MIRA
INFORM REPORT
|
Report Date : |
08.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
TORRENT CABLES LIMITED (w.e.f. 24.11.2008) |
|
|
|
|
Formerly Known
As : |
TORRENT GUJARAT BIOTECH LIMITED |
|
|
|
|
Registered
Office : |
Torrent House, Near Dinesh Hall, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
22.03.1991 |
|
|
|
|
Com. Reg. No.: |
04-015279 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 85.984 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24230GJ1991PLC015279 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BRDT00603B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACT6739Q |
|
|
|
|
Legal Form : |
A Public
Limited Liability company. The Company’s Shares are Listed on the Stock
Exchange. |
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|
|
|
Line of Business
: |
Manufacturing
and Marketing of XLPE Insulated PVC Sheathed Cables, PVC Insulated and PVC
Sheathed Cables and Rubber Cables. |
|
|
|
|
No. of Employees
: |
343 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 6700000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
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|
|
|
Comments : |
Subject is a well-established company having fine track record. Sales turnover of the company has declined which resulting into dip in
profit of the company during financial year 2014. However, the rating takes into consideration company’s healthy
financial risk profile decent liquidity position of the company. Trade relations are reported as fair. Business is active. Payment are
reported to be regular and as per commitment. The company can be considered good for normal business dealings at
usual trade terms and conditions. NOTE: The Board of
Directors of “Torrent cables limited” in its meeting held on 12th
May 2014 has approved the proposal for amalgamation of Torrent cables limited
and Torrent Energy Limited. Further The said amalgamation is contingent On approvals from Gujarat Electricity Regulatory Commission, Central
Electricity Regulatory Commission, SEBI, Stock exchanges and High Court of
Gujarat. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The prospects
of the India’s economy have been seriously compromised due to political
corruption. High inflation, poor standard of living are to a great extent a
result of rampant corruption in the country. China on the other hand, seems to
be facing diametrically opposite challenge. American hedge fund manager Jim
Chanos has been keenly following the political and economic development in the
dragon economy and has figured out something that is quite worrying. He is of
the view that the Chinese economy could be heading toward trouble on account of
new Chinese President Xi Jingping’s very aggressive anti-corruption drive.
Chanos believes tat many things such as apartment sales, luxury products, etc.
were largely bought with dirty money. And it is now beginning to impact
consumption. This may indeed be bad news for an economy that is struggling to
transition from an investment-driven export-oriented economy to a domestic
consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20 % ! Equities came in second with annualized
return of 15.5 % ! However, while these returns may seem mouthwatering, the
fact is that the return from equities adjusted for inflation came down to just
7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Fund based Limits = A+ |
|
Rating Explanation |
Adequate degree of safety and low credit risk |
|
Date |
July, 2014. |
|
Rating Agency Name |
ICRA |
|
Rating |
Non fund based Limits = A1 + |
|
Rating Explanation |
Very strong degree of safety and Lowest credit risk |
|
Date |
July, 2014. |
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
31-03-2014.
INFORMATION DENIED BY
Management non corporative
Tel No.: 91-79-26582573
LOCATIONS
|
Registered Office : |
Torrent House, Near Dinesh Hall, |
|
Tel. No.: |
91-79-22405090 / 22527630 |
|
Fax No.: |
91-79-22463484 / 22460048 |
|
E-Mail : |
|
|
Website : |
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|
|
|
|
Head / Corporate Office : |
Pelican, 6th
Floor, GCCI Compound, |
|
Tel No.: |
91-79-26582573
/ 30001067 / 68 / 69 |
|
Fax No.: |
91-79-26583484
/ 26582573 |
|
Email : |
|
|
|
|
|
Factory : |
Yogi Nagar, |
|
Tel No.: |
91-268-2581959 |
|
Fax No.: |
91-268-2581989 |
|
Email : |
|
|
|
|
|
Branch Office : |
Located at: ·
Ahmedabad ·
·
Nadiad ·
·
·
·
Mumbai ·
Chennai ·
Pune ·
Kolkata ·
·
Vizag |
DIRECTORS
As on: 31.03.2014
|
Name : |
Mr. Rohit C Mehta |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. V S Parikh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Prafull Anubhai |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V A Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Jayesh Desai |
|
Designation : |
Director |
|
Date of Appointment : |
18.01.2012 |
|
|
|
|
Name : |
Mr. Raghu Parakh |
|
Designation : |
Director-in-charge |
|
Date of Appointment : |
18.01.2012 |
|
Experience : |
4 Years |
KEY EXECUTIVES
|
Name : |
Mr. Ashish A.
Karanji |
|
Designation : |
Company
Secretary |
|
|
|
|
Audit Committee : |
Mr. V S
Parikh Mr. Rohit C.
Mehta Mr. Prafull
Anubhai Mr. Jagrut
Vyas |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2014
|
Category
of Shareholders |
No. of Shares |
Percentage |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
5245606 |
61.01 |
|
|
5245606 |
61.01 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
5245606 |
61.01 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
202 |
0.00 |
|
|
694 |
0.01 |
|
|
896 |
0.01 |
|
|
|
|
|
|
432354 |
5.03 |
|
|
|
|
|
|
1993867 |
23.19 |
|
|
895863 |
10.42 |
|
|
29809 |
0.35 |
|
|
29809 |
0.35 |
|
|
3351893 |
38.98 |
|
Total Public shareholding (B) |
3352789 |
38.99 |
|
Total (A)+(B) |
8598395 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
8598395 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
and marketing of XLPE insulated PVC Sheathed Cables, PVC Insulated and PVC Sheathed
Cables and Rubber Cables. |
||||||||||
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|
||||||||||
|
Products : |
|
PRODUCTION STATUS (As On 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
|
XLPE Cables (H.T.) |
Core Kms |
2000 |
9900 |
3738.2 |
|
XLPE Cables (L.T.) |
Core Kms |
2000 |
4800 |
5563.1 |
|
PVC Cables |
Core Kms |
21.95 (*) |
15000 |
12092.0 |
(*) million (24 million core yards) on 3 shift basis
Notes:
a) The installed capacities are as certified by the Management and is on three shifts working basis and is subject to product-mix planned by the Company.
b) The actual production has exceeded the installed capacity in certain cases. This has been possible by using the spare capacities of other lines.
c) The licenced capacity of 2000 Core Kms. for XLPE Cables (H.T.) also covers XLPE Cables (L.T.).
d) XLPE Cables (H.T.) installed capacity has been increased by expansion. For the year 2009-10 capacity was available only for one month and accordingly core kilometer installed capacity has been shown above.
GENERAL INFORMATION
|
No. of Employees : |
343 (Approximately) |
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|
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|
Bankers : |
·
Bank
of Baroda ·
Union
Bank of India ·
Axis
Bank Limited ·
HDFC
Bank Limited |
||||||||||||||||||
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|
||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
C C Chokshi and Company Chartered Accountants |
|
Address : |
Ahmedabad, |
|
Tel. No.: |
91-79-2758254 / 27582543 |
|
Fax No.: |
91-79-27582551 |
|
|
|
|
Holding Company : |
Torrent Private Limited, |
|
|
|
|
Associates/Subsidiaries : |
·
Torrent Power Limited, ·
Torrent Pharmaceuticals Limited, ·
Gujarat Lease Financing Limited, ·
Torrent Financiers ·
Torrent Energy Limited, ·
Torrent Power Services Private Limited, ·
AEC Cements and Construction Limited, |
CAPITAL STRUCTURE
As on: 31.03.2014
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
70000000 |
Equity Shares |
Rs.10/- each |
Rs.700.000 Millions |
|
|
|
|
|
Issued
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
45000011 |
Equity Shares |
Rs.10/- each |
Rs.450.000
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8598395 |
Equity Shares |
Rs.10/- each |
Rs. 85.984
Millions |
|
|
|
|
|
1. Reconciliation of the number of shares outstanding at the beginning
and at the end of the reporting period :
|
Equity Shares |
As on 31.03.2014 |
|
|
No.
of Shares |
Amount
|
|
|
Outstanding at the beginning of the Year |
8598395 |
85.984 |
|
Add : Issued During the year |
-- |
-- |
|
Outstanding
at the end of the year |
8598395 |
85.984 |
2. Rights preferences and restrictions attached to equity shares:
The company has one class of equity shares having
a par value of Rs.10 per share. Each shareholder is eligible for 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. In the event of liquidation, the equity shareholders
are eligible to receive the remaining assets of the Company after distribution
of all preferential amounts, in proportion to their shareholding.
The Company declares and pays dividends in Indian
rupees. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
The Board of Directors, in their meeting held
on 12.05.2014, proposed a final dividend of Rs. 1.50 per equity share. The
proposal is subject to the approval of shareholders at the Annual General
Meeting to be held on 28th July, 2014. The total dividend
appropriation for the year ended March 31, 2014 amounted to Rs. 15.090 Millions
including corporate dividend tax of Rs. 2.192 Millions.
During the year ended March 31, 2013, the
amount of per share dividend recognized as distribution to equity shareholders
was Rs. 3.50. The total dividend appropriation for the year ended March 31,
2013 amounted to Rs.35.209 Millions including corporate dividend tax of Rs.
5.115 Millions.
3. Details of shares held by the holding company
|
Particulars |
No.
of Shares |
|
Equity Shares of Rs. 10 each fully paid-up Torrent Private Limited |
5245606 |
4. Details of shares held
by each shareholder holding more than 5% shares:
|
Particulars |
As on 31.03.2014 |
|
|
No.
of Shares |
%
of Holding |
|
|
Equity Shares of Rs. 10 each fully paid-up Torrent Pvt. Ltd. |
5245606 |
61.01 |
5. Aggregate number of equity shares allotted as fully paid up pursuant
to contract without payment being received in cash
74,79,762 Equity Shares of Rs. 10 each were
issued in 2008-09 to the erstwhile shareholders of Torrent Cables Limited
pursuant to the Scheme of Amalgamation without payment being received in cash.
FINANCIAL DATA
[All figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
|
31.03.2014 |
31.03.2013 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
85.984 |
85.984 |
|
(b) Reserves & Surplus |
|
1598.041 |
1570.204 |
|
(c) Money received
against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
|
1684.025 |
1656.188 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
|
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
|
30.276 |
31.117 |
|
(c) Other long
term liabilities |
|
0.000 |
0.000 |
|
(d) long-term
provisions |
|
12.122 |
14.107 |
|
Total Non-current
Liabilities (3) |
|
42.398 |
45.224 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
|
54.258 |
3.680 |
|
(b)
Trade payables |
|
117.612 |
101.232 |
|
(c)
Other current liabilities |
|
30.052 |
42.914 |
|
(d) Short-term
provisions |
|
22.532 |
42.094 |
|
Total Current
Liabilities (4) |
|
224.454 |
189.920 |
|
|
|
|
|
|
TOTAL |
|
1950.877 |
1891.332 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
536.461 |
578.276 |
|
(ii)
Intangible Assets |
|
0.659 |
1.405 |
|
(iii)
Capital work-in-progress |
|
0.000 |
0.000 |
|
(iv) Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current
Investments |
|
0.000 |
0.000 |
|
(c) Deferred tax
assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
11.259 |
15.872 |
|
(e) Other
Non-current assets |
|
0.000 |
0.000 |
|
Total Non-Current
Assets |
|
548.379 |
595.553 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
|
0.000 |
0.000 |
|
(b)
Inventories |
|
379.950 |
276.181 |
|
(c)
Trade receivables |
|
713.998 |
876.645 |
|
(d) Cash
and cash equivalents |
|
239.953 |
87.439 |
|
(e)
Short-term loans and advances |
|
67.262 |
55.337 |
|
(f)
Other current assets |
|
1.335 |
0.177 |
|
Total
Current Assets |
|
1402.498 |
1295.779 |
|
|
|
|
|
|
TOTAL |
|
1950.877 |
1891.332 |
|
SOURCES OF FUNDS |
|
|
31.03.2012 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
85.984 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
1425.935 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
1511.919 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
72.857 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
72.857 |
|
|
DEFERRED TAX LIABILITIES |
|
|
15.949 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
1600.725 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
596.351 |
|
|
Capital work-in-progress |
|
|
46.025 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
0.350 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
306.345
|
|
|
Sundry Debtors |
|
|
902.050
|
|
|
Cash & Bank Balances |
|
|
30.140
|
|
|
Other Current Assets |
|
|
0.306
|
|
|
Loans & Advances |
|
|
86.275
|
|
Total
Current Assets |
|
|
1325.116
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
255.307
|
|
|
Other Current Liabilities |
|
|
59.075
|
|
|
Provisions |
|
|
52.735
|
|
Total
Current Liabilities |
|
|
367.117
|
|
|
Net Current Assets |
|
|
957.999
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
1600.725 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2155.919 |
3761.132 |
3202.782 |
|
|
|
Other Income |
53.315 |
13.805 |
12.466 |
|
|
|
TOTAL (A) |
2209.234 |
3774.937 |
3215.248 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1755.666 |
2949.560 |
2396.771 |
|
|
|
Purchases of Stock-in-Trade |
11.402 |
3.344 |
30.771 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(78.090) |
42.718 |
4.279 |
|
|
|
Employees benefits expense |
125.523 |
121.157 |
91.513 |
|
|
|
Other expenses |
263.051 |
313.417 |
332.947 |
|
|
|
TOTAL (B) |
2077.552 |
3430.196 |
2856.281 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
131.682 |
344.741 |
358.967 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
3.413 |
23.810 |
22.257 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
128.269 |
320.931 |
336.710 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
74.271 |
78.453 |
76.142 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
53.998 |
242.478 |
260.568 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
10.839 |
63.233 |
67.649 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
43.159 |
179.245 |
192.919 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
535.445 |
409.100 |
270.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
2.200 |
17.900 |
19.300 |
|
|
|
Dividend |
12.900 |
30.100 |
30.100 |
|
|
|
Tax on Dividend |
2.400 |
4.900 |
4.900 |
|
|
BALANCE CARRIED
TO THE B/S |
561.104 |
535.445 |
409.100 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
0.000 |
1.576 |
1.405 |
|
|
TOTAL EARNINGS |
0.000 |
1.576 |
1.405 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
166.304 |
371.396 |
269.250 |
|
|
|
Stores & Spares |
2.227 |
0.302 |
0.307 |
|
|
|
Capital Goods |
14.124 |
0.000 |
1.811 |
|
|
TOTAL IMPORTS |
182.655 |
371.698 |
271.368 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.02 |
20.85 |
22.44 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
1.95 |
4.75 |
6.00
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.50 |
6.45 |
8.14
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.77 |
12.82 |
13.56
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03 |
0.15 |
0.17
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.03 |
0.00 |
0.05
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.25 |
6.82 |
3.61
|
FINANCIAL ANALYSIS
[All figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
85.984 |
85.984 |
|
Reserves & Surplus |
1570.204 |
1598.041 |
|
Net worth |
1656.188 |
1684.025 |
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
|
Short term borrowings |
3.680 |
54.258 |
|
Total borrowings |
3.680 |
54.258 |
|
Debt/Equity ratio |
0.002 |
0.032 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
3202.782 |
3761.132 |
2155.919 |
|
|
|
17.433 |
(42.679) |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
3202.782 |
3761.132 |
2155.919 |
|
Profit |
192.919 |
179.245 |
43.159 |
|
|
6.02% |
4.77% |
2.00% |
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 |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
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 |
Yes |
|
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 |
CASE DETAILS:
|
HIGH
COURT OF GUJARAT TAX APPEAL No. 1656 of 2008
Last Listing Date: 04/09/2009
Office Details
Court Proceedings
Available Orders
Certified Copy
|
INDEX OF CHARGES:
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10357298 |
04/10/2012 * |
640,000,000.00 |
AXIS BANK LIMITED |
CORPORATE BANKING BRANCH,
2ND FLOOR, 3RD EYE ONE, |
B59724948 |
|
2 |
10357697 |
08/05/2012 |
350,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
B40415333 |
YEAR IN RETROSPECT
During the year they, despite the continuing demand stagnation further aggravated by the overhang of significantly expanded cable manufacturing capacity, the company was able to report a sales turnover of Rs 2209.200 Millions ( Rs.3774.900 Millions in previous year ) which is 41.47% lower than the previous year. The Company could register EBITDA of Rs.131.200 Millions (Rs.343.000 Millions in previous year) which is again 61.74 % lower than previous year. The performance of the company was badly affected by the lower demand in cable industry due mainly to continuing misfortunes of power sector with stalled generation projects and cash-strapped utilities. Expectation of an economic and industrial turn around in the year they was belied. Situation, in fact, worsened. Manufacturing capacities added by the existing cable manufacturers over the years and entry of overseas manufacturers only added to the woes of cable industry struggling for viable orders.
CURRENT SLOWDOWN AND
COMPETITIVE PRESSURE
The Indian power cables market is highly competitive and fragmented with a large number of cable manufacturers in both organized and unorganized sectors. Moreover, with major capacity additions by larger players, and sluggish demand for cables due to economic downturn, the revenues and margins of all the players have been adversely impacted. The domestic power cable business in LT/HT/ EHV PVC & XLPE segments (in which the Company operates) had suffered a steep de-growth in FY 2012-13 by over 14% as compared to FY 2011-12 majorly due to delay in the power projects coupled with the increasing imports in this segment. The situation witnessed a slight improvement in FY 2013-14 but still remained over 9% lower than that of FY 2011-12 . This had an impact on the order book profile of the Company as reflected in the decline in sales during the year 2013-14. Margins continued to remain under pressure due to high intensity of competition in the industry. Although the Company is relatively a small player compared to big domestic companies having sales turnover in thousands of crores, the company has been able to maintain decent level of capacity utilization in the recent past, mainly because of its technical and cost competitiveness (cost competitiveness arising from control on scrap generation and reduction in overheads) as well as strong relationship with customers.
COMPOSITE SCHEME OF
AMALGAMATION
The Board in its meeting on 31st October, 2013 had accorded its approval to carry out a Study and thereby evolve a suitable and optimum business model along with a desirable capital structure for the Power sector operations of the Torrent Group covering, inter alia, the possibility of appropriate re-organisation including merger, demerger, forward/backward integration, sale of any division, etc. Based on the outcome of the Study, the amalgamation of Torrent Cables Limited and Torrent Energy Limited (wholly owned subsidiary of Torrent Power Limited) with Torrent Power Limited along with appropriate re-organization of consolidated long-term financing arrangements was found to be a suitable and optimum business model for the power sector operations of the Torrent Group. Torrent Energy Limited, a wholly owned subsidiary of Torrent Power Limited is engaged in the similar business as that of Torrent Power Limited and Torrent Cables Limited is one of the major suppliers of power cables for the power transmission and distribution activities of Torrent Power Limited as well as Torrent Energy Limited. Besides, these companies, being part of the Torrent Group, in view of similar business of Torrent Energy Limited and Torrent Power Limited and complementary business relationship between Torrent Cables Limited on one hand and Torrent Energy Limited & Torrent Power Limited on the other hand, it is proposed to consolidate the activities of Torrent Cables Limited, Torrent Energy Limited and Torrent Power Limited by way of amalgamation. The proposed amalgamation is expected to benefit all the three companies and their stakeholders in terms of synergies of operations, higher integration, concentrated management focus, increased shareholders’ value and enhanced reputation of Torrent Group. In this regard, a composite scheme of amalgamation of Torrent Energy Limited and Torrent Cables Limited with Torrent Power Limited (Scheme) under the provisions of Sections 391-394 of the Companies Act, 1956 including the share exchange ratio was recommended by the Audit Committee and approved by the Board of Directors at their respective meetings held on 12th May, 2014. The Appointed Date of the Scheme is 1st April, 2014. The Share exchange ratio determined by the valuer, M/s. Price Waterhouse & Co., LLP, Chartered Accountants and the fairness opinion provided by M/s IDFC Securities Limited, Merchant Bankers, on the same, is as under: - Every shareholder holding 20 (Twenty) fully paid up equity shares of Rs. 10/- each of Torrent Cables Limited, shall be entitled to receive 19 (Nineteen) fully paid up equity shares of Rs 10/- each of Torrent Power Limited. - Since Torrent Energy Limited is a wholly owned subsidiary of Torrent Power Limited, the investment of the Company in Torrent Energy Limited shall stand cancelled. The Scheme is conditional upon, inter alia, various regulatory and other necessary approvals and sanctions from the lenders on reorganization of consolidated long term financing arrangements on such terms and conditions as may be acceptable to the Board.
POWER CABLE INDUSTRY
OUTLOOK
The power sector is one of the crucial inputs to the growth of other industrial sectors and overall economic growth of India. Power cable industry’s fate is closely linked to that of industrial growth in general and power sector in particular. Cables are the crucial infrastructure backbone of an economy, the critical elements that wire up the length and breadth of the country as power networks. Stagnating power sector with stranded generation capacity and cash-strapped distribution utilities have been the bane for cable industry. However, green shoots are visible in Electricity, gas and water supply sector showing signs of recovery registering a growth of 5.9% in FY 2013-14 (compared to 2.3% for FY 2012-13). With the expectation of a stable pro-reform, growth focused government at the center and as per the indications available, the growth is expected to pick up slowly in the later part of the current year provided improved governance and concerted action to resolve structural bottlenecks are effectively in place. Demand for power cables is expected to improve with the improvement in industrial and power sector growth.
FIXED ASSETS:
·
Land
·
Factory building
·
Office building
·
Plant and equipment
·
Furniture and fixture
·
Office Equipments
·
Computers
·
Vehicles
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 judgment or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration:
No records exist to suggest that subject is or
was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration:
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime:
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws:
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards:
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government:
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package:
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report:
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.41 |
|
|
1 |
Rs.103.42 |
|
Euro |
1 |
Rs.82.17 |
INFORMATION DETAILS
|
Information Gathered
by : |
HTL |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
JAY |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
52 |
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.