1. Summary Information
|
|
|
Country |
|
|
Company Name |
UNIFLEX CABLES LIMITED |
Principal Name 1 |
Mr. Narendra D Desai |
|
Status |
Sick Company |
Principal Name 2 |
Mr. Kushal N Desai |
|
|
|
Registration # |
11-059422 |
|
Street Address |
Apar House, Corporate Park, Sion – |
||
|
Established Date |
14.12.1990 |
SIC Code |
-- |
|
Telephone# |
91-22-67800400/25263400 |
Business Style 1 |
Manufacturer
|
|
Fax # |
91-22-25246326 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Elastomeric
/ PVC/XLPE Cables |
|
|
# of employees |
Not Available |
Product Name 2 |
Fluroplastic
Cables |
|
Paid up capital |
Rs.249,803,000/- |
Product Name 3 |
Optical
Fibre Cables |
|
Shareholders |
Shareholding of Promoter
and Promoter Group 65.47%, Public Shareholding 34.53% |
Banking |
Indian Bank |
|
Public Limited Corp. |
Yes |
Business Period |
21 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
C |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Associates/
Subsidiaries |
-- |
Marine
Cables and Wires Private Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
938,032,000 |
Current Liabilities |
610,193,000 |
|
Inventories |
524,104,000 |
Long-term Liabilities |
1,772,425,000 |
|
Fixed Assets |
528,002,000 |
Other Liabilities |
000 |
|
Deferred Assets |
000 |
Total Liabilities |
2,382,618,000 |
|
Invest& other Assets |
63,780,000 |
Retained Earnings |
440,970,000 |
|
|
|
Net Worth |
(328,700,000) |
|
Total Assets |
2,053,918,000 |
Total Liab. & Equity |
2,053,918,000 |
|
Total Assets (Previous Year) |
1,960,500,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
3,112,727,000 |
Net Profit |
(282,527,000) |
|
Sales(Previous yr) |
1,806,185,000 |
Net Profit(Prev.yr) |
(274,582,000) |
MIRA
INFORM REPORT
|
Report Date : |
18.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
UNIFLEX CABLES LIMITED |
|
|
|
|
Registered Office
: |
Apar House, Corporate Park, Sion – |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
14.12.1990 |
|
|
|
|
Com. Reg. No.: |
11-059422 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.249.803 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L59422MH1990PLC059422 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMU01285E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACU0571F |
|
|
|
|
Legal Form : |
It is a Public Limited Liability Company. The company's shares are listed on the stock exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing
and Marketing of Elastomeric / PVC/XLPE Cables, Fluroplastic Cables, Optical
Fibre Cables and Jelly Filled Telecommunication Cables. |
|
|
|
|
No. of
Employees: |
Not
Available |
RATING & COMMENTS
|
MIRA’s Rating : |
C |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
Status : |
Sick Company |
|
|
|
|
Payment Behaviour : |
Slow and Delayed |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject has been declared as a sick company by the Board for
Industrial and Financial Reconstruction (BIFR) under the provisions of Sick
Industrial Companies (Special Provisions) Act, 1985. Financial position of
the company is weak. The networth of the company eroded completely. Payments
are reported to be slow and delayed. The company can be considered for business dealings on a safe and
secured trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 / Corporate Office : |
Apar House, Corporate Park, Sion – |
|
Tel. No.: |
91-22-67800400/25263400 |
|
Fax No.: |
91-22-25246326 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
11,
Jorawar Bhavan, 93, |
|
Tel. No.: |
91-22-22014141/22065151 |
|
|
|
|
Sales and Marketing Office : |
12/13,Jyoti Wire House, 1st Floor, Veera Desai Road,
Andheri (West), Mumbai - 400 053,
Maharashtra, India |
|
Tel. No.: |
91-22-2674 0001/2/3 |
|
Fax No.: |
91-22-2674
0600 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
158-163,
G.I.D.C., Umbergaon – 396 171, District Valsad, |
|
Tel. No.: |
91-260-2562412/2563412 |
|
Fax No.: |
91-260-2562950/2562954 |
|
E-Mail : |
|
|
|
|
|
Factory 2 : |
Survey
No. 326/1 and 2, |
|
|
|
|
Factory 3: |
Survey
No. 327/2, Jai Harsh Industrial Estate, Bldg. No.1, Ground Floor, Village –
Athal, Bhilad –Silvassa Road, Silvassa, Maharashtra, India |
|
|
|
|
Branches : |
|
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Narendra D Desai |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Kushal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Chaitanya N Desai |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. F B Virani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. H N Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N K Thingalaya |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V K Bajaj |
|
Designation : |
Manager |
KEY EXECUTIVES
|
Name : |
Mr. M C Bhalawat |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2011
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1,000 |
- |
|
|
16,353,875 |
65.47 |
|
|
16,354,875 |
65.47 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
16,354,875 |
65.47 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
600 |
- |
|
|
1,000 |
- |
|
|
1,600 |
0.01 |
|
|
|
|
|
|
2,278,514 |
9.12 |
|
|
|
|
|
|
3,989,641 |
15.97 |
|
|
2,240,156 |
8.97 |
|
|
115,580 |
0.46 |
|
|
114,474 |
0.46 |
|
|
506 |
- |
|
|
600 |
- |
|
|
8,623,891 |
34.52 |
|
Total Public shareholding (B) |
8,625,491 |
34.53 |
|
Total (A)+(B) |
24,980,366 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
24,980,366 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
and marketing of Elastomeric/ PVC/XLPE Cables, Fluroplastic Cables, Optical Fibre
Cables and Jelly Filled Telecommunication Cables. |
||||||||||||||||
|
|
|
||||||||||||||||
|
Products : |
|
||||||||||||||||
|
|
|
||||||||||||||||
|
Brand Names : |
UNICAB |
GENERAL INFORMATION
|
Bankers : |
|
|
|
|
|
Banking
Relations : |
- |
|
|
|
|
Auditors : |
|
|
Name : |
Rashmi Zaveri and Company Chartered Accountants |
|
Address : |
Arham Gr. Floor, |
|
|
|
|
Associates/Subsidiaries : (AS ON 31.03.2010) |
|
CAPITAL STRUCTURE
As On 12.08.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs. 10/- each |
Rs.300.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
24980366 |
Equity Shares |
Rs. 10/- each |
Rs.249.803 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 |
249.803 |
249.800 |
249.800 |
|
|
2] Share Warrants and Outstanding |
0.000 |
0.000 |
16.150 |
|
|
3] Reserves & Surplus |
440.970 |
(295.980) |
(37.540) |
|
|
4] (Accumulated Losses) |
(1019.473) |
0.000 |
0.000 |
|
|
NETWORTH |
(328.700) |
(46.170) |
228.410 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
340.850 |
664.520 |
|
|
2] Unsecured Loans |
1772.425 |
981.270 |
152.840 |
|
|
TOTAL BORROWING |
1772.425 |
1322.120 |
817.360 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1443.725 |
1275.950 |
1045.770 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
528.002 |
545.870 |
435.370 |
|
|
Capital work-in-progress |
40.543 |
14.710 |
77.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
23.237 |
23.240 |
23.240 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
524.104
|
519.190
|
502.040 |
|
|
Sundry Debtors |
590.314
|
482.090
|
389.040 |
|
|
Cash & Bank Balances |
108.288
|
168.830
|
84.460 |
|
|
Other Current Assets |
2.731
|
40.700
|
32.530 |
|
|
Loans & Advances |
236.699
|
165.850
|
132.550 |
|
Total
Current Assets |
1462.136
|
1376.680
|
1140.620 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
|
|
|
Other Current Liabilities |
610.193
|
659.580
|
618.140 |
|
|
Provisions |
|
24.970
|
13.220 |
|
Total
Current Liabilities |
610.193
|
684.550
|
631.360 |
|
|
Net Current Assets |
851.943
|
692.130
|
509.260 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1443.725 |
1275.950 |
1045.770 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3112.727 |
1806.185 |
1278.590 |
|
|
|
Other Income |
38.252 |
26.704 |
23.490 |
|
|
|
TOTAL (A) |
3150.979 |
1832.889 |
1302.080 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw materials consumed |
2615.130 |
1499.532 |
|
|
|
|
Manufacturing and Operating Expenses |
258.143 |
233.933 |
1406.150 |
|
|
|
Personal expenses |
112.850 |
101.101 |
|
|
|
|
Selling and Administrative expenses |
255.924 |
115.950 |
|
|
|
|
Increase/Decrease in stock |
(26.160) |
(26.369) |
|
|
|
|
TOTAL (B) |
3215.887 |
1924.147 |
1406.150 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(64.908) |
(91.258) |
(104.070) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
154.499 |
122.041 |
130.270 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(219.407) |
(213.299) |
(234.340) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
63.120 |
61.283 |
51.710 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(282.527) |
(274.582) |
(286.050) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
0.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(282.527) |
(274.582) |
(286.750) |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(736.946) |
(462.363) |
(175.620) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(1019.473) |
(736.946) |
(462.360) |
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss)
Per Share (Rs.) |
(11.31) |
(10.99) |
(11.48) |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.12.2011 |
30.09.2011 |
30.06.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
616.160 |
672.260 |
842.880 |
|
Total Expenditure |
664.570 |
694.460 |
886.690 |
|
PBIDT (Excl OI) |
(48.410) |
(22.200) |
(43.810) |
|
Other Income |
16.630 |
10.890 |
14.050 |
|
Operating Profit |
(31.780) |
(11.310) |
(29.760) |
|
Interest |
37.450 |
47.420 |
48.580 |
|
Exceptional Items |
0.000 |
0.000 |
(14.730) |
|
PBDT |
(69.230) |
(58.730) |
(93.050) |
|
Depreciation |
18.320 |
16.430 |
16.990 |
|
Profit Before Tax |
(87.550) |
(75.160) |
(110.040) |
|
Profit After Tax |
(87.550) |
(75.160) |
(110.040) |
|
Net Profit |
(87.550) |
(75.160) |
(110.040) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(8.97)
|
(14.68)
|
(22.02) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(14.99)
|
(11.81)
|
(18.33) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(13.80)
|
(14.28)
|
(18.15) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.86)
|
4.62
|
(1.25) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
(7.25)
|
(43.46)
|
6.34 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.40
|
2.01
|
1.81 |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
No |
|
8) No. of employees |
No |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three 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 involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
No |
|
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 |
REVIEW OF OPERATIONS
During the
year, the Company has achieved Sales Turnover (net of excise) of Rs. 3112.728
Millions as against Rs. 1806.185 Millions for the financial year ended 31st
March, 2010 which is quite substantial, but this was not sufficient to break-even
and Company has incurred a Net Loss of Rs. 282.527 Millions before tax as
against a loss of Rs. 274.582 Millions for the previous year ended 31.03.2010.
The various steps taken for improving the operations were reflected in higher
sales turnover and reduced operating loss in year.
SUBMISSION
OF DRAFT REHABILITATION SCHEME (DRS) FOR APPROVAL TO THE BOARD FOR INDUSTRIAL
AND FINANCIAL RECONSTRUCTION (BIFR) ENVISAGING AMALGAMATION OF THE COMPANY WITH
APAR INDUSTRIES LIMITED, THE HOLDING CO. (AIL)
Pursuant to
the reference made by the Company in accordance with the provisions of Sick
Industrial Companies (Special Provisions) Act 1985 (SICA) to the Board for
Industrial and Financial Re-construction (BIFR), the Company has been declared
as Sick Industrial Company by
BIFR vide its' order dated October 26, 2010 and
directed the Company to file a fully tied up Draft Rehabilitation Scheme (DRS)
for it's revival to Syndicate Bank who has been appointed as Operating Agency
(OA) to examine the DRS. After having preliminary discussion with the
management of AIL, the Holding Company, the Company has submitted DRS to OA
which include proposal for amalgamation of the Company with AIL with
cut-off-date as 31st March 2010 for expeditious revival.
In the opinion
of the Management of the Company and also its Holding Company, the above option
is most suitable for expeditious revival of the Company as there is blink
possibility of its revival independently. The Company is pursuing the matter
with BIFR for early approval of the said Rehabilitation Proposal submitted by
the Company. The Company is also proposing appropriate Resolution in the notice
to the members to take the approval of its shareholders in the ensuing Annual
General Meeting (AGM) for the same.
PROPOSAL
FOR AMALGAMATION OF MARINE CABLES AND WIRES PRIVATE LIMITED (MCWPL) - A WHOLLY
OWNED SUBSIDIARY OF THE COMPANY -WITH APAR INDUSTRIES LIMITED (AIL), THE PARENT
COMPANY
As
reported last year, M/s Marine Cables and Wires Private Limited (MCWPL), a Wholly
Owned Subsidiary of the Company, which was doing job works for the Company, has
also been declared as Sick Industrial Company by BIFR and directed MCWPL to
submit a Draft Rehabilitation Scheme (DRS) for its revival.
The
Management of the Company had discussion on the matter with the management of
AIL and also with MCWPL with regard to revival of MCWPL. As directed by BIFR,
MCWPL has already submitted a Draft Rehabilitation Scheme (DRS) proposing
Amalgamation of MCWPL with AIL for consideration and sanction by BIFR.
Syndicate Bank, Mumbai has been appointed as Operating Agency (OA) by BIFR to
monitor/ review and submit the final Rehabilitation Proposal. The OA is taking
necessary steps in the matter as directed by BIFR.
MANAGEMENT DISCUSSION AND ANALYSIS
FORWARD-LOOKING
STATEMENTS
This
report contains forward looking statements that covers expectations and
projections about the future, including statements about the Company's strategy
for growth, product development, market scenario, expenditures and financial
results.
Forward-looking
statements are based on certain assumptions and expectations of future events.
The Company cannot guarantee that these assumptions and expectations are
accurate or will be realized fully. The Company's actual results, performance
or achievements, could thus differ materially from those projected in any such
forward-looking statements. The Company assumes no responsibility to publicly
amend, modify or revise any forward looking statements, on the basis of any
subsequent developments, information or events.
OVERALL
REVIEW
The
Company is manufacturing Electrical and Telecommunication cables and markets
its cable under the brand name 'UNICAB' and 'UNIFLEX'. The power cable industry
showed sign of recovery in demand in the domestic market despite continued
global recessionary trends and commodity raw material price volatility. The
demand for elastomeric cable also has been improving due to increased focus on
Windmill, Steel and Mining sector. The demand in international market was
generally stagnant. The Multinational cable manufacturers are looking to enter
Indian cable market and looking for tie-up with domestic manufacturers.
The demand
of the telecommunication cables remained subdued due to wireless technologies
getting higher preference and has also not been showing any major improvement,
though it's outlook remains positive in terms of Fiber optic cable demand.
OPPORTUNITIES
The Indian
power sector is currently dominated by State/ Central utilities. The installed
generation capacity in the country at present is about 1,60,000 MW and is
growing. India still is a power deficient country with a significant energy
shortage. As our country's Annual GDP continues to grow at close to about 9%,
energy requirement is also bound to grow rapidly.
To bridge
this deficit and to cater to future demand, the country needs additional power
generation capacity of approx. 100,000 MW during the next five years. Apart
from capacity shortage, the power sector in the country is having problems of
high transmission and distribution losses, power pilferage and concessional
tariff for certain sectors. Several power generation projects are coming up in
private sector. Many private Discoms are strengthening power distribution
network leading to higher demand for cables. Government, impetus towards
renewable energy projects is opening several opportunities. All these measures
will give a boost to power sector in the country which will provide good
opportunities for business growth in the power cable segment.
The
telecommunication cable sector continues to witness tough times due to over
capacity besides slow down in decision making at lead telecom operator BSNL due
to certain contract award anomalies in the past. The capacity utilization rates
across companies are at low and uneconomical levels. The surplus capacity
relating to demand, has led to lower realizations, making the business
operations for Jelly Filled Telecom Cable (JFTC] un-remunerative. Therefore the
Company has decided to exit this business.
There is
likely to be good demand for Fiber optic cables coming up at BSNL. With the
proposed introduction of 3G services by the Telecom operators, there is
expected to be good demand for Fiber optic cables in private sector also. There
is severe competition in this sector, which has taken its toll on revenues and
profits of all major fiber optic cable manufacturing companies.
OUTLOOK
The demand
for electrical cable is likely to be emerging stronger as economy is already
showing signs of good growth. The Government is continuing with plans to create
significant additional power capacity, giving major boost to power generation
and distribution sector. The distribution of power is getting better
streamlined for improving its efficiency. Similarly further investment by large
industrial houses in various infrastructure and mining projects gaining
momentum, it will also drive the demand of electrical cables significantly.
The demand
for Fiber Optic cables is also likely to show improvement due to Government,
deciding to create a country wide parallel telecom infrastructure for Defence
services. Higher penetration of broadband services and also introduction of 3G
services, all resulting in increased demand for fiber optic cables.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.63 |
|
|
1 |
Rs.81.94 |
|
Euro |
1 |
Rs.67.65 |
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.