MIRA INFORM REPORT
|
Report Date : |
17.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
AKSH OPTIFIBRE LIMITED |
|
|
|
|
Registered
Office : |
F-1080, Phase III, RIICO Industrial Area, Bhiwadi - 301019, Rajasthan |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
19.03.1986 |
|
|
|
|
Com. Reg. No.: |
17-016132 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.742.825 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24305RJ1986PLC016132 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JPRA01280G |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Optical Fibres. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 14360000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having a satisfactory track record.
Trade relations are reported to be fair. Business is active. Payments are
reported to be usually correct and as per commitment. The company can be considered for normal 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in
investment as well as private consumption expenditure. Inflation remained
at high levels fuelled by the pressure from the food and fuel sectors. The
large fiscal and current account deficit s continued to cause grave concern. It
is imperative that India regains its growth trajectory of 8-9 % sooner than
later. This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
BB+ (Fund Based Limits) |
|
Rating Explanation |
Having moderate risk of default regarding timely
servicing of financial obligation. |
|
Date |
August 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Factory 1 : |
F-1080, Phase III, RIICO Industrial Area, Bhiwadi - 301019, Rajasthan,
India |
|
Tel. No.: |
91-1493-221954 / 221955 / 221636 / 223536 / 221333 / 220763 / 220388 / 220718 |
|
Fax No.: |
91-1493-221636 / 221329 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
J-1/1, B-1 Extension, Mohan Co-operative Industrial Estate, |
|
Tel. No.: |
91-11-26991508 / 09 |
|
Fax No.: |
91-11-26991510 |
|
|
|
|
Factory 2 : |
F-1075-81, RIICO Industrial Area (Phase III), Bhiwadi-301019, Rajasthan, India |
|
Tel No: |
91-1493-221333 / 220763 / 220388 / 220718 |
|
Fax No: |
91-1493-221955 / 223536 |
|
|
|
|
Factory 3 : |
A-315 (B), RIICO Industrial Area (Phase I), Bhiwadi-301019, Rajasthan, India |
|
Tel./Fax No.: |
91-1493-221955 / 223536 |
|
|
|
|
Factory 4 : |
SP-47, Shri Khatu Shyam Ji Industrial Complex, Ringus, District Sikar-352404, Rajasthan, India |
|
Tel No: |
91-1575-224151 / 224154 |
|
Fax No: |
91-1575-224150 |
|
|
|
|
Network Operation Centers : |
Located at:
|
DIRECTORS
As on: 31.03.2013
|
Name : |
Dr. Kailash S. Choudhari |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Chetan Choudhari |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. P.F. Sundesha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B.R. Rakhecha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Narendra Kumbhat |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Arun Sood |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Amrit Nath |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. K. Mathur |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Gaurav Mehta |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2013
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
|
|
As
a % of (A+B) |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
23582349 |
18.40 |
|
|
23582349 |
18.40 |
|
|
|
|
|
|
19592700 |
15.29 |
|
|
19592700 |
15.29 |
|
Total shareholding
of Promoter and Promoter Group (A) |
43175049 |
33.69 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
632524 |
0.49 |
|
|
0 |
0.00 |
|
|
632524 |
0.49 |
|
|
|
|
|
|
51284891 |
40.02 |
|
|
|
|
|
|
8838204 |
6.90 |
|
|
21954515 |
17.13 |
|
|
2256114 |
1.76 |
|
|
1792994 |
1.40 |
|
|
463120 |
0.36 |
|
|
84333724 |
65.81 |
|
Total Public
shareholding (B) |
84966248 |
66.31 |
|
Total (A)+(B) |
128141297 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
6250000 |
0.00 |
|
|
14173692 |
0.00 |
|
|
20423692 |
0.00 |
|
Total (A)+(B)+(C) |
148564989 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Optical Fibres. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||
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|
|||||||||||||||
|
Bankers : |
|
|||||||||||||||
|
|
|
|||||||||||||||
|
Facilities : |
(Rs.
In Millions)
Notes: Cash credit from banks are secured by way of first pari-passu charge on Current Assets both present and future and second pari-passu charge on the fixed assets of the Company. These facilities are further secured by way of first pari- passu charge on the immovable properties of the Company and personal guarantee of Dr. Kailash S. Choudhari. The cash credit is repayable on demand. The interest payable on cash credit ranges between 16.00% to 16.25% and on packing credit 6.15% Non fund based limits are secured by first pari-passu charge on immovable properties of the Company and personal guarantee of Dr. Kailash S. Choudhari. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
P.C. Bindal and Company Chartered Accountants |
|
|
|
|
Subsidiaries Companies : |
|
|
|
|
|
Fellow Subsidiaries : |
AOl Projects JLT |
|
|
|
|
Enterprises over which personal referred in aforementioned exercise
significant influences : |
Fulchand Finance Private Limited |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
170100000 |
Equity Shares |
Rs.5/- each |
Rs.850.500 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
148564989 |
Equity Shares |
Rs.5/- each |
Rs.742.825 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
742.825 |
714.624 |
714.624 |
|
(b) Reserves & Surplus |
2847.933 |
2503.620 |
2417.923 |
|
(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) |
3590.758 |
3218.244 |
3132.547 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
679.035 |
|
(b) Trade payables |
0.000 |
3.175 |
0.000 |
|
(c) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(d) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(e) long-term provisions |
18.344 |
12.458 |
9.050 |
|
Total Non-current
Liabilities (3) |
18.344 |
15.633 |
688.085 |
|
|
|
|
|
|
(4) Current
Liabilities |
|
|
|
|
(a) Short term borrowings |
117.491 |
269.722 |
130.718 |
|
(b) Trade payables |
381.104 |
328.415 |
64.175 |
|
(c) Other current liabilities |
919.283 |
1046.733 |
234.235 |
|
(d) Short-term provisions |
3.741 |
0.388 |
0.000 |
|
Total Current
Liabilities (4) |
1421.619 |
1645.258 |
429.128 |
|
|
|
|
|
|
TOTAL |
5030.721 |
4879.135 |
4249.760 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
(1) Non-current
assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
974.497 |
1159.373 |
886.818 |
|
(ii) Intangible Assets |
94.825 |
110.854 |
117.858 |
|
(iii) Capital work-in-progress |
33.143 |
41.223 |
30.958 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
6.497 |
|
(b) Non-current Investments |
1131.752 |
1131.752 |
1532.140 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
9.019 |
19.037 |
13.592 |
|
(e) Trade receivables |
4.741 |
7.760 |
0.000 |
|
(f) Other Non-current assets |
120.632 |
125.132 |
61.643 |
|
Total Non-Current
Assets |
2368.609 |
2595.131 |
2649.506 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
150.787 |
119.933 |
11.021 |
|
(c) Trade receivables |
615.315 |
591.844 |
204.986 |
|
(d) Cash and cash equivalents |
19.306 |
7.547 |
1.940 |
|
(e) Short-term loans and advances |
1868.237 |
1552.487 |
1374.393 |
|
(f) Other current assets |
8.467 |
12.193 |
7.914 |
|
Total Current
Assets |
2662.112 |
2284.004 |
1600.254 |
|
|
|
|
|
|
TOTAL |
5030.721 |
4879.135 |
4249.760 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2330.049 |
1852.436 |
50.855 |
|
|
|
Other Income |
72.034 |
58.173 |
72.777 |
|
|
|
TOTAL (A) |
2402.083 |
1910.609 |
123.632 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of raw material and component consumed |
1374.411 |
1061.329 |
0.000 |
|
|
|
Purchase of traded goods |
39.582 |
71.732 |
1.480 |
|
|
|
(Increase)/ decrease in inventories of finished goods,
work-in-progress and traded goods |
(0.234) |
33.882 |
0.296 |
|
|
|
Employee benefit expenses |
138.603 |
125.212 |
53.379 |
|
|
|
Other expenses |
448.591 |
392.537 |
214.603 |
|
|
|
Exceptional Items |
(61.902) |
(78.461) |
0.000 |
|
|
|
TOTAL (B) |
1939.051 |
1606.231 |
269.758 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
463.032 |
304.378 |
(146.126) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
37.338 |
53.481 |
24.542 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
425.694 |
250.897 |
(170.668) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
166.321 |
133.010 |
91.934 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
259.373 |
117.887 |
(262.602) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
10.991 |
215.511 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
259.373 |
106.896 |
(478.113) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports of Goods and Services |
1596.283 |
1379.639 |
0.000 |
|
|
|
Interest |
49.110 |
47.208 |
0.000 |
|
|
|
Exports Incentive |
0.000 |
0.000 |
0.148 |
|
|
TOTAL EARNINGS |
1645.393 |
1426.847 |
0.148 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
754.230 |
620.478 |
0.000 |
|
|
|
Consumable |
14.177 |
7.426 |
0.000 |
|
|
|
Accessories |
11.186 |
13.829 |
0.000 |
|
|
|
Capital Goods |
8.702 |
0.000 |
16.767 |
|
|
|
Others |
10.740 |
58.448 |
0.000 |
|
|
TOTAL IMPORTS |
799.035 |
700.181 |
16.767 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
1.77 |
0.75 |
(4.37) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
10.80 |
5.59 |
(386.72) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.13 |
6.36 |
(516.37) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.73 |
3.20 |
(9.85) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07 |
0.04 |
(0.08) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.03 |
0.08 |
0.26 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.87 |
1.39 |
3.73 |
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 |
UNSECURED LOAN
(Rs.
in Millions)
|
Particular |
As on 31.03.2013 |
As on 31.03.2012 |
|
SHORT-TERM
BORROWINGS |
|
|
|
Deposits |
|
|
|
0% loan from Chairman repayable on demand |
4.775 |
19.975 |
|
15% Inter Corporate Deposit from related parties repayable on demand |
3.400 |
35.900 |
|
15% Inter Corporate Deposit from others repayable on demand |
23.000 |
35.500 |
|
12% Inter Corporate Deposit from others repayable on demand |
0.000 |
1.380 |
|
9% Security Deposits |
0.992 |
2.170 |
|
0 %Security Deposits |
41.570 |
38.006 |
|
Buyers Credit from Banks |
29.016 |
12.309 |
|
|
|
|
|
Total |
102.753 |
145.240 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10423784 |
04/05/2013 |
1,223,300,000.00 |
Union Bank of India |
M-11, MIDDLE CIRCLE, CONNAUGHT PLACE, NEW DELHI, DELHI - 110001, INDIA |
B74447277 |
OPERATIONAL REVIEW
Financial year 2012- 13 closed with revenue of Rs.2392.553 Millions, with EBITDA of Rs.401.131 Millions and PAT of Rs 259.373 Millions. The manufacturing business earned revenues of Rs.2161.550 Millions at an EBITDA margin of 19.29%.
During the year, the Company introduced certain new products and added new markets in the manufacturing business. The Company continues to be recognized globally for high quality FRP (Fibre Reinforced Plastic) Rods, and Optical Fibre Cables.
The detailed analysis of Company’s operations and segment wise performance is covered under Management Discussion and Analysis Report.
FUTURE OUTLOOK
With the world accepting and acknowledging the importance of FTTH as the new emerging business opportunity and the South East Asian countries gearing up to make themselves FTTH compliant, there is an ample opportunity for the increase of Optical fibre cable business across the globe. In Indian perspective, the National Optical Fibre Network (NOFN) project envisaged by the Government and the laying of optical fibre cables by the Indian defense and railways will also fillup the demand of optical fibre cables in Indian markets. Further, increase in data bandwidth demand and data consumption with the emerging 4Gtechnology, increase use of smart phones and data convergence will stress the telcos to upgrade themselves to meet the increased demand and would in turn fuel the demand of optical fibre cables.
Globally FRP demand is expected to increase by about 20% in FY 2013-14. Currently, Subject has approximately 16-18% share in global demand of FRP which is set to surge ahead. The domestic FRP demand is expected to grow by 70% in FY 2013-14 with NOFN and other government tenders.
IPTV in India has a better future given the availability of integrated services such as broadband internet, TV and telephone services under a single package or scheme that too ata reasonable price or a price which is comparatively less than the cost involved in subscribing for internet, broadcast TV and telephone services individually. With the increased demand of residential dwellings and more high rise towers coming up to cater the increased demand of homes, FTTH infrastructure is set to expand, so as to meet the broadband and IPTV needs of the consumers.
AWARD
In recognition to the astounding team work and the relentless efforts in delivering exceptional business performance for the year 2012, Frost and Sullivan conferred upon Subject, the 2013 Frost and Sullivan India ICT Award for "OFC Vendor of the Year".
MANAGEMENT
DISCUSSIONS AND ANALYSIS
Industry Structure
and Developments
Global Industry
Scenario
Optical Fibre Cable
The Demand for optical fibre cable during the year 2012 has increased to 232 Mn FKM from 215 Mn for the year 2011. During the year, Asia Pacific region manufactured 40% of the global demand of single mode and multimode optical fibre cables. The demand is lead by China, which is hugely deploying optical fibre cables and FTTH networks across the length and breadth of the Chinese mainland. It is estimated that Chinese optical fibre demand would grow at 5.4% to 122Mn FKM; and the same would be hugely contributed by 4Gdeployments. There have been overall increase in demand of optical fibre cable across the globe with Brazil, Argentina, Colombia bolstering growth, Saudi Arabia is the strongest market in Middle East and there is a likely stronger demand in Nigeria, Kenya and South Africa.
Australia has already started working on National Broadband Network in the year 2011.Australian Government has decided to provide direct fibre connection to 93% of Australian subscribers. AUD 43 billions capex has been planned during the period 2011-2019.
Fibre to the Antenna (FTTA) would be key driver for optical fibre demand in the next2-3 years. FTTA is required for rolling out 4G and Long Term Evolution Deployment. According to IHS iSuppli Research, there will 1000 Mn subscriber of LTE at the end of2016.
Optical Fibre
The world’s fibre production in Q1 2013 was 67 million fibre-km, which was 6%greater than the amount produced in Q1 2012. This level of quarterly production is the highest to date. China’s optical cable demand increased 15% in 2012, and the market’s growth is expected to be at least as strong in 2013, contributing to expectations for double digit growth in the world market this year. In Q1, China used 32.7million fiber-km, 19% more than in Q1 2012.
Indian Industry
Scenario
India finally gets on track in deploying nationwide broadband network, with the government announcing its ambitious national optical fibre network to provide connectivity to all the 2,50,000 Gram Panchayats (GPs) to ensure broadband connectivity with adequate bandwidth.
Furthermore, the Indian railways and Indian defence is also deploying their own optical fibre cable network, deployment of 4G network and increase in FTTH deployments has given aboost to the increased demand of the optical fibre cable in India.
Domestic Market
The Indian domestic Optical fibre market, during the past fiscal has grown tremendously and it is expected to be a $ 290.8 Mn by 2018, registering a growth at a CAGR of 12.5 %.The demand for optical fibre cables is poised to ride an upward growth curve with the emergence of next generation technologies, and government initiatives under the National Telecom Policy 2012. High speed high bandwidth backhaul is required for increasing datausage on the 3G platform and introduction of 4G services. The demand for Telecom Cables will gain a filip as service providers upgrade this backhaul in their networks to accommodate and cater increasing smart phone and tablet penetration and thereby increase in demand of bandwidth to handle the increase in data traffic.
Data growth in the Indian telecom market has reduced the prominence of traditional wire line broadband technologies such as digital subscriber line and cable modem. These technologies are not efficient enough to meet the customers’ demand for high-bandwidth applications such as high speed internet access, video-on-demand, high definition TV, IPTV and online gaming. In this scenario, fibre-to-the-home (FTTH)technology, which offers advantages like high bandwidth capacity and the delivery of high speed, high quality and multi-play services (data, voice and video) through a single channel, presents a strong business opportunity for telecom operators.
FTTH network’s ability to deliver high bandwidth has made investments in this infrastructure very important for operators. They are increasingly deploying FTTH technology to complement their wireless networks. Spectrum crunch is another major factor that has led operators to look for viable alternative mediums. Also, to achieve the broadband targets set by the government under the National Telecom Policy, it will be important to drive FTTH growth along with other technologies.
IPTV Services
Scenario
Internet Protocol Television (IPTV) is widely adopted and accepted as a viable solution to deliver HDTV, Video on Demand (VoD) and time-shifted TV, making the entire experience more interactive and personalized. IPTV services can be delivered by telecom service providers or Internet service providers.
The major benefit of IPTV is to enjoy non –linear TV viewing and with Video on Demand (VoD) or even Time Shifted TV (TSTV),–the next gen way of consuming video entertainment/edutainment/infotainment at one’s own leisure. The user is also allowed to pause, fast forward or reverse at his/her convenience. This type of instant joy is available only through IPTV and this service has benefits for all – from consumers to service providers to content producers.
FTTH has now emerged as a mainstream business preposition with tremendous growth potential as users are increasingly looking for high-speed broadband, high-definition videos, unlimited anywhere telephony and real-time surveillance.
Future Outlook
The OFC market is set to grow with the implementation of National Optical Fibre Network (NOFN), which aims to increase internet usage and improve connectivity in sub-urban and rural areas. Continuing expansion of existing networks by Railways and Defence will also help fuel the demand, apart from private players who want to build project with OFC as key component. Also the cable digitalization policy plans to have a complete analog sunset by the end of 2014 in India, this will further boost the optical fibre cable growth in the country.
The Indian FTTH market will be more successful than its global counterparts due to large population density of the country. The rapid pace with which the landscape of the country is changing, with increased demand of houses, the builders while building new housing complexes are making a conscious effort to lay fibre instead of copper for providing television and telephone services connectivity to each apartment. They are providing optical network terminals and optical line termination devices within the complex.
Subject is today a global name and to broaden, it is planned to increase the exports and domestic sales, to establish manufacturing facilities outside India and to execute large numbers of turnkey projects both domestic and internationally.
CONTINGENT
LIABILITIES:
(Rs. In Millions)
|
Particular |
31.03.2013 |
31.03.2012 |
|
a) Claims not acknowledged
as debts |
|
|
|
Sales Tax Matters |
32.887 |
49.446 |
|
Service Tax |
31.808 |
34.417 |
|
Excise / Custom Duty |
55.993 |
55.993 |
|
Stamp Duty |
2.850 |
5.700 |
|
Others |
7.891 |
5.225 |
b) Corporate Guarantee given by erstwhile Aksh Broadband Limited amounting to Rs. 58.203 Millions (31.03.2012: Rs 58.203 Millions) in favour of M/s Cisco Systems Capital India Private Limited for loan taken by APAKSH Broadband Limited, subsidiary of erstwhile Aksh Broadband Limited
c) Bank Guarantees, letters of credit (Net of margin) issued by banks and outstanding as on the reporting date is Rs. 107.089 Millions (31.03.2012: Rs. 51.577 Millions
d) The Company had imported Plant and Machinery in previous years under EPCG scheme. An export obligation amounting to Rs. 1069.9.43 Millions was placed on the Company to be fulfilled in 8 years starting from 16"'August 2001. The Company applied for extension of export obligation period and received the extension up to 31s' August 2011. The Company has fulfilled all the export obligations within the stipulated time but is yet to receive the certificate for discharge of liability as on the reporting date.
e) Estimated amounts of contracts remaining to be executed on Capital Account
(net of advances) is Rs.10.679 Millions (31.03.2012: Rs. 60.733 Millions)
FIXED ASSETS:
Tangible Assets
- Freehold Land
- Leasehold Land
- Factory Building
- Plant and Machinery
- Telecom Networking
- Testing Instrument
- Air Conditioner
- Furniture and Fixtures
- Office Equipments
- Data Processing Systems
- Electric Fittings
- Vehicles
- Fork Lift
Intangible Assets
- Computer Software
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.62.48 |
|
|
1 |
Rs.99.66 |
|
Euro |
1 |
Rs.83.50 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
45 |
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.