MIRA
INFORM REPORT
|
Report Date : |
31.12.2013 |
IDENTIFICATION DETAILS
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Name : |
FINOLEX CABLES LIMITED |
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Registered
Office : |
26/27, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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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 : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturer of electrical and telecommunication cables. |
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No. of Employees
: |
1611 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (65) |
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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 36973000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a well-established and reputed company having a fine track
record. 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.
INDIAN ECONOMIC OVERVIEW
India’s current
account deficit narrowed in the quarter ended September as government measures
to curb imports, especially gold, kicked in. The current account deficit,
the excess of a country’s imports of goods and services over exports, narrowed
to $ 5.2 billion from $ 21 billion in the year ago period, according to
provisional Reserve Bank of India data. Finance Minister P. Chidambaram said
the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and
the latest data suggests the government may achieve the target.
India was ranked 94th
among the world’s most corrupt nations list. Denmark and New Zealand topped as
the cleanest while Somalia emerged as the most corrupt.
India’s services
sector activity witnessed a moderate improvement in November over the previous
month, even while indicating the fifth successive monthly contraction, according
the HSBC survey.
$53 million
estimated losses suffered by India due to phishing attacks during the third
quarter, according to a study by RSA. India ranks fourth in the list of nations
hit by phishing attacks. The US remained at the top of the charts. Phishing is
the process of acquiring information such as user names, passwords and credit
card details by sending e-mails disguised as official mails.
Rs.4080 million
worth of mobile-phone-based transactions by July 2013 compared to Rs.260
million in September, 2012, according to Deloitte report. The number of
transactions has shot up from 94000 to 701000.
India aims to earn
Rs.400000 million from the bandwidth auction set for January. The merger and
acquisition guidelines, cleared by a group of ministers, will be out before the
auction begins so that players can make informed decisions on the auctions.
EXTERNAL AGENCY RATING
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Rating Agency Name |
CRISIL |
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Rating |
Long Term Rating: AA+ |
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Rating Explanation |
High degree of safety and very low credit risk. |
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Date |
October 16, 2013 |
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Rating Agency Name |
CRISIL |
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Rating |
Short Term Rating: A1+ |
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Rating Explanation |
Very strong degree of safety and lowest credit risk. |
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Date |
October 16, 2013 |
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ 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.
INFORMATION DECLINED
Management non-cooperative
(Tel. No.: 91-20-27475963)
LOCATIONS
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Registered
Office/ Corporate Office/ Factory 1 (Electrical Cables) : |
26/27, Mumbai – Pune Road, Pimpri, Pune – 411018, Maharashtra, India |
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Tel. No.: |
91-20-27475963 (15 lines)/ 27506200 |
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Fax No.: |
91-20-27472239/ 27470344/ 27472224 |
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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 – 410 506, Maharashtra, India |
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Tel. No.: |
91-2114-237003/ 4/ 5/ 6/ 7 |
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Fax No.: |
91-2114-237009 |
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E-Mail : |
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Factory 3 : |
Switches
Division Gat No.344,
Village Urse, Taluka Maval, District Pune – 410 506, Maharashtra, India |
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Tel. No.: |
91-2114- 237021-2-3 |
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Fax No.: |
91-2114-237006 |
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E-Mail : |
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Factory 4 : |
Goa (Electrical and Communication Cables) 117/L118, Verna Industrial Estate, Verna Salcette, Goa – 403 722,
India |
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Tel. No.: |
91-832-278202/ 3/ 4 |
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Fax No.: |
91-832-2783909 |
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E-Mail : |
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Factory 5 : |
Goa (CCC Rod) S263/2A, Panjim - Belgaum Road, Usgaon -Tisk, Ponda Goa – 403 406,
India |
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Tel. No.: |
91-832-2344376/ 8/ 9 |
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Fax No.: |
91-832-2344140 |
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E-Mail : |
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Factory 6 : |
Urse (Electrical and Communication Cables) Taluka Maval, District Pune – 410 506, Maharashtra, India |
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Tel. No.: |
91-2114-237026/ 27 |
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Fax No.: |
91-2114-237025 |
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E-Mail : |
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Factory 7 : |
Lighting Division
(CFL) / Sheets Division Plot No.399,
Village - Urse, Taluka - Maval, District Pune – 410 506, Maharashtra,
India |
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Tel. No.: |
91-2114-237035/ 237024 |
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Fax No.: |
91-2114-237025 |
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E-Mail : |
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Factory 8 : |
HVPC Urse, Pune Gat No.343,
Village Urse, Taluka Maval, District Pune – 410 506, Maharashtra, India |
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Tel. No.: |
91-2114-237001-5 |
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Fax No.: |
91-2114-237006 |
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E-Mail : |
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Factory 9 : |
Goa (Communication Cables) Plot No. L123/9A, Verna Industrial Estate, Verna Salcette, South Goa,
India |
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Tel. No.: |
91-832-2782002/ 3/ 4 |
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Fax No.: |
91-832-2783909 |
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E-Mail : |
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Factory 10 : |
Roorkee Plot Nos. K-1
and K-2, AIS Industrial Estate, Jatherdeva Hoond, Manglaur, Roorkee, Taluka Haridwar – 247 667,
Uttarakhand, India |
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Tel. No.: |
91-1332-224069 |
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Tele Fax No.: |
91-1332-224068 |
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E-Mail : |
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Branch Office : |
Located
at: ·
Ahmadabad ·
Bangalore ·
Bhubaneshwar ·
Chandigarh ·
Chennai ·
Coimbatore ·
Goa ·
Guwahati ·
Indore ·
Jaipur ·
Kochi ·
Kolkatta ·
Mumbai
·
New Delhi ·
Raipur
·
Secunderabad ·
Lucknow
· Dharwad |
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DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. P.P Chhabria |
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Designation : |
Chairman |
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Address : |
9, ICS Colony, Ganeshkhind Road, Pune – 411 007, Maharashtra, India |
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Name : |
Dr. D.K. Chhabria |
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Designation : |
Managing Director |
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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. 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. Adi. J.
Engineer |
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Designation : |
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 30.09.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
7875300 |
5.36 |
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|
46853170 |
31.90 |
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|
54728470 |
37.27 |
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Total shareholding of Promoter and Promoter Group (A) |
54728470 |
37.27 |
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(B) Public Shareholding |
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|
9313036 |
6.34 |
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|
6301792 |
4.29 |
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|
1687059 |
1.15 |
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|
17301887 |
11.78 |
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|
27506236 |
18.73 |
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|
31744105 |
21.62 |
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|
15572222 |
10.60 |
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|
74822563 |
50.95 |
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Total Public shareholding (B) |
92124450 |
62.73 |
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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 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionShareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Promoter and Promoter Group
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
As a % of grand total |
|
1 |
Pralhad Parsram Chhabria |
17,60,400 |
1.15 |
|
2 |
Sunita Kishan Chhabria |
11,63,400 |
0.76 |
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3 |
Katara Aruna Mukesh |
10,52,850 |
0.69 |
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4 |
Kishan Parsram Chhabria |
9,50,750 |
0.62 |
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5 |
Deepak Kishan Chhabria |
9,36,750 |
0.61 |
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6 |
Prakash Pralhad Chhabria |
8,31,850 |
0.54 |
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7 |
Vijay Kishan Chhabria |
5,39,250 |
0.35 |
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8 |
Gayatri Prakash Chhabria |
1,05,000 |
0.07 |
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9 |
Hansika Hiya Prakash Chhabria |
1,05,000 |
0.07 |
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10 |
Ritu Prakash Chhabria |
95,000 |
0.06 |
|
11 |
Katara Amit Mukesh |
87,400 |
0.06 |
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12 |
Katara Amrita Mukesh |
85,400 |
0.06 |
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13 |
Vini Deepak Chhabria |
33,750 |
0.02 |
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14 |
Katara Mukesh Dolumal |
31,000 |
0.02 |
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15 |
Radhika Deepak Chhabria |
30,000 |
0.02 |
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16 |
Karan Vijay Chhabria |
22,500 |
0.01 |
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17 |
Priya Vijay Chhabria |
22,500 |
0.01 |
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18 |
Rishi Vijay Chhabria |
22,500 |
0.01 |
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19 |
Orbit Electricals Private Limited |
4,68,43,120 |
30.63 |
|
20 |
Katara Dental Private Limited |
10,050 |
0.01 |
|
|
Total |
5,47,28,470 |
35.78 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Public and holding more than
1% of the total number of shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
|
|
1 |
Finolex Industries Limited |
22187075 |
14.51 |
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|
2 |
Life Insurance Corporation of India |
5824234 |
3.81 |
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3 |
Anil R Chhabria |
5146060 |
3.36 |
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4 |
Franklin Templeton Mutual Fund A/c Franklin India |
4137992 |
2.71 |
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5 |
Reliance Capital Trustee Co Limited A/c Reliance Div |
1991391 |
1.30 |
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6 |
Leela Ramchand Chhabria |
1779600 |
1.16 |
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|
7 |
Franklin India Smaller Companies Fund |
1736320 |
1.14 |
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|
|
Total |
42802672 |
27.99 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons (together with PAC) belonging to the category “Public” and
holding more than 5% of the total number of shares of the company
|
Sl. No. |
Name(s) of the shareholder(s) and the Persons
Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of Total No. of Shares |
|
|
1 |
Finolex Industries Limited |
22187075 |
14.51 |
|
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|
Total |
22187075 |
14.51 |
Details of Depository Receipts (DRs)
|
Sl. No. |
Type of Outstanding DR (ADRs, GDRs, SDRs, etc.) |
No. of Outstanding DRs |
No. of Shares Underlying |
Shares Underlying Outstanding DRs as % of Total
No. of Shares |
|
1 |
Global Depository |
60,86,425 |
60,86,425 |
3.98 |
|
|
Total |
60,86,425 |
60,86,425 |
3.98 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of electrical and telecommunication cables. |
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Products : |
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PRODUCTION STATUS [AS ON
31.03.2011]
|
Particulars |
Unit |
Installed
Capacity |
Actual Production |
|
Electrical Cables |
TCKM |
2467.97 |
1241.83 # |
|
Communication
Cables Optic Fibre Cables |
KM |
58000.00 |
37116.78 |
|
Other
Communication Cables |
TCKM |
5648.00 |
634.61 |
|
PVC Sheets and
Accessories |
MT |
2100.00 |
1331.70 |
|
Fibre |
KM |
150000.00 |
779736.33 * |
|
Poly coated FRP
Rod |
KM |
24000.00 |
19268.48 |
|
Continuous Cast
Copper Rods |
MT |
60000.00 |
33419.75 @ |
Notes:
Installed capacities are certified by the Managing Director and relied upon by the Auditors
- # Equivalent tonnage 32,297 MT
- * Includes captive consumption of 668,730 Kms
- @ captive consumption of 21,906,538MT and Job Work done 0.00
5,000 TCKM of JFTC Capacity is interchangeable with 332 TCKM of Electrical Cable capacity.
GENERAL INFORMATION
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No. of Employees : |
1611 (Approximately) |
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Bankers : |
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Facilities : |
Notes: LONG TERM BORROWINGS
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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 – 400 020,
Maharashtra, India |
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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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Solicitors : |
Crawford Bayley and Company |
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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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|
|
Enterprises over
which Key Management Personnel and their Relatives exercise significance
influence : |
·
Orbit Electricals Private Limited ·
Finolex Infrastructure Limited ·
Magnum Machines Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
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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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
152939345 |
Equity Shares |
Rs.2/- each |
Rs.305.900
Millions |
|
|
|
|
|
Reconciliation of the
shares outstanding at the beginning and at the end of the reporting period
|
Equity Shares |
As on 31.03.2013 |
|
|
Number |
Amount (Rs in Millions) |
|
|
Balance at the beginning of the period |
152939345 |
305.900 |
|
Issued during the year |
-- |
-- |
|
Outstanding at the
end of the year |
152939345 |
305.900 |
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 held. The dividend proposed
by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting, except in case of Interim dividend.
During the year ended
31st March 2013, the amount of per share dividend recognised as
distributions to the equity shareholders is Rs.1.20 per share.
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.
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.
Details of
shareholders holding more than 5% shares in the Company
|
|
As on 31.03.2013 |
|
|
Equity Shares |
Number of shares |
% |
|
Finolex Industries Limited |
22187075 |
14.50 |
|
Life Insurance Corporation of India |
7749398 |
5.10 |
|
Orbit Electricals Private Limited |
46843120 |
30.60 |
Aggregate number
of Bonus Shares issued, Shares issued for consideration other than cash and Shares
bought back during the period of five years immediately preceding the reporting
date.
There are no Bonus
Shares issued, Shares issued for consideration other than cash and Shares
bought back during the period of five years immediately preceding the reporting
date.
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 |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)
Shareholders' Funds |
|
|
|
|
(a) Share Capital |
305.900 |
305.900 |
305.900 |
|
(b) Reserves & Surplus |
8937.300 |
7698.400 |
6868.900 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
9243.200 |
8004.300 |
7174.800 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
1451.500 |
1162.200 |
970.400 |
|
(b) Deferred tax liabilities (Net) |
344.700 |
326.100 |
310.400 |
|
(c) Other long term
liabilities |
13.600 |
1.800 |
0.000 |
|
(d) Long-term provisions |
528.300 |
342.100 |
536.000 |
|
Total Non-current
Liabilities (3) |
2338.100 |
1832.200 |
1816.800 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
171.100 |
383.200 |
291.900 |
|
(b) Trade payables |
632.900 |
563.800
|
306.900
|
|
(c) Other current
liabilities |
1391.200 |
1189.900
|
2443.400
|
|
(d) Short-term provisions |
264.900 |
187.100
|
162.400
|
|
Total Current Liabilities
(4) |
2460.100 |
2324.000 |
3204.600 |
|
|
|
|
|
|
TOTAL |
14041.400 |
12160.500 |
12196.200 |
|
|
|
|
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II. ASSETS |
|
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|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
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|
|
(i) Tangible assets |
4120.700 |
4291.900 |
4032.900 |
|
(ii) Intangible Assets |
0.400 |
0.400 |
0.400 |
|
(iii) Capital
work-in-progress |
357.300 |
120.200 |
187.600 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
2173.900 |
2188.800 |
2090.300 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
166.500 |
40.200 |
142.900 |
|
(e) Other Non-current
assets |
190.800 |
121.000 |
0.000 |
|
Total Non-Current Assets |
7009.600 |
6762.500 |
6454.100 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
1067.000 |
183.300 |
361.200 |
|
(b) Inventories |
3296.300 |
2811.400
|
2808.400
|
|
(c) Trade receivables |
1496.500 |
1140.900
|
1302.400
|
|
(d) Cash and cash
equivalents |
398.100 |
490.000
|
212.900
|
|
(e) Short-term loans
and advances |
771.800 |
772.400
|
1051.600
|
|
(f) Other current
assets |
2.100 |
0.000
|
5.600
|
|
Total Current Assets |
7031.800 |
5398.000 |
5742.100 |
|
|
|
|
|
|
TOTAL |
14041.400 |
12160.500 |
12196.200 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue From Operations (Net) |
22706.800 |
20641.600 |
20357.500 |
|
|
|
Other Income |
241.700 |
319.900 |
260.900 |
|
|
|
TOTAL (A) |
22948.500 |
20961.500 |
20618.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of
Materials Consumed |
17129.200 |
15769.500 |
16365.900 |
|
|
|
Purchase of
Stock-in-Trade |
60.400 |
24.000 |
23.800 |
|
|
|
(Increase) /
Decrease in Inventories of Finished Goods, Work in Progress and Stock-in-Trade |
(296.800) |
126.900 |
(640.600) |
|
|
|
Employee Benefit
Expense |
845.900 |
694.800 |
647.400 |
|
|
|
Other Expenses |
2671.500 |
2234.600 |
2226.700 |
|
|
|
Exceptional
Items - Income / (Expenses) |
23.100 |
363.600 |
344.400 |
|
|
|
TOTAL (B) |
20640.300 |
19213.400 |
18967.600 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2308.200 |
1748.100 |
1650.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
133.800 |
260.700 |
191.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2174.400 |
1487.400 |
1459.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
466.300 |
394.700 |
387.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
1708.100 |
1092.700 |
1071.800 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
255.400 |
110.800 |
203.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS) AFTER
TAX (G-H) (I) |
1452.700 |
981.900 |
868.100 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
1534.900 |
795.200 |
401.600 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed dividend on the Equity Shares |
183.500 |
122.400 |
107.100 |
|
|
|
Dividend distribution tax on proposed dividend on Equity Shares |
30.300 |
19.800 |
17.400 |
|
|
|
Transferred to Debenture Redemption Reserve |
0.000 |
0.000 |
250.000 |
|
|
|
Transfer to General Reserve |
150.000 |
100.000 |
100.000 |
|
|
BALANCE CARRIED
TO THE B/S |
2623.800 |
1534.900 |
795.200 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
486.900 |
483.900 |
393.700 |
|
|
TOTAL EARNINGS |
486.900 |
483.900 |
393.700 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1263.000 |
731.900 |
895.500 |
|
|
|
Spares and Components |
21.000 |
19.600 |
22.000 |
|
|
|
Capital Goods |
93.700 |
215.400 |
32.300 |
|
|
TOTAL IMPORTS |
1377.700 |
966.900 |
949.800 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
9.50 |
6.40 |
5.70 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
6.33 |
4.68 |
4.21 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.52 |
5.29 |
5.26 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.84 |
11.09 |
10.81 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18 |
0.14 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.18 |
0.19 |
0.18 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.86 |
2.32 |
1.79 |
LOCAL AGENCY FURTHER INFORMATION
Details of Current
Maturities of Long - Term Borrowing:
|
Particulars |
31.03.2013 (Rs.
in millions) |
31.03.2012 (Rs.
in millions) |
31.03.2011 (Rs.
in millions) |
|
Current Maturities of Long - Term Borrowing |
183.500 |
170.900 |
1338.200 |
|
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 |
Yes |
|
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 |
LITIGATION
DETAILS:
Case Details
Bench:-Bombay
Lodging No.:- ITXAL/1366/2012
Filing Date:- 28/09/2012
Reg. No.:- ITXA/380/2013
Reg. Date:- 01/03/2013
Petitioner:- The Commissioner of Income Tax – (Central)
Respondent:- Finolex Cables Limited
Petn. Adv.:- Padma Divakar
Resp. Adv.:- Mihir Naniwadekar
District:- PUNE
Bench:- DIVISION
Status:- Admitted(Unready)
Category:- TAX APPEALS
Last Date:- 06/02/2013
Stage:- FOR DIRECTION
Last Coram:- HON'BLE
SHRI JUSTICE J.P. DEVADHAR
HON'BLE SHRI JUSTICE
M.S. SANKLECHA
Act :- Income Tax Act, 1961
Under Section:- 260A
INDEX OF CHARGES:
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10353872 |
27/03/2012 |
750,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND
FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI,
MAHARASHTRA - 400025, INDIA |
B39004361 |
|
2 |
10270460 |
23/02/2011 * |
500,000,000.00 |
AXIS TRUSTEE SERVICES
LIMITED |
AXIS HOUSE, 2ND
FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI,
MAHARASHTRA - 400025, INDIA |
B08437824 |
|
3 |
10192895 |
21/12/2009 |
470,000,000.00 |
STANDARD
CHARTERED BANK |
90 M G ROAD, MUMBAI,
MAHARASHTRA - 400001, INDIA |
A75573964 |
|
4 |
90090849 |
30/12/1998 |
500,000,000.00 |
BANK OF BARODA |
CORPORATE
BANKING BRANCH, MANTRI COURT; 1ST FLOOR; 39; DR. AMBEDKAR ROAD, PUNE,
MAHARASHTRA - 411001, INDIA |
- |
|
5 |
90084770 |
11/06/2001 * |
285,500,000.00 |
CORPORATION BANK |
INDUSTRIAL
FINANCE BRANCH, PUNE, MAHARASHTRA - 411003, INDIA |
- |
|
6 |
90090621 |
24/06/2005 * |
1,361,500,000.00 |
BANK OF
MAHARASHTRA |
INDUSTRIAL
FINANCE BRANCH, PUNE, MAHARASHTRA, INDIA |
- |
|
7 |
90090594 |
13/02/1998 * |
550,000,000.00 |
BANQUE NATIONALE
DE PARIS |
C G-3 KONARK
ESTATES, 9 CONNAUGHT ROAD, PUNE, MAHARASHTRA - 411001, INDIA |
- |
|
8 |
90088034 |
27/04/1998 * |
500,000,000.00 |
THE INDUSTRIAL
CREDIT AND INVESTMENT CORP. OF INDIA LIMITED |
163; BACKBAY
RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA |
- |
|
9 |
90087982 |
04/07/1996 * |
130,000,000.00 |
THE INDUSTRIAL
CREDIT AND INVESTMENT CORP. OF INDIA |
163; BACKBAY
RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
10 |
90087939 |
07/10/1995 * |
150,000,000.00 |
THE INDUSTRIAL
CREDIT AND INVESTMENT CORP. OF BANK L |
163; BACKBAY
RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
11 |
90089875 |
17/09/1993 |
50,000,000.00 |
THE INDUSTRIAL CREDIT
AND INVESTMENT CORP. OF INDIA |
163; BACKBAY
RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
12 |
90093410 |
01/09/1993 |
14,000,000.00 |
CITIBANK N. A. |
293; D. N. ROAD,
BOMBAY, MAHARASHTRA - 400001, INDIA |
- |
|
13 |
90082377 |
26/05/1993 |
60,000,000.00 |
BARCLAYS BANK
PLC |
21/23; MAKER
CHAMBERS VI, NARIMAN POINT, BOMBAY, |
- |
|
14 |
90089777 |
25/09/1992 |
180,000,000.00 |
THE INDUSTRIAL
CREDIT AND INVESTMENT CORP. OF INDIA |
163; BACKBAY RECLAMATION,
BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
15 |
90087747 |
26/05/1993 * |
85,000,000.00 |
THE INDUSTRIAL
CREDIT AND INVESTMENT CORPORATION OF |
163; BACKBAY
RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
16 |
90089725 |
26/02/1993 * |
16,000,000.00 |
CORPORATION BANK |
ADITI COMMERCE
CENTRE, H-2406; GEN. THIMAYYA ROAD; PUNE CAMP, PUNE, MAHARASHTRA - 411001,
INDIA |
- |
|
17 |
90089718 |
17/02/1992 |
10,500,000.00 |
ANZ GRINDLAYS
BANK |
90; MAHATMA GANDHI
ROAD, P. O. BOX 141, BOMBAY, MAHARASHTRA - 400001, INDIA |
- |
|
18 |
90093581 |
27/08/1991 |
40,500,000.00 |
ANZ GRINDLAYS
BANK |
90; MAHATMA
GANDHI ROAD, P. O. BOX 141, BOMBAY, MAHARASHTRA - 400001, INDIA |
- |
|
19 |
90089285 |
27/08/1991 * |
5,000,000.00 |
AMERICAN EXPRESS
BANK LIMITED |
ORIENTAL
BUILDING; 364, DR. D.N. ROAD, BOMBAY, MAHARASHTRA - 400001, INDIA |
- |
|
20 |
90089284 |
10/11/1993 * |
2,500,000.00 |
THE SARASWAT
COOPERATIVE BANK LIMITED |
HOTEL SURAKIRAN;
MIDC INDUSTRIAL ESTATE, BOMBAY-P |
- |
|
21 |
90089118 |
29/05/2010 * |
4,500,000,000.00 |
CENTRAL BANK OF
INDIA LIMITED |
BRANCH OFFICE
AT- JEWEL OF PIMPRI, 'B' WING, 1ST, |
A87731485 |
|
22 |
90083158 |
26/05/1993 * |
5,500,000.00 |
CENTRAL BANK OF
INDIA |
PIMPRI BRANCH; SR.
NO. 22/1, POONAM CHAMBERS; PIMPRI, PUNE, MAHARASHTRA - 411018, INDIA |
- |
* Date of charge modification
|
Unsecured Loan |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
LONG TERM BORROWINGS |
|
|
|
Deferred Sales Tax Loan |
20.600 |
23.100 |
|
SHORT - TERM BORROWINGS |
|
|
|
From Banks in
Foreign Currency |
|
|
|
Buyers’ Credit |
171.100 |
179.700 |
|
Total |
191.700 |
202.800 |
BACKGROUND
Economic recovery that
was expected at the beginning of the year has not materialized. Global economic
growth was lower than in the previous year with all the stars of the past few
years (China/India/Other BRIC nations) clocking very moderate growth. Most of
the large economies which were affected by the crisis of 2008 were still
resorting to quantitative easing in some form or the other, hoping to stimulate
investment and economic activity; however clear signs of recovery are still to
emerge.
On the domestic
front, a few issues continue to defy solutions - inflation has been ruling high
for well over two years now leading to a period of relatively high interest
rates and its negative impact on the economy; GDP growth of 5%,which is far
lower than the 6.5% reported in the previous year and way below the 8% average
that was achieved in the years leading upto 2010; the high level of
government’s fiscal deficit at 5.4% continues to trouble the economy; and a
continuously depreciating Rupee – from a level of Rs.50.88 in March, 2012 to
the US Dollar, the Rupee in March, 2013 closed at Rs.54.285.
The Government
expects the economy to pick up after faltering last year – GDP is expected to
grow at around 6.5% in the coming financial year; fiscal deficit is expected to
be contained to under 5% of GDP, and inflation is expected to be around 6.5%.
However, this will depend on how some elements of the economy play out – such
as oil and commodity prices, availability of adequate finances and the ability
of the manufacturing sector to pull itself out of the current situation.
OPERATIONS
Overall sales grew
by 10% in value terms in 2012-13 when compared to the previous year. In volume
terms the growth was higher at 14%. Higher volumes were achieved in both Electrical
as well as Communication Cable segments. Star performances came in from product
offerings to the following customer sectors – automotive, agriculture and
construction in the Electrical Cables segment and Coaxial and Optic Fibre
Cables in the Communication Cable segment. Towards the end of the period,
however, it was clear that both the Auto and Infrastructure (Power) sectors
were under strain. On the other hand recent developments within the Telecom
sector viz. announcement of the intention by the Government to create a
nationwide Optic Fibre Network to provide connectivity to village panchayats,
roll out of 4G services by some Telecom service providers etc will
substantially improve growth possibilities in the coming financial year.
Outlook on orders from this segment looks promising.
Income for the
year was higher at Rs.22948.500 millions (previous year Rs.20961.500 millions)
representing a growth of 10% over the previous year. The Company has recorded a
Net Profit after Tax of Rs.1452.700 millions as against a Net Profit of
Rs.981.900 millions in the previous year. The improved profitability comes from
a better product mix, higher capacity utilization, growth in sales volumes
across the product lines mentioned above, tight monitoring of working capital
requirement and improved purchasing efficiencies.
EXPANSION AND
CONSOLIDATION
Consolidation of
the Pune manufacturing operations is underway as planned. Most operations would
be consolidated at the Urse site by end 2013, with limited activity remaining
at Pimpri. This will help further improve the cost competitiveness in the Low
Duty Electrical Cables offered by the Company.
As announced in
February 2013, the Company will set up a 5MW solar power plant at its Urse
site, which has ample land, a part of which will be used to set up this
facility. The facility will cost approximately Rs.400.000 millions to build and
it is expected to be operational by January 2014. The power generated will be
entirely consumed within the Urse site leading to cost efficiencies.
The Roorkee
facility expansion is also well under way. Construction of a new factory shed
is almost complete and new machinery has started arriving at the site.
Commissioning of equipment is expected to be complete by end 2013. The
expansion is expected to be within the budget of Rs.1000.000 millions and will
be completed within the timeframe initially set.
In view of the
opportunities now visible in the Telecom sector, the Company is investing in
additional cable making equipment at the Optical Fibre Cable facility at Goa.
Over the next year an investment of around Rs. 500 million is envisaged.
JOINT VENTURES
Finolex J-Power
Systems Private Limited, Shirval near Pune
As mentioned in
the previous year’s report the JV is now fully operational and has been
participating in tenders both locally as well as overseas. The JV has secured
its first large order (valued at Rs.380.000 millions) to supply 132 Kv power
cables to the Maharashtra State Electricity Transmission Co. Limited Thus far,
the JV has supplied cables at the 66Kv and 110Kv range to its customers.
As members will be
aware, in respect of the products 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. Members will be happy to note
that the JV’s 220Kv range of power cables have already passed the Type Test
requirements and that the JV has secured certification from the Central Power
Research Institute (CPRI) – this will enable the JV to bid and compete in these
range of cables as well.
Corning Finolex
Optical Fibre Private Limited
Business
operations commenced during the last quarter of 2012-13. As mentioned earlier,
recent announcements by the government augur well for the Telecom sector and it
is expected that fiber sales will be robust in the current fiscal. It is
expected that 2013-14 will be a promising year for Optic Fibre business and the
JV expects to benefit from the same.
NEW PRODUCTS
The Company is continuously
looking at developing new products to expand its portfolio as well as adapt to
changing needs of the market. In the current fiscal, the Company has already
launched new lamp models including LED based lighting systems meant for home
use, street lighting and other commercial spaces. The Company has also plans of
entering the switchgear product segment and will launch a series of products
within the MCB, ELCB and MCCB range during 2013-14.
MANAGEMENT
DISCUSSION AND ANALYSIS
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.
The Company’s
foray into the Lamps and Electrical Switches businesses is still in its early
years and account for less than 5% of the Company’s turnover and are hence
reported as “Others” in the Segment Results.
Main Segments:
The Company is the
leading domestic manufacturer of electrical and communication cables with a
wide product range. The Company offers a ‘Total Cable Solution’. The broad
segmentation of the products manufactured by the Company is as follows:
|
Group |
Products Covered |
Application |
|
Electrical
Cables |
1100 V PVC
insulated cables |
Electrification of
industrial establishments, electrical panel wiring and consumer electrical
goods. |
|
Motor winding
PVC insulated cables and 3 core flat cables |
Submersible
pumps and electrical motors. |
|
|
Automotive/battery
cables |
Wiring harness for
automobile industry and battery cables for various applications |
|
|
UPS cables |
For providing
power from the UPS to the computer/ appliances in the networking environment. |
|
|
Heavy duty,
underground, low voltage, power and
control cables |
Connection to
the user point from main supply of power. |
|
|
Heavy duty,
underground, high voltage, power cables |
Intra-city power
distribution network |
|
|
Communication
Cables |
Jelly filled
telephone cables (JFTCs) |
Telephone line connections
to exchanges and users. |
|
Local area
network (LAN) cables |
Indoor and
outdoor networking, voice and data transmission, broadband usage. |
|
|
PE insulated
telephone cables (Switchboard cables) |
Telephone
instrument connections to EPABX. |
|
|
Coaxial cables |
Cable TV network
solutions, microwave communications, mobile towers. |
|
|
Speaker Cables |
Meant for
broadcasting applications in buildings. |
|
|
Optic fibre |
Principal raw
material for optic fibre cables. |
|
|
Optic fibre
cables |
For use in
networks requiring high speed transfer of large
bandwidth due to voice, image and data transmission. |
|
|
V-SAT cables |
For connecting
V-SAT dish to base station. |
|
|
Copper Rods |
CCC rods of 8 mm
diameter |
Raw material for
manufacture of copper based cables. |
|
Electrical
Switches |
Premium and
classic switches, sockets, regulators, etc. |
Domestic
lighting, hotels, shops, offices, corridors. |
|
Lamps |
Retrofit and non-retrofit
CFL lamps as well as T5 Tube Lights and Fittings. |
Domestic
lighting, hotels, shops, offices, corridors. |
The Company’s
product application range is thus for electrical usage, transmission of voice, data
and images (contents) for domestic, commercial and industrial applications to
electrical products, touching every person in his daily life.
REVIEW OF
OPERATIONS:
·
Production:
- Electrical
Cables at 50,445 MT as compared to 45,348 MT in the previous year.
- Metal based
Communication Cables at 4,678 MT as compared to 4,276 MT in the previous year.
- Optical Fibre
Cables at 49,080 KM as compared to 30,211 KM in the previous year.
- Optic Fibre at
959,270 fibre kilometers as compared to 273,130 fibre kilometers in the
previous year.
·
Sales:
- Electrical
Cables (including Excise Duty) at Rs.20858.000 millions as compared to
Rs.17705.000 millions in the previous year.
- Communication
cables (including Excise Duty) at Rs.1991.000 millions as compared to Rs.1420.000
millions in the previous year.
- Copper Rods (net
of interdivisional transfers and including Excise Duty) at Rs.836.000 millions
as compared to Rs.2051.000 millions in the previous year.
·
Exports were marginally higher at Rs.496.000
millions as against Rs.489.000 millions of the earlier year.
·
The income from operations (including Excise Duty)
was Rs.24235.000 millions for the year as compared to Rs.21826.000 millions for
the earlier year.
·
The Joint Venture with J-Power Systems Corp of Japan,
Finolex J-Power Systems Private Limited, continues on its journey to become the
leading player in the country in the Extra High Voltage Cable business. Product
certifications were obtained during the year for its 66Kv, 132Kv and 220Kv
offerings. The JV also secured its first large order worth Rs. 380 million
recently. Supplies of this prestigious order from Maharashtra State Electricity
Transmission Company will commence from October 2013. During the year the JV
supplied small quantities of 66Kv and 110Kv cables to its customers including a
breakthrough export order from Singapore for its power utility. All these
orders, though for small quantities will go a long way in establishing the JV
as a quality supplier in the region.
·
The Joint Venture with Corning SAS, Corning Finolex
Optical Fibre Private Limited commenced operations during the last quarter of
2012-13. Small quantities of Optical Fibre were sold to other merchant cablers
within India.
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 contructions 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, this
segment cables registered sales (including Excise Duty) of Rs.20858.000
millions against Rs.17705.000 millions of the previous year. It accounted for
87% of total sales for the year. Growth during the year was driven by
automobile, construction and agricultural applications. While the
infrastructure area remained very subdued (with the poor financial position of
the various power utilities as well as constraints faced by them in terms of
fuel availability), during the last quarter the automobile sector was also
under strain.
Outlook:
Electrical cables
are the main focus area of business for the Company. In the near term the
outlook is somewhat mixed – construction sector appears positive with
development seeming more broad based and consumption being reported from
interior areas of the Country rather than being limited to the larger cities;
agricultural applications also appear positive and poised to continue on the
growth shown in the previous years; automobile and infrastructure (power),
however seem to be going through a slower growth path at this moment. In the
long term, however, the outlook for the entire segment is positive, given the
fact that sustained economic growth of the country depends on a robust and
stable infrastructure.
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 unfair trade 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.1991.000 millions
for the year against Rs.1420.000 millions for the earlier year. The year has
been a change from the past three years during which period the telecom sector
had been plagued by uncertainties. Some private service providers commenced
roll out of their 4G services which brought in business opportunities. Also,
the changeover to digital transmission in several cities across the country
resulted in additional demand for Coaxial cables. With attractive price
offerings and the past experience of better customer service, this segment has
showed an improved performance in the year. Capacity utilisation at all plants
have shown improvement leading to better margins and profitability.
Outlook:
With the impetus
from the Government in providing better and faster internet access to rural
India, the 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. Besides
the programs being implemented by the Government, roll out of 4G services by
private service providers will entail additional capital expenditure in the
form of an optic fibre 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, both in the near as well as long term.
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
manufacturer 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:
The sales were
Rs.7,075 million (previous year Rs.9,504 million) of which Rs.836 million were
sales to third parties (previous year Rs.2,051 million) and balance was
inter-divisional transfers. With continued uncertainties in the global business
environment, commodity markets remained volatile through the year – prices
ranged from USD 8,300 at the beginning of the year before dropping to USD 7,000
levels by the end of the year. 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 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.
Both the above
products fared well during the year and grew by more than 100% in volume and
value terms. With improved distribution coverage, additions to product range
including LED applications for the home, business, commercial and industrial
usage being planned in the current fiscal, outlook in this area is very
positive.
CONTINGENT
LIABILITIES AND PROVISIONS (AS ON 31.03.2013):
a) Disputed
demands in appeal towards Excise Rs.201.500
millions (Previous year Rs.156.400 millions), Customs Rs.13.400 millions (Previous year
Rs.13.400 millions) and Sales Tax Rs.946.900
millions (Previous year Rs.599.000 millions).
b) i) Disputed
Income Tax demands and matters in Appellate proceedings Rs.497.900 millions (Previous year Rs.424.900 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.524.400
millions (Previous year Rs.485.600 millions).
c) Guarantees
given by Company’s Bankers on behalf of the Company, towards performance and
other matters, amounting to Rs.573.800
millions (Previous year Rs.474.300 millions), are secured by
hypothecation of Stock in trade, Book Debts, Stores and Spares etc. The Company
has also given margin deposits of Rs.75.000
millions (Previous year Rs.75.000 millions) against above guarantee.
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.1474.000 millions (Previous year
Rs.1381.400 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 debts Rs.170.900 millions
(Previous year Rs.170.900 millions).
f) Provision for
derivatives transactions:
Provision for
derivatives as at the year end is Rs.525.200 millions (Previous year Rs.342.100
millions) including provided during the year of Rs.233.900 millions (Previous year
Rs.92.600 millions) and is net of payments of Rs. NIL million (Previous year
Rs.312.200 millions).
FIXED ASSETS:
Tangible Assets
· Land
· Lease Hold Land
· Buildings
· Plant and Machinery
· Furniture, Fittings
· Office Equipments
· Computer Peripherals
· Vehicles
· Dies and Moulds
Intangible
Assets
· Software and Others
WEBSITE DETAILS:
NEWS:
FINOLEX CABLES TO SET UP SOLAR POWER PLANT NEAR
PUNE
February 14, 2013
PUNE: A captive 5
MW solar power plant will soon be set up by Finolex Cables Limited at its manufacturing facility at Urse
near Pune with an estimated investment of Rs.400.000 millions.
The proposed plant, expected to be commissioned within six months, will provide
electricity for the internal consumption of the Urse facility, which would be
pooled with additional State Electricity Board (MSEDCL) supply for night time
operations.
"With this
in-house experience (setting up of captive solar power plant) we can go ahead
and set up larger projects in future," company's Managing Director Deepak
Chhabria told PTI, after the Finolex Cables' Board meeting which approved the
third quarter results yesterday.
Referring to the
company's future plans, Chhabria said there was good scope for growth in the
fibre optic business as the new government initiated projects were expected to
spur the demand in the sector.
"There are
bright prospects for the segment growth in view of the government projects
which envisage laying down of total underground network to be installed and
handed over to the Defence services with an estimated investment of
Rs.80000.000 millions to 100000.000 millions," he said.
"Tenders are
already floated for these projects," Chhabria added.
While noting that
the fibre optic sector was poised for significant growth, he said that as a
country "we need to spend more on infrastructure to expand the
industry."
Articulating the
company philosophy, he said, "We are reinventing ourselves in large
product portfolio in various segments. If you are diversified, you are better
equipped."
He said the
company aimed at being "one-stop-shop" for any cabling need with
concentration of quality.
In reply to a question,
Chhabria said if the government introduced uniform Goods and Service Tax ( GST), it will help the
industry with improved sales.
Finolex Cables
Limited is considered India's largest and leading manufacturer of electrical
and communication cables who have also added electrical switches and Compact
Fluorescent Lamps (CFL) to its range of products.
MULTIBAGGER: IFCI SEES 60% UPSIDE IN FINOLEX
CABLES, EXPECTS RE-RATING
October 1, 2012
NEW DELHI: Finolex Cables Limited
(FCL), the manufacturer of electrical and telecommunication cables, is set to
report $1bn revenue by FY15 on account of robust balance sheet as well as
backward and steady improvement in other business segments, IFCI said in a
report on Monday
.
IFCI Financial Services, a
subsidiary of IFCI Limited, initiated coverage on the stock with a 'buy' rating and a target price of
Rs 68 per share, translating into an upside of about 60% from the current
levels.
IFCI expects the
stock to get re-rated supported by robust fundamental factors and capital
expenditure plans. "The stage is set for FCL to meet the incremental
demand for the next four years, with the capex of Rs3.9 billion incurred at ten
manufacturing facilities in the last five years," IFCI said in a report.
"Also, the
company is realigning capacities and is likely to incur a capex of Rs800mn in
FY13 and FY14, which will decrease tax expense and improve production
efficiency," the report added.
The government's
impetus towards infrastructure sector, growth visibility for the next couple of
years remains buoyant. IFCI expects the throughput for electrical cables (82%
of total revenue in FY12) to increase from 35,000MT to 45,000MT by FY15 and
expects the company to report $1bn topline by FY15.
Another reason
why IFCI thinks that Finolex scores above its peers is owning to its
'Superbrand' status, strong distribution network, and over 20,000 dealers
spread across the country.
Improvement in other business segment:
FCL has invested
Rs480.2 million and has 49 per cent share in JV with J-Power systems of Japan.
The JV is operational since September 2011 and is likely to generate Rs5-6
billion of revenue for the JV company in the next five years, according to IFCI
analysis.
In another
marketing JV with Cornings of USA in which FCL has invested Rs0.5mn will
market optic fiber to cable manufacturers in India. Normally, FCL sells only
10-20 per cent of copper produced and the balance being used for in house
consumption.
IFCI expects
steady improvement for communication cable and other segments (CFL and
electrical switches segments) and estimates a growth of 2-10 per cent in FY13.
Key downside risks to the rally
IFCI is of the
view that a spike in copper price, which accounts for nearly 65 per cent of the
product price, likely to weigh on margins. However, Finolex Cables is buying
raw materials in local currency without exposure to derivative contracts.
However, the
company generally passes on increase in the product price to customers. Also,
to mitigate the risk of time lag, FCL purchases copper on monthly average
price.
HEARD ON THE STREET: FINOLEX SURGES ON HITACHI
CABLES STAKE-BUY BUZZ
June 19, 2012
Finolex Cables shares surged 4.4% on Monday on buzz that
Japan-based Hitachi Cables was planning to purchase a stake in the company.
Market sources
said Hitachi was planning to buy around 15% stake in the Pune-based electrical
products maker. An email query to Finolex did not elicit a response till the
time of going to print.
Amid high
volumes, Finolex shares climbed to a month's high to Rs.43.95 on BSE, before closing at
Rs.42.5. Over 5 lakh shares were traded on the bourse against a two-week
average volume of 35,000 shares.
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.62.00 |
|
|
1 |
Rs.102.17 |
|
Euro |
1 |
Rs.85.19 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
65 |
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.