MIRA
INFORM REPORT
|
Report Date : |
18.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
PRECISION WIRES INDIA LIMITED |
|
|
|
|
Registered
Office : |
Saiman House, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
23.11.1989 |
|
|
|
|
Com. Reg. No.: |
11-054356 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.115.644
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L31300MH1989PLC054356 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMP15082E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACP7555L |
|
|
|
|
Legal Form : |
Public Limited Liability Company. Company’s shares are listed on the
stock exchanges. |
|
|
|
|
Line of Business
: |
The Company is Engaged in Manufacture of Winding Wires of Copper. |
|
|
|
|
No. of Employees
: |
100 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (49) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 7200000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having fine track record. There appears
dip in the profitability of the company. However, trade relations are
reported to be fair. Business is active. Payments are reported to be regular
and as per commitment. The company can be considered for normal business dealing on a usual
trade terms and condition. |
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 : |
Saiman House, |
|
Tel. No.: |
91-22-24360089, 24376281 (EPABX) |
|
Fax No.: |
91-22-24362593, 24370687 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
Unit I and II : Atlas Wire Plot Survey No.125/2, Amli Hanuman (66KVA) Road, Silvassa – 396230, |
|
|
|
|
Factory 2 : |
Palej Unit : Atlas Wire Plot No.3, |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Mahendra R. Mehta |
|
Designation : |
Chairman and Managing Director and Chief Executive Officer |
|
Date of Birth
& Age : |
82 Years |
|
Experience : |
59 Years |
|
Date of
Commencement of Employment : |
June, 1975 |
|
|
|
|
Name : |
Mr. |
|
Designation : |
Vice Chairman and Managing Director |
|
Date of Birth
& Age : |
48 Years |
|
Qualifications : |
B.S. (E.E.) |
|
Experience : |
26 Years |
|
Date of
Commencement of Employment : |
April, 1996 |
|
|
|
|
Name : |
Mr. Deepak M. Mehta |
|
Designation : |
Whole Time Director |
|
Date of Birth
& Age : |
54 Years |
|
Qualifications : |
B.Com |
|
Experience : |
31 Years |
|
Date of Commencement
of Employment : |
January, 1989 |
|
|
|
|
Name : |
Mr. P.N. Vencatesan |
|
Designation : |
Independent and Non-Executive Director |
|
Date of Birth
& Age : |
18.08.1926 |
|
Qualifications : |
Chartered Accountant |
|
Expertise in specific
function : |
Renowned Management Consultant |
|
Date of
Appointment : |
Appointed as Additional Director on 11.09.1991 and as Director on
25.09.1992 at the Annual General Meeting and thereafter re-appointed on
retirement by rotation from time to time, the last such re-appointment being
at the AGM held on 19.09.2009. |
|
|
|
|
Name : |
Mr. Vijay M. Crishna |
|
Designation : |
Independent and Non-Executive Director |
|
|
|
|
Name : |
Mr. A.P. Kothari |
|
Designation : |
Independent and Non-Executive Director |
|
|
|
|
Name : |
Mr. Pratap R Merchant |
|
Designation : |
Independent and Non-Executive Director |
|
Date of Birth
& Age : |
02.03.1935 |
|
Qualifications : |
B.Com., CAIIB- I |
|
Expertise in
specific function : |
Ex-Banker and has rich experience in Banking and Finance Sectors |
|
Date of
Appointment : |
Appointed as Additional Director on 28.10.1998 and as Director on
23.07.1999 at the Annual General Meeting and thereafter re-appointed on
retirement by rotation from time to time, the last such re-appointment being
at the AGM held on 19.09.2009. |
|
List of other
companies in which directorship held as on 31st March, 2011 : |
a) Setco
Automotive Limited b) KJMC Asset
Management Company Limited c) GeeCee
Ventures Limited (Formerly known as Gwalior Chemical Industries Limited) d) Relcon Infraprojects Limited |
KEY EXECUTIVES
|
Name : |
Mr. S.G. Sathe |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
5,162,615 |
44.65 |
|
|
1,734,668 |
15.00 |
|
|
6,897,283 |
59.65 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
6,897,283 |
59.65 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1,100 |
0.01 |
|
|
1,100 |
0.01 |
|
|
|
|
|
|
558,198 |
5.09 |
|
|
|
|
|
|
2,321,603 |
20.08 |
|
|
1,612,017 |
13.94 |
|
|
143,422 |
1.24 |
|
|
1,000 |
0.01 |
|
|
141,422 |
1.22 |
|
|
1,000 |
0.01 |
|
|
4,665,240 |
40.34 |
|
Total Public shareholding (B) |
4,666,340 |
40.35 |
|
Total (A)+(B) |
11,563,623 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
11,563,623 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 million BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in manufacture of winding wires of copper. |
||||||
|
|
|
||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
(A) Capacities and
Production - rounded off to the nearest Metric Ton (MT)
|
I CAPACITY @ |
Licensed |
Installed MTs. |
|
a) Winding Wires made of Copper, all types # |
## @@ |
33540 |
|
b) Wire Enamels / Resins ** |
## |
1750 |
NOTES:
@ As certified by
the Managing Director and accepted by the Auditors.
## Licensed
Capacity per annum is not indicated due to the abolition of Industrial licenses
as per Notification No. 477 (E) dated July 25,
1991 issued under
The Industries (Development and Regulation) Act, 1951
** For Wire Enamels/Resins, Capacity clubbed together.
|
@@ |
MTs. |
|
Installed Capacity as on 31.3.2010 |
29100 |
|
Add : New capacity addition during the year Installed Capacity as on
31.3.2011 |
4440 |
|
|
33540 # |
# This excludes an effective capacity of 1500 MTs Per Year of Palej
Plant which operated for part of the year.
II PRODUCTION
|
Winding Wires Made
of Copper (Finished Goods) |
2010-2011 (MTs.) |
||
|
Own Account |
Job Work Basis |
Total |
|
|
a) Enamelled Round Wires |
16236 |
4228 ** |
20464 |
|
b) Other - all types |
1419 |
3949 |
5368 |
|
|
17655 |
8177 |
25832 |
** Excludes
Production of 18 MTs Interunit Enamelled Winding Wires made of copper done by
Unit II for Unit Palej on Jobwork basis.
c) Bare Copper Wires
/ Strips (intermediate Products, used for Capative consumption only)
|
|
MTs 2010-2011 |
MTs 2009-2010 |
|
Jobwork - Inter Unit Unit I Unit II Palej Unit |
76 559 141 |
327 338 0 |
|
Total |
776 |
665 |
|
d) Waste and Scrap
of Copper generated during process on Total Production of items covered under
a and b above. (Includes 12 MT(16 MT) scrap generated from Rejected Finished Goods
Returned by Customers) |
** |
1193 |
|
**Out of the above, 72 MT (100 MT) of Waste and Scrap of Copper was
dispatched for conversion into Copper Rods on Jobwork basis. |
||
|
|
|
|
|
e) Wire Enamels
/ Resins |
@ |
988 |
|
@ (Includes 22 (30) MTs, Resin (an Intermediate Product used for Production
of Wire Enamel) |
||
GENERAL INFORMATION
|
No. of Employees : |
100 (Approximately) |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
v
Bank of v
BNP Paribas, Fort, Mumbai, |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
Note: Bank borrowings
from Bank of Baroda (Term Loan and Working Capital facilities) are secured by
a first charge on Hypothecation of Machinery, Stock-in-Trade, Book debts and Equitable
Mortgage of Land and Factory Buildings of the Company and in addition, are
guaranteed by Executive Directors.
Note: Unsecured
Working capital facilities from ING Vysya Bank, Barclays Bank, BNP Paribas and
Yes Bank are guaranteed by Executive Directors. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S.R. Divatia and Company Chartered Accountants |
|
Address : |
Mumbai, |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12000000 |
Equity Shares |
Rs.10/- each |
Rs.120.000 Millions |
|
3000000 |
Unclassified Shares |
Rs.10/- each |
Rs.30.000 Millions |
|
|
Total |
|
Rs.150.000
Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11565223 |
Equity Shares |
Rs.10/- each |
Rs.115.652
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11563623 |
Equity Shares |
Rs.10/- each |
Rs.115.636
Millions |
|
|
Add: Forfeiture of 1,600 Equity Shares (Amount originally paid up) |
|
Rs.0.008
Million |
|
|
Total |
|
Rs.115.644 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 |
115.644 |
115.644 |
115.644 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1698.286 |
1469.029 |
1302.326 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1813.930 |
1584.673 |
1417.970 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
544.851 |
540.871 |
602.496 |
|
|
2] Unsecured Loans |
205.992 |
25.000 |
25.000 |
|
|
TOTAL BORROWING |
750.843 |
565.871 |
627.496 |
|
|
DEFERRED TAX LIABILITIES |
178.411 |
173.937 |
159.035 |
|
|
|
|
|
|
|
|
TOTAL |
2743.184 |
2324.481 |
2204.501 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1478.353 |
1274.588 |
1320.394 |
|
|
Capital work-in-progress |
50.818 |
45.596 |
26.542 |
|
|
|
|
|
|
|
|
INVESTMENT |
5.017 |
0.016 |
1.611 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
487.666
|
287.195
|
424.725 |
|
|
Sundry Debtors |
1918.781
|
1374.237
|
786.563 |
|
|
Cash & Bank Balances |
279.902
|
288.797
|
204.696 |
|
|
Other Current Assets |
26.087
|
25.510
|
16.321 |
|
|
Loans & Advances |
550.701
|
209.176
|
194.086 |
|
Total
Current Assets |
3263.137
|
2184.915
|
1626.391 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1487.818
|
1019.497
|
693.809 |
|
|
Other Current Liabilities |
504.925
|
121.865
|
55.415 |
|
|
Provisions |
61.650
|
39.272
|
21.213 |
|
Total
Current Liabilities |
2054.393
|
1180.634
|
770.437 |
|
|
Net Current Assets |
1208.744
|
1004.281
|
855.954 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.252 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2743.184 |
2324.481 |
2204.501 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales and Processing Income (Net) |
8736.375 |
6301.933 |
5362.208 |
|
|
|
Other Income |
12.750 |
29.967 |
7.183 |
|
|
|
TOTAL (A) |
8749.125 |
6331.900 |
5369.391 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating Expenses |
8108.816 |
5856.763 |
5205.687 |
|
|
|
Extraordinary Items [Profit on |
0.000 |
(14.059) |
0.000 |
|
|
|
TOTAL (B) |
8108.816 |
5842.704 |
5205.687 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
640.309 |
489.196 |
163.704 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
47.704 |
46.322 |
39.841 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
592.605 |
442.874 |
123.863 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
122.474 |
108.782 |
103.222 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
470.131 |
334.092 |
20.641 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
160.128 |
107.862 |
9.024 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
310.003 |
226.230 |
11.617 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
35.966 |
39.263 |
38.969 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
230.000 |
170.000 |
0.500 |
|
|
|
Interim Dividend @ Rs.2.40 per Equity Share |
27.753 |
27.753 |
0.000 |
|
|
|
Final Dividend @ Rs.3.60 per Equity Share |
41.629 |
23.127 |
9.251 |
|
|
|
Provision for Corporate Tax on - On Interim Dividend |
4.611 |
4.716 |
0.000 |
|
|
|
- On Final Dividend |
6.753 |
3.931 |
1.572 |
|
|
BALANCE CARRIED
TO THE B/S |
35.223 |
35.966 |
39.263 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods on FOB Basis |
386.090 |
232.749 |
188.655 |
|
|
TOTAL EARNINGS |
386.090 |
232.749 |
188.655 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1330.290 |
523.332 |
651.150 |
|
|
|
Consumable Stores & Spares, Packing Material & Repairs to
Plant |
8.281 |
10.431 |
27.884 |
|
|
|
Capital Goods |
190.535 |
30.665 |
53.001 |
|
|
TOTAL IMPORTS |
1529.106 |
564.428 |
732.035 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic & Diluted EPS before Extra Ordinary Items |
26.81 |
18.76 |
1.00 |
|
|
|
- Basic & Diluted EPS after Extra Ordinary Items |
26.81 |
19.56 |
1.00 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd Quarter |
4th
Quarter |
|
Net Sales |
2497.520 |
2197.960 |
2133.390 |
2492.550 |
|
Total Expenditure |
2387.630 |
2101.470 |
2056.330 |
2395.330 |
|
PBIDT (Excl OI) |
109.890 |
96.490 |
77.060 |
97.220 |
|
Other Income |
0.980 |
0.720 |
1.120 |
1.260 |
|
Operating Profit |
110.870 |
97.210 |
78.180 |
98.490 |
|
Interest |
10.800 |
13.500 |
15.090 |
19.600 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
100.080 |
83.710 |
63.090 |
78.890 |
|
Depreciation |
32.350 |
31.920 |
32.820 |
32.250 |
|
Profit Before Tax |
67.720 |
51.790 |
30.270 |
46.640 |
|
Tax |
17.580 |
18.070 |
12.180 |
7.150 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
50.140 |
33.720 |
18.100 |
39.490 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
50.140 |
33.720 |
18.100 |
39.490 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.54
|
3.57
|
0.21 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.38
|
5.30
|
0.38 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.92
|
9.65
|
0.70 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.21
|
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.55
|
1.10
|
0.98 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.59
|
1.85
|
2.11 |
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 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 |
No |
|
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 |
No |
OPERATIONS
During the fiscal the
overall economic climate was satisfactory and the Company has performed very
well. PBT has increased to Rs.470.100 millions (Rs.334.100 millions) and PAT is
Rs.310.000 millions (Rs.226.200 millions) for the year. Reserves and Surplus
(without revaluation) has increased to Rs.1698.300 millions (Rs.1469.000
millions).
The Company has
discharged all financial obligations in time on due dates without any delay or
default.
During the year:
[a] The total Production
of Finished Goods was about 25832 [23500] MT, an increase of approx. 10%.
[b] Sales Income
Gross was Rs.9761.800 millions [Rs.6970.600 millions] and Income net of Taxes
Rs.8736.400 millions [Rs.6301.900 millions] respectively. Sales Income is higher
during the year due to increase in production on own account, lower job work
business and higher cost of Copper.
[c] Increase in
the Gross Block stands at Rs.343.000 millions (Rs.69.600 millions) due to
addition in Plant and Machinery and Civil Works during the year.
[d] Prices of
Copper, their principal input, remained volatile. However, the Company
preferred to, generally, have back-to-back procurement of input and sales of
finished goods so as to avoid pricing mismatch related issues.
[e] The Company
has successfully executed and completed an Order for substantial quantity of
Paper Insulated Copper Conductors received from Bharat Heavy Electricals
Limited, the largest Electrical Equipment Manufacturer in
Due to the
melt-down of economy, in the world and also in their country, during fiscal
2008-09, the Company had deferred plans for expansion. However, equipments
ordered during fiscal 2009-10 have been received during the second half of
fiscal and put to use during QIV FY10-11. The Company has purchased, for future
expansion, about 14 Acres of
The Company is the
market leader in the field of winding wires made of copper in
On the whole, the
Company has performed extremely well despite challenging conditions. Barring
unforeseen circumstances such as inflation, high rates of interest and other
developments, the Company may continue to grow in coming years.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry Structure and Development:
The Company
produces Winding Wires made of Copper which are used in the manufacture of both
rotating and static electrical equipments. Though there are number of players
in the Industry, including many in SSI sector, due to quality of their products
and loyalty of OEM customers, they performed well.
The overall
capacity utilization of the Industry in the Country has marginally increased.
The competition may continue to be intense.
Over the years,
the Company has shifted marketing-base and presently supplies more than 90% of
finished goods to OEMs. In Exports sector, the quality of the products is very
well received. Indigenous equipments made for producing Winding Wires need
substantial improvement in quality and design.
Segment-wise or Product-wise performance:
The Company's core
activity is production and sale of only one product i.e. Winding Wires made of
Copper. The overall production has increased by about 10%. Company's product is
well received in domestic and export markets. Winding Wire Division of Palej
Plant, which was revived on experimental basis during fiscal 2010-11, has
contributed only about 2% of the total production of the Company. The energy
and costs for the experiment are disproportionate to the effort.
Insulating Varnish
Division at Palej is of immense utility to the Company.
Outlook:
Long Term outlook
of the Indian Economy, and consequently, electric-power-sector is healthy.
Discussion on Financial Performance with respect to
Operational performance:
During the year,
Net Sale Income was higher at Rs.8736.300 millions [Rs.6301.900 millions] due
to increase in production, higher rate of input and lower quantity of Job work
undertaken. Outflow for Power and Fuel was lower at Rs.145.800 millions
[Rs.159.000 millions]. Salaries and wages were higher at Rs.109.500 millions
[Rs.103.000 millions]. Cost of packing material consumed was higher at
Rs.64.800 millions [Rs.50.800 millions] due to higher sales, increase in the
cost of packing materials and exports. Stores and Spares are higher at
Rs.46.900 millions [Rs.37.000 millions]. Repairs and maintenance of machinery
is higher at Rs.38.200 millions [Rs.29.800 millions]. Freight and
Transportation has increased to Rs.80.400 millions [Rs.60.200 millions] due to
increase in the cost of freight, higher sales and exports. Other Expenses
Rs.76.600 millions [Rs.54.800 millions] includes increase in Security Charages,
Bank charges, contract labour etc., Foreign Exchange Loss is Rs.10.000 millions
[Gain Rs.7.500 millions] on account of exchange rate variations on imported
input / plant and machinery. Travelling Expenses Rs.6.200 millions [Rs.4.100
millions], increase is due to more domestic and overseas travels by executives
for marketing.
Reserves and
Surplus is Rs.1698.300 millions [Rs.1469.000 millions] as at 31st
March 2011, Outstanding Fixed Loan from Bank is higher due to availment of
Buyer's Credit on imported raw materials / plant and machinery; Rs.259.400
millions [Rs.177.800 millions]. Working Capital Borrowing from Banks is
Rs.490.900 millions [Rs.362.000 millions] making aggregate borrowings from
Banks Rs.750.800 millions [Rs.540.900 millions].
Capital Work in progress is Rs.50.800 millions [Rs.45.600 millions]
Inventory has
increased to Rs.487.700 millions [Rs.287.200 millions] due to increase in
production and higher rate of input. Debtors have increased to Rs.1918.800
millions [Rs.1374.200 millions] due to higher sale on own account, decrease in
jobwork activity and higher rate of input. Current Assets comprising Cash and
Bank Balances, Loans and Advances and other current assets are Rs.856.700
millions [Rs.523.500 millions]. Total Current assets increased to Rs.3263.100
millions [Rs.2184.900 millions] and Current Liabilities to Rs.1992.700 millions
[Rs.1141.400 millions].
The Company
continues to be market leader in the field of winding wires made of copper in
The Company has
discharged all financial obligations in time on due dates, without any default
or delay.
CONTINGENT LIABILITIES:
|
Particulars |
31.03.2011 (Rs. in
millions) |
|
a. Guarantees given
by Bank to third parties |
83.422 |
|
b. Disputed
Income Tax Demands (not acknowledged) against which Company / Department has
preferred an appeal |
0.270 |
|
c. Disputed
Wealth Tax Demands (not acknowledged) against which Company has preferred an appeal |
0.340 |
|
d. Disputed
demands of Central Excise against erstwhile Atlas Wires Limited pending in
Appeal |
0.455 |
|
e. Disputed
demand of Gujarat Electricity Board pending at |
-- |
|
f. Disputed demand
of Service Tax Credit on Sales Commission against which Company has preferred
appeals After the above
demands have been raised, CBEC, vide Circular No. 943/04/2011-CX dated
29.4.2011has clarified that Cenvat Credit on Service Tax paid on Sales Commission
is allowable. |
0.407 |
|
g. Disputed
demand of Service Tax distributed by Input Service provider against which
Appeal is to be made |
0.058 |
STATEMENT OF AUDITED
FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31ST MARCH, 2012
(Rs. in Millions)
|
Sr. |
|
Quarter ended |
Year ended |
|
|
No. |
Particulars |
31.03.2012 |
31.12.2011 |
31.03.2012 |
|
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
1 |
Income
from Operations |
|
|
|
|
|
(a)
Net Sales / Income from Operations (Net of Excise Duty) |
2489.630 |
2133.081 |
9317.864 |
|
|
(b)
Other Operating Income |
2.923 |
0.306 |
3.559 |
|
|
Total
Income from Operations (Net) |
2492.553 |
2133.387 |
9321.422 |
|
2 |
Expenses |
|
|
|
|
|
(a)
Cost of Material Consumed |
2278.167 |
1964.714 |
8377.838 |
|
|
(b)
Purchase of Stock-in-Trade |
0.491 |
0.000 |
5.486 |
|
|
(c)
Changes in Inventories of Finished Goods, Work-in-progress and Stock-in-Trade |
(84.018) |
(92.631) |
(136.365) |
|
|
(d)
Employee benefits expenses |
26.547 |
28.126 |
115.643 |
|
|
(e)
Depreciation & Amortisation Expense |
32.253 |
32.822 |
129.351 |
|
|
(f)
Power & Fuel |
49.087 |
46.705 |
174.813 |
|
|
(g)
Other Expenditure |
125.050 |
109.416 |
402.771 |
|
|
Total
Expenditure |
2427.577 |
2089.152 |
9069.537 |
|
3 |
Profit
(+)/Loss (-) from Operations before Other Income, Finance Cost &
Exceptional Items (1-2) |
64.976 |
44.235 |
251.885 |
|
4 |
Other
Income |
1.260 |
1.123 |
4.076 |
|
5 |
Profit(+)/Loss
(-) from ordinary activities before Finance Cost & Exceptional Items
(3+4) |
66.236 |
45.358 |
255.961 |
|
6 |
Finance
Cost |
19.598 |
15.087 |
59.532 |
|
7 |
Profit
(+)/Loss (-) from ordinary activities after finance costs but before
Exceptional Items (5+6) |
46.638 |
30.271 |
196.429 |
|
8 |
Add
/(Less): Exceptional Items |
- |
- |
- |
|
9 |
Profit
(+)/Loss (-) from Ordinary Activities before Tax (7+8) |
46.638 |
30.271 |
196.429 |
|
10 |
Less:
Tax Expenses |
7.151 |
12.175 |
54.978 |
|
11 |
Net
Profit (+) /Loss (-) from Ordinary Activities after tax (9-10) |
39.487 |
18.096 |
141.451 |
|
12 |
Extraordinary
Items (net of Tax expenses) |
- |
- |
- |
|
13 |
Net
Profit (+) /Loss (-) for the period (11+12) |
- |
- |
- |
|
14 |
Paid-up
equity share capital (Face value of share Rs. 10/- each) |
115.636 |
115.636 |
115.636 |
|
15 |
Reserves
excluding revaluation reserve (as per balance sheet) |
|
|
1799.269 |
|
16 |
Earnings
Per Share (EPS) (Quarterly Not Annualised) |
|
|
|
|
|
(i)
Earning per Share (before Extraordinary Items) of Rs.10/- each (quarterly not
annualised) |
3.41 |
1.56 |
12.23 |
|
|
(ii)
Earning per Share (after Extraordinary Items) of Rs.10/- each (quarterly not
annualised) |
3.41 |
1.56 |
12.23 |
|
|
|
|
|
|
|
A. |
PARTICULARS
OF SHAREHOLDING |
|
|
|
|
1 |
Public
Shareholding |
|
|
|
|
|
-
Number of Shares |
4,666,340 |
4,666,340 |
4,666,340 |
|
|
-
% of shareholding |
40.35% |
40.35% |
40.35% |
|
2 |
Promoters
and promoter group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
-
Number of Shares |
- |
- |
- |
|
|
-
Percentage of shares (as a % of the total 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 |
6,897,283 |
6,897,283 |
6,897,283 |
|
|
-
Percentage of shares (as a % of the total shareholding of promoter and
promoter group) |
100.00% |
100.00% |
100.00% |
|
|
-
Percentage of shares (as a % of the total share capital of the company) |
59.65% |
59.65% |
59.65% |
|
|
|
|
|
|
|
B |
INVESTORS
COMPLAINTS |
Three Months ended
31.03.12 |
|
|
|
|
Pending
at the beginning of the quarter |
NIL |
|
|
|
|
Received
during the quarter |
2 |
|
|
|
|
Disposed
during the quarter |
2 |
|
|
|
|
Remaining
unsolved at the end of quarter |
NIL |
|
|
STATEMENT OF ASSETS AND
LIABILITIES
(Rs. in Millions)
|
Sr.
No. |
Particulars |
As at 31st March, 2012 |
|
|
|
(Audited) |
|
A. |
LIABILITIES |
|
|
|
EQUITY AND LIABILITIES |
|
|
|
1 Shareholders funds |
|
|
|
(a)
Share Capital |
115.644 |
|
|
(b)
Reserves and Surplus |
1799.269 |
|
|
Total |
1914.913 |
|
|
2 Non current Liabilities |
|
|
|
(a)
Long-Term Borrowings |
52.640 |
|
|
(b)
Deferred Tax Liabilities (Net) |
167.299 |
|
|
(c) Long Term - Security Deposits |
0.200 |
|
|
(d)
Long Term provisions |
0.000 |
|
|
Total |
220.139 |
|
|
3 Current Liabilities |
|
|
|
(a)
Short-term borrowings |
580.734 |
|
|
(b)
Trade Payables |
1531.787 |
|
|
(c) Other Current Liabilities |
233.280 |
|
|
(d)
Short-term provisions |
42.743 |
|
|
Total |
2388.544 |
|
TOTAL OF EQUITY AND
LIABILITIES |
4523.596 |
|
|
|
|
|
|
B |
ASSETS |
|
|
|
Non-current
Assets |
|
|
|
(a)
Fixed Assets |
1500.598 |
|
|
(b)
Non-Current Investments |
5.013 |
|
|
(c)
Long Term Loans and Advances in the nature of Deposits |
5.747 |
|
|
(d)
Other Non Current assets |
0.000 |
|
|
Total |
1511.358 |
|
|
Current
Assets, Loans and Advances |
|
|
|
(a)
Inventories |
761.071 |
|
|
(b)
Trade Receivables |
1683.452 |
|
|
(c)
Cash and Bank Balances |
270.787 |
|
|
(d)
Short-Term Loans and Advances |
245.143 |
|
|
(e)
Other Current Assets |
51.785 |
|
|
Total |
3012.238 |
|
TOTAL OF ASSETS |
4523.596 |
|
Notes:
1.
Previous
year's figures have been regrouped/reworked wherever necessary to make them
comparable with the Current Year.
2.
The
results for the quarter and year ended 31st March, 2012 have been reviewed by
the Audit Committee of the Board and have been approved by the Board of
Directors at its meeting held on 28th May, 2012.
3.
The
Board of Directors of the Company have recommended Final dividend @Rs.1.20 per
share (12%) for the Financial Year 2011-12, subject to the approval of
shareholders in ensuing Annual General Meeting. The Board of Directors declared
and paid Interim Dividend @ Rs.1.80 Per Share (18%) in February/March 2012 making
total Dividend for the year Rs 3.00 per Share (30%).
4.
The
Company is primarily engaged in a single Segment i.e. Business of manufacture
of Winding Wires. Therefore, Segment reporting as defined in Accounting
Standard AS-17 is not applicable.
5.
Figures
for the quarter ended 31st March, 2012 and 31st March, 2011 are balancing
figures between the Audited figures for full financial years ended 31st March,
2012 & 31st March, 2011, and published year to date figures up to the third
Quarter of the relevant financial year.
FIXED ASSETS:
Tangible Assets:
v Land - Free Hold
v Buildings
v Plant and
Machinery
v Vehicles
v Office Equipments
v Furniture and
Fixtures
Intangible Assets:
v
Technology Transfer Cost
WEBSITE DETAILS:
PROFILE:
Subject was set up in 1989 for the manufacture of Enamelled Copper Winding Wires. It was promoted by erstwhile Atlas Wires Limited (AWL), Mr. Mahendra Mehta, Mr. Deepak Mehta and Mr. Milan Mehta.
Subject has been listed on the Bombay Stock Exchange (523529) and National Stock Exchange (PRECWIRE) since inception.
AWL's first manufacturing facility was set up in 1981 in the
western Indian state of
Headquartered in
Our current installed capacity is about 30,000 metric
tonnes/annum. This capacity is further being increased with several expansion
projects in the pipeline across various product lines. Subject has three
manufacturing facilities located at Silvassa, Dadra Nagar Haveli and Palej,
At subject, they produce winding wires as per various technical specifications including IEC, IS, BS, NEMA and JIS as well as per specific requirements their customers may have.
Subject's customers include many large and medium electrical
and electronic equipment manufacturers both in
v Rotating machines (manufacturer and repairer)
v Alternators
v Hermetic motors (for refrigeration and air conditioning equipment)
v Power and Distribution Transformers
v Control and Power supply Transformers
v Ballasts
v Auto Electricals
v Electric hand Tools
v House hold appliances
v Fans
Switchgear, relay and magnet coils
Instruments and audio coils and many others
In recent years, subject has been increasingly targeting overseas markets. In the last fiscal year, exports accounted for over 15% of their sales volume.
BUSINESS DESCRIPTION:
Subject is engaged in the manufacture of winding wires of
copper. During the fiscal year ended March 31, 2011 (fiscal 2011), the total
production of finished goods was about 25832 [23500] metric tons. As of March
31, 2011, the company’s installed capacity was about 30000 tons per annum. Its
products include Enamelled Round Winding Wires, Rectangular Enamelled Copper
Wires, Paper Insulated Copper Conductors (PICC) and Continuously Transposed
Conductors (CTC). The Company offers a range of Enamelled Round Winding Wires
for use in electrical machines, such as motors, generators, transformers, house
hold appliances, auto-electricals, electrical hand tools, refrigeration
(hermetic) motors, fans, switchgears, coils and relays and ballasts. It has
three manufacturing facilities located at Silvassa, Dadra Nagar Haveli and
Palej,
BOARD OF DIRECTORS:
Mahendra R. Mehta
Executive Chairman of
the Board, Chief Executive Officer, Managing Director
Shri. Mahendra R. Mehta is the Executive Chairman of the Board, Chief Executive Officer, Managing Director of Subject. He is also the Chairman of the Board and Managing Director of Atlas Wires Limited.
Executive Vice
Chairman of the Board, Managing Director
Shri. Milan M. Mehta is Executive Vice Chairman of the Board, Managing Director of Subject. He holds B.S. (E.E.) qualifications and was Technical Director of Atlas Wires Limited, prior to joining the Company as Managing Director. He has contributed immensely to the performance of the company over the years and played pivotal part in implementation of Expansion Projects undertaken by the Company.
Vijay M. Crishna
Independent
Non-Executive Director
Shri. Vijay M. Crishna is the Independent Non-Executive Director of Subject. He is also the Director of Godrej and Boyce Mfg. Company Limited, Godrej Industries Limited and Godrej Agrovet Limited.
Ashwin Kumar Kothari
Independent
Non-Executive Director
Shri. Ashwin P. Kothari is the Independent Non-Executive Director of Subject. He is a Technocrat-Enterpreneur.
Pratap R. Merchant
Independent
Non-Executive Director
Shri. Pratap R. Merchant is the Independent Non-Executive
Director of Subject. He is a Ex-Banker and has experience in Banking and
Finance Sectors. He holds B.Com., CAIIB- I. His other directorships includes:
Setco Automotive Limited, KJMC Asset Management Company Limited, GeeCee
Ventures Limited (Formerly known as
P. N. Vencatesan
Independent
Non-Executive Director
Shri. P. N. Vencatesan is the Independent Non-Executive
Director of Subject. He is a Management Consultant. He is a Chartered
Accountant.
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.55.15 |
|
|
1 |
Rs.86.30 |
|
Euro |
1 |
Rs.67.88 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
49 |
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.