MIRA INFORM REPORT
|
Report Date : |
03.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
VINDHYA TELELINKS LIMITED |
|
|
|
|
Registered
Office : |
Udyog Vihar, P. O. Chorhata, Rewa - 486 006, Madhya Pradesh |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
27.01.1983 |
|
|
|
|
Com. Reg. No.: |
10-002134 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.118.408 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L31300MP1983PLC002134 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JBPV00018E |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Company is engaged in the business of manufacturing and sale of
telecommunication cables, other types of wires and cables, FRP rods/ Glass
roving, etc. and Engineering, Procurement and Construction (EPC) business. |
|
|
|
|
No. of Employees
: |
400 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 9000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track record. Company has performed well. Overall financial position of the company
is decent. Trade relations are reported to be fair. Business is active. Payments
are reported to be usually correct. The company can be considered for business dealing 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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
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
The economy grew 4.7 %in 2013/14, marking a
second straight year of sub-5 % growth – the worst slowdown in more than a quarter
of a century. The data was below an official estimate of 4.9 % annual growth
and compared with 4.5 % in the last fiscal year. However, the current account
deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product,
in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before. A
sharp fall in gold imports due to restrictions on overseas purchases and muted
import of capital goods helped shrink the current account deficit.
Online retailer Flipkart has acquired fashion
portal Myntra as it prepares to battle with the rapidly expanding India arm of
the global e-commerce giant Amazon. The company raised $ 210 million from
Russian Investment firm DST Global which has also invested in companies like
Facebook, Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune in the second half of 2014. GM was one of the
few global carmakers that was using its India plant only for the domestic
market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward
Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top
10 of the 100 slots were dominated by US companies.
Infosys lost another heavy weight when B G
Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit
after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V
Balakrishnan being the other two. While Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted
biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31,
mainly because it has been offering discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of Amway
India was arrested by the Andhra Pradesh Police in connection with a complaint
against the direct selling firm. This is the second time that he has been taken
into custody. A year, ago the Kerala Police had arrested Pinckney and two
company directors on charges of financial irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers wih hacking US companies. China’s action which
targets consultancies like McKinsey & Co. and the Boston Consulting Group,
sterns from fears that the first are providing trade secrets to the US
governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy
AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55
pounds a share.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities (BBB) |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk. |
|
Date |
14.04.2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities (A3) |
|
Rating Explanation |
Moderate degree of safety and higher credit risk. |
|
Date |
14.04.2014 |
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
31-03-2012.
INFORMATION PARTED BY
|
Name : |
Mr. R. K. Rungta |
|
Designation : |
Finance Head |
|
Contact No.: |
91-7662-400400 |
|
Date : |
18.06.2014 |
LOCATIONS
|
Registered Office / Factory: |
Udyog Vihar, P. O. Chorhata, Rewa - 486006, Madhya Pradesh,
India |
|
Tel. No.: |
91-7662-400400 |
|
Fax No.: |
91-7662-400591 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
EPC Division: |
605 and 608, DDA Building No.2, District Centre, Janakpuri, New
Delhi-110058,India |
|
|
|
|
OFC Unit: |
Plot No.1- C and 1 – D, P.O. Chorhata, Udyog Vihar, Rewa, (M.P.) 486006
India |
|
|
|
|
Marketing Offices : |
Located at :
|
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Haresh. V. Lodha |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. J. Veera Raghavan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. K. Misra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. C. Tapuriah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. R. Bansal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Pracheta Majumdar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Y. S. Lodha |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. R. K. Rungta |
|
Designation : |
Finance Head |
|
|
|
|
Name : |
Mr. R. Radhakrishnan |
|
Designation : |
President and Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2014
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
|
Central Government / State
Government(s) |
28000 |
0.24 |
|
|
5129305 |
43.28 |
|
|
5157305 |
43.52 |
|
|
|
|
|
Total shareholding of Promoter
and Promoter Group (A) |
5157305 |
43.52 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2592 |
0.02 |
|
|
4254 |
0.04 |
|
|
1111191 |
9.38 |
|
|
1118037 |
9.43 |
|
|
|
|
|
|
1026571 |
8.66 |
|
|
|
|
|
|
1051831 |
8.88 |
|
|
2146809 |
18.12 |
|
|
1350310 |
11.39 |
|
|
1253886 |
10.58 |
|
|
81712 |
0.69 |
|
|
14712 |
0.12 |
|
|
5575521 |
47.05 |
|
Total Public shareholding (B) |
6693558 |
56.48 |
|
Total (A)+(B) |
11850863 |
100.00 |
|
(C) Shares held by Custodians and
against which Depository Receipts have been issued |
0 |
0.000 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
11850863 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Company is engaged in the business of manufacturing and sale of
telecommunication cables, other types of wires and cables, FRP rods/ Glass
roving, etc. and Engineering, Procurement and Construction (EPC) business. |
||||||||
|
|
|
||||||||
|
Products : |
· Coiled /Straight Cords · Stranded Copper Wire · Insulated Cables. Cords, Flexes ·
Fiber Ribbon
|
||||||||
|
|
|
||||||||
|
Exports : |
|
||||||||
|
Products : |
Finished Goods |
||||||||
|
Countries : |
|
||||||||
|
|
|
||||||||
|
Terms : |
|
||||||||
|
Selling : |
Cash and Credit |
||||||||
|
|
|
||||||||
|
Purchasing : |
Cash and Credit |
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Jelly Filled Telephone Cables |
CKMs |
10700000 |
7026000 |
686077 |
|
Optical Fibre Cables |
KMs |
34272 |
34272 |
14368 |
|
Fibre Ribbon |
KMs |
75000 |
75000 |
-- |
|
Quad Jelly Filled Telephone Cable |
KMs |
1800 |
1800 |
36 |
|
FRP Rod |
KMs |
20000 |
20000 |
19070 |
|
E-Glass Roving |
MTs |
25 |
25 |
4 |
|
Tinned Copper Wire |
MTs |
1036 |
1036 |
13 |
|
Signalling Cable |
KMs |
2000 |
2000 |
221 |
|
Aerial Bunched Cable |
KMs |
12000 |
12000 |
599 |
GENERAL INFORMATION
|
Customers : |
Wholesalers and Retailers |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
No. of Employees : |
400 (Approximately) |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
V. Sanjar Aiyar and Company Chartered Accountants |
|
Address : |
|
|
|
|
|
Solicitors : |
|
|
Name : |
NMS and Company |
|
Address : |
New Delhi, India |
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Joint Venture : |
Birla Ericsson Optical Limited(BEOL) |
|
|
|
|
Enterprises over
which a director is able to exercise significant influence: |
Shakun Polymers Limited (SPL) |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Million |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11852014 |
Equity Shares |
Rs.10/- each |
Rs.118.520
Million |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11850863 |
Equity Shares |
Rs.10/- each |
Rs.118.509
Millions |
|
|
Less: Calls Unpaid |
|
Rs. 0.101
Million |
|
|
Total |
|
Rs.118.408
Millions |
Note:
a) There is no variation or change in the issued, subscribed and fully
paid-up equity share capital structure during the year. Therefore, no separate
disclosure of reconciliation of the number of equity share outstanding as at
the beginning and at the end of the year is required.
b) The Company has only one class of shares referred to as equity shares
having nominal value of Rs.10/-. The holders of equity shares are entitled to
one vote per share.
c) Shareholders holding more than 5% shares based on legal ownership in the
subscribed share capital of the Company is set out below:
|
Name of the
shareholder |
No. of Shares |
% held |
|
Universal Cables Limited |
3454530 |
29.15 |
|
The Punjab Produce and Trading Company Private Limited |
1291374 |
10.90 |
|
Belle Vue Clinic |
1164286 |
9.82 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
|
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
118.408 |
118.397 |
|
(b) Reserves & Surplus |
|
2135.723 |
2078.318 |
|
(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) |
|
2254.131 |
2196.715 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a)
long-term borrowings |
|
0.000 |
0.000 |
|
(b) Deferred tax
liabilities (Net) |
|
0.000 |
0.000 |
|
(c)
Other long term liabilities |
|
5.525 |
0.000 |
|
(d)
long-term provisions |
|
21.566 |
18.648 |
|
Total
Non-current Liabilities (3) |
|
27.091 |
18.648 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
|
1388.378 |
1219.877 |
|
(b)
Trade payables |
|
705.280 |
528.203 |
|
(c)
Other current liabilities |
|
200.333 |
108.278 |
|
(d)
Short-term provisions |
|
30.961 |
12.610 |
|
Total
Current Liabilities (4) |
|
2324.952 |
1868.968 |
|
|
|
|
|
|
TOTAL |
|
4606.174 |
4084.331 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
423.057 |
443.207 |
|
(ii)
Intangible Assets |
|
2.478 |
3.655 |
|
(iii)
Capital work-in-progress |
|
4.924 |
2.820 |
|
(iv) Intangible assets under
development |
|
0.000 |
0.000 |
|
(b)
Non-current Investments |
|
1176.837 |
1176.837 |
|
(c)
Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
49.774 |
54.761 |
|
(e)
Other Non-current assets |
|
78.646 |
28.626 |
|
Total
Non-Current Assets |
|
1735.716 |
1709.906 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
|
0.000 |
0.000 |
|
(b)
Inventories |
|
475.740 |
323.468 |
|
(c)
Trade receivables |
|
1903.436 |
1757.822 |
|
(d)
Cash and cash equivalents |
|
146.134 |
90.651 |
|
(e)
Short-term loans and advances |
|
169.355 |
151.986 |
|
(f)
Other current assets |
|
175.793 |
50.498 |
|
Total
Current Assets |
|
2870.458 |
2374.425 |
|
|
|
|
|
|
TOTAL |
|
4606.174 |
4084.331 |
|
SOURCES OF FUNDS |
|
|
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
118.397 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
2208.705 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
2327.102 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
387.247 |
|
|
2] Unsecured Loans |
|
|
170.000 |
|
|
TOTAL BORROWING |
|
|
557.247 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
2884.349 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
472.857 |
|
|
Capital work-in-progress |
|
|
12.418 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
1176.837 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
185.571 |
|
|
Sundry Debtors |
|
|
1130.880 |
|
|
Cash & Bank Balances |
|
|
145.651 |
|
|
Other Current Assets |
|
|
2.436 |
|
|
Loans & Advances |
|
|
192.589 |
|
Total
Current Assets |
|
|
1657.127 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
0.000 |
|
|
Other Current Liabilities |
|
|
408.444 |
|
|
Provisions |
|
|
26.446 |
|
Total
Current Liabilities |
|
|
434.890 |
|
|
Net Current Assets |
|
|
1222.237 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
2884.349 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3379.202 |
2505.198 |
1969.754 |
|
|
|
Other Income |
91.740 |
68.196 |
121.851 |
|
|
|
TOTAL (A) |
3470.942 |
2573.394 |
2091.605 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1588.079 |
1206.042 |
733.706 |
|
|
|
Purchase of stock -in-trade (traded goods) |
15.051 |
10.709 |
20.584 |
|
|
|
(Increase)/decrease in inventories |
(64.872) |
139.142 |
0.120 |
|
|
|
Materials purchased/subcontract expenses |
1099.714 |
984.991 |
733.251 |
|
|
|
Employee benefits expense |
202.039 |
190.139 |
171.694 |
|
|
|
Other expenses |
325.007 |
282.949 |
273.634 |
|
|
|
TOTAL (B) |
3165.018 |
2535.688 |
1932.989 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
305.924 |
37.706 |
158.616 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
199.487 |
120.158 |
74.279 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
106.437 |
(82.452) |
84.337 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
47.662 |
47.576 |
46.212 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
58.775 |
(130.028) |
38.125 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1.381 |
0.318 |
(0.079) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
57.394 |
(130.346) |
38.204 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
23.707 |
154.053 |
115.849 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED TO
THE B/S |
81.101 |
23.707 |
154.053 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export
of goods on FOB basis |
330.165 |
197.073 |
|
|
|
|
Contract
revenue |
48.916 |
53.939 |
|
|
|
|
Interest |
0.335 |
0.466 |
|
|
|
|
Others
(Freight & Insurance) |
12.183 |
0.000 |
|
|
|
TOTAL EARNINGS |
391.599 |
251.478 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
777.915 |
577.668 |
|
|
|
|
Stores & Spares |
5.959 |
1.182 |
|
|
|
|
Capital Goods |
10.612 |
1.440 |
|
|
|
|
Traded goods |
2.846 |
7.868 |
|
|
|
TOTAL IMPORTS |
797.332 |
588.158 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.85 |
(11.01) |
3.23 |
|
|
Particulars |
|
|
31.03.2014 |
|
Sales Turnover (Approximately) |
|
|
4523.800 |
|
|
|
|
|
The above information has been parted by (Mr. R. K. Rungta)
QUARTERLY RESULTS
(Rs In Millions)
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
31.12.2013 |
31.03.2014 |
|
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th Quarter |
|
Net Sales |
585.600 |
928.300 |
1302.000 |
1425.700 |
|
Total Expenditure |
570.900 |
806.500 |
1162.900 |
1230.400 |
|
PBIDT (Excl OI) |
14.700 |
121.800 |
129.100 |
195.300 |
|
Other Income |
07.200 |
36.600 |
09.600 |
10.300 |
|
Operating Profit |
21.900 |
158.400 |
148.700 |
205.600 |
|
Interest |
52.500 |
52.600 |
48.500 |
68.300 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
(30.600) |
105.800 |
100.200 |
137.400 |
|
Depreciation |
11.100 |
14.200 |
14.500 |
15.500 |
|
Profit Before Tax |
(41.700) |
91.600 |
85.700 |
121.900 |
|
Tax |
0.000 |
04.500 |
18.400 |
25.900 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(41.700) |
87.100 |
67.300 |
96.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(41.700) |
87.100 |
67.300 |
96.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
1.65 |
(5.07) |
1.83 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.74 |
(5.19) |
1.94 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.72 |
(4.48) |
(1.32) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03 |
(0.06) |
(0.01) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.62 |
0.56 |
0.24 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.23 |
1.27 |
1.36 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
118.397 |
118.408 |
|
Reserves & Surplus |
2078.318 |
2135.723 |
|
Net worth |
2196.715 |
2254.131 |
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
|
Short term borrowings |
1219.877 |
1388.378 |
|
Total borrowings |
1219.877 |
1388.378 |
|
Debt/Equity ratio |
0.555 |
0.616 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
1969.754 |
2505.198 |
3379.202 |
|
|
|
27.183 |
34.888 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
1969.754 |
2505.198 |
3379.202 |
|
Profit |
38.204 |
(130.346) |
57.394 |
|
|
1.94% |
(5.20%) |
1.70% |
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 |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details (if applicable) |
Yes |
|
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 |
No |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
|
|
|
|
GENERAL
& CORPORATE MATTERS
During the year, the Company
has reported improved performance; achieving higher revenue from operations by
36.30%. The year 2012 witnessed the heightened regulatory uncertainty in the
telecom sector, which forced all the stakeholders in the industry, to play safe
in terms of reduced network roll-out, which affected the company's overall
business outlook. However, the current year promises full of new projects being
lined up by major companies in public sector such as Bharat Broadband Network
Limited (BBNL) for its National Optical Fibre Network Project (NOFN), BSNL's
Network for Spectrum (NFS) for Defence forces. In private sector, a leading
Telecom player’s roll out of a country-wide 4G LTE network using high fibre
count ribbon type OF cable and all other private telecom operators' plan of
enhancing their network reach for their 2G and 3G networks, etc. will add wings
to the government's initiatives. The last budget presented in the Parliament,
which is being regarded as realistic hinge on growth and development, will
definitely pave the way for growth in the infrastructure to significant levels
which indirectly will contribute to the performance of Company's EPC Division,
in the near future.
The gross revenue from
operations for the year increased to Rs.35815.84 lacs as compared to
Rs.2627.730 Millions during the previous year mainly due to increased revenue
from cables business by 49.64% (Rs.2130.739 Millions vs. Rs.1423.927 Millions
in the previous year). The increased revenue paved the way for higher
profitability despite a significant increase in finance costs.
A focused approach by
debottlenecking the PIJF Copper Telecom cable production facilities to Railway
Quad, Signaling and other specialty copper cables has enhanced the performance
of the company in a considerably way, by contributing 40% of the cable
division's revenue with better market share, which is worth mentioning. Also
the increased off take of optical fibre cable by a leading public sector
telecom operator and other important private operators coupled with continuous
improvement in export markets has added to the top line performance
significantly. As the Company has already focused on clear and consistent
priorities to invest in the future to create increased and new revenue streams
by continuously upgrading and modernizing the production facilities, the demand
for telecom cables which is likely to witness considerable growth with the
emergence of government's initiatives and other private customers will be met
and the Company can continue to deliver quality products and enjoy customers'
loyalty for products which are witnessing expanding volumes.
The Directors believe the
demand for telecom cables will gain a fillip as the NOFN project will be
requiring, laying of fibre to pre-last mile stage, which is aimed at reaching
250,000 gram panchayats. In addition to the above, the government's commitment
to improve the infrastructure sector will also generate more revenue for the
Company's EPC Division to grab major projects in the power and telecom sectors.
The EPC Division sales
increased from Rs.11582.80 lacs to Rs.1365.412 Millions, an increase of 17.88%
compared to the previous year. The current business verticals of the EPC
Division viz. Telecom, Power and Sewerage pipeline building are now geared up
for improved performance with change in backlog order composition with enhanced
EBITDA margins with a special emphasis on Sewerage pipeline projects.
To keep abreast with the
latest trends in the industry, the Company has been continuously augmenting and
upgrading the production facilities, with a close watch on cost controls. To
have better operational income, the company is adopting a continuous
improvement approach by way of optimum resource utilization, prudent sourcing
practices of all materials required across different business verticals. The
Company would continue to develop new products by innovation and as per the
latest industry requirements, which will further strengthen its competitiveness
in both domestic and export market places, leading to customers' bliss and
improved operational efficiency.
Management Discussion and
Analysis
INDUSTRY STRUCTURE AND
DEVELOPMENTS
The Company is engaged in
the business of manufacturing and sale of Telecommunication cables, other types
of wires & cables, FRP rods/ Glass rovings, etc. and Engineering,
Procurement and Construction (EPC) business
The Indian market for
copper telecom cable viz. PIJF has been passing through a very difficult phase
in the last few years. The number of fixed line telephone subscribers in India is
witnessing stagnant or declining trend whereas wireless services continue to
grow at a phenomenal pace leading to anemic demand coupled with unremunerative
prices for PIJF. The fluctuation in the price of copper and the volatile
exchange rate are the other challenges faced by the vendors in the industry.
The volatility of copper pricing has been escalating consistently in the last
three years. Keeping a steady price for copper products has become a challenge
for every cabling vendor.
Transmission in the
networks is becoming more and more digital and the need for broadband access
has resulted in OFC increasingly becoming the transmission medium of choice.
The Indian telecom sector is expected to witness flat-to-slight growth during
the period 2013-15. Strong growth rates have become a distant memory for the
sector as operators are under increasing financial pressure and responding with
measures like network sharing, procurement partnerships, and consolidation. The
National Optical Fiber Network(NOFN) is finally taking off. Thirteen state
governments and three union territories (UTs) have signed tripartite
Memorandums of Understanding for free Right of Way (RoW) with the central
government and Bharat Broadband Network Limited. About 140,727 Gram Panchayats
are expected to receive coverage by optical fibre network in these states and
UTs. The central government, mthrough Universal Service Obligation Fund (USOF),
will fund the project while state governments would provide free RoW for laying
optical fibre cable.
In an effort to encourage
indigenous manufacturing of telecom products and keeping in view the security
concerns of the country, the union government has approved the Preferential
Market Access (PMA) Policy to support domestic manufacturers and give preference
to domestically manufactured telecom and electronic products. Year 2013 will
witness rollout of massive broadband networks, national optical fibre network,
and strengthening of network particularly in rural and tier-B areas. India is
envisaged to become one of the fastest growing OFC market in the world
The EPC Division of the
Company currently concentrates on four business verticals viz. Telecom, Power,
Gas distribution Pipeline and Sewage Projects. In Telecom it provides solutions
in trenching and laying of optical fibre cables, installation and commissioning
of telecom equipments, FTTH installation, civil work and foundation of towers
and maintenance of network. In the power domain the services are offered to the
power transmission and distribution sector with a focus primarily in the power
distribution networks including those in rural India, renovation and
augmentation of existing distribution systems, underground transmission, feeder
segregation, installation of High Voltage Distribution System (HVDS) and Low
Voltage Distribution Systems (LVDS), distribution lines, substation and
transmission lines, capacitor banks, lighting projects, and end to end LED
solutions, etc. In Gas the Company provides last mile connectivity for city
domestic gas distribution projects. The Company has also recently forayed in
City Sewage Projects which are proposed to be executed through trenchless
technology.
There
is no material change in the industry structure as was reported last year
BUSINESS REVIEW AND OUTLOOK
The year 2012 witnessed the
approval of National Telecom Policy and National Manufacturing Policy, though
it also saw the heightened regulatory uncertainty in the sector owing to cancellation
of licenses by the Supreme Court, spectrum reframing, and one-time charge for
spectrum. It is likely to impact financial health, sustainability, and growth
of an industry, which is one of the major contributors toward the
socio-economic and GDP growth of the country.
With the telecom sector at
a critical juncture, the vision of increased average revenue per user and
broadband for masses is anticipated to be solely met by proper implementation
of progressive and supportive policies provided by the government and the
regulator, which in turn is expected to reduce the cost burden on the industry
and provide impetus to free flow of investment, ideas and technology to
facilitate growth and evolution of this sector. The financial year 2012 saw the
continuance of growth for the Indian telecom market, which witnessed a 12.41
percent YoY increase in its subscriber base during the 12-month period. At the
end of March, 2012, the country’s total telecom subscriber base (fixed plus
mobile) stood at about 951 million. The teledensity level stood at
about 78.66 percent by the
end of Financial Year 2012. Various favourable initiatives from the government,
such as the introduction of mobile number portability and 3G, have contributed
to this growth. With low penetration levels, especially in the rural areas, the
Indian telecom market presents significant opportunities of growth.
On the backdrop of the
government’s initiatives of bringing broadband to every Indian household, and a
target of 175 million broadband users by 2017, the telecom cable segment is at
the point of inflexion
The XIth Five Year Plan
aims at a sustainable GDP growth rate of 9% but there is general consensus that
infrastructure inadequacies would constitute a significant constraint in
realizing this development potential. To overcome this constraint, an ambitious
programme of infrastructure investment, involving both public and private
sector, is being developed by the Government. To exploit the emerging
opportunities, the Company’s EPC Division’s strategy is focused on expanding
its participation in telecommunications, power and oil 6 & gas distribution
verticals given the growth potential by providing high quality services to
customers and grows business by leveraging on its strength and synergies.
PRODUCT-WISE
PERFORMANCE
Telecommunication
Cables
The Company’s sales
turnover on account of Telecommunication cables, comprising of PIJF, OFC, Quad
cables etc. increased from Rs.958.644 Millions in the previous year to Rs.1316.359
Millions, during the year under review, mainly due to increase in demand from
government customers, private operators and supplies to Railways.
The Company’s concentration
on export markets has started yielding dividends with the export sales increasing
by 21% in the PIJF Cables.
The increase in revenue
from OFC business at Rs.560.695 Millions as compared to Rs.280.901 Millions in
the previous year is very significant. The Company has been constantly looking
for export opportunities in this area and exported to customers in Poland,
Australia, etc.
There may not be any
significant improvement in the domestic OFC prices as the bargaining power of
buyers and the existence of novercapacity will constrain the ability of
domestic players to resort to any considerable price hikes in the near future.
Keeping this in view, the Company has taken a strategic decision to participate
in turnkey projects which eventually will lead to additional revenue
opportunities by cross-marketing its business to the customers besides helping
in retention of the customers under the changed business environment.
The telecom cables industry
is likely to witness considerable growth with the emergence of new technologies
and government initiatives under the National Telecom Policy (NTP) 2012. High
speed and high bandwidth backhaul is required for increasing data usage on the
3G platform and the introduction of 4G services. The demand for
telecom cables will gain a
fillip as service providers upgrade this backhaul in their networks. A choked
backbone
network has led to low
quality 3G services, resulting in slow uptake. With service providers planning
to shift to long term evolution and high speed packet access plus (HSPA+)
networks, they would need a radical upgrade of their network capabilities.
Other
Wires & Cables
Also,
there was a significant increase in other wires and cables sales from
Rs.451.385 Millions to Rs.781.128 Millions
in this year, mainly on account of supply of Signaling cables to
Railways
As the Company has
concentrated on completing the pending orders in the telecom sector, there was
a dearth of orders for the Company’s Telecom division during the year. The
company has been timely executing all the pending projects and is also
venturing into other opportunities with better profitability. Various
government telecom projects like NOFA, Defence project, 4G rollout by private
operators are likely to generate big business opportunities in the coming 3–5
years. The company has also ventured into Sewage projects to be laid through
trenchless technology (HDD method) and expect good volumes through this line
also. In the Power division, the company has a reasonably good order book and
will be bagging prestigious projects from various government
agencies in the next
financial year. Most of the projects which were targeted and won at low margins
in order to build credentials for the company are completed. This would give
the EPC Division a bigger platform to participate in a number of forthcoming
projects adding to its topline with improved profitability.
Well
experienced employees within the organization have been deployed to ensure
effective monitoring over web enabled software systems. Also the Company has
identified the acute shortage of trained manpower for both the roll out and
subsequent operation and maintenance of the OFC/ FTTx networks as a business
opportunity and has established a Telecom Training Academy
OVERALL
REVIEW
In the year 2012-13 the
Company’s performance has been significant. The Company has increased its share
of market not only in traditional cables business but also in export markets,
EPC Division and achieved a reasonable profit.
• The trade receivables
level at Rs.1903.436 Millions as on March 31, 2013 as compared to Rs.1757.822
Millions as on March 31, 2012 has increased due to higher sales in the
telecommunication cables division in the last quarter and extended credit to
customers and retention money withheld by the customers of EPC Division as per
the governing terms of the contracts awarding to the Company and/or as per
evolving industry norms.
CONTINGENT LIABILITIES:-
(i)
Claims
against the Company not acknowledged as debts Rs. Nil (Rs.0.617 Millions).
(ii)
Pending
cases with income tax appellate authorities where income tax department has
preferred appeals – liability
not ascertainable.
(iii)
Appeals
preferred by the Company against the claim/levy of differential sales tax due
to timely non- submission of
declaration forms for concessional sales tax. The demand(s)/levy on merits of
the cases have been stayed and are pending before the appellate authorities,
liabilities against which are unascertainable until final outcome in the
pending cases.
(iv)
Bills
of exchange under letter of credit discounted with a bank and outstanding at
the end of the year Rs. Nil (Rs. 4.772 Millions).
(v)
Cross
corporate guarantee given by the Company as a collateral security against
working capital credit facilities aggregating to Rs.700.000 Millions
(outstanding as on March 31, 2013 Rs. 447.066 Millions) sanctioned by a bank to
Birla Optical Limited, a joint venture.
The
future cash outflow in respect of items (i) to (iii) above is determinable only
on receipt of the decisions/judgements in the cases pending at various forums
and authorities concerned.
UNAUDITED FINANCIAL RESULTS FOR THE
YEAR ENDED JUNE 30, 2013
(In Millions)
|
Sr. No. |
Particular |
Quarter Ended 30.06.2013 (Unaudited) |
|
1. |
Income from
Operations |
|
|
|
Net Sales |
577.140 |
|
|
Other Operating Income |
8.445 |
|
|
Net Sales/Income
from Operations |
585.585 |
|
|
|
|
|
2. |
Expenditure |
|
|
|
(a) Cost of
materials consumed (b) Cost of
material and other contract expenses |
363.387 126.087 |
|
|
(b) Purchase of stock-in-trade |
1.059 |
|
|
Change in Inventories of Finished Goods, Work-In-Progress
and Stock In Trade |
(41.419) |
|
|
Employee Benefits Expenses |
54.904 |
|
|
Depreciation and Amortization Expenses |
11.116 |
|
|
Other Expenses |
66.853 |
|
|
f) Total |
581.987 |
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items |
3.598 |
|
|
|
|
|
4. |
Other Income |
7.188 |
|
|
|
|
|
5. |
Profit
Before ordinary activities and Finance cost |
10.786 |
|
|
|
|
|
6. |
Finance
cost |
52.486 |
|
|
|
|
|
7. |
Profit
from Ordinary Activities before Tax |
(41.700) |
|
|
|
|
|
8. |
Tax Expense |
- |
|
|
|
|
|
9. |
Net Profit
from Ordinary Activities after Tax |
(41.700) |
|
|
|
|
|
10. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
118.408 |
|
|
|
|
|
11. |
Reserves Excluding Revaluation Reserve |
-- |
|
|
|
|
|
12. |
Basic and Diluted Earnings Per Share (EPS) (Rs.)-Not
Annualized |
(3.52) |
SELECT INFORMATION FOR THE QUARTER ENDED 30TH
JUNE, 2013
(Rs.
in Millions)
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
1. Public shareholding |
|
|
Number of
Shares |
6693458 |
|
Percentage of
Shareholding |
56.48 % |
|
2. Promoters and promoter group
shareholding |
|
|
a) Pledged/Encumbered |
|
|
- Number of Shares |
Nil |
|
- Percentage of Shares (as a % of the Total Shareholding of promoter
and promoter group) |
NA |
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
NA |
|
|
|
|
Non -
encumbered |
|
|
- Number of
Shares |
5157405 |
|
- Percentage
of Shares (as a % of
the total shareholding of promoter and promoter
group) |
100% |
|
- Percentage of
Shares (as a % of
the total share capital of the company) |
43.52 % |
|
|
Particulars |
Quarter ended March 31, 2013 |
|
B |
Investor
complaints [Nos.] |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
3 |
|
|
Disposed of during the quarter |
3 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
SR. No. |
Particulars |
Quarter Ended 30.06.2013 (Audited) |
|
1 |
Segment Revenue |
|
|
|
(a) Cables |
407.231 |
|
|
(b) Engineering, Procurement and Construction |
178.354 |
|
|
Total |
585.585 |
|
|
Less: Inter- Segment Revenue |
12.718 |
|
|
Net sales/Income
from Operations: |
572.867 |
|
|
Segment Results |
|
|
|
Segment Profit/(Loss) before Tax and Interest |
|
|
|
(a) Cables |
0.789 |
|
|
(b) Engineering, Procurement and Construction |
(11.513) |
|
|
Total |
(10.724) |
|
|
Less : Interest (Net) |
(33.623) |
|
|
Total Profit/
(Loss) Before Tax |
2.647 |
|
3. |
Capital Employed: |
(41.700) |
|
|
(Segment Assets- Segment Liabilities) |
|
|
|
(a) Cables |
|
|
|
(b) Engineering, Procurement and Construction |
1142.386 |
|
|
(c) Unallocated |
1344.303 |
|
|
Total |
(274.266) |
INDEX OF CHARGES
|
No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10475649 |
13/02/2014 * |
144,700,000.00 |
State Bank of Patiala |
Mid Corporate Branch, Ambadeep Building, Ground F |
B96632427 |
|
2 |
10448282 |
13/02/2014 * |
250,000,000.00 |
STATE BANK OF PATIALA |
Mid Corporate Branch, Ambadeep Building, Ground F |
B96635800 |
|
3 |
10429301 |
06/06/2013 * |
370,000,000.00 |
STATE BANK OF INDIA |
CORPORATE ACCOUNTS GROUP BRANCH, RELIANCE HOUSE, |
B77462851 |
|
4 |
10406630 |
13/02/2014 * |
150,000,000.00 |
State Bank of Patiala |
Mid Corporate Branch, Ambadeep Building, Ground F |
B96632849 |
|
5 |
90202809 |
21/04/2014 * |
2,625,000,000.00 |
State Bank of India |
State Bank of India, Reliance House, 34 Jawaharla |
C02472207 |
Date of charge
modification
UNSECURED LOAN
|
Particulars |
As on 31.03.2013 |
As on 31.03.2012 |
|
Short term Borrowing: |
|
|
|
From bodies corporate (repayable on demand) |
250.000 |
100.000 |
|
From related parties (repayable on demand) |
375.500 |
270.000 |
|
|
|
|
|
Total |
625.500 |
370.000 |
FIXED ASSETS
Tangible Assets
- Land
- Building
- Plant and E
- Furniture and
Fixture
- Office
Equipment
- Vehicles
- Leasehold
- Improvements
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.60.00 |
|
|
1 |
Rs.102.05 |
|
Euro |
1 |
Rs.81.71 |
INFORMATION DETAILS
|
Information Gathered
by : |
PRI |
|
|
|
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
JGT |
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 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
46 |
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.