1. Summary Information
|
|
|
Country |
|
|
Company Name |
VINDHYA
TELELINKS LIMITED |
Principal Name 1 |
Mr. Haresh. V. Lodha |
|
Status |
Satisfactory |
Principal Name 2 |
Mr. J. Veera Raghavan |
|
|
|
Registration # |
10-002134 |
|
Street Address |
Udyog Vihar, P.
O. Chorhata, Rewa-486 006, |
||
|
Established Date |
27.01.1983 |
SIC Code |
-- |
|
Telephone# |
91-7662-400400 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-7662-400591 |
Business Style 2 |
Polyethylene Insulated Jelly Filled Telephone Cables. |
|
Homepage |
Product Name 1 |
Jelly Filled Telephone Cables |
|
|
# of employees |
351 (Approximately) |
Product Name 2 |
Optical Fibre Cable |
|
Paid up capital |
Rs.118,397,000/- |
Product Name 3 |
Aerial Bunch Cables |
|
Shareholders |
shareholding of Promoter
and Promoter Group -43.52% Public shareholding – 56.48% |
Banking |
State
Bank of |
|
Public Limited Corp. |
Yes |
Business Period |
29 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
Ba
(50) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries : |
|
August Agents Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
1,471,556,000 |
Current Liabilities |
434,890,000 |
|
Inventories |
185,571,000 |
Long-term Liabilities |
557,247,000 |
|
Fixed Assets |
472,857,000 |
Other Liabilities |
-- |
|
Deferred Assets |
-- |
Total Liabilities |
992,137,000 |
|
Invest& other Assets |
1,189,255,000 |
Retained Earnings |
2,208,705,000 |
|
|
|
Net Worth |
2,327,102,000 |
|
Total Assets |
3,319,239,000 |
Total Liab. & Equity |
3,319,239,000 |
|
Total Assets (Previous Year) |
3,187,299,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
1,969,754,000 |
Net Profit |
38,204,000 |
|
Sales(Previous yr) |
2,008,616,000 |
Net Profit(Prev.yr) |
115,640,000 |
MIRA
INFORM REPORT
|
Report Date : |
07.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
VINDHYA TELELINKS LIMITED |
|
|
|
|
Registered
Office : |
Udyog Vihar, P. O. Chorhata, Rewa-486 006, Madhya Pradesh |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
27.01.1983 |
|
|
|
|
Com. Reg. No.: |
10-002134 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.118.397 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L31300MP1983PLC002134 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JBPV00018E |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of Polyethylene Insulated Jelly Filled Telephone
Cables. |
|
|
|
|
No. of Employees
: |
351 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 9300000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having fine track.
Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 / Factory: |
Udyog Vihar, P. O. Chorhata, Rewa-486006, |
|
Tel. No.: |
91-7662-400400 |
|
Fax No.: |
91-7662-400591 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Branches : |
Located at :
|
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Haresh. V. Lodha |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. J. Veera Raghavan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. K. Misra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. C. Tapuriah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. R. Bansal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Pracheta Majumdar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Y. S. Lodha |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. R. Radhakrishnan |
|
Designation : |
Senior Vice President and Secretary |
|
|
|
|
Audit Committee : |
R. C. Tapuriah (Chairman) |
|
|
Mr. J.
Veeraraghavan |
|
|
Mr. S. K. Misra |
|
|
Mr. Pracheta Majumdar |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of Shareholder |
Total No. of
Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
28,000 |
0.24 |
|
|
367,901 |
43.28 |
|
|
395,901 |
43.52 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
395,901 |
43.52 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
92 |
0.02 |
|
|
100 |
0.04 |
|
|
1,110,491 |
9.38 |
|
|
1,110,683 |
9.43 |
|
|
|
|
|
|
982,317 |
8.41 |
|
|
|
|
|
|
846,840 |
9.99 |
|
|
2,033,225 |
17.16 |
|
|
67,014 |
11.49 |
|
|
200 |
10.58 |
|
|
53,471 |
0.79 |
|
|
13,343 |
0.11 |
|
|
3,929,396 |
47.05 |
|
Total Public shareholding (B) |
5,040,079 |
56.48 |
|
Total (A)+(B) |
5,435,980 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
-- |
-- |
|
Total (A)+(B)+(C) |
5,435,980 |
100.00 |
(1) Indian
Central Government / State Government(s)
Individual shareholders holding nominal
share capital up to Rs.0.100 millions BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Polyethylene Insulated Jelly Filled
Telephone Cables. |
||||||||
|
|
|
||||||||
|
Products : |
· Coiled /Straight Cords · Stranded Copper Wire · Insulated Cables. Cords, Flexes ·
Fiber Ribbon
|
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Jelly Filled Telephone Cables |
CKMs |
10700000 |
7026000 |
686077 |
|
Optical Fibre Cables |
KMs |
34272 |
34272 |
14368 |
|
Fibre Ribbon |
KMs |
75000 |
75000 |
-- |
|
Quad Jelly Filled Telephone Cable |
KMs |
1800 |
1800 |
36 |
|
FRP Rod |
KMs |
20000 |
20000 |
19070 |
|
E-Glass Roving |
MTs |
25 |
25 |
4 |
|
Tinned Copper Wire |
MTs |
1036 |
1036 |
13 |
|
Signalling Cable |
KMs |
2000 |
2000 |
221 |
|
Aerial Bunched Cable |
KMs |
12000 |
12000 |
599 |
GENERAL INFORMATION
|
No. of Employees : |
351 (Approximately) |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|||||||||||||||||||||||||||||||||
|
|
|
|
Banking Relations
: |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
V. Sanjar Aiyar and Company Chartered Accountants |
|
Address : |
|
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Joint Venture : |
Birla Ericsson Optical Limited(BEOL) |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11850863 |
Equity Shares |
Rs.10/- each |
Rs.118.509
Millions |
|
|
Less: Calls Unpaid |
|
Rs.0.112
Million |
|
|
Total |
|
Rs.118.397 Millions |
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 |
118.397 |
118.222 |
118.219 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2208.705 |
2169.834 |
2054.035 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2327.102 |
2288.056 |
2172.254 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
387.247 |
360.508 |
364.265 |
|
|
2] Unsecured Loans |
170.000 |
150.000 |
0.000 |
|
|
TOTAL BORROWING |
557.247 |
510.508 |
364.265 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2884.349 |
2798.564 |
2536.519 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
472.857 |
458.917 |
437.277 |
|
|
Capital work-in-progress |
12.418 |
14.257 |
0.601 |
|
|
|
|
|
|
|
|
INVESTMENT |
1176.837 |
1176.837 |
1176.837 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
185.571
|
231.722
|
300.619
|
|
|
Sundry Debtors |
1130.880
|
1038.692
|
677.823
|
|
|
Cash & Bank Balances |
145.651
|
92.768
|
93.670
|
|
|
Other Current Assets |
2.436
|
4.337
|
3.427
|
|
|
Loans & Advances |
192.589
|
169.769
|
180.252
|
|
Total
Current Assets |
1657.127
|
1537.288 |
1255.791 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
400.400
|
326.282
|
295.016 |
|
|
Other Current Liabilities |
8.044
|
37.713
|
16.702
|
|
|
Provisions |
26.446
|
24.740
|
22.269
|
|
Total
Current Liabilities |
434.890
|
388.735 |
333.987 |
|
|
Net Current Assets |
1222.237
|
1148.553
|
921.804
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2884.349 |
2798.564 |
2536.519 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1969.754 |
2008.616 |
2507.936 |
|
|
|
Other Income |
121.851 |
84.661 |
64.893 |
|
|
|
TOTAL (A) |
2091.605 |
2093.277 |
2572.829 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw materials consumed |
733.706 |
837.111 |
1833.339 |
|
|
|
Decrease in inventories |
20.584 |
34.378 |
120.971 |
|
|
|
Cost of traded goods sold |
0.120 |
0.273 |
1.051 |
|
|
|
Materials purchased/Subcontract expenses |
733.251 |
639.199 |
279.562 |
|
|
|
Personnel expenses |
171.694 |
129.772 |
105.931 |
|
|
|
Operating and other expenses |
273.634 |
244.194 |
218.245 |
|
|
|
TOTAL (B) |
1932.989 |
1884.927 |
2559.099 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
158.616 |
208.350 |
13.730 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
74.279 |
50.587 |
53.842 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
84.337 |
157.763 |
(40.112) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
46.212 |
42.123 |
53.524 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
38.125 |
115.640 |
(93.636) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(0.079) |
(0.209) |
(0.033) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
38.204 |
115.849 |
(93.603) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
115.849 |
0.000 |
(93.603) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
154.053 |
115.849 |
0.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
286.268 |
150.034 |
43.155 |
|
|
|
Contract Revenue |
141.642 |
110.147 |
0.000 |
|
|
TOTAL EARNINGS |
427.91 |
260.181 |
43.155 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
351.820 |
271.703 |
896.632 |
|
|
|
Stores & Spares |
5.556 |
1.230 |
5.913 |
|
|
|
Capital Goods |
32.023 |
20.238 |
18.307 |
|
|
|
Traded Goods |
0.513 |
0.159 |
0.000 |
|
|
TOTAL IMPORTS |
389.912 |
293.33 |
920.852 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.23 |
9.80 |
(7.92) |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
364.170 |
490.580 |
763.250 |
|
Total Expenditure |
403.430 |
526.230 |
765.720 |
|
PBIDT (Excl
OI) |
(39.260) |
(35.650) |
(2.470) |
|
Other Income |
26.760 |
13.110 |
20.690 |
|
Operating
Profit |
(12.500) |
(22.540) |
18.220 |
|
Interest |
14.470 |
18.710 |
22.430 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
(26.970) |
(41.250) |
(4.210) |
|
Depreciation |
11.690 |
11.920 |
11.940 |
|
Profit
Before Tax |
(38.660) |
(53.170) |
(16.150) |
|
Tax |
0.000 |
0.320 |
0.000 |
|
Provision and Contingencies |
0.000 |
0.0000 |
0.000 |
|
Reported PAT |
(38.660) |
(53.490) |
(16.150) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.00 |
0.000 |
0.000 |
|
Net Profit |
(38.660) |
(53.490) |
(16.150) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
1.83
|
5.53 |
(3.64) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.94
|
5.76 |
(18.43) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.35
|
5.79 |
(5.53) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02
|
0.05 |
(0.04) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.43
|
0.39 |
0.32 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.81
|
3.95 |
3.76 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last two years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
GENERAL AND CORPORATE MATTERS
During the year, telecom cable industry in general has been adversely impacted as a consequence of ambiguity on policy and regulatory framework in the telecom sector of the Government as an aftermath of the 2G spectrum episode. This has significantly affected the financial performance of the Company. Amidst the challenging operating environment during the year, one of the Company's major customers, BSNL, did not place any order for Jelly Filled Telephone Cables and gave a counter offer for supplying optical fibre cables at economically unviable price levels, which the Company declined. The network expansion plans of telecom operators were also put on hold due to an unclear roadmap for future business and liquidity constraints. The lower sales in the domestic market were somewhat offset by the Company's push for higher exports of telecommunication cables and increased revenue from EPC Division, thus the total turnover was only marginally lower by 2.84% at Rs.2031.400 Millions as compared to previous year. However, prevailing sluggish market conditions and further erosion in prices of telecommunication cables due to lower demand and internecine competition negatively impacted the profitability during the year.
Domestic turnover from Jelly Filled Telephone Cables was significantly down both in volume and value terms during the year, and the Company is carrying out business transformation to realign increased sales from exports and manufacture of specialty cables, while defocusing from a single dominant client.
Despite the domestic telecommunication cables market having shrunk and a general decline in the prices of Optical Fibre Cables, the Company believes that in the long term the proposed new National Telecom Policy and National Broadband Policy will lay the foundation for a massive rollout of Optical Fibre Cable network across the country.
To exploit such a huge business opportunity the Company has already invested in areas of new revenue streams by upgrading and modernizing the production facilities besides knowledge updation of human talent to sustain superior and consistent product quality and flexible production capacity.
The EPC Division sales increased from Rs.898.593 Millions to Rs.1076.216 Millions an increase of 19.77% compared to the previous year. The current business verticals of the EPC Division viz. Telecom, Power and Gas distribution pipelines are comfortable with a backlog of orders and the Board is confident that the Division's positive business momentum will continue in future. As an additional revenue stream, the Company has embarked on roll out of OFC Networks under Infrastructure Provider (IP-1) License. This allows operators to use readymade networks and reduce their capex expenditure, while providing the Company with a steady revenue growth. The Company has also added another vertical in EPC Division to offer end-to-end LED lighting solutions and related projects. The LED lighting solutions are environmental friendly, help reduce operational costs, improve productivity and alleviate the world's most pressing environmental challenges. With a strategy in place to expand the business verticals and markets, gradual strengthening of the ability to provide superior customer services and excellence in project delivery through project management capabilities, knowledge management and robust quality system, the EPC Division is poised to achieve a reasonable growth in the years to come.
The year under report could have been a transformative year for the EPC Division, as the Company along with its consortium partners expended sizeable time and managerial resources to successfully bid for two prestigious projects to establish a state-of-theart dedicated OFC network for the Defence and Navy. Although the Company was declared the lowest bidders in August, 2010 for two packages of Network for Spectrum (NFS) project for Defence and also for the Navy OFC Network project being executed through BSNL, the respective tenders have not yet been decided.
With the Company following a very disciplined and focused globalization approach by aggressively targeting pockets where external copper telecom cable network are still being laid and with a mission of becoming an important key player in the EPC Division with a global footprint, the Company is strategically and operationally building for a bright future.
The Company completed 25 years in March, 2011. It is a matter of great pride and reflective of the indomitable spirit driven by values and powered by internal vitality. The Board and all employees look forward to the future with confidence and stand committed to creating a brighter future for all stakeholders.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The Company is presently engaged in the business of manufacturing and sale of Cables comprising of primarily Jelly Filled Telephone Cables (JFTC), Optical Fibre Cables (OFC) including Fibre Ribbon, Aerial Bunched Cables and turnkey business through Engineering, Procurement and Construction (EPC Division).
The Indian market for copper telecom cable viz. JFTC has
been passing through a very difficult phase in the last few years. The number
of fixed line telephone subscribers in
Transmission in the networks is becoming more and more
digital and the need for broadband access has resulted in OFC increasingly
becoming the transmission medium of choice. The advent of 3G and LTE will make
it more important for telecom operators to roll out optic fibre based
transmission networks, which have high bandwidth capabilities necessary to
support 3G applications.
The EPC Division of the Company currently concentrates on three business verticals viz. Telecom, Power and Gas distribution Pipeline and provides solutions in trenching and laying of optical fibre cables, installation and commissioning of telecom equipments, FTTH installation, civil work and foundation of towers and maintenance of network. In the power domain the services are offered to the power transmission and distribution sector with a focus primarily in the power distribution networks including those in rural India, renovation and augmentation of existing distribution systems, underground transmission, feeder segregation, installation of High Voltage Distribution System (HVDS) and Low Voltage Distribution Systems (LVDS), distribution lines, substation and transmission lines, capacitor banks, lighting projects and end to end LED solutions, etc.
There is no material change in the industry structure as was reported last year.
OVERALL REVIEW
Business Review and
Outlook
The Indian telecommunications industry, which has become
second largest in the world in terms of total number of subscribers, boasts of
impressive developments in the last decade. With more than 850 million telecom
subscribers and a teledensity of over 70%,
The year gone by made the country and the whole world notice the enormity of the Indian telecommunication industry. 2010 also saw the 2G spectrum allocation becoming controversial issue, leading to huge loss in credibility and leaving citizens yearning for greater transparency and accountability. This has also negatively impacted the overall size of the telecom cable industry during the year as majority of telecom operators deferred their network expansion plans due to an unclear roadmap for future business and lack of clarity on regulatory and policy framework. Despite the Indian telecom cable market being currently depressed, the driving force for future growth will emanate from the proposed new National Broadband Policy, which envisages a massive rollout of nationwide OFC network down to the village level. The Company sees the broadband networks as a new frontier of growth in optical fibre cable business in which it is confident of taking leadership position by providing world-class products to be in the forefront. In line with aspirations of future growth, the Company is investing its resources in this core business.
The national Telecom Policy 2011 which is expected to bring about parity and transparency in the telecom industry is poised to be released shortly. The Government has also finalized the National Broadband Plan which contemplates building a National OFC Network connecting 250,000 village panchayats across the country. This will substantially increase the demand for OFC, however, the price increase cannot be fully passed on to end consumers due to fiercely competitive market conditions.
The XIth Five Year Plan aims at a sustainable GDP growth rate of 9% but there is general consensus that infrastructure inadequacies would constitute a significant constraint in realizing this development potential. To overcome this constraint, an ambitious programme of infrastructure investment, involving both public and private sector, is being developed by the Government. To exploit the emerging opportunities, the Company’s EPC Division's strategy is focused on expanding its participation in telecommunications, power and oil and gas distribution verticals given the growth potential by providing high quality services to customers and grow business by leveraging on its strength and synergies.
PRODUCT-WISE
PERFORMANCE
·
Jelly
Filled Telephone Cables (JFTC)
Domestic turnover from Jelly Filled Telephone Cables was significantly down both in volume and value terms during the year, as the Company's major customer, Bharat Sanchar Nigam Limited. did not finalise the tender floated during the first quarter of the year, wherein the company was eligible to obtain reasonable volume of the business. The demand from other private operators also remained subdued and is unlikely to increase substantially in the ensuing year. However, lower volumes in domestic market were offset, somewhat, by higher exports by adding new customers. During the year under report, the Company achieved an export turnover of Rs.285.839 Millions in JFTC as compared to Rs.134.411 Millions during the previous year. The sale of Quad Cables, Signaling Cables and other cables also registered a declining trend due to lower offtake by Railways and unremunerative price levels.
·
Optical
Fibre Cables (OFC)
The overall turnover from Optical Fibre Cables decreased to Rs.254.143 Millions during the year as compared to Rs.420.038 Millions during the previous year due to non-floatation of tender for Ribbon type OFC by BSNL/MTNL, refusal by the Company to a counter offer given by BSNL for supplying 24F OFC due to economically unviable prices and lower offtake of other types of optical fibre cables by the Company's major customers.
Despite telecommunication cables market having temporarily
shrunk, the Company believes that in the longer term the proposed new National
Telecom Policy and National Broadband plan will lay a foundation for massive
rollout of Optical Fibre Cable network across the country boosting demand for
the company's product. The biggest challenge for broadband growth in
·
EPC
Contracting/Turnkey Services
The EPC Division revenue increased from Rs.898.593 Millions in the previous year to Rs.1076.216 Millions, an increase of 19.77% as compared to the previous year. Also, the EPC Division earned profit before interest, tax and unallocable portions of expenditure of Rs.84.682 Millions during the year.
During the year, the Telecom vertical successfully marketed
the Built and Transfer model for OFC rollout and executed first ever such
project for one of there prime customer. The EPC Division has also successfully
executed OFC laying projects in difficult and challenging terrain and weather
conditions in the states of
The biggest achievements of EPC Division during the year were getting positioned as the lowest bidders alongwith its consortium partners in the two tenders floated by BSNL for an alternative optical fibre cables network exclusively for the use of defence forces to vacate spectrum allocated to them for communication. The final outcome of these major tenders is still awaited.
As the number of projects in EPC division grows, the
attention shifts more on project management. Well experienced employees within
the organization have been deployed to ensure effective monitoring over web
enabled software systems. Also the Company has identified the acute shortage of
trained manpower for both the roll out and subsequent operation and maintenance
of the OFC/ FTTx networks as a business opportunity and has established a
OVERALL REVIEW
In the year 2010-11 the Company's performance has been mixed. Despite no major business from BSNL for both the traditional JFTC and Optical Fibre Cables, the Company managed to retain the traditional customers and grew in the export market.
FINANCIAL REVIEW
• The overall gross turnover of the Company decreased by approx. 2.84% to Rs.2031.426 Millions in 2010-11 as compared to Rs.2090.834 Millions in the previous year.
• The aggregate other income increased to Rs.121.851 Millions as against Rs.84.661 Millions compared to the previous year mainly due to higher dividend income on investments and write back of sundry balances, unspent liabilities, etc.
• The Company achieved gross profit before depreciation of Rs.84.337 Millions as against a gross profit before depreciation of Rs.157.763 Millions mainly due to lower contribution from both the Divisions, despite higher dividend income and other miscellaneous income.
• The financial expenses are higher at Rs.74.279 Millions (previous year Rs.50.587 Millions) due to higher utilization of working capital limits.
• There was no change in the capital structure during the year. However, the increase in Reserves and Surplus by Rs.38.204 Millions is because of the net profit in the current year. (Profit and Loss Account balance Rs.154.053 Millions) (Previous year Rs.115.849 Millions).
• The additions to the fixed assets of Rs.61.523 Millions during the year mainly consist of capital expenditure incurred for modernization and upgradation, installation of balancing equipments and new testing facilities and certain additions to the furniture, building, office equipment/vehicles.
• The inventory value decreased to Rs.185.571 Millions as on March 31, 2011 from Rs.231.722 Millions as at the end of the previous year due to decrease in raw material inventory and lower work-in-progress of finished goods.
• The Debtors level at Rs.1130.880 Millions as on March 31, 2011 as compared to Rs.1038.692 Millions as on March 31,2010 has increased due to extended credit to customers and retention money withheld by the customers of EPC Division as per the governing terms of the contracts awarding to the Company and/or as per evolving industry norms.
• For detailed information on the financial performance with respect to operational performance, a reference may please be made to the financial statements.
OPPORTUNITIES,
THREATS and BUSINESS OUTLOOK
The year 2010-11 would have gone down as the watershed year for Indian telecommunication cable industry, with the expectation of two major contracts to be awarded from BSNL for Defence and Navy OFC Networks, but due to a multitude of reasons, the concerned tenders have not yet been decided.
Broadband connectivity is increasingly being seen as an
integral driver of improved socio-economic performances. The Government of
India strongly believes that all citizens of
FTTH deployment in the country will also provide a thrust to OFC market for last mile connectivity. Several prominent Pan-India service providers, open access infrastructure service providers and realty developers are evaluating the techno-commercial benefits of deploying FTTH technology.
The overall trend of the technologies is focused on data and converged services, and making the solutions more robust. This is bolstered by the fact that there has been a constant rise in Copper prices in the last few years driven primarily due to the shortage of the supply, thereby shifting the focus of the market to Optical Fibre Cables. Bandwidth is a major constraint in the Indian market which has further fuelled the increase in demand for Optical Fibre Cables.
Telecommunication is a regulated industry and regulatory
changes affect both there customers and us. However, as explained above the
Government's ambitious targets for telecommunication expansion should see favourable
regulatory environment in
The customer base in telecommunication cable industry is relatively concentrated. The Company’s major customer over the years has been BSNL and MTNL. The Company has, however, been able to retain and expand customers in Private Sector and is striving hard to expand its footprint in the lucrative export market.
UNAUDITED
STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST
DECEMBER 2011
Rs. In Millions
|
PARTICULARS |
Quarter Ended |
Nine Months Ended |
|
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
Sales (Gross) |
793.584 |
508.959 |
1676.686 |
|
Less: Exercise Duty |
330.58 |
21.241 |
68.670 |
|
Net Sales / Income From Operations |
760.526 |
487.718 |
1608.016 |
|
Other Operating Income |
2.16 |
2.857 |
6.540 |
|
Expenditure |
|
|
|
|
a) (Increase)/Decrease in Stock in Trade and WIP |
(86.533) |
(10.899) |
(191.857) |
|
b) i) Consumption of Raw Materials |
384.829 |
192.687 |
740.852 |
|
ii) Cost of Materials and
Other Contracts Expenses |
324.910 |
219.326 |
769.461 |
|
c) Purchase of Traded Goods |
1.756 |
2.644 |
4.900 |
|
d) Employees Cost |
45.315 |
47.214 |
140.630 |
|
e) Depreciation |
11.942 |
11.924 |
35.554 |
|
f) Other Expenditure |
95.435 |
75.251 |
227.946 |
|
Total
Expenditure |
777.654 |
538.147 |
1727.486 |
|
Profit from operations before Other Income, Interest and Exceptional
Items |
(14.412) |
(47.572) |
(112.930) |
|
Other Income |
20.693 |
13.110 |
60.563 |
|
Profit before Interest and Exceptional Items |
6.281 |
(34.462) |
(52.367) |
|
Interest |
22.434 |
18.705 |
55.612 |
|
Profit/(Loss) from Ordinary Activities before tax |
(16.153) |
(53.167) |
(107.979) |
|
Tax Expenses/ (Credit) |
-- |
0.318 |
0.318 |
|
Net Profit/(Loss) |
(16.153) |
(53.485) |
(108.297) |
|
Paid-up Equity Share Capital (Face Value Rs.10/- per Share) |
118.397 |
118.397 |
118.397 |
|
Reserves(excluding Revaluation Reserve) |
|
|
|
|
Basic & Diluted EPS (Rs.) (Not annualised) |
(0.136) |
(0.452) |
(0.915 |
|
Public Shareholding * |
|
|
|
|
-Number of shares |
6693458 |
-- |
6693458 |
|
-% of shareholding |
56.48 |
-- |
56.48 |
|
Promoters and Promoter Group Shareholding |
|
|
|
|
a) Pledged/Encumbered -Number of shares |
-- |
-- |
-- |
|
-Percentage of shares (as a % of the shareholding of promoter and
promoter group) |
-- |
-- |
-- |
|
-Percentage of shares (as a % of the total share capital of the
company) |
-- |
-- |
-- |
|
b) Non-encumbered -Number of shares |
5157405 |
-- |
5157405 |
|
-Percentage of shares (as a % of the shareholding of promoter and
promoter group) |
100.00 |
-- |
100.00 |
|
-Percentage of shares (as a % of the total share capital of the
company) |
43.52 |
-- |
43.52 |
* Includes 1257586 equity shares (10.61%) continued to be
held by certain Companies, Societies, etc. earlier shown as a part of the
Promoter Group but now shown under Public Shareholding as per amended Clause 35
of the Listing Agreement.
SEGMENT WISE REVENUE,
RESULTS AND CAPITAL EMPLOYED
Rs. In Millions
|
PARTICULARS |
Quarter Ended |
Nine Months Ended |
|
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
Segment Revenue |
|
|
|
|
Cables |
365.578 |
257.731 |
764.63 |
|
Engineering, Procurement and Construction |
394.948 |
229.987 |
843.53 |
|
Total |
760.526 |
487.718 |
1608.016 |
|
Less: Inter-Segment Revenue |
-- |
-- |
-- |
|
Net Sales/Income from Operations |
760.526 |
487.718 |
1608.016 |
|
Segment Results |
|
|
|
|
Profit/(Loss) (Before Tax, Interest and Extraordinary Items) |
|
|
|
|
Cables |
(42.179) |
(33.111) |
(106.924) |
|
Engineering, Procurement and Construction |
27.939 |
(47.237) |
(5.353) |
|
Total |
(14.240) |
(16.859) |
(112.277) |
|
(Less): Interest (Net) |
(19.949) |
10.929 |
(49.556) |
|
Other unallocable income net of unallocable expenditure |
18.036 |
(53.167) |
53.854 |
|
Total Profit/(Loss) (Before Tax and Extraordinary
Items) |
(16.153) |
(53.167) |
(107.979) |
|
Capital Employed |
|
|
|
|
(Segment Assets – Segment Liabilities) |
|
|
|
|
Cables |
|
933.355 |
1102.512 |
|
Engineering, Procurement and Construction |
|
766.250 |
935.868 |
|
Unallocated (Assets- Liabilities) |
|
535.332 |
180.394 |
|
Total |
|
2234.937 |
2218.774 |
NOTES:
(1) There were no investor complaints pending or unattended for redressal at the beginning and end of the quarter. Three (3) investor complaints were received during the quarter and were duly attend/disposed off.
(2) Other expense for current quarter, nine months and corresponding quarter of previous year includes Rs.20.898 Millions, Rs.22.580 Millions and Rs.0.922 Millions respectively being foreign exchange fluctuation loss. In the corresponding previous nine months there was gain of Rs.2.794 Millions and the same was included m other operating income.
(3) The above unaudited financial results duly reviewed by the Audit Committee have been approved by the Board of Directors in its meeting held on 14th February, 2012 and subjected to a Limited Review by the statutory auditors of the Company.
(4} Figures of previous year/periods have been regrouped/rearranged, wherever considered necessary.
FIXED ASSETS
- Land
- Building
- Plant and machinery
- Furniture and
Office Equipment
- 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.51.05 |
|
|
1 |
Rs.81.09 |
|
Euro |
1 |
Rs.67.39 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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.