous year, the Company’s project of enhancing its Power Cable capacity is progressing satisfactorily. Equipment to double the capacity is currently being installed and the enhanced capacity is expected to be available from the third quarter of the current financial year. The decision to combine and integrate the Low voltage and High voltage power cable plants at one location in Urse is providing the desired results of complementing each other and reducing costs.
Uttarakhand Project,
Roorkee
During the year, this plant has emerged as the Company’s major source of production of light duty electrical cables. With the plant operating at higher than 80% levels now, the effect on the Company’s financials has been extremely positive since the profits from this unit would be 100% tax exempted for the next two years and for a further period of 5 years for 30% of the taxable profits. This is in addition to the Excise free status this unit would enjoy for the next 8 years.
Electrical Switches
Project
During the year, progress was achieved in expanding the basic product range as well as accessories. Further, additional capacity has been created at the Company’s manufacturing facility at Roorkee to take advantage of fiscal benefits.
The Company is taking steps to expand market reach and create a better distribution network.
Finolex J-Power Systems
Private Limited, Shirval near Pune
The Company and its JV partner have during the completed the full subscription to the equity of the JV as at 31st March 2011, the Company’s investment in the JV stands at Rs.382.20 million.
Operations at the JV, which were expected to commence around
the 3rd quarter of the year have been delayed primarily on account
of construction delays. While the main factory building is now complete, the
tower being constructed to house the main extrusion line being first of
its kind in
Marketing JV with
Corning Inc,
The Company has entered into a Joint Venture Agreement with Corning of USA to market select telecommunication products. It is expected that the venture would become operational towards the end of this financial year.
Management Discussion
and Analysis
The Company operates in two main segments - Electrical Cables and Communication Cables.
To support its
requirement of Copper Rods for both type of cables, the Company manufactures
Continuous Cast Copper Rods(CCC rods), at its Rod Plant at
Besides, the Company also manufactures PVC Sheets for various applications like roofing, signage and interiors, which business the Company intends to cease from in the near term. Further, the Company has over the last few years, expanded its product range to include Electrical Switches and Compact Fluorescent Lamps (CFLs).
·
Production:
- Electrical Cables at 1,241.83 TCKM (thousand core kilometers) as compared to 1,152.01 TCKM in the previous year.
- Metal based communication Cables at 634.61 TCKM as compared to 516.17 TCKM in the previous year.
- Optical Fibre Cables at 37,116.78 KM as compared to 35,348.75 KM in the previous year.
- Optic Fibre at 779,736 fibre
kilometers as compared to 867,911 fibre kilometers in the previous year.
·
Sales:
- Electrical Cables (including Excise Duty) at Rs.14, 074 million as compared to Rs11, 093 million in the previous year.
- All Communication cables (including Excise Duty) at Rs.2, 042 million as compared to Rs.1, 907 million in the previous year.
- Copper Rods (net of interdivisional transfers and including Excise Duty) at Rs.5, 106 million as compared to Rs.3, 615 million in the previous year.
· Exports were lower at Rs.394 million as against Rs.583 million of the earlier year.
· The income from operations (including excise duty) was Rs.21,864 million for the year as compared to Rs.17, 266 million for the earlier year.
· Looking at possible synergies, the Company had shifted the Low voltage power cables facilities from Pimpri to Urse towards the end of the previous financial year. Cost synergies are now clearly visible, with better people and machine utilizations as well as improved coordination with the marketing team.
·
There has been a delay in the commencement of
operations at the Joint Venture with J-Power Systems Corp of
· All three lines of the CFL facility are now operational and the full capacity of 30 million pieces of lamps per year is available. During the year, significant work has been done on adding new channel partners, improving the reach of the distribution network, increasing manpower dedicated to this product line as well as ironing out product related issues. Additional focus is being provided to improve on cost parameters to become even more competitive in the market.
· The Roorkee facility is now operating at near 80% capacity. The plant now produces the full range of Light Duty Electrical Cables meant for multiple applications.
· For more details on the operations, a reference may please be made to the financial statements.
A.
Electrical
Cables
Electrical cables can be further categorised into light duty electrical cables, power and control cables.
(i) Light duty electrical cables include electrical wires used extensively for electrification of residential, commercial and industrial establishments, electrical panel wiring in industrial establishments and major equipments, consumer durable goods, automobiles, agricultural pump sets, small generator applications besides general lighting purposes.
(ii) In power cable category, the Company has the ability to manufacture such cables within the range 1.1 kV to 66 kV. These cables are either low voltage or high voltage cables depending upon their applications; however, always meant for underground usage. Power and control cables upto 3.3 kV rating are used for connecting user point to the main supply of power. Power cables above 3.3 kV rating are meant for use in underground application for intra-city electricity distribution network. The Company manufactures insulated power cables only. These cables meet the requirements of international standards.
·
Performance:
For the year, the electrical cables registered sales (inclusive of excise duty) of Rs.14, 074 million against Rs.11, 093 million of the previous year.
·
Outlook:
Electrical cables are the main focus area of business for the Company. It accounted for 65% of total sales for the year. Growth during the year was driven by the improvement shown by the power, real estate sector, automobile industry and infrastructure sectors. Further general economic improvement witnessed during the year also reflected in the volume improvement across all applications which the Company’s products cater to. The long term out look for this sector remains positive.
The Company faces two principal risks in this business – firstly competition from a large unorganized sector which produces products of inferior quality but at cheap prices and secondly a highly volatile commodity market where price movements can be very sharp. The Company has been handling the risk of the competitive forces through its organized business approach by the strength of its reach, superior quality products, safe products and maintaining high standards of service levels with its customers. The Company enjoys the advantages of economies of scale and backward integration. As and when GST is rolled out in the country, the Company believes the threat of a competitive force that relies on cheap quality and sharp practices will reduce further. As regards the second risk is of sharp raw material price movements, though the Company endeavors to pass on the price effect to the customers, there has always been a time lag between the price movement and the passing thereof which could benefit or dis-benefi t the Company for the lag period or otherwise. The Company negotiates price variation contracts with bulk buyers. The Company has been fair in dealing with its customers and accordingly enjoys customer confidence in pricing decisions.
B.
Communication
Cables:
The communication cables comprise of state of art, new generation communication cables and traditional telephone cables
(i) The state of art communication cables are either copper based or glass based. The copper based cables include LAN cables, coaxial cables, PE insulated switchboard cables and V-SAT cables. These cables are used for last mile connectivity. LAN cables are used in high speed networks, Coaxial cables are used to provide content input to TV receiving sets and in microwave communications and mobile towers, PE insulated switchboard cables are used to connect telephone instruments to an EPABX system and V-SAT cables find their application in V-SAT towers to connect the dish to the base station.
Optic fibre cables are glass based cables and they have the maximum bandwidth and speed. Certain cable designs are used as trunk cables in long distance networks while other designs are used in distribution, whether by telecom companies, multi-service organisations or other service providers.
Communication cables which carry, voice data or images is the backbone of an economic activity. The speed and bandwidth determine the capabilities of a communication network.
(ii)
Traditional telephone cables include JFTCs which
are laid underground and are used for connecting land line telephones to
exchanges. These are copper based cables. With introduction of mobile
telephones in
·
Performance:
The communication cables segment (including optic fibre) recorded sales of Rs.2, 042 million for the year against Rs.1, 907 million for the earlier year. The delayed introduction of 3G services has dampened the environment to a certain extent. The level of capital expenditure by Telecom service providers has been below expectations as a consequence of which there has been negligible growth during the year. While care has been taken to improve margins by selling products with higher value addition and thereby protect profitability, the Company also focused on network service providers and PSU units to keep the revenue momentum going. On the other hand there was no supply of JFTC to prime users in the country such as BSNL/MTNL since no tenders were floated / finalized by them. Consequently this segment has shown a marginal growth this year.
·
Outlook:
With the advent of 3G services over the past few months, the country is poised to witness a spurt in demand for high end data and communication services and with the impetus from the Government in providing better and faster internet access to rural India, the Company believes that demand for communication products will be robust for the foreseeable future. The economic development requires inter-alia, a strong, dependable and sustainable communication network. The Company’s communication cables meet with the requirement of local as well as international standards and therefore, find ready acceptance with domestic customers as well as in the exports market. The outlook here is positive.
The risks of competition and price movements are also applicable to the business of communication cables. The varying global demand-supply equation of optic fibre and resultant price movement thereof; availability of preforms and price thereof and delay/slow-down in investment into networks by telecom companies/service provider and other relevant entities due to global slow-down pose risk to the business of communication cables. The Company has increased its supplier base to reduce the risk of dependence on a single source; further price contracts are negotiated on yearly basis with the intent of evening out volatility in prices
C.
Copper
Rods:
The copper rod is the feed stock for copper based electrical and communications cables. The Company manufactures its own copper rods. The base material for producing copper rods is copper cathodes, the bulk of which are procured from local manufacturers under long term supply agreements. A smaller portion of the requirement of copper cathodes is imported as and when needed. After meeting the in-house requirement of copper rods, the balance capacity to produce copper rods is allocated for third party sale.
·
Performance:
During the year, the CCC rods division recorded a production volume of 33,496 metric tones as against 35, 844 metric tones for the earlier year. The sales were Rs.13, 815 million (previous year Rs.9,986 million) of whichRs.5,106 million were sales to third parties (previous year Rs.3,615 million) and balance was inter-divisional transfers. The volatility which had been observed in copper prices in the earlier period continued during the year. The monthly average LME copper price (CSP) varied between a high of USD 10,000 per metric tonne to a low of USD 6,900 per metric tonne.
·
Outlook:
The copper rod production is mainly
for in-house consumption. The copper requirements of the joint venture with
J-Power Systems Corp. of
D.
Electrical
Switches and CFLs:
The manufacture and sale of these electrical products act as a logical extension of the cables business of the Company. They have the backing of Finolex name, assuring the customer of quality, safety and performance standards. These electrical and lighting products are sold through the existing well-spread distribution network of cables. Other distribution avenues are also being explored to penetrate further in the market. Products have been well accepted by the market.
On its part to contain the effects of global warming, the Government is promoting use of CFLs. Keeping in mind the expected growth in CFL demand the Company has been expanding the CFL manufacturing capacities.
E.
PVC
Sheets:
The Company manufactures both corrugated and rigid PVC Sheets which are used in roofing, partition, exhibition, wall cladding, display board and signage applications as well as in the manufacture of tanks for chemical industry and handling systems for corrosive chemicals.
·
Performance:
During the year, the PVC Sheets division recorded production volume at 1,353 metric tonnes as against1, 357 metric tonnes for the earlier year. The sales (inclusive of excise duty) were Rs.154 million, as against Rs.141 million, for the earlier year.
·
Outlook:
The business of PVC sheets is not growing as expected due to availability of cheaper substitutes (though not recommended) like asbestos sheet, corrugated metal sheets, etc. Further with changes in technology the business has not been generating adequate returns. The Company has decided to gradually withdraw from this line of activity.
UNAUDITED FINANCIAL RESULTS FOR
THE QUARTER ENDED 31ST DECEMBER 2011
(Rs. In millions)
|
Particulars
|
Quarter Ended |
Nine Months Ended |
|
|
|
Unaudited 31.12.2011 |
Unaudited 30.09.2011 |
Unaudited 31.12.2011 |
|
(a) Net Sales / Income from operations |
4929.000 |
4933.400 |
14373.000 |
|
(b) Other Operating Income |
65.700 |
56.700 |
218.800 |
|
Total Income |
4994.700 |
4990.100 |
14591.800 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
a) (Increase) / Decrease in stock in trade and work in
progress |
628.800 |
198.700 |
571.200 |
|
b) Consumption of raw materials |
3252.700 |
3671.800 |
10827.200 |
|
c) Purchase of traded goods |
6.300 |
7.200 |
19.200 |
|
d) Employees cost |
173.100 |
172.300 |
509.600 |
|
e) Depreciation |
128.200 |
96.900 |
323.300 |
|
f) Other expenditure |
519.700 |
541.800 |
1508.700 |
|
Total |
4708.800 |
4688.700 |
13759.200 |
|
|
|
|
|
|
Profit from operations before other income, interest and
exceptional Items |
284.900 |
301.400 |
832.600 |
|
Other income |
39.800 |
166.400 |
270.400 |
|
Profit before interest and exceptional Items |
324.700 |
467.800 |
1.103.000 |
|
Interest / Finance charges |
80.600 |
52.400 |
176.400 |
|
Profit
after Interest but before Exceptional Items |
244.100 |
415.400 |
926.600 |
|
Exceptional Items
- (Expenses) / Income |
(79.000) |
(164.400) |
(262.600) |
|
Profit
(+)/Loss(-) from Oridinary Activities before tax |
165.100 |
251.000 |
664.000 |
|
Tax expense |
28.100 |
53.700 |
127.600 |
|
Net
Profit (+)/Loss(-) from Ordinary Activities after tax |
137.000 |
197.300 |
536.400 |
|
Extraordinary Items (net of tax expenses) |
- |
- |
- |
|
Net Profit (+) / Loss (-) for the year period |
137.000 |
197.300 |
536.400 |
|
Paid up equity share capital (Face value of Rs.10/- per
share) |
305.900 |
305.900 |
305.900 |
|
Reserves excluding revaluation reserves as per balance
sheet of previous accounting year |
500.000 |
500.000 |
500.000 |
|
Reserve excluding revaluation reserves as per
balance sheet |
|
|
7,395.000 |
|
Debenture Redemption Reserve |
|
|
250.000 |
|
Earnings per share (EPS) |
|
|
|
|
(a)
Basic and diluted EPS before Extraordinary items for
the period, for the year to date and for the previous
year (not to be annualised) |
0.900 |
1.290 |
3.510 |
|
(b) Basic
and diluted EPS before Extraordinary items for
the period, for the year to date and for the previous
year (not to be annualised) |
0.900 |
1.290 |
3.510 |
|
Public shareholding |
|
|
|
|
Number of
shares* |
9,84,11,375 |
9,87,67,375 |
9,84,11,375 |
|
Percentage
of shareholding |
64.35% |
64.58% |
64.35% |
|
|
|
|
|
|
Promoters and Promoters group Shareholding- |
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
Number of shares |
Nil |
Nil |
Nil |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
NA |
NA |
NA |
|
Percentage of shares (as a % of total share capital of the
company) |
NA |
NA |
NA |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
Number of shares |
5,45,27,970 |
5,41,71,970 |
5,45,27,970 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
100.00% |
100.00% |
100.00% |
|
Percentage of shares (as a % of total share capital of the
company) |
35.65% |
35.42% |
35.65% |
|
|
|
|
|
* Includes 22,187,075
shares (14.51 %) held by Associate Company - Finolex Industries Limited
|
SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED,
AS PER CLAUSE 41 OF THE LISTING AGREEMENT |
(Rs. In millions) |
|||
|
Particulars
|
Quarter Ended |
Nine Months Ended |
||
|
|
Unaudited 31.12.2011 |
Unaudited 30.09.2011 |
Unaudited 31.12.2011 |
|
|
Segment Revenue |
|
|
|
|
|
Electric Cables |
4,172.000 |
4,123.900 |
12,055.200 |
|
|
Communication Cables |
406.500 |
358.500 |
1,112.200 |
|
|
Copper Rods |
1,525.200 |
2,627.400 |
7,013.700 |
|
|
Others |
313.000 |
357.000 |
1,167.900 |
|
|
Total |
6,416.700 |
7,466.800 |
21,349.000 |
|
|
Less: Inter Segment Revenue |
1,422.000 |
2476.700 |
6,757.200 |
|
|
Net Sales/ Income from Operations |
4,994.700 |
4,990.100 |
14,591.800 |
|
|
Segment Results (Profit/Loss)
Before interest and tax Profit (+)/ Loss (-) : |
|
|
|
|
|
Electric Cables |
453.400 |
485.000 |
1,310.400 |
|
|
Communication Cables |
25.000 |
26.500 |
66.900 |
|
|
Copper Rods |
7.400 |
9.100 |
3.500 |
|
|
Others |
(22.800) |
(26.000) |
(60.500) |
|
|
Total |
463.000 |
494.600 |
1,354.500 |
|
|
Less: Interest |
80.600 |
52.400 |
176.400 |
|
|
: Other Unallocable expenditure net
off unallocable income |
217.300 |
191.200 |
514.100 |
|
|
Total Profit before Tax |
165.100 |
251.000 |
664.000 |
|
|
Capital Employed (Segment assets - Segment liabilities) |
|
|
|
|
|
Electric Cables |
|
|
4,488.300 |
|
|
Communication Cables |
|
|
1,813.500 |
|
|
Copper Rods |
|
|
503.300 |
|
|
Others |
|
|
631.600 |
|
|
Other than Seqmerrts |
|
|
3,752.200 |
|
|
Total capital employed |
|
|
11,188.900 |
|
Notes
1)
Exceptional
Items includes Losses on account of Foreign Exchange Derivative transactions
2)
In
line with the provisions of AS 11 as read with The Companies (Accounting
Standards) Ammendment Rules 2009, the Company has adjusted foreign exchange
loss of Rs 84 Million for the quarter and Rs. 205.65 Million for nine months on
revaluation of foreign currency loan against the value of fixed assets
purchased out of such loan. During the quarter, Company has further opted to
follow the extension of provisions of AS 11 and given similar treatment to
foreign currency borrowings made after April 01, 2009. Accordingly, foreign
exchange loss has been capitalised for nine months amounting to Rs. 47.95
Million, while amount of Rs. 10.25 Million pertaining to previous years for
which accounts have been finalised, has been debited to General Reserve.
Pursuant to adoption of this new option, foreign exchange loss of
Rs 43.8 Million pertaining to first six months has been reversed in the current
quarter.
3)
In
line with the provisions of AS 16 read with AS110, the company has treated Rs.
36.55 Million as Interest cost in respect of foreign exchange loss on the
foreign currency loans availed by the company.
4)
Capital
Employed for 'Other than Segments' includes fixed deposit with Banks of
Rs.1584.325 Million for 9 months ended 31st December, 2011 & Rs. 0.025
Million for 9 months ended 31st December 2010.
5)
The
"Limited Review" of the financial results of the Company for the
quarter ended 31st December, 2011 has been completed by the Statutory Auditors.
6)
The
above financial results have been reviewed by the Audit Committee and taken on
record by the Board of Directors at their meeting held on 1st February, 2012.
7)
Previous
period's figures have been regrouped wherever necessary to conform
to the current period's classification.
8)
The Company has received
nil complaints from investors during the quarter. No complaint was outstanding
atthe beginning and end of the quarter.
Fixed Assets:
· Land
·
· Buildings
· Plant and Machinery
· Furniture, Fittings and Office Equipments
· Computer Peripherals and ERP System
· Vehicles
· Dies and Moulds
· Exchange Fluctuation
·
Intangible Assets
Website Details:
Profile
Subject, the flagship company
of the Finolex Group was established in 1958 in Pune. Today, it is
The company started its operation with the manufacture of PVC insulated electrical cables for the automobile industry. Since then, the Company has constantly endeavored to augment its product range to include, PVC insulated electrical wires and Flame Retardant Low Smoke electrical wires, PVC insulated single core and multicore industrial flexible cables, Rodent Repellent Multicore Flexible Cables, PVC Insulated Winding Wires and 3 Core Flat Cables, XLPE 3 Core Flat Cables, Power and Control Cables, High Voltage Power Cables (Upto 33 kV), Polyethylene Insulated Jelly Filled Telephone Cables, Auto & Battery Cables, Co-axial and CATV cables, LAN Cables, Switchboard Cables, Fibre Optic Cables and others.
The company has manufacturing facilities at Pimpri and Urse in Pune as well as at Goa & Uttarakhand. The company has, over the years, established its reputation as an innovative leader and quality manufacturer by continuously upgrading technology, modernizing manufacturing facilities and maintaining highest standards of quality and services. Today, the name Finolex has become synonymous with Quality and enjoys overwhelming confidence of the customers. Investors have also fancied its stock in view of its phenomenal progress leading to a manifold increase on investment in stock through the years.
The company has received the ISO 9002 systems certification
across all product lines and plants. Besides ISO 14001-quality certification
has been accorded to its plants in Urse (JFTC & Co-Axial) and
Every cable is manufactured using bright annealed electrolytic grade copper – 99.97% pure manufactured in house and is insulated with virgin grade PVC (manufactured by group company Finolex Industries Limited) that is formulated in-house.
The company has received several honours such as Harvard Business School Association of India - Economic Times award for "corporate excellence"; IIM - LIC award for 'marketing' and the Engineering Export Promotion Council's 'export performance certificate'. Recently, the company was awarded the Export House status by the Directorate General of Foreign Trade.
Business Description
Subject is a manufacturer of electrical and communication cables. It has two segments: Electrical Cables, which includes light duty electrical cables, power and control cables, and Communication Cables, which comprises communication cables and traditional telephone cables. Light duty electrical cables include electrical wires used extensively for electrification of residential, commercial and industrial establishments, electrical panel wiring in industrial establishments and major equipments, consumer durable goods, automobiles, agricultural pump sets, small generator applications besides general lighting purposes. In power cable category, it manufacture cables within the range 1.1kilovolt to 66 kilovolt. The communication cables are either copper based or glass based. The copper based cables include local area network (LAN) cables, coaxial cables and polyethylene (PE) insulated switchboard cables. Traditional telephone cables include Jelly filled telephone cables. For the nine months ended 31 December 2010, Finoex Cables Limited's revenues increased 29% to RS15.18B. Net income increased 8% to RS681M. Revenues reflect an increase in income from Electric cables, higher income from copper rods and increased other segment revenue. Net income was partially offset by an increase in consumption of raw materials, an increase in depreciation expenses and an increase in other expenditure.
Board of Directors
Sanjay K. Asher
Independent
Non-Executive Director
Mr. Sanjay K. Asher is Independent Non-Executive Director of Finolex Cables Limited. He is a Chartered Accountant and a Solicitor and Partner of Crawford Bayley & Co., Solicitors, Advocates & Notaries, Mumbai. Mr. Sanjay K. Asher has been practising for a number of years matters including corporate laws. He is also a Director in the following companies, viz.: A. L. Movers Private Limited, A. L. Records Management Private Limited, Allied Pickfords India Private Limited, Bajaj Allianz General Insurance Company Limited, Bajaj Allianz Life Insurance Company Limited, Dewas Soya Limited (Alternate Director), Diamant Boart Marketing Private Limited, Divinet Access Technologies Limited, Finolib Chemicals Private Limited, Finolex Plasson Industries Limited, Finolex Infrastructure Limited, Hoganas India Private Limited, ArjoHuntleigh Healthcare India Private Limited, I2IT Private Limited, Kryfs Power Components Limited, Mandhana Industries Limited (also a member of its Audit Committee), Majesty Investments Private Limited, Morgan Stanley Investment Management Private Limited, Mepha Pharma India Private Limited, NV Advisory Services Private Limited, Orbit Electricals Private Limited, Oerlikon Textile Components India Private Limited, Peass Industrial Engineers Limited, Ratiopharm India Private Limited, Repro India Limited (also a member of its Audit Committee), Schlafhorst Engineering (India) Limited (also Chairman of its Audit Committee), Sharp India Limited (also a member of its Audit Committee and Chairman of its Share Transfer and Investors' Grievance Committee), Sparsh BPO Services Limited (also Chairman of its Audit Committee), Shree Renuka Sugars Limited (also Chairman of its Audit Committee and its Share Transfer and Investors' Grievance Committee), Siporex India Private Limited, Sudarshan Chemical Industries Limited, ValueQb Consulting Private Limited and Zinser Textile Systems Private Limited.
Deepak K. Chhabria
Managing Director,
Executive Director
Mr. Deepak K. Chhabria is Managing Director, Executive Director of subject. He is a Bachelor of Science in Engineering Management from the University of Evansville, USA.
Atul C. Choksey
Independent
Non-Executive Director
Mr. Atul C. Choksey is Independent Non-Executive Director of subject since 11th November 1997. He holds B. S. (Chemical Engineering). He is the former Managing Director of Asian Paints Limited. and has a number of years experience in industry. He is also a Director in the following companies viz: Apco Enterprises Ltd., Apcotex Industries Limited., Cricket Club of India, Ceat Limited., Mazda Colours Limited., Marico Industries Ltd., Nurture Finance Limited., Priyam Investment Consultants Limited., Shyamal Finvest (India) Limited., Titan Trading & Agencies Limited., Trivikram Investments & Trading Company Limited., Apcosoft Private Limited., Choksey Chemicals Private Limited and Standard Chartered Asset Management Company Private Limited
Adi Jehangir Engineer
Independent
Non-Executive Director
Mr. Adi Jehangir Engineer is Independent Non-Executive
Director of subject. He is a B.E. (Civil), FIE, AIIA and has experience in
Industry. Mr. Adi J. Engineer is a Director of the Company since 23rd October
2007. He is also a Director in the following companies viz: Chemical Terminal
Trombay Limited. (Also a member of its Audit Committee), North Delhi Power
Ltd., Tata BP Solar India Limited. (Also a member of its Audit Committee), Tata
Projects Limited, The Tata Power
Shashishekhar B.
Pandit
Independent
Non-Executive Director
Mr. Shashishekhar B. Pandit is Independent Non-Executive
Director of subject. He is the Chairman and Group Chief Executive Officer of
KPIT Cummins Info systems Limited. Mr. Pandit is a MS from
Pratap G. Pawar
Independent
Non-Executive Director
Mr. Pratap G. Pawar is Independent Non-Executive Director of subject. He has B.E. (BITS, Pilani). He is a Director at the Company since 9th September 1998. Mr. P.G. Pawar is the Managing Director of Sakal Papers Limited and has a number of years experience in chemical and engineering products and agriculture. He is also a Director in the following companies viz: P.P. Holdings Limited., Bharat Forge Limited. (also a member of its Audit Committee), Force Motors Limited., Kirloskar Oil Engines Limited., ASK Chemicals Foundry Solution India Pvt. Limited., Bhimthadi Developers & Miners Private Limited., International Conventions India Private. Limited, Karha Developers & Miners Private. Limited, Karha Infrastructure Private. Limited, Panhala Investments Private Limited., Pasle Agro Farms Private Limited., Rajgadh Agro Farms Private Limited., Sakal Printers Private Limited., United Metachem Private Limited., United Risk Insurance Broking Company Private Limited., World Association of Newspapers.
Pradeep R. Rathi
Independent
Non-Executive Director
Mr. Pradeep R. Rathi is Independent Non-Executive Director
of subject. Mr. Rathi is MS (Chemical Engineering)
H. S. Vachha
Independent
Non-Executive Director
Dr. H. S. Vachha is Independent Non-Executive Director of
subject. He has a masters degree (Gold Medalist) in Economics from
Deepak K. Chhabria
Managing Director,
Executive Director
Mr. Deepak K. Chhabria is Managing Director, Executive Director of subject. He is a Bachelor of Science in Engineering Management from the University of Evansville, USA.
Press Release:
FINOLEX CABLES LIMITED
RESULTS
Pune, February 1, 2012
Finolex Cables Limited,
(FCL) at the meeting of its Board of Directors held today approved results for
the third quarter of the year 2011-12.
Net Sales for the quarter
ended December 31 2011 were Rs. 4929.000 millions as against Rs. 5053.200
millions for the corresponding period in year 2010-11. While sales of
Electrical Cables grew 21%, sales of Communication Cables as well as Copper
Rods declined by 23% and 52% respectively. The lower sales of Communication
Cables reflect current market realities of the telecom sector, while lower
sales of Copper rods was on account of the highly competitive nature of this
product segment.
Net profit after taxes for
the quarter was Rs. 137.000 millions as compared to a net profit of Rs.261.900 millions
for the corresponding period of 2010-11. Net profit after taxes for the nine
month period ending December 31, 2011 was Rs.536.400 millions as compared to
Rs.681.000 millions during the corresponding period of 2010-11.
The Board of Directors also
approved investment of about Rs.80 Crores towards increase/rebalancing of
capacities for manufacture of various wire and cable products at its
manufacturing units at Roorkee and Urse, to be done by the Company over the
next two financial years.
ABOUT FCL
Finolex Cables Limited is
India's largest and leading manufacturer of Electrical and Communication
cables. Finolex offers a wide range of Electrical and Communication cables. Its
wire and cable products are used in applications such as automobile, lighting,
cable TV, telephone and computers to industrial applications touching every
person in his daily life. Finolex has added Electrical Switches and Compact
Flourescent Lamps to its range of products.
FINANCIAL
HIGHLIGHTS
(Rs. in Millions)
|
|
Quarter Ended 31.12.2011 |
Quarter Ended 30.09.2011 |
Period Ended 31.12.2011 |
|
Net Sales / Income from Operations Other Income Profit
before Exceptional item,
Interest, Depreciation and Tax |
4994.700 39.800 452.900 |
4990.200 166.300 564.900 |
14591.800 270.400 1426.300 |
|
Deductions for: • Exceptional Item • Interest • Depreciation |
79.000 80.600 128.200 |
164.400 52.400 97.000 |
262.600 176.400 323.300 |
|
Profit before Taxation Tax Expenses Profit After Tax |
165.100 (28.100) 137.000 |
251.000 (53.700) 197.300 |
664.000 (127.600) 536.400 |
Markets to get a
positive start of new month
01 February 2012
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.51.27 |
|
|
1 |
Rs.81.38 |
|
Euro |
1 |
Rs.67.01 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.