MIRA
INFORM REPORT
|
Report Date : |
10.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
AKSH OPTIFIBRE LIMITED |
|
|
|
|
Registered
Office : |
F-1080, Phase III, RIICO Industrial Area, Bhiwadi-301019, Rajasthan |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
19.03.1986 |
|
|
|
|
Com. Reg. No.: |
17-016132 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.714.624
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24305RJ1986PLC016132 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JPRA01280G |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on The Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Optical Fibres. |
|
|
|
|
No. of Employees
: |
125 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 12500000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track record. There
appears some dip in the sales turnover during 2011. It has incurred huge loss from its operations during this year also. However, trade relations are reported as fair. Business is active.
Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.
|
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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced controls
on foreign trade and investment, began in the early 1990s and has served to
accelerate the country's growth, which has averaged more than 7% per year since
1997. India's diverse economy encompasses traditional village farming, modern
agriculture, handicrafts, a wide range of modern industries, and a multitude of
services. Slightly more than half of the work force is in agriculture, but
services are the major source of economic growth, accounting for more than half
of India's output, with only one-third of its labor force. India has
capitalized on its large educated English-speaking population to become a major
exporter of information technology services and software workers. In 2010, the
Indian economy rebounded robustly from the global financial crisis - in large
part because of strong domestic demand - and growth exceeded 8% year-on-year in
real terms. However, India's economic growth in 2011 slowed because of
persistently high inflation and interest rates and little progress on economic
reforms. High international crude prices have exacerbated the government's fuel
subsidy expenditures contributing to a higher fiscal deficit, and a worsening
current account deficit. Little economic reform took place in 2011 largely due
to corruption scandals that have slowed legislative work. India's medium-term
growth outlook is positive due to a young population and corresponding low
dependency ratio, healthy savings and investment rates, and increasing
integration into the global economy. India has many long-term challenges that
it has not yet fully addressed, including widespread poverty, inadequate
physical and social infrastructure, limited non-agricultural employment
opportunities, scarce access to quality basic and higher education, and
accommodating rural-to-urban migration.
|
Source
: CIA |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/Factory 1 : |
F-1080, Phase III, RIICO Industrial Area, Bhiwadi-301019, Rajasthan,
India |
|
Tel. No.: |
91-1493-221954 / 221955 / 221636 / 223536 / 221333 / 220763 / 220388 / 220718 |
|
Fax No.: |
91-1493-221636 / 221329 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
J-1/1, B-1 Extension, Mohan Co-operative Industrial Estate, |
|
Tel. No.: |
91-11-26991508 / 09 |
|
Fax No.: |
91-11-26991510 |
|
|
|
|
Factory 2 : |
F-1075-81, RIICO Industrial Area (Phase III), Bhiwadi-301019, Rajasthan, India |
|
Tel No: |
91-1493-221333 / 220763 / 220388 / 220718 |
|
Fax No: |
91-1493-221955 / 223536 |
|
|
|
|
Factory 3 : |
A-315 (B), RIICO Industrial Area (Phase I), Bhiwadi-301019, Rajasthan, India |
|
Tel./Fax No.: |
91-1493-221955 / 223536 |
|
|
|
|
Factory 4 : |
Shri Khatu Shyam Ji Industrial Complex, Ringus, District Sikar-352404, Rajasthan, India |
|
Tel No: |
91-1575-224151 / 224154 |
|
Fax No: |
91-1575-224150 |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Dr. Kailash S. Choudhari |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Chetan Choudhari |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Mr. P.F. Sundesha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B.R. Rakhecha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Narendra Kumbhat |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Arun Sood |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Amrit Nath |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. K. Mathur |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Gaurav Mehta |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2012
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
|
|
As
a % of (A+B) |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
23582349 |
18.65 |
|
|
23582349 |
18.65 |
|
|
|
|
|
|
19592700 |
15.49 |
|
|
19592700 |
15.49 |
|
Total shareholding of Promoter and Promoter Group (A) |
43175049 |
34.14 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
984363 |
0.78 |
|
|
0 |
0.00 |
|
|
984363 |
0.78 |
|
|
|
|
|
|
37423969 |
29.59 |
|
|
|
|
|
|
10835004 |
8.57 |
|
|
31699580 |
25.07 |
|
|
2340581 |
1.85 |
|
|
1877461 |
1.48 |
|
|
463120 |
0.37 |
|
|
82299134 |
65.08 |
|
Total Public shareholding (B) |
83283497 |
65.86 |
|
Total (A)+(B) |
126458546 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
6250000 |
0.00 |
|
|
14173692 |
0.00 |
|
|
20423692 |
0.00 |
|
Total (A)+(B)+(C) |
146882238 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Optical Fibres. |
||||||||
|
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|
||||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
125 [Approximately] |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Bankers : |
·
Union Bank of India ·
ICICI Bank Limited |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Facilities : |
NOTE: * Represents Loan
from Dr. Kailash S Choudhari, he was Managing Director upto 31st August 2010,
thereafter he was appointed as Chairman of the Company. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
P.C. Bindal and Company Chartered Accountants |
|
|
|
|
Subsidiaries : |
·
Apaksh Broadband Limited ·
Aksh Technologies Limited ·
Aksh Net Tel Limited (Dissolved) ·
Aksh Infratel Limited (Dissolved) ·
SPYK Global Limited (Dissolved) ·
AOL FZE |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
160000000 |
Equity Shares |
Rs.5/- each |
Rs.800.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
142924871 |
Equity Shares |
Rs.5/- each |
Rs.714.624
Millions |
NOTE:
1 Issued,
Subscribed and Paid up Capital includes:
a) 9,505,860
(previous year 9,505,860) Equity Shares of Rs. 5/- each issued as fully paid up
Bonus Shares by capitalization of Securities Premium and Reserves.
b) 1,660,942
(previous year 1,660,942) Equity Shares of Rs. 5/- each issued as fully paid up
to Shareholders of Telecords India Private Limited pursuant to Scheme of
Arrangement.
c) 20,210,400 (previous
year 20,210,400) Equity Shares of Rs. 5/- each issued as fully paid up to
Shareholders of erstwhile Aksh Broadband Limited pursuant to Scheme of
Amalgamation.
2 During the year, the Company has issued:
a) 2,955,097
(previous year 1,641,721) Equity Shares of Rs. 5/- each fully paid up issued at
the premium of Rs. 54.80 per share upon conversion of Foreign Currency
Convertible Bonds ( FCCBs).
b) 9,523,212
(previous year NIL) Equity Shares of Rs. 5/- each fully paid up issued at the
premium of Rs. 15.06 per share upon conversion of Foreign Currency Convertible
Bonds ( FCCBs).
c) 11,550,000
(previous year NIL) Equity Shares of Rs. 5/- each fully paid up issued at the
premium of Rs. 14.50 per share upon issue of shares under Qualified
Institutional Placements (QIP).
d) 58,287,500
(previous year NIL) Equity Shares of Rs. 5/- each fully paid up issued at the
premium of Rs. 15/- per share represented by 1,165,750 Global Depository
Receipts (GDRs) were issued at a price of USD 21.45 per GDR inclusive of
Security Premium. Each GDR equivalent to 50 nos of Equity Shares.
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 |
714.624 |
303.045 |
294.837 |
|
|
2] Share Application Money |
0.000 |
0.000 |
29.000 |
|
|
3] Reserves & Surplus |
3299.628 |
1995.772 |
1941.021 |
|
|
4] (Accumulated Losses) |
(881.705) |
(403.592) |
(265.057) |
|
|
NETWORTH |
3132.547 |
1895.225 |
1999.801 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
154.833 |
|
|
2] Unsecured Loans |
854.353 |
1364.204 |
1661.977 |
|
|
TOTAL BORROWING |
854.353 |
1364.204 |
1816.810 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3986.900 |
3259.429 |
3816.611 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1004.676 |
1057.138 |
1536.017 |
|
|
Capital work-in-progress |
49.888 |
78.176 |
139.455 |
|
|
|
|
|
|
|
|
INVESTMENT |
1532.140 |
1531.775 |
1131.857 |
|
|
DEFERREX TAX ASSETS |
0.000 |
215.512 |
144.355 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
11.346
|
11.483 |
207.731 |
|
|
Sundry Debtors |
204.986
|
209.816 |
456.269 |
|
|
Cash & Bank Balances |
71.497
|
80.183 |
278.737 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
1375.374
|
325.678 |
379.025 |
|
Total
Current Assets |
1663.203
|
627.160 |
1321.762 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
127.813
|
132.486 |
318.785 |
|
|
Other Current Liabilities |
124.940
|
105.767 |
118.246 |
|
|
Provisions |
10.254
|
12.079 |
19.804 |
|
Total
Current Liabilities |
263.007
|
250.332 |
456.835 |
|
|
Net Current Assets |
1400.196
|
376.828 |
864.927 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3986.900 |
3259.429 |
3816.611 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
50.855 |
83.051 |
2400.098 |
|
|
|
Other Income |
72.777 |
174.717 |
40.668 |
|
|
|
TOTAL (A) |
123.632 |
257.768 |
2440.766 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating and Other Expenses |
271.098 |
329.899 |
2262.559 |
|
|
|
Administrative and Selling Expenses |
0.000 |
0.000 |
621.413 |
|
|
|
TOTAL (B) |
271.098 |
329.899 |
2883.972 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(147.466) |
(72.131) |
(443.206) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
23.202 |
23.932 |
96.525 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(170.668) |
(96.063) |
(539.731) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
91.934 |
113.629 |
208.558 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(262.602) |
(209.692) |
(748.289) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
215.511 |
(71.157) |
(267.968) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(478.113) |
(138.535) |
(480.321) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(403.592) |
(265.057) |
111.396 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
(45.000) |
|
|
|
Reversal of Impairment |
0.000 |
0.000 |
(58.868) |
|
|
BALANCE CARRIED
TO THE B/S |
(881.705) |
(403.592) |
(265.057) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports of Goods |
0.000 |
13.746 |
615.860 |
|
|
|
Exports Incentive |
0.148 |
0.000 |
0.000 |
|
|
|
Interest received on FDRs |
5.410 |
2.546 |
16.085 |
|
|
TOTAL EARNINGS |
5.558 |
16.292 |
631.945 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
0.000 |
0.000 |
1115.911 |
|
|
|
Capital Goods |
16.767 |
88.213 |
486.164 |
|
|
|
Others |
0.000 |
13.399 |
18.991 |
|
|
TOTAL IMPORTS |
16.767 |
101.612 |
1621.066 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(4.37) |
(2.34) |
(8.66) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
30.06.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
5th
Quarter |
|
Net Sales |
28.860 |
29.720 |
29.840 |
114.960 |
47.850 |
|
Total Expenditure |
43.860 |
40.540 |
38.350 |
109.480 |
49.400 |
|
PBIDT (Excl OI) |
(15.000) |
(10.820) |
(8.510) |
5.480 |
(1.550) |
|
Other Income |
11.710 |
17.590 |
27.660 |
33.860 |
49.350 |
|
Operating Profit |
(3.290) |
6.770 |
19.150 |
39.340 |
47.800 |
|
Interest |
4.4500 |
4.460 |
0.000 |
3.120 |
3.830 |
|
Exceptional Items |
0.360 |
36.140 |
28.030 |
(15.670) |
0.000 |
|
PBDT |
(7.380) |
38.450 |
47.180 |
20.550 |
43.970 |
|
Depreciation |
19.640 |
19.890 |
19.940 |
19.750 |
19.740 |
|
Profit Before Tax |
(27.020) |
18.560 |
27.240 |
0.800 |
24.230 |
|
Profit After Tax |
(27.020) |
18.560 |
27.240 |
0.800 |
24.230 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(27.020) |
18.560 |
27.240 |
0.800 |
24.230 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(386.72)
|
(53.74) |
(19.68) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(516.37)
|
(252.49) |
(31.17) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(9.84)
|
(12.45) |
(26.18) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.08)
|
(0.11) |
(0.37) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.35
|
0.85 |
1.14 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.32
|
2.51 |
2.89 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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 |
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 |
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 |
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 |
No |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
OPERATIONAL REVIEW:
During the year,
the Company attained a gross turnover of Rs. 50.855 Millions as against Rs.
83.051 Millions during the previous year. The Net Loss after Tax during the
year was Rs. 478.114 Millions as against Rs. 138.535 Millions for the previous
year, due to loss arising out of foreign exchange fluctuation on account of
re-statement of foreign exchange assets and liabilities of Rs. 23.533 Millions
during the current year as against gain of Rs. 153.389 Millions in the previous
year and also due to reversal of deferred tax assets in excess of deferred tax
liability of Rs. 215.512 Millions.
The Company has
the largest subscriber base of IPTV customers in South East Asia and with a
view to further consolidate its market position as well as ensure a steady and
stable growth, the Company is expanding its IPTV under the brand “iControl” in
the cities of Delhi and Mumbai and with BSNL in 20 cities of North India, viz.
State of Jammu and Kashmir, Himachal Pradesh, Punjab, Haryana, Rajasthan and
U.P.(West). The Company is also offering host of ad-on services viz, Time Shift
TV (Chill and Cool), Video on Demand (VoD), A-Tube (Video Yellow pages –
Pull advertising), iControl Mall (on line shopping) and TV messaging. The
Company is the pioneer in the FTTH (Fibre -To- The- Home) space and has more
consolidated its spot by starting its FTTH services in Jaipur, Ajmer,
Faridabad, and Ambala.
The Company is
operating its VoIP services under the brand “Pigeon” in the cities of Delhi and
Mumbai in association with MTNL. The brand has been well established in the
market and people have started using Pigeon VoIP as an effective tool for
getting connected with their near and dear ones living abroad.
FUTURE OUTLOOK:
With the growth of
infrastructure and look out of new revenue streams beyond data and voice
services, it is predicted that the demand of IPTV is slated to grow upto 109 mn
by 2014, with the global revenue rising to US$ 41bn by 2014. As per the industry
reports the number of IPTV subscribers is expected to increase in the markets
where FTTH deployments are powering ahead. Further, with the increased demand
of infrastructure, technology advancements and consumer shift from linear to
non linear TV viewing, demand of IPTV is set to surge ahead in India. To tap
the growing IPTV market, the Company is offering various interactive and
educative services through its IPTV platform which is well accepted and
appreciated by the subscribers. The Company is also tapping international
markets for gaining foothold in IPTV business. For the same purposes, the
Company has incorporated a Wholly Owned Subsidiary (WoS) namely ‘AOL-FZE’ in
the Sharjah Airport Free Zone, Sharjah (U.A.E.). The purpose is to explore new business
ventures which can be operated with the present line of business, enlarge its
present business operations and the like.
MANAGEMENT DISCUSSION AND ANALYSIS OF THE FINANCIAL STATEMENTS AND
OPERATIONAL RESULTS:
INDUSTRY STRUCTURE
AND DEVELOPMENTS:
GLOBAL INDUSTRY SCENARIO:
Research from
Point Topic has revealed that broadband subscriptions have driven global IPTV
usage to a record level of over 45 million users. The results presented by the
Broadband Forum, showed that in all IPTV usage climbed by 34.6% in 2010 out of
which in July, 2010 the half billion broadband lines mark was passed. The year
ended with 523 million lines, a net addition of over 55 million lines. Matching
this impressive growth was a commensurate uplift in IPTV subscribers to 45.4
million, with over 11.5 million new subscribers. The research also revealed
that Q4 2010 was the strongest quarter for IPTV growth, with an 8% growth
delivering 3.4 million additions. IPTV subscribers worldwide will reach 109 Mn.
by 2014, rising at a compound annual growth rate (CAGR) of about 25% between
2011 to 2014, as telcos look for new revenue streams beyond data and voice
services. With the developed and developing economies opting for FTTH
(Fibre-To-The-Home) Technology as a viable broadband option, the Industry is
set to grow with the regulators coming forward to foster the State owned telcos
to switch to FTTH Technology.
IPTV / VOIP
SERVICES SCENARIO:
Emergence of IPTV
as a medium for TV viewing has provided consumers with more choice. IPTV services
can be delivered by telecom service providers or Internet service
providers. The major benefit of
switching to IPTV is to enjoy non – linear TV viewing and with Video on Demand
(VoD) or even Time Shifted TV (TSTV), – the next gen way of consuming video
entertainment/edutainment/infotainment at one’s own leisure. The user is also
allowed to pause, fast forward or reverse at his/her convenience. This type of
instant joy is available only through IPTV and this service has benefits for
all – from consumers to service providers to content producers.
A jump in
bandwidth usage along with fibre - to –home installations has been driving IPTV
in India. The growth drivers of IPTV in India are growth in Broadband usage and
aggressive Network expansion through Telecom Companies namely BSNL and MTNL.
With the private telecom players also offering DTH and IPTV services, coupled
with the demand of FTTH technology, need of high bandwidth by big corporate
banks and Insurance Companies for data, audio and video conferencing would
further fuel up the demand for IPTV networks.
The key driver of
IPTV services is its cost effectiveness both at the time of installation and
after sales service, coupled with the ability of the subscriber to optimally use
the internet. Faster growth in IPTV is mostly driven by proliferation of Triple
Play, improved DSL / fibre broadband capacity, accelerated install time,
continued improvement in QoS / QoE and additional HD content. The Telco TV
upgrades, all based on globally standardized IP protocol technology, are
continually improving while costs are dropping or remaining stable, allowing
further investments.
IPTV has started
to gain a foothold in several small or emerging markets and has begun to win
customers, albeit at a slow pace. It is reported that amongst all the IPTV
markets, Asia –Pacific region is slated to be the second largest IPTV Market in
the world. It is also reported that in the next 4 years IPTV would grow at a
CAGR of 26%. VoIP (Voice over Internet Protocol) or Internet telephony is a low
cost voice communication technology, using prevailing internet protocol. The
Company has launched its VoIP services by the brand name ‘Pigeon’ in
collaboration with MTNL, using the existing broadband network of MTNL in the
cities of Delhi and Mumbai.
FIXED ASSETS:
·
Freehold Land
·
Leasehold Land
·
Factory Building
·
Residential Building
·
Plant and Machinery
·
Telecom Networking
·
Air Conditioner
·
Furniture and Fixtures
·
Office Equipments
·
Data Processing Systems
·
Electric Fittings
·
Vehicles
STANDALONE UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2012
Rs. in Millions
|
Sr. No. |
Particular |
Quarter Ended |
Year Ended |
||
|
|
|
30.06.2012 |
31.03.2012 |
30.06.2011 |
31.03.2012 |
|
|
|
Unaudited
|
Unaudited |
Unaudited |
Unaudited |
|
|
|
|
|
|
|
|
1. |
Net Sales/Income
from Operations |
29.469 |
99.858 |
13.242 |
140.474 |
|
|
Other Operating
Income |
18.384 |
15.101 |
15.620 |
62.903 |
|
|
Total Income |
47.853 |
114.959 |
28.862 |
203.377 |
|
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
|
Cost
of materials consumed |
7.400 |
61.631 |
0.000 |
61.631 |
|
|
Purchase
of stock in trade |
0.089 |
0.248 |
0.294 |
0.971 |
|
|
Changes
in inventories of finished goods, work in progress and stock in trade |
0.000 |
7.696 |
(0.008) |
7.708 |
|
|
Employees
benefits expenses |
11.315 |
10.038 |
11.379 |
42.682 |
|
|
Depreciation
and amortization expenses |
19.735 |
19.755 |
19.643 |
79.230 |
|
|
Subscription
charges |
5.635 |
4.718 |
9.923 |
24.123 |
|
|
Other
expenditure |
24.976 |
25.141 |
21.901 |
94.158 |
|
|
Total Expenses |
69.150 |
129.227 |
63.133 |
310.503 |
|
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
(21.297) |
(14.268) |
(34.271) |
(107.126) |
|
|
|
|
|
|
|
|
4. |
Other
Income |
49.349 |
33.863 |
11.713 |
90.729 |
|
|
|
|
|
|
|
|
5. |
Profit
Before Interest and Exceptional Items (3+4) |
28.052 |
19.595 |
(22.558) |
(16.397) |
|
|
|
|
|
|
|
|
6. |
Interest |
3.827 |
3.169 |
4.820 |
12.934 |
|
|
|
|
|
|
|
|
7. |
Profit
After Interest but before Exceptional Items (5-6) |
24.225 |
16.426 |
(27.378) |
(29.331) |
|
|
|
|
|
|
|
|
8. |
Exceptional
Items |
-- |
(16.576) |
0.357 |
48.853 |
|
|
|
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
24.225 |
0.751 |
(27.021) |
19.522 |
|
|
|
|
|
|
|
|
10. |
Tax
Expense |
-- |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
11. |
Net
Profit from Ordinary Activities after Tax (9-10) |
24.225 |
0.751 |
(27.021) |
19.522 |
|
|
|
|
|
|
|
|
12. |
Extraordinary
Item (net of expense) |
-- |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
13. |
Net Profit
for the period (11-12) |
24.225 |
0.751 |
(27.021) |
19.522 |
|
|
|
|
|
|
|
|
14. |
Paid-up
Equity Share Capital (Face Value of Rs.5/- Each) |
720.427 |
714.624 |
714.624 |
714.624 |
|
|
|
|
|
|
|
|
15. |
Reserves
Excluding Revaluation Reserve |
-- |
-- |
-- |
2437.445 |
|
|
|
|
|
|
|
|
16. |
Basic and Diluted Earning Per
Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
|
a)
Basic and diluted EPS before extraordinary items |
0.17 |
0.01 |
(0.19) |
0.14 |
|
|
b)
Basic and diluted EPS after extraordinary items |
0.15 |
0.01 |
(0.17) |
0.13 |
|
|
|
|
|
|
|
|
17. |
Public Shareholding |
|
|
|
|
|
|
-Number
of Shares |
96535340 |
99975646 |
122474799 |
99975646 |
|
|
-
Percentage of Shareholding |
67.00 |
69.95 |
85.69 |
69.95 |
|
|
|
|
|
|
|
|
18. |
Promoters and Promoter Group
Shareholding |
|
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
|
-
Number of Shares |
Nil |
Nil |
Nil |
Nil |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of promoter and
promoter group) |
Nil |
Nil |
Nil |
Nil |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
Nil |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
|
-
Number of Shares |
47550049 |
42949225 |
20450072 |
42949225 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
100.00 |
100.00 |
100.00 |
100.00 |
|
|
- Percentage
of Shares (as a % of the Total Share Capital of the Company) |
33.00 |
30.05 |
14.31 |
30.05 |
|
Particulars |
Quarter Ended 30.06.2012 Unaudited |
|
Pending at the beginning of the quarter |
-- |
|
Received during the quarter |
-- |
|
Disposed of during the quarter |
-- |
|
Remaining unresolved at the end of the
quarter |
-- |
STANDALONE UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED JUNE 30, 2012
Rs. in Millions
|
Sl. No. |
|
Particulars |
QUARTER
ENDED |
YEAR ENDED |
||
|
|
30.06.2012 |
31.03.2012 |
30.06.2011 |
31.03.2012 |
||
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
|
|
|
Trading |
0.253 |
1.097 |
0.646 |
2.954 |
|
|
|
Manufacturing |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
Services |
29.216 |
98.762 |
12.597 |
137.521 |
|
|
|
Total |
29.469 |
99.859 |
13.243 |
140.475 |
|
|
|
|
|
|
|
|
|
|
|
Less : Inter Segment Revenue (Net of Excise) |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
|
Net Sales / Income
from Operation |
29.469 |
99.859 |
13.243 |
140.475 |
|
|
|
|
|
|
|
|
|
2 |
|
Segment Results |
|
|
|
|
|
|
|
(Profit / Loss
before tax and finance costs) |
|
|
|
|
|
|
|
Trading |
0.164 |
0.863 |
0.359 |
1.985 |
|
|
|
Manufacturing |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
Services |
(21.461) |
(15.130) |
(34.630) |
(109.111) |
|
|
|
Total |
(21.297) |
(14.267) |
(34.271) |
(107.126) |
|
|
|
|
|
|
|
|
|
|
|
Less :Interest |
3.827 |
3.169 |
4.820 |
12.934 |
|
|
|
Less : Unallocated
Expenses / Income |
(49.349) |
(33.862) |
(11.713) |
(90.729) |
|
|
|
Profit / Loss
after finance costs but before exceptional items |
24.225 |
16.426 |
(27.378) |
(29.331) |
|
|
|
Exceptional items
exchange fluctuation gain / loss |
0.000 |
(15.675) |
0.357 |
48.853 |
|
|
|
Profit / loss from
ordinary activities before tax |
24.225 |
0.751 |
(27.021) |
19.522 |
|
|
|
|
|
|
|
|
|
3 |
|
Capital Employed |
|
|
|
|
|
|
|
Trading |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
Manufacturing |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
Services |
1423.626 |
1335.419 |
1370.067 |
1335.419 |
|
|
|
Unallocated |
2787.649 |
2775.110 |
2611.660 |
2775.110 |
|
|
|
Total |
4211.275 |
4110.529 |
3981.727 |
4110.529 |
NOTE:
1. The above financial results were approved by the audit committee and taken
on record by the board of directors in their respective meetings held on August
10, 2012. Limited Review of the same has been carried out by the statutory
auditors of the company.
2. During the quarter, company has allotted 1160518 equity shares upon conversion
of FCCBs issued and allotted in February, 2010. Further, the company has
allotted 2796849 equity shares upon conversion of FCCBs on July 5, 2012.
3. During the quarter, pursuant to RBI and stock exchange approval, the
company has allotted new FCBBs of aggregating USD 1.205 Mn, in exchange of
FCCBs of USD 1.00 Mn.
4. In view of volatile foreign exchange market, exchange gain / loss on
foreign currency assets / liabilities (Other than operation), being an
exceptional item have not been provided for the quarter ended June 30, 2012.
The effect of such gain / loss will be provided for at the year end. Had such
gain / loss been provided, the profit for the quarter would have been higher by
Rs.38.525 Millions.
5. Previous period figures have been regrouped and rearranged wherever
necessary.
WEBSITE DETAILS:
MILESTONES:
1986:
·
Incorporated as a Private Limited Company
1994:
·
Converted into a Public Limited Company.
·
Diversified into the manufacture of Optic Fibre
Cables (OFC) by setting up a plant at Bhiwadi (Plant-I). Annual capacity -
6500Cable Kilometers (CKM).
1995:
·
Integrated backwards into manufacture of Optical
Fibre with Annual capacity of 150,000 Fibre Kilometres(FKM).
·
The company launches its first IT Park project MVL
iPark in Gurgaon.
1998:
·
ISO 9002 accreditation by United Laboratories (UL),
USA.
1999:
·
OFC manufacturing capacity increases to 33,000 CKM
·
Took over the Optical Fibre Cable plant of CMI Ltd.,
Plant-II, Capacity increased to 50,000 CKM.
2000:
·
Came with an IPO and got listed on BSE, NSE and
JSE.
·
Merged Telecords (India) Private Limited
manufacture of FRP rods with Plant at JaitPura
(Plant-IV).
2001:
·
Enhanced the production capacity of Fibre to 1.45
million FKM, by commissioning a dual Fibre Drawing Tower
2002:
·
Increased capacity at Ringus plant to 0.8 million
KMs
2003:
·
Added capability to manufacture Ribbon cable and
special access cable FTTH
2006:
·
AKSH - MTNL tie-up for IPTV (icontrol).
2007:
·
AKSH launched VOIP (Pigeon) in partnership with
MTNL.
2008:
·
AKSH - MTNL launched Video Calling in Delhi &
Mumbai.
2009:
·
Became member of FTTH council.
·
Successful renewal of ISO 9001:2008 by Underwriters
Laboratories Inc. (UL).
2010:
·
ISO 14001:2004 certified by URS.
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 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.54.34 |
|
|
1 |
Rs.86.97 |
|
Euro |
1 |
Rs.69.43 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
30 |
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.