MIRA
INFORM REPORT
|
Report Date : |
23.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
FINOLEX CABLES LIMITED |
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Registered
Office : |
26/27, Mumbai – |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
05.06.1967 |
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Com. Reg. No.: |
11-016531 |
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Capital
Investment / Paid-up Capital : |
Rs. 305.900 Millions |
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CIN No.: [Company Identification
No.] |
L31300MH1967PLC016531 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
PNEF00515E |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer of
Electrical and Communication cables with a wide products range. |
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No. of Employees
: |
1487 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 30000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are
reported as fair. Business is active. Payments are reported to be regular. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AA (CASH CREDIT) |
|
Rating Explanation |
High degree of safety. It carry very low
credit risk |
|
Date |
29.08.2012 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ : SHORT TERM DEBT |
|
Rating Explanation |
Very strong degree of safety. It carry
lowest credit risk. |
|
Date |
29.08.2012 |
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 : |
26/27, Mumbai –
Pune Road, Pimpri, Pune – 411018, Maharashtra |
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Tel. No.: |
91-20-27475963 / 27506200 |
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Fax No.: |
91-20-27472239 / 27470344 |
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E-Mail : |
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Website : |
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Factory 2: |
Optic Fibre Division Urse Taluka Maval, District Pune-410506 Telephone : 91-2114- 237003/4/5/6/7 Facsimile : 91-2114- 237009 Email: sunil@finolex.com |
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Factory 3: |
Switches Division Gat No.344, Village Urse, Taluka Maval, District Pune-410506 Telephone : 91-2114- 237021-2-3 Facsimile : 91-2114-237006 Email : MV_Rangwani@finolex.com |
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Factory 4: |
117/L118,
Verna Industrial Estate, Verna Salcette Goa – 403722, Facsimile : 91-832-2783909 Email : ratnakar_barve@finolex.com |
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Factory 5: |
S263/2A,
Panjim - Telephone : 91-832-2344376 / 8 Facsimile : 91-832-2344140 Email : knarayanan@finolex.com |
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Factory 6: |
HVPC Urse, Pune Gat No.343, Village Urse, Taluka Maval, District Pune-410506 Telephone : 91-2114- 237001-5 Facsimile : 91-2114-237006 Email : amit_bakhle@finolex.com |
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Factory 7: |
Urse (Electrical and Communication Cables) Taluka Maval, Dist. Pune 410 506 Telephone 91-2114- 237026/27 Facsimile 91-2114-237025 Email: pm_deshpande@finolex.com |
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Factory 8: |
Lighting Division (CFL) / Sheets Division Plot No.399, Village - Urse, Taluka - Maval, District-Pune-410506 Telephone : 91-2114- 237035, 237024 Facsimile : 91-2114-237025 Email : svdeshpande@finolex.com |
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Factory 9: |
Sheets Division Plot No.399, Village - Urse, Taluka - Maval, District-Pune-410506 Telephone : 91-2114- 237035, 237036 Facsimile : 91-2114-237041 Email : br_kambale@finolex.com |
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Factory 10: |
Plot No. L123/9A, Verna Industrial Estate, Verna Salcette, Telephone : 91-832- 2782002/3/4 Facsimile : 91-832- 2783909 Email: YKG@finolex.com |
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Factory 11: |
Roorkee Plot NosK-1 and K-2 AIS Industrial Estate, Jatherdeva Hoond,
Manglaur, Roorkee, Taluka Haridwar,
Uttarakhand - 247667 Telephone : 91-1332- 224069 Telefax: 91-1332-224068 Email : yyredkar@finolex.com |
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Branches : |
Located At:
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DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. P. P Chhabria |
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Designation : |
Chairman |
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Address : |
9, ICS Colony, |
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Name : |
Dr. H. S. Vachha |
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Designation : |
Director |
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Name : |
Mr. Atul C.
Choksey |
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Designation : |
Director |
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Name : |
Mr. Sanjay K.
Asher |
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Designation : |
Director |
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Name : |
Mr. P. G. Pawar |
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Designation : |
Director |
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Name : |
Mr. Adi. J.
Engineer |
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Designation : |
Director |
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Name : |
Mr. S. B Ravi (Pandit) |
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Designation : |
Director |
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Name : |
Mr. Pradeep R
Rathi |
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Designation : |
Director |
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Name : |
Mr. D. K. Chhabria |
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Designation : |
Managing Director |
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Name : |
Dr. V. G. Pai |
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Designation : |
Director |
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Name : |
Mr. M. Viswanathan
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Designation : |
Director Finance
and Chief Financial Officer |
KEY EXECUTIVES
|
Name : |
Mr. R. G. D’Silva |
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Designation : |
Company Secretary and Vice President (Legal) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.09.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
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|
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|
7875300 |
5.36 |
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|
46653170 |
31.77 |
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|
54528470 |
37.13 |
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Total shareholding
of Promoter and Promoter Group (A) |
54528470 |
37.13 |
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(B) Public
Shareholding |
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|
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|
7429233 |
5.06 |
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|
11429189 |
7.78 |
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|
1337139 |
0.91 |
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|
20195561 |
13.75 |
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|
|
|
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|
25987748 |
17.70 |
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|
31336504 |
21.34 |
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|
14804637 |
10.08 |
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|
72128889 |
49.12 |
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Total Public
shareholding (B) |
92324450 |
62.87 |
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Total (A)+(B) |
146852920 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
6086425 |
0.00 |
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|
6086425 |
0.00 |
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Total (A)+(B)+(C) |
152939345 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Electrical and Communication cables with a wide products range. |
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Products : |
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As on 31.03.2011
|
Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
|
Electrical Cables |
|
TCKM |
2467.97 |
1241.83 # |
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Communication
Cables Optic Fibre Cables |
|
KM |
58000.00 |
37116.78 |
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Other
Communication Cables |
|
TCKM |
5648.00 |
634.61 |
|
PVC Sheets and
Accessories |
|
MT |
2100.00 |
1331.70 |
|
Fibre |
|
KM |
150000.00 |
779736.33 * |
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Poly coated FRP
Rod |
|
KM |
24000.00 |
19268.48 |
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Continuous Cast Copper
Rods |
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MT |
60000.00 |
33419.75 @ |
Note:
Installed capacities are certified by the Managing Director and relied upon by the Auditors
- # Equivalent tonnage 32,297 MT (Previous year 32,669 MT)
- * Includes captive consumption of 668,730 Kms (Previous Year 486,685 Kms.)
- @ captive consumption of 21,906,538MT (Previous year 20,726.556 MT) & Job Work done 0.00 (Previous year 4,836.880 MT)
5,000 TCKM of JFTC Capacity is interchangeable with 332 TCKM of Electrical Cable capacity
GENERAL INFORMATION
|
No. of Employees : |
1487 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
B. K. Khare and Company Chartered Accountants |
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Address : |
706/707, Sharda
Chambers, 7th Floor, New Marine Lines, Mumbai – 400020, |
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Tel. No.: |
91-22-22000607/7318/6360 91-22-66315835/36 |
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Fax No.: |
91-22-22003476 |
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E-Mail : |
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Cost Auditor : |
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Name : |
Joshi Apte and Associates Cost Accountants |
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Associates: |
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Joint Venture |
· Finolex J-Power System Private Limited · Corning Finolex Optical Fibre Private Limited |
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Others |
· Orbit Electricals Private Limited ·
Finolex Infrastructure Limited |
CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
235000000 |
Equity Shares |
Rs. 2/- each |
Rs.470.000 Millions |
|
15000000 |
Unclassified Shares |
Rs. 2/- each |
Rs. 30.000 Millions |
|
|
Total |
|
Rs. 500.000
Millions |
|
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|
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|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
152939345 |
Equity Shares |
Rs. 2/- each |
Rs. 305.900
Millions |
|
|
|
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|
NOTE:
Of the above, 146,065,520 Equity Shares are issued as fully paid up bonus shares by capitalisation of Reserves)
a. Reconciliation of the
shares outstanding at the beginning and at the end of the reporting period
|
|
As on 31.03.2012 |
|
|
Equity Shares |
Number |
(Rs in Millions) |
|
At the beginning of the period |
152939345 |
305.900 |
|
Issued during the period - Bonus issue |
- |
- |
|
Issued during the period - ESOP |
- |
- |
|
Outstanding at the
end of the period |
152939345 |
305.900 |
b. Terms / rights
attached to Equity Shares
The Company has only one class of equity shares having a par value of Rs. 2 per share. Each holder of Equity Shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31st March 2012, the amount of per share dividend recognised as distributions to the equity shareholders is Re. 0.80 (Previous year Re. 0.70)
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
c. Shares held by
holding/ultimate holding company and/or their subsidiaries/associates
There are no shares held by holding/ultimate holding company
and/or their subsidiaries/associates.
d. Details of
shareholders holding more than 5% shares in the Company
|
|
As on 31.03.2012 |
|
|
Equity Shares |
Number |
(Rs in Millions) |
|
Finolex Industries Limited |
22187075 |
44.400 |
|
Life Insurance Corporation of India |
11019680 |
22.000 |
|
Magnum Machines Private Limited |
- |
- |
|
Coated Fabrics Private Lim |
- |
- |
|
Orbit Electricals Private Limited |
46643120 |
93.300 |
e. Terms of
securities issued with conversion option into equity / preference shares
There are no securities issued with conversion option into equity/preference shares.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
305.900 |
305.900 |
305.879 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
7698.400 |
6868.900 |
6125.195 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
8004.300 |
7174.800 |
6431.074 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1342.600 |
1102.100 |
2465.690 |
|
|
2] Unsecured Loans |
202.800 |
160.200 |
285.491 |
|
|
TOTAL BORROWING |
1545.400 |
1262.300 |
2751.181 |
|
|
DEFERRED TAX LIABILITIES |
326.100 |
310.400 |
319.136 |
|
|
|
|
|
|
|
|
TOTAL |
9875.800 |
8747.500 |
9501.391 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4292.300 |
4033.300 |
4475.819 |
|
|
Capital work-in-progress |
120.200 |
187.600 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
2372.100 |
2451.500 |
2802.746 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2811.400
|
2808.400
|
2209.498
|
|
|
Sundry Debtors |
1140.900
|
1302.400
|
710.471
|
|
|
Cash & Bank Balances |
490.000
|
212.900
|
371.621
|
|
|
Other Current Assets |
0.000
|
5.600
|
0.000
|
|
|
Loans & Advances |
936.300
|
1194.500
|
857.220
|
|
Total
Current Assets |
5378.600
|
5523.800
|
4148.810 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
563.800
|
306.900
|
532.796
|
|
|
Other Current Liabilities |
1533.800
|
2973.300
|
1247.614
|
|
|
Provisions |
189.800
|
168.500
|
145.574
|
|
Total
Current Liabilities |
2287.400
|
3448.700
|
1925.984 |
|
|
Net Current Assets |
3091.200
|
2075.100
|
2222.826
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9875.800 |
8747.500 |
9501.391 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
20639.500 |
20357.500 |
16187.156 |
|
|
|
Other Income |
364.000 |
260.900 |
241.103 |
|
|
|
TOTAL (A) |
21003.500 |
20618.400 |
16428.259 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
15533.600 |
16365.900 |
|
|
|
|
Purchase of traded goods |
24.000 |
23.800 |
|
|
|
|
(Increase) / Decrease in inventories of finished goods and work in progress and traded goods |
126.900 |
(640.600) |
|
|
|
|
Employee benefit expense |
694.800 |
647.400 |
|
|
|
|
Other Expenses |
2512.500 |
2226.700 |
|
|
|
|
TOTAL (B) |
18891.800 |
18623.200 |
14977.433 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2111.700 |
1995.200 |
1450.826 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
260.700 |
191.200 |
186.870 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) |
1851.000 |
1804.000 |
1263.956 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
394.700 |
387.800 |
372.270 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
EXCEPTIONAL AND EXTRAORDINARY ITEMS AND TAX |
1456.300 |
1416.200 |
0.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
EXCEPTIONAL ITEMS |
363.600 |
344.400 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
1092.700 |
1071.800 |
891.686 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
110.800 |
203.700 |
315.426 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
981.900 |
868.100 |
576.260 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
795.295 |
401.575 |
32.674 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
100.000 |
100.000 |
|
|
|
Proposed Dividend |
NA |
107.058 |
91.764 |
|
|
|
Tax on Proposed Dividend |
NA |
17.367 |
15.595 |
|
|
|
Debenture Redemption Reserve |
NA |
250.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1777.195 |
795.295 |
401.575 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
483.900 |
393.700 |
582.803 |
|
|
TOTAL EARNINGS |
483.900 |
393.700 |
582.803 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
731.900 |
895.500 |
1377.346 |
|
|
|
Stores & Spares |
19.600 |
22.000 |
24.916 |
|
|
|
Capital Goods |
215.400 |
32.300 |
233.031 |
|
|
TOTAL IMPORTS |
966.900 |
949.800 |
1635.293 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
6.42 |
5.68 |
3.77 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
30.06.2012 |
30.09.2012 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
5179.900 |
5859.800 |
|
Total Expenditure |
|
4692.200 |
5159.600 |
|
PBIDT (Excl
OI) |
|
487.700 |
700.200 |
|
Other Income |
|
17.600 |
147.500 |
|
Operating
Profit |
|
505.300 |
847.700 |
|
Interest |
|
34.700 |
21.500 |
|
Exceptional
Items |
|
(64.700) |
(62.000) |
|
PBDT |
|
405.900 |
764.200 |
|
Depreciation |
|
105.400 |
106.500 |
|
Profit
Before Tax |
|
300.500 |
657.700 |
|
Tax |
|
49.700 |
83.100 |
|
Provision and Contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
250.800 |
574.600 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
250.800 |
574.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
4.67 |
4.21 |
3.51 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.29 |
5.26 |
5.51 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.29 |
11.21 |
10.34 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14 |
0.15 |
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.48 |
0.65 |
0.73 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.35 |
1.60 |
2.15 |
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 |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
GENERAL ECONOMY
The global economy saw a lower growth rate in the year– for the calendar year 2012, global growth was estimated at below 3% compared to the 3.8% and 5.2% clocked in the years 2011 and 2010. While Europe continued to reel under debt pressure, the news from USA has also not been very positive. Most of the Middle East has been experiencing difficulties the past year, resulting in high oil prices – oil prices have increased almost 15% in the January/March quarter with consequential effects on inflation. Meanwhile China has moderated its growth prospects for the upcoming years.
On the domestic front, inflation has been ruling high for well over a year now – while the core inflation seems to have cooled down in the last quarter to around 6%, for most of the year inflation averaged at almost 9%. The high interest rate situation had its negative impact on the economy, with most sectors reporting negative or at best a modest growth. Additionally the high level of government’s fiscal deficit at 5.9% continues to trouble the economy. Real economic growth has fallen sharply to 6.5% from the previous year’s level of 8.5%. Against this backdrop the Rupee has depreciated sharply against the US Dollar – from a level of 44.50 in April 2011 to 50.88 in March 2012 – a depreciation of 14% in one year.
In its recent budget, the government expects the economy to pick up after faltering last year – GDP is expected to grow at over 7% in the coming financial year, fiscal deficit is expected to be contained to less than 5.1% of GDP and inflation is expected to be reined in at under 6.5%. However, this will depend on how some elements of the global economy play out – such as oil and commodity prices, the debt situation in Europe as well as the political situation in the Middle East. Business confidence in the rest of Asia too seems low as China moderates its own growth projections
OPERATIONS
During 2011-12 The Company saw a very modest growth in the top line with sales registering about 2% growth in value terms. This increase was primarily in the Electrical Cables segment. In volume terms growth was visible again only in the Electrical Cables segment – with star performances from product offering to the following customer sectors – automotive, agriculture and construction. In the Communication Cables segment, however, the level of investment in capital expenditure by Telecom service providers was even lower Directors’ Report10 than the previous year resulting in lower sales volumes of Communication Cables. As was indicated in the previous year, the Sheets Division was wound up in the year under review.
Competition, as in the past years, has been keen. Coupled with a year of modest growth and volatile price levels the pressure on margins was continuous. Hence adjustments to the selling prices were kept minimal and to levels that were appropriate.
Income for the year was marginally higher at Rs. 21,003.500 Millions (previous year Rs. 20,618.400 Millions) representing a growth of 2% over the previous year. The Company has recorded a Net Profit after Tax of Rs. 981.900 Millions as against a Net Profit of Rs. 868.100 Millions in the previous year. Improved capacity utilization, better product mix allocation between the various manufacturing units, growth in sales volumes across the product lines mentioned above, tight monitoring of costs and working capital requirement all have contributed to the improvement in the financials for the year under review.
JOINT VENTURES
Finolex J-Power Systems Private Limited, Shirval near Pune As at 31st March 2012, your Company’s investment in the JV stands at Rs. 480.200 Millions. This includes an additional investment of Rs. 98.000 Millions made in January 2012 to finance the enhanced capital needs of the JV.
The Directors are happy to report that the JV commenced its manufacturing operations towards the end of September 2011 and has since been able to supply electrical cables of the 66 KV range. The JV has been active in participating in tenders both locally and overseas with a view to secure business. As is common with products being offered by the JV, pre-qualification requirements are very stringent and no effort is being spared in ensuring that the JV obtains all the requisite certifications
Corning Finolex
Optical Fibre Private Limited
During the year, the marketing JV with Corning of USA was established and an investment of Rs. 0.500 Millions was made. The JV will market Optical Fibre to cable makers within India and it is expected that the JV will commence its operations in the upcoming fiscal.
EXPORTS
During the year (in November 2011), the Company was awarded the Special Trophy for large enterprise in the product group of Highest Exporter in Thrust Markets for Thrust Products for outstanding contribution to Engineering Exports in the year 2008-09. Despite the depressed market situation overseas FOB value of exports for the year was Rs. 483.900 Millions (higher by 22% than the previous year’s export value of Rs. 393.700 Millions).
FINANCE
The Company’s short term debt programs continue to enjoy the highest ratings from CRISIL. Since the last few years these have been accorded the P1+ rating. The Company also holds AA/Stable rating for its Rs.500.000 Millions long term non convertible debentures program 11 44th Annual Report 2011-12 as well as on the long term loans currently outstanding.
In March 2012, the Company repaid an External Commercial Borrowing of JPY 3.5 billion which was originally drawn in 2007. The loan was repaid in full and on time out of internal accruals and without resorting to either a roll over or substitute loans.
The Company follows a balanced policy to manage liquidity and borrowing. Despite the increase in value of operations, owing to tight controls on the working capital cycles, your Company has managed to control financial expenses to the minimum required levels. The Company has been able to meet all its financial commitments in a timely manner.
BUSINESS OF THE
COMPANY:
The Company operates in two main segments - Electrical Cables and Communication Cables.
To support its requirement of Copper Rods for both type of cables, the Company manufactures Continuous Cast Copper Rods (CCC rods), at its Rod Plant at Goa. A small part of this production of CCC rods is, however, sold to third party customers. The result from this operation is declared under the Copper Segment.
In addition, the Company has expanded its product range to include Electrical Switches and Compact Fluorescent Lamps (CFLs). These items, however, account for less than 5% of the Company’s turnover and are hence reported as “Others” in the Segment Results.
REVIEW OF OPERATIONS:
● Production:
- Electrical Cables at 45,348 MT as compared to 42,511 MT in the previous year.
- Metal based Communication cables at 4,276 MT as compared to 5,598 MT in the previous year.
- Optical Fibre Cables at 30,211 KM as compared to 37,116 KM in the previous year.
- Optic Fibre at 273,130 fibre kilometers as compared to 779,740 fibre kilometers in the previous year.
● Sales:
- Electrical Cables (including Excise Duty) at Rs.17705.000 Millions as compared to Rs.14074.000 Millions in the previous year.
- Communication cables (including Excise Duty) at Rs.1420.000 Millions as compared to Rs.2042.000 Millions in the previous year.
- Copper Rods (net of interdivisional transfers and including Excise Duty) at Rs. 2051.000 Millions as compared to Rs.5106.000 Millions in the previous year.
● Exports were higher at Rs. 489.000 Millions as against Rs.400.000 Millions of the earlier year.
● The income from operations (including excise duty) was Rs.21824.000 Millions for the year under review as compared to Rs.21864.000 Millions for the earlier year.
● The Joint Venture with J-Power Systems Corp of Japan commenced manufacturing operations in September 2011. The venture’s plant at Shirwal near Pune is geared to produce Extra High Voltage Electrical Cables in the range of 66KV to 500 KV. With equipment and technology that is state of art, the venture is now gearing itself towards obtaining the required certifications from various agencies to enable it supply Extra High Voltage Electrical Cables to power utilities in the domestic and overseas markets. The venture has begun to actively participate in the various tenders that have been floated by interested power utilities since September 2011.
● The two Optic Fibre draw towers were shut down for up gradation during the second half of the year – major modifications were carried out to these towers, which will vastly improve productivity and yields going forward. The shut down resulted in lower levels of fibre production during the year under review. Both the towers have since become operational in the financial year 2012-13.
BUSINESS ENVIRONMENT:
The segment-wise discussion on the markets which are served by the Company is as follows:
Electrical Cables:
Electrical cables can be further categorised into light duty electrical cables, power and control cables.
(i) Light duty electrical cables include electrical wires used extensively for electrification of industrial establishments, electrical panel wiring in industrial establishments and major equipments, consumer durable goods, automobiles, agricultural pump sets, small generator applications besides general lighting purposes.
(ii) In power cable category, the Company has the ability to manufacture such cables within the range 1.1 kV to 66 kV. These cables are high voltage cables designed in various contractions depending upon their applications; however, always meant for underground usage. Power and control cables upto 3.3 kV rating are used for connecting user point to the main supply of power. Power cables above 3.3 kV rating are meant for use in underground application for intra-city electricity distribution network. The Company manufactures insulated power cables only. These cables meet the requirements of international standards.
Performance:
For the year, the electrical cables registered sales (inclusive of excise duty) of Rs. 17705.000 Millions against Rs.14074.000 Millions of the previous year
Outlook:
Electrical cables are the main focus area of business for the company. It accounted for 82% of total sales for the year under review. Growth during the year was driven by the improvement shown by the construction and automobile sectors. The long term out look for this sector remains positive since the economic growth for the country depends on industrial and infrastructural developments.
The Company faces two principal risks in this business – firstly competition from a large unorganized sector which produces products of inferior quality but at cheap prices and secondly a highly volatile commodity market where price movements can be very sharp. The Company has been handling the risk of the competitive forces through its organized business approach by the strength of its reach, superior quality products, safe products and maintaining high standards of service levels with its customers. The Company enjoys the advantages of economies of scale and backward integration. As and when GST is rolled out in the country, the Company believes the threat of a competitive force that relies on cheap quality and sharp practices will reduce further. As regards the risk of sharp raw material price movements, though the Company endeavors to pass on the price effect to the customers, there has always been a time lag between the price movement and the passing thereof. The Company negotiates price variation contracts with bulk buyers. The Company has been fair in dealing with its customers and accordingly enjoys customer confidence in pricing decisions.
COMMUNICATION CABLES:
The communication cables comprise of state of art, new generation communication cables and traditional telephone cables.
(i) The state of art communication cables are either copper based or glass based. The copper based cables include LAN cables, coaxial cables, PE insulated switchboard cables and V-SAT cables. These cables are used for last mile connectivity. LAN cables are used in high speed networks, Coaxial cables are used to provide content input to TV receiving sets and in microwave communications and mobile towers, PE insulated switchboard cables are used to connect telephone instruments to an EPABX system and V-SAT cables find their application in V-SAT towers to connect the dish to the base station.
Optic fibre cables are glass based cables and they have the maximum bandwidth and speed. Certain cable designs are used as trunk cables in long distance networks while other designs are used in distribution, whether by telecom companies, multi-service organisations or other service providers.
Communication cables which carry, voice data or images is the backbone of an economic activity. The speed and bandwidth determine the capabilities of a communication network.
(ii) Traditional telephone cables include JFTCs which are laid underground and are used for connecting land line telephones to exchanges. These are copper based cables. With introduction of mobile telephones in India and due to substitution by optic fibre cables, JFTC business has lost its value. Nevertheless, JFTC continues to remain a preferred option for last mile connectivity in fixed line telephones. The demand for JFTCs will continue to remain modest. The Company would continue to manufacture JFTCs especially with broadband features for public sector and private sector telecom companies and to meet the export demand. The Company has the capability to make JFTCs as per customer’s needs.
Performance:
The communication cables segment (including optic fibre) recorded sales of Rs.1420.000 Millions for the year under review against Rs.2042.000 Millions for the earlier year. The uncertainties that have plagued the telecom sector over the past two years have had an impact on your Company’s revenues from this segment. Full fledged introduction of value added service has been delayed by telecom service providers. Uncertainties over spectrum usage and licensing also acted as a dampener in this business. Consequently the level of capital expenditure by telecom service providers has been minimal. While care has been taken to improve margins by selling products with higher value addition and thereby protect profitability, your Company also focused on network service providers and PSU units to keep the revenue momentum going. BSNL after several years came out with a tender for JFTC cables, the order for a part of which your Company secured and serviced during the year. Overall this was a year of negative growth in this segment.
Outlook:
With the impetus from the Government in providing better and faster internet access to rural India, your Company believes that demand for communication products will be robust for the foreseeable future. The economic development requires inter-alia, a strong, dependable and sustainable communication network. The Company’s communication cables meet with the requirement of local as well as international standards and therefore, find ready acceptance with domestic customers as well as in the exports market. The outlook here is positive.
The risks of competition and copper price movements similar to the electrical cables business are also applicable to the business of communication cables. The varying global demand-supply equation of optic fibre and resultant price movement thereof; availability of preforms and price thereof and delay/slow-down in investment into networks by telecom companies/service provider and other relevant entities due to global slow-down pose risk to the business of communication cables. The Company’s association with Corning Inc of USA, inventor of glass fibre, one of the world’s leading glass and fibre manufacturers and having the largest market share in the world, would be beneficial in meeting technological and market based challenges.
COPPER RODS:
Copper rod is the feed stock for copper based electrical and communications cables. The Company manufactures its own copper rods. The base material for producing copper rods is copper cathodes, the bulk of which are procured from local manufacturers under long term supply agreements. A smaller portion of the requirement of copper cathodes is imported as and when needed. After meeting the in-house requirement of copper rods, the balance capacity to produce copper rods is allocated for third party sale.
Performance:
During the year, the CCC rods division recorded a production volume of 21,288 metric tones as against 33,496 metric tones for the earlier year. The sales were Rs.9504.000 Millions (previous year Rs.13815.000 Millions) of which Rs.2051.000 Millions were sales to third parties (previous year Rs.5106.000 Millions) and balance was inter-divisional transfers. With continued uncertainties in the global business environment, commodity markets remained volatile through the year. From a high of USD 10,000 per MT, copper prices saw a low of USD 6,200 per MT during the second quarter of the fiscal, before closing the year at around USD 8,300 per MT at the London Metal Exchange. Within the domestic market, the threat of imported copper led to the domestic majors sharply dropping the premium on copper rods from earlier levels, while increasing the premium levels on copper cathode. This put severe pressure on margins related to sale of copper rods to third party – consequently the Company restricted its sale of copper rods to already committed contracts or contracts where the margin levels were acceptable. Overall, therefore, there was a reduction in the throughput at the copper rod segment.
Outlook:
The copper rod production is mainly for in-house consumption. The Company’s steps to set up new plants for cables as well as to expand the cable capacity at the existing plants will boost up the captive consumption of copper rods. Further, since the joint venture with J-Power Systems Corp. of Japan has commenced its manufacturing operations, the venture’s copper requirements would be met by the Company’s copper rod plant. Accordingly the utilization of capacity at copper rod plant is expected to improve in coming years.
ELECTRICAL SWITCHES
AND CFLS:
The manufacture and sale of these electrical products act as a logical extension of the cables business of the Company. They have the backing of Finolex name, assuring the customer of quality, safety and performance standards. These electrical and lighting products are sold through the existing well-spread distribution network of cables. Other distribution avenues are also being explored to penetrate further in the market. Products have been well accepted by the market.
On its part to contain the effects of global warming, the Government is promoting use of CFLs. Keeping in mind the expected growth in CFL demand the Company has built capacity in T3 and T4 type CFLs and has also launched the latest T5 tube lights and fittings in the market.
CONTINGENT
LIABILITIES:
a) Disputed demands in appeal towards Excise Rs. 156.400 Millions (Previous year Rs. 107.100 Millions), Customs Rs. 13.400 Millions (Previous year Rs. 13.400 Millions) and Sales Tax Rs. 599.000 Millions (Previous year Rs. 471.300 Millions )
b) i) Disputed Income Tax demands and matters in Appellate proceedings Rs. 424.900 Millions (Excluding consequential interest or penalty), (Previous year Rs. 439.400 Millions).
ii) Appeals preferred by Income Tax Department against Appellate decisions in favour of the Company, wherein, should the ultimate decision be unfavourable to the Company, the liability is estimated to be Rs. 485.600 Millions (Previous year Rs. 570.100 Millions)
c) Guarantees given by Company’s Bankers on behalf of the Company, towards performance and other matters, amounting to Rs. 474.300 Millions (Previous year Rs. 485.400 Millions), are secured by hypothecation of Stock in trade, Book Debts, Stores and Spares etc.
d) The Company has imported capital goods under the Export Promotion Capital Goods (EPCG) scheme, of the Government of India, at concessional rates of duty on an understanding to fulfill quantified exports against which future obligation aggregates to Rs. 728.300 Millions (Previous year Rs. 791.900 Millions) over a period of six / eight years from the date of license.
e) Amounts claimed by Banks in respect of derivative transactions which are under dispute not acknowledged as debt Rs. 170.900 Millions (Previous year Rs.138.700 Millions).
UNAUDITED FINANCIAL RESULTS FOR THE HALF YEAR ENDED 30.09.2012
(Rs in Millions)
|
PART I |
Quarter Ended |
Six Month Ended |
||
|
Particulars |
30.09.2012
(Unaudited) |
30.06.2012
(Unaudited) |
30.09.2012
(Unaudited) |
|
|
1 |
Income from
Operations a) Net Sales / Income from Operations (Net of excise duty) b) Other Operating Income |
5795.800 64.000 |
5107.5000 72.400 |
10903.300
136.400 |
|
|
|
|
|
|
|
|
Total Income from operations (Net) |
5,859.800 |
5,179.900 |
11,039.700 |
|
|
|
|
|
|
|
2 |
Expenses |
|
|
|
|
|
a) Cost of materials consumed |
4049.100 |
4115.800 |
8164.900 |
|
|
b) Purchases of stock-in-trade |
22.500 |
19.800 |
42.300 |
|
|
c) Chanp.es in inventories of finished goods, |
- |
|
|
|
|
work-in-progress and stock-in-trade |
250.300 |
(356.000) |
(105.700) |
|
|
d) Employee benefits expense |
191.200 |
197.000 |
388.200 |
|
|
e) Depreciation and amortisation expense |
106.500 |
105.400 |
211.900 |
|
|
f) Other Expenses # |
166.200 |
289.300 |
455.500 |
|
|
o) Consumption of Packing Material |
76.600 |
59.300 |
135.900 |
|
|
h) Power & Fuel |
105.700 |
99.700 |
205.400 |
|
|
i) Sales Incentive |
298.000 |
267.300 |
565.300 |
|
|
|
|
|
|
|
|
Total Expenses |
5266.100 |
4797.600 |
10063.700 |
|
|
|
|
|
|
|
3 |
Profit / (Loss)
from Operations before Other Income, finance costs and exceptional items
(1-2) |
593.700 |
382.300 |
976.000 |
|
|
|
|
|
|
|
4 |
Other Income |
147.500 |
17.600 |
165.100 |
|
|
|
|
|
|
|
5 |
Profit / (Loss)
from ordinary activities before finance costs and exceptional items (3+4) |
741.200 |
399.900 |
1141.100 |
|
|
|
|
|
|
|
6 |
Finance costs |
21.500 |
34.700 |
56.200 |
|
|
|
|
|
|
|
7 |
Profit / (Loss)
from ordinary activities after finance costs but before exceptional items (5
- 6) |
719.700 |
365.200 |
1084.900 |
|
|
|
|
|
|
|
8 |
Exceptional Items - Income / (Expenses) |
(62.000) |
(64.700) |
(126.700) |
|
|
|
|
|
|
|
9 |
Profit / (Loss)
from Ordinary Activities before Tax (7+8) |
657.700 |
300.500 |
958.200 |
|
|
|
|
|
|
|
10 |
Tax expense |
83.100 |
49.700 |
132.800 |
|
|
|
|
|
|
|
11 |
Net Profit / (Loss) from Ordinary Activities after tax (9-10) |
574.600 |
250.800 |
825.400 |
|
|
|
|
|
|
|
12 |
Extraordinary Items (net of tax expense Rs.— Lakhs) |
- |
- |
- |
|
|
|
|
|
|
|
13 |
Net Profit / (Loss) for the period (11-12) |
574.600 |
250.800 |
825.400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
14 |
Paid Up Equity Share Capital |
305.900 |
305.900 |
305.900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
15 |
Paid Up Debt Capital |
500.000 |
500.000 |
500.000 |
|
|
|
|
|
|
|
16 |
Reserve excluding revaluation reserves as per |
8,523.800 |
7,949.200 |
8,523.800 |
|
|
balance sheet of previous accounting year |
|
|
|
|
|
|
|
|
|
|
17 |
Debenture Redemption Reserve |
250.000 |
250.000 |
250.000 |
|
|
|
|
|
|
|
18 |
Eaminq Per Share (before & after extraordinary items) |
|
|
|
|
|
(of Rs.2/- each) (not annuallsed): |
|
|
|
|
|
(a) Basic |
3.80 |
1.60 |
5.40 |
|
|
(b) Diluted |
3.80 |
1.60 |
5.40 |
|
|
|
|
|
|
|
19 |
Debt Equity Ratio |
- |
- |
0.19 |
|
|
|
|
|
|
|
20 |
Debt Service Coverage Ratio |
- |
- |
4.31 |
|
|
|
|
|
|
|
21 |
Interest Service Coverage Ratio |
- |
- |
18.05 |
# Includes foreign exchange loss of Rs 42.600 Millions which is not covered by circular issued by MCA in relation to provisions of AS 11 for the quarter ended 30 Septmber, 2011
|
PART II |
Quarter Ended |
Six Month Ended |
||
|
|
Particulars |
30.09.2012
(Unaudited |
30.06.2012 (Unaudited) |
30.09.2012
(Unaudited) |
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 |
Public
Shareholding* |
|
|
|
|
|
- Number of Shares |
98.410.875 |
98,410,875 |
98,410,875 |
|
|
- Percentage of shareholding |
64.35% |
64.35% |
64.35% |
|
|
|
|
|
|
|
2 |
Promoters and
Promoter Group Shareholding |
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
- Number of Shares |
NIL |
NIL |
NIL |
|
|
- Percentage of shares (as a % of the total |
NA |
NA |
NA |
|
|
shareholding of promoter and promoter group) |
|
|
|
|
|
- Percentage of shares (as a % of the total |
NA |
NA |
NA |
|
|
share capital of the company) |
|
|
|
|
|
b) Non-encumbered |
|
|
|
|
|
- Number of Shares |
54,528.470 |
54,528,470 |
54,528.470 |
|
|
- Percentage of shares (as a % of the total |
100.00% |
100.00% |
100.00% |
|
|
shareholding of promoter and Promoter Group) |
|
|
|
|
|
- Percentage of shares (as a % of the total |
35.65% |
35.65% |
35.65% |
|
|
share capital of the company) |
|
|
|
*Includes 22,187,075 shares (14.51%) held by Associate Company - Finolex Industries
|
B INVESTOR COMPLAINTS |
|
|
Particulars |
Six months ended
30/09/2012 |
|
Pending at the beginning of the quarter |
NIL |
|
Received during the quarter |
NIL |
|
Disposed of during the year |
NIL |
|
Remaining unresolved at the end of the quarter |
NIL |
SEGMENT WISE REVENUE,
RESULTS AND CAPITAL EMPLOYED, AS PER CLAUSE 41 OF THE LISTING AGREEMENT
(Rs in Millions)
|
|
|
Quarter Ended |
Six Month Ended |
|
|
|
Particular |
30.09.2012 (Unaudited) |
30.06.2012 (Unaudited) |
30.09.2012 (Unaudited) |
|
1 |
Segment Revenue |
|
|
|
|
|
A. Electric Cables |
5141.300 |
4,563.500 |
9.704.800 |
|
|
B. Communication Cables |
479.400 |
376.100 |
855.500 |
|
|
C. Copper Rods |
1,748.700 |
1,919.000 |
3.667.700 |
|
|
D. Others |
435.000 |
401.000 |
836.000 |
|
|
Total |
7,804.400 |
7,259.600 |
15,064.000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less : Inter Seqment Revenue |
1,944.600 |
2.079.700 |
4,024.300 |
|
|
|
|
|
|
|
|
Net Sales / Income
from Operations |
5,859.800 |
5,179.900 |
11,039.700 |
|
|
|
|
|
|
|
2 |
Segment Results
(Profit/Loss) |
|
|
|
|
|
Before interest and
tax |
|
|
|
|
|
Profit (+)/ Loss (-) : |
|
|
|
|
|
A. Electric Cables |
626.600 |
552.400 |
1,179.000 |
|
|
B. Communication Cables |
91.600 |
29.200 |
120.800 |
|
|
C. Copper Rods |
9.800 |
1.600 |
11.400 |
|
|
D. Others |
(6.700) |
(10.200) |
(16.900) |
|
|
Total |
721.300 |
573.000 |
1,294.300 |
|
|
Less: Interest |
21.500 |
34.700 |
56.200 |
|
|
:Other Unallocable expenditure net off |
42.100 |
237.800 |
279.900 |
|
|
unallocable income |
|
|
|
|
|
Total Profit before
Tax |
657.700 |
300.500 |
958.200 |
|
|
|
|
|
|
|
|
Capital Employed |
- |
- |
- |
|
|
(Seqment assets - Seqment liabilities ) |
- |
- |
- |
|
|
|
|
|
|
|
3 |
A. Electric Cables |
5,204.200 |
5.667.000 |
5.204.200 |
|
|
B. Communication Cables |
1.939.100 |
1,878.100 |
1,939.100 |
|
|
C. Copper Rods |
815.000 |
541.400 |
815.000 |
|
|
D. Others |
618.400 |
648.400 |
618.400 |
|
|
E. Other than Segments |
4.750.000 |
4,198.800 |
4.750.000 |
|
|
Total capital
employed |
13,326.700 |
12,933.700 |
13,326.700 |
Clause 41 of the Listing Agreement For Companies (Other than Banks)
STANDALONE / CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
(Rs in
Millions)
|
Particulars |
As at 30.09.2012 |
|
|
(Unaudited) |
||
|
A |
EQUITY AND
LIABILITIES |
|
|
1 |
Shareholders funds |
|
|
|
(a) Share capital |
305.900 |
|
|
(b) Reserves and surplus |
8523.800 |
|
|
Sub-total-Shareholders funds |
8829.700 |
|
2 |
Non-current
liabilities |
|
|
|
(a) Long-term borrowings |
1423.000 |
|
|
(b) Deferred tax liabilities (net) |
326.100 |
|
|
(c) Other long term liabilities |
423.300 |
|
|
(d) Long-term provisions |
5.100 |
|
|
Sub-total - Non - current liabilities |
2177.500 |
|
3 |
Current liabilities |
|
|
|
(a) Short-term borrowings |
37.600 |
|
|
(b) Trade payables |
992.500 |
|
|
(c) Other current liabilities |
1234.700 |
|
|
(d) Short-term provisions |
54.700 |
|
|
Sub-total - Current liabilities |
2319.500 |
|
|
|
|
|
|
TOTAL - EQUITY AND
LIABILITIES |
13326.700 |
|
B |
ASSETS |
|
|
1 |
Non-current assets |
|
|
|
(a) Fixed assets |
4431.600 |
|
|
(b) Non-current investments |
2188.800 |
|
|
(c) Long-term loans and advances |
89.200 |
|
|
(d) Other non-current assets |
0.000 |
|
|
Sub-total - Non-current assets |
6709.600 |
|
2 |
Current assets |
|
|
|
(a) Current investments |
371.000 |
|
|
(b) Inventories |
3387.600 |
|
|
(c) Trade receivables |
1351.500 |
|
|
(d) Cash and cash equivalents |
453.700 |
|
|
(e) Short-term loans and advances |
1053.300 |
|
|
(f) Other current assets |
0.000 |
|
|
Sub-total - Current assets |
6617.100 |
|
|
|
|
|
|
TOTAL - ASSETS |
13326.700 |
NOTE:
· Exceptional items indicate losses on account of foreign exchange derivative transactions
· In line with the provisions of AS11 read with circulars issued by Ministry of Corporate Affairs, the Company has adjusted foreign exchange gain of Rs 19.600 Millions for the quarter and foreign exchange loss of Rs.20.200 Millions for the half year, on revaluation of foreign currency loan against the value of fixed assets purchased out of such loan. In corresponding period of the previous year an amount of Rs. 118.500 Millions for the quarter and Rs. 121.600 Millions for the half year, being foreign exchange loss was adjusted on such loan to the value of such assets. Further based on the clarification issued by Ministry of Corporate Affairs, the company has adjusted the interest cost in the aforesaid foreign exchange loss to the carrying amount of the fixed assets
· The "Limited Review" of the financial results of the Company for the half year ended 30th September 2012 has been completed by the Statutory Auditors
· The above financial results have been reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on 8th November, 2012.
· Previous period's figures have been regrouped wherever necessary to conform to the current period's classification
FIXED ASSETS:
· Land
·
· Buildings
· Plant and Machinery
· Furniture, Fittings
· Office Equipments
· Computer Peripherals and ERP System
· Vehicles
· Dies and Moulds
· Exchange Fluctuation
·
Intangible Assets
PRESS RELEASE
FINOLEX CABLES
LIMITED RESULTS FOR THE QUARTER ENDED 30.09.12
·
Sales
grew 17% in the quarter as compared to the corresponding quarter of the
previous year.
·
PAT for
the quarter up 191% as compared to the corresponding quarter of 2011-12.
Pune, November 8,
2012
Finolex Cables Limited, (FCL) at the meeting of its Board of Directors held today approved results for the first quarter ended September 30th, 2012.
Net Sales for the quarter ended September 30th 2012 were Rs 5795.800 Millions as against Rs 4943.200 Millions for the corresponding period in year 2011-12. Net Sales in the current quarter shows an increase of 17% compared to the corresponding period of the previous year. Profit for the quarter, after taxes, increased to Rs. 574.600 Millions as compared to Rs. 197.300 Millions for the corresponding period in the year 2011-12.
Sales of Electrical Cables registered a growth of 25% over the corresponding period of the previous year. In respect of Communication Cables, the quarter saw a growth of 34%. Sales of Copper Rods, however, continue to be lower than in the previous year due to extreme pressure on margins.
The Company was again awarded a trophy by EEPC (Engineering Export Promotion Council of India) for star performer as "Large Enterprise" in the Product Group of Miscellaneous Electrical Machinery and Apparatus for outstanding contribution to Engineering Exports during the Year 2010-2011
ABOUT FCL
Finolex Cables Limited is India's largest and leading manufacturer of Electrical and Communication cables. Finolex offers a wide range of Electrical and Communication cables. Its wire and cable products are used in applications such as automobile, lighting, cable TV, telephone and computers to industrial applications touching every person in his daily life. Finolex has added Electrical Switches and Compact Flourescent Lamps (CFL) to its range of products.
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. 55.16 |
|
|
1 |
Rs. 88.03 |
|
Euro |
1 |
Rs. 70.86 |
INFORMATION DETAILS
|
Report Prepared
by : |
UDS |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.