MIRA
INFORM REPORT
|
Report No. : |
302267 |
|
Report Date : |
09.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
BIRLA ERICSSON OPTICAL LIMITED |
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|
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Registered
Office : |
Udyog Vihar, P O Chorhata, Rewa–486006, Madhya Pradesh |
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Country : |
India |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
30.06.1992 |
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Com. Reg. No.: |
10-007190 |
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Capital
Investment / Paid-up Capital : |
Rs.300.000 millions |
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CIN No.: [Company Identification
No.] |
L31300MP1992PLC007190 |
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IEC No.: |
Not Available |
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TAN No.: [Tax Deduction &
Collection Account No.] |
JBPB01003C |
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PAN No.: [Permanent Account No.] |
Not Available |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Telecom
Cables Including Optical Fibre Cables, Jelly Filled Telecom Cables and other items
like Insulated Cables, Cords and Flexes. |
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|
|
|
No. of Employees
: |
172 (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 2200000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established company having fine track record. The rating reflects company’s healthy operational risk profile marked
by sound financial base and adequate profitability margins of the company. Trade relations are reported as fair. Business is active. Payments 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. |
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities A – (SO) |
|
Rating Explanation |
Adequate degree of safety and low credit
risk |
|
Date |
07.10.2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities A2 (SO) |
|
Rating Explanation |
Strong degree of safety and low credit risk.
|
|
Date |
07.10.2014 |
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.
LOCATIONS
|
Registered/ Head Office / Factory : |
Udyog Vihar, P O Chorhata, Rewa – 486 006, |
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Tel. No.: |
91-7662-500580 |
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Fax No.: |
91-7662-400680 |
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E-Mail : |
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Website : |
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Marketing Office |
Located at
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DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Harsh V. Lodha |
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Designation : |
Chairman |
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|
|
Name : |
Mr. D. R. Bansal |
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Designation : |
Managing Director |
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Name : |
Mr. R. C. Tapuriah |
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Designation : |
Director |
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Name : |
Dr. Aravind Srinivasan |
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Designation : |
Director |
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Name : |
Mr. Arun Kishore |
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Designation : |
Director |
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Name : |
Mr. K. Raghuraman |
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Designation : |
Director |
KEY EXECUTIVES
|
AUDIT COMMITTEE |
|
|
Name : |
Mr. R. C. Tapuriah |
|
Designation : |
Director |
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|
Name : |
Dr. Aravind Srinivasan |
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Designation : |
Director |
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|
Name : |
Mr. Arun Kishore |
|
Designation : |
Director |
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Name : |
Mr. K. Raghuraman |
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Designation : |
Director |
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MANAGER AND CHIEF EXECUTIVE OFFICER : |
|
|
Name : |
Mr. R. Sridharan |
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Designation : |
Chief Executive Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2014
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
|
|
|
|
(1) Indian |
|
|
|
Individuals / Hindu Undivided Family |
72241 |
0.24 |
|
|
10583442 |
35.28 |
|
Any Others (Specify) |
1000260 |
3.33 |
|
|
1000260 |
3.33 |
|
Sub Total |
11655943 |
38.85 |
|
(2) Foreign |
|
|
|
Bodies Corporate |
8250000 |
27.50 |
|
Sub Total |
8250000 |
27.50 |
|
Total shareholding of Promoter and Promoter Group (A) |
19905943 |
66.35 |
|
|
|
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|
(1) Institutions |
|
|
|
Mutual Funds / UTI |
500 |
0.00 |
|
|
2620 |
0.01 |
|
Sub Total |
3120 |
0.01 |
|
(2) Non-Institutions |
|
|
|
|
1154321 |
3.85 |
|
Individuals |
|
|
|
Individual shareholders holding nominal share capital up to Rs. 0.100
Million |
6689661 |
22.30 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 Million |
1609245 |
5.36 |
|
Any Others (Specify) |
637910 |
2.13 |
|
|
91240 |
0.30 |
|
Non Resident Indians |
119842 |
0.40 |
|
|
5100 |
0.02 |
|
Clearing Members |
421728 |
1.41 |
|
Sub Total |
10091137 |
33.64 |
|
Total Public shareholding (B) |
10091137 |
33.64 |
|
Total (A)+(B) |
30000000 |
100.00 |
|
|
0 |
0 |
|
(1) Promoter and Promoter Group |
0 |
0 |
|
(2) Public |
0 |
0 |
|
Sub Total |
0 |
0 |
|
Total (A)+(B)+(C) |
30000000 |
0 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Telecom
Cables Including Optical Fibre Cables, Jelly Filled Telecom Cables and other
items like Insulated Cables, Cords and Flexes. |
|
|
|
|
Products : |
v Telecom Cables Including Optical Fibre Cables v Jelly Filled Telecom Cables v Other items like Insulated Cables v Cords and Flexes |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Available |
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Imports : |
Not Available |
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Terms : |
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Selling : |
Not Available |
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Purchasing : |
Not Available |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
172 (Approximately) |
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Bankers : |
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Facilities : |
LONG TERM
BORROWINGS a)
The loans from bank are secured by way of
hypothecation of stock of Inventories, cash and other current assets, book debts,
outstanding moneys, receivables, claims, etc., both present and future, and
are further secured by way of hypothecation of movable fixed assets, both
present and future, and first charge created by way of joint mortgage by deposit of title deeds of
certain immovable properties of the Company. As a collateral security these
loans are also backed by a cross corporate guarantee of Vindhya Telelinks
Limited, a joint venturer. Term loan is repayable in eight quarterly
installments commencing from March, 2014 and carries interest @ 13.30% (rate
as on the reporting date). Supplier’s credit (in foreign currency) is
repayable in full in the year 2016 and carries interest @ 1.98% - 2.04% (rate
as on the reporting date). b)
Sales tax loans are as per scheme of State
Government and for administration of these loans, Madhya Pradesh State
Industrial Development Corporation Limited (MPSIDC Ltd.) has been specified
by the State Government as the Implementing Agency. As per the governing
scheme for conversion of deferred sales tax into loan, the final sales tax
loan liability subsists up to a period of ten years, commencing from the
expiry of each financial year covered by the period of eligibility and is
payable thereafter within 30 days in one installment subject to compliance
with the terms and conditions as specified in the scheme. c)
Loans from
bodies corporate are repayable in full in the year 2015 and carries interest
@ 10.50% (rate as on the reporting date). SHORT TERM
BORROWINGS a)
Working capital loans/trade credits from banks
being working capital credit facilities, sanctioned by a bank are generally
renewable within twelve months from the date of sanction or immediately
previous renewal, unless otherwise
stated. The lender bank has a right to cancel the credit limits (either fully
or partially) and, interalia, demand repayment in case of non-compliance of
terms and conditions of sanctions or deterioration in the loan account in any
manner. b)
Working
capital loans (both fund and non-fund based) are secured by way of
hypothecation of stock of inventories, cash and other current assets, book
debts, outstanding moneys, receivables, claims, etc., both present and
future, and are further secured by way of hypothecation of movable fixed assets,
both present and future, and first charge created by way of joint mortgage by
deposit of title deeds of certain immovable properties of the Company. As a
collateral security, working capital loans are also backed by a cross
corporate guarantee of Vindhya Telelinks Limited, a joint venturer. |
|
Auditors : |
|
|
Name : |
V. Sankar Aiyar and Company Chartered Accountant |
|
Address : |
New Delhi |
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Solicitors : |
NMS and Company |
|
Address : |
New Delhi |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Associates/Subsidiaries : |
Not Available |
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Venturers in respect of which the : Company is a joint venture : |
v Universal Cables
Limited, India (UCL) v Company is a joint venture Vindhya Telelinks
Limited, India (VTL) v Ericsson Cables AB, Sweden (ECA) |
|
|
|
|
Enterprise over which a director is able to exercise significant
influence : |
v Shakun Polymers
Limited, India (SPL) |
CAPITAL STRUCTURE
As on 31.03.2014
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
42500000 |
Equity Shares |
Rs.10/- each |
Rs. 425.000 Millions |
|
7500000 |
Preference Shares |
Rs.10/- each |
Rs. 75.000 Millions |
|
|
TOTAL |
|
Rs. 500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs. 300.000
Millions |
|
|
|
|
|
(a) Reconciliation of the number of shares outstanding and the amount of
share capital as at March 31, 2014 and March 31, 2013 is as under:
|
Particulars |
As at March 31,
2014 |
|
|
|
No. of Shares |
Rs. in Millions |
|
Outstanding at the beginning of the year |
30000000 |
300.000 |
|
Outstanding at the end of the year |
30000000 |
300.000 |
(b) The Company has only one class of shares
referred to as equity shares having nominal value of Rs.10/- each. The holders
of equity shares are entitled to one vote per share. The Company declares and pays
dividend in Indian Rupees. The dividend proposed by Board of Directors is
subject to approval of shareholders in the ensuing Annual General Meeting. For
the year ended 31st March 2014, the amount of per share dividend recognised for
distribution to equity shareholders was Re 1/- per share, subject to approval
of shareholders.”
(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 |
As at March 31,
2014 |
|
|
Ericsson Cables AB, Sweden |
No. of Shares |
% of Held |
|
Vindhya Telelinks Limited |
8250000 |
27.50 |
|
Universal Cables Limited |
4000100 |
13.33 |
|
|
3900100 |
13.00 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
300.000 |
300.000 |
300.000 |
|
(b) Reserves & Surplus |
479.737 |
322.430 |
265.562 |
|
(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) |
779.737 |
622.430 |
565.562 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
151.334 |
1.265 |
7.191 |
|
(b) Deferred tax liabilities (Net) |
34.500 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
11.604 |
10.897 |
16.854 |
|
Total Non-current
Liabilities (3) |
197.438 |
12.162 |
24.045 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
319.555 |
333.642 |
274.149 |
|
(b) Trade
payables |
928.308 |
365.356 |
152.352 |
|
(c) Other
current liabilities |
50.092 |
63.684 |
31.994 |
|
(d) Short-term
provisions |
45.567 |
11.198 |
4.861 |
|
Total Current
Liabilities (4) |
1343.522 |
773.880 |
463.356 |
|
|
|
|
|
|
TOTAL |
2320.697 |
1408.472 |
1052.963 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
384.811 |
297.022 |
322.261 |
|
(ii)
Intangible Assets |
0.008 |
0.110 |
0.345 |
|
(iii)
Capital work-in-progress |
14.435 |
40.164 |
1.914 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
140.619 |
140.619 |
140.619 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
46.006 |
13.813 |
8.586 |
|
(e) Other
Non-current assets |
19.588 |
0.000 |
0.012 |
|
Total Non-Current
Assets |
605.467 |
491.728 |
473.737 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
534.113 |
297.087 |
175.555 |
|
(c) Trade
receivables |
939.354 |
373.413 |
275.966 |
|
(d) Cash
and cash equivalents |
64.950 |
70.084 |
58.658 |
|
(e)
Short-term loans and advances |
170.668 |
171.918 |
66.270 |
|
(f) Other
current assets |
6.145 |
4.242 |
2.777 |
|
Total Current
Assets |
1715.230 |
916.744 |
579.226 |
|
|
|
|
|
|
TOTAL |
2320.697 |
1408.472 |
1052.963 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2905.928 |
1238.072 |
751.031 |
|
|
|
Other Income |
21.988 |
31.447 |
22.628 |
|
|
|
TOTAL |
2927.916 |
1269.519 |
773.659 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
2298.861 |
926.984 |
574.178 |
|
|
|
Purchases of Stock-in-Trade |
13.641 |
12.317 |
13.383 |
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(78.821) |
(39.102) |
(16.807) |
|
|
|
Employees benefits expense |
97.824 |
80.788 |
49.032 |
|
|
|
Other expenses |
226.620 |
145.740 |
90.572 |
|
|
|
TOTAL
(B) |
2558.125 |
1126.727 |
710.358 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
369.791 |
142.792 |
63.301 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
88.697 |
49.454 |
73.884 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
281.094 |
93.338 |
(10.583) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
46.368 |
36.470 |
37.977 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
234.726 |
56.868 |
(48.560) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
42.320 |
0.000 |
(0.321) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
192.406 |
56.868 |
(48.239) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Interest |
2.331 |
2.581 |
2.837 |
|
|
|
Travelling |
3.865 |
1.877 |
1.212 |
|
|
|
Others |
10.728 |
3.155 |
3.719 |
|
|
TOTAL EARNINGS |
16.924 |
7.613 |
7.768 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
745.024 |
393.283 |
277.885 |
|
|
|
Components and spare Parts |
5.097 |
2.861 |
1.427 |
|
|
|
Capital Goods |
107.403 |
49.197 |
6.287 |
|
|
TOTAL IMPORTS |
857.524 |
445.341 |
285.599 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
6.41 |
1.90 |
(1.61) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
Net Profit Margin (PAT/Sales) |
(%) |
6.62 |
4.59 |
-6.42 |
|
|
|
|
|
|
|
Operating Profit Margin (PBITD/Sales) |
(%) |
12.73 |
11.53 |
8.43 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.84 |
4.63 |
-5.33 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.30 |
0.09 |
-0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.60 |
0.54 |
0.50 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.28 |
1.18 |
1.25 |
FINANCIAL ANALYSIS
[all figures are in
Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
300.000 |
300.000 |
300.000 |
|
Reserves & Surplus |
265.562 |
322.430 |
479.737 |
|
Net
worth |
565.562 |
622.430 |
779.737 |
|
|
|
|
|
|
long-term borrowings |
7.191 |
1.265 |
151.334 |
|
Short term borrowings |
274.149 |
333.642 |
319.555 |
|
Total
borrowings |
281.340 |
334.907 |
470.889 |
|
Debt/Equity
ratio |
0.497 |
0.538 |
0.604 |
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 |
751.031 |
1238.072 |
2905.928 |
|
|
|
64.850 |
134.714 |
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 |
751.031 |
1238.072 |
2905.928 |
|
Profit |
-48.239 |
56.868 |
192.406 |
|
|
-6.42% |
4.59% |
6.62% |
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 |
No |
|
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 |
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 |
UNSECURED LOAN
(Rs.
In Million)
|
PARTICULAR |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Sales tax loans (Interest free) |
1.265 |
1.265 |
|
From bodies corporate |
100.000 |
0.000 |
|
Less: Current maturities of long term borrowings at the year end (disclosed under Note No.10) |
0.000 |
(6.311) |
|
Sales tax loans (Interest free) |
(6.265) |
0.000 |
|
|
|
|
|
SHORT TERM
BORROWINGS |
|
|
|
Other short term loans |
120.000 |
120.000 |
|
|
|
|
|
Total |
215.000 |
114.954 |
FINANCIAL REVIEW
- The revenue
from operations (gross) increased by 135.56 % to Rs.3194.523 Millions as
compared to Rs. 1356.141 Millions in previous year primarily due to substantial
increase in sales of OFC both in value and volume terms.
- The raw
material consumption and other charges were higher as compared to previous
year due to higher production level
- The other
borrowing cost increased from Rs.6.676 Millions in previous year to
Rs.14.467 Millions mainly due to higher utilization of working capital
limits during the year under review. Also, the interest cost has increased
to Rs.64.586 Millions (previous year Rs. 34.298 Millions) due to extended
credit to private sector customers as per evolving industry norms.
- Due to
increase in the operations revenue from Rs. 1356.141 Millions to
Rs.3194.523 Millions in the financial year and the continuous control on
all costs, the Company has achieved a gross profit (profit before depreciation)
of Rs.281.094 Millions as against the gross profit (profit before
depreciation) of Rs. 93.338 Millions in the previous year. BIRLA ERICSSON
- There was no
change in the capital structure during the year. However, the increase in
Reserves & Surplus of Rs.192.406 Millions is because of the net profit
in the current year.
- The additions
to the fixed assets of Rs.115.847 Millions during the year mainly comprise
of Optical Fibre Ribbon making Machine, Secondary Coating Line, Fibre
Colouring Line, High Speed Binder, Electrostatic Powder Application Unit,
Electrical Equipments, etc.
- For detailed
information on the financial statements.
GENERAL AND CORPORATE MATTERS
During the year, the Company has achieved one
of its best performances with optimism and renewed vigor despite a challenging macro economic
environment. The Company’s revenue from operations increased to
Rs.3194.523 Millions in the current year
from Rs.1356.141 Millions in the previous year (an increase of about 135%) and
the gross profit for the year
significantly increased to Rs.281.094 Millions as against Rs.93.338 Millions in
the previous year. With the investment plans
announced by large operators in enhancing optical fibre network and the
take-off in National Optic Fibre Network(NOFN) From BBNL, etc. has put the
Company in an advantageous position to achieve and realize the upward growth
curve in telecom cables business in the
immediate future.
The gross revenue from operations for the year
substantially increased as compared to the previous year mainly due to
increased off take of optical fibre cables by the Company’s important private
sector operators and domestic government customers coupled with a continuous
sales growth in the export markets. The Company has also supplied reasonably
good volume of high fibre count Optical Fibre Cables to a leading private
sector customer during the year reflecting Company’s strategy to remain
consistently relevant to the evolving business needs of the customers. Despite evolving business preferences and
intense competitive landscape in telecom cable industry, the traditional PIJF
Cables and other specialty cables business have increased their share
moderately in the overall revenue from operation of the Company. With the emphasis on control on the
material consumption and monitoring of factory and other overheads, the Company
has achieved a significant increase in the gross profit levels compared to the
previous year figure. This was possible as the Company has been consistently
working on reducing the costs at all levels and on improving the margins by
continuous innovation and development of cost effective products.
Building the country’s new telecom
infrastructure based on latest cost effective world-class technology and upgrading
the existing network facilities is of paramount importance. The need for
building a state-of-the-art telecom network is felt under various stages of
planning and implementation by all stakeholders including the regulator and the
government authorities. Some of the big
ticket telecom projects announced includes National Optic Fibre Network from
Bharat Broadband Network Limited (BBNL),
a special purpose vehicle promoted by public sector companies like BSNL, PGCIL
and RailTel under USO funding mechanism.
This ambitious project plans to bring rural India into the high-speed broadband
network by way of connecting 250,000
villages using 400,000 km. of optical fibre cables. Other private telecom
operators are also in the anvil for upgrading the existing network in 2G and 3G
and some are implementing ambitious Greenfield state-of-the-art network
using latest technologies like 4G-LTE
for high speed broadband applications to offer superior customer experience and
delight. Lastly, it is proved that higher
broadband penetration among the masses will uplift the economy of the country
as a whole and will contribute in
socio-economic development and inclusive growth. In order to achieve broadband
penetration, it would be necessary that
the last mile connectivity to the customers’ premises is capable to handle the
high speed connectivity. This
necessarily requires optical fibre cables to be laid to homes or buildings or
even to wireless transmission towers in the area. The National Telecom Policy,
2012 also provides for a strategy to encourage Fibre To The Home (FTTH) with
enabling guidelines and policies
favouring fast transformation of cities and towns into “Always Connected”
societies which augers well for telecom
cable industry in general.
INDUSTRY STRUCTURE AND DEVELOPMENTS
The Company’s operations are predominantly
classified into Wires and Cables comprising primarily Tele communication Cables
and other types of Wires and Cables. Optical Fibre Cable (OFC) is mainly used
in long distance networks and generally forms the backbone of all telecom
networks. The overall trend for the technologies is focused on data and
converged services, and making the solutions more robust. OFC is the noticeable preference of
service providers for new network rollouts and upgrades of existing ones to
meet growing traffic demands, with its
virtual limitless capacity to transfer bandwidth. The deployment of
fourth-generation 4G LTE wireless networks
in India is already propelling the growth of OFC in the Indian subcontinent.
Hence, the next level of demand for bandwidth for data and video can only be
met by fiber.
The Indian market for copper telecom cable
viz. Jelly Filled Telephone Cable (JFTC) has been passing through very
difficult times 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 JFTC. 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 cable manufacturer.
There is no material change in the industry
structure as was reported last year.
OVERALL REVIEW
Business Review and Outlook
At present, Optical Fibre Cable(OFC)
connectivity is available in all state capitals, districts, head quarters, and
up to the block levels. The government through National Optical Fiber
Network(NOFN) plans to connect all gram panchayats by utilizing existing fibres of three CPSUs – BSNL,
Railtel, and Power Grid – to avoid any duplication, and laying incremental
fibre (estimated to be 500,000 km)
wherever necessary. Dark fibre network thus created to fill the gap between
gram panchayats and blocks will be lit
by Gigabit Passive Optical network technology. It is estimated that NOFN will
enable effective and faster implementation of various mission mode e-governance
projects amounting to Rs.500000.000 millions initiated by the Department of Information Technology besides the
services for rural areas by the private sector.
The year 2013 may have paved the way for a
path to revival, and now the industry is looking at 2014 with cautious
optimism. The year 2014 will likely be a
year of consolidation and strengthening of business by most mobile network
operators. With rationalization of
realized rates, sharp growth of data revenue, control on acquisition costs and
churn, and some clarity on the
regulatory front, the industry, albeit still a long way from being financially
robust, is set to see positive growth and stability.
Increasing data consumption will enable
incumbent operators to effectively address consumers’ demands for better
quality services and disruption-free
access across 2G, 3G, and 4G networks. Rapid adoption of smartphones and data
addiction has already propelled
consumption of high speed data services. In fact, operators are feeling the
urgency to address their network
optimization and coverage issues by implementing efficient architecture and
equipment. This positive change has
already resulted in the growth of consumption in OFC which augurs well
for the company.
Some investment plans have been announced by
large operators. One of the multinational giants plans to invest Rs. 70000.000
millions over the next couple of years, in enhancing network, fiber optics and
assets. This is in addition to its annual budget of Rs.40000.000 – 50000.000
millions.
Another important private sector corporate
plans to invest Rs.70000.000 millions over the next two to three years to
launch 4G services on a pan-India level.
Since a simultaneous rollout of 4G services is planned in Kolkata, Delhi,
Mumbai, and Jamnagar before the second
quarter of FY 2014-15, major equipment procurement is expected. Punjab shall
see Rs. 65000.000 millions on digital
infrastructure for 4G telecom services to the tune of Rs. 25000.000 millions
and Rs.40000.000 millions from another private
sector giant.
OPPORTUNITIES AND THREATS
The telecom sector, which was a poster boy for
the past five years and an example for the world in terms of growth in
number of subscribers for voice
connectivity, has been in rough weather for the past one or two years.
The Indian optical fibre cable manufacturing
facilities were operating at low capacities for many years now and they
were mainly dependent on exports to
utilize a decent capacity to cover costs. But now from 2013-14 onwards, the
industry is finally seeing a brisk
business with almost all plants are working at full capacity mainly due to some
of the private operators’ thrust in building world class telecom networks using
optical fibre cables especially for 4G LTE data centric network.
The increasing usage of Smartphones across the
entire strata of the population both urban and rural parts of our country warrants the deployment of high bandwidth capable
optical fibre cables in all backbone, metro, access, subscriber segments of telecom network. The youth of our country
is data hungry with the explosive use of Social Media networks with the data
traffic growth is set to reach exponential levels which can’t be catered by the
existing network capabilities and huge usage
of optical fibre cables is underway across the country. At last, Optical
fibre cable industry is set to explode and 2013-14 is already a turning point
and considerable requirement is on the anvil.
It can be concluded that though the year
2012-13 has not been great, the outlook for 2013-14 and the coming years
looks promising for the telecom sector.
With clarity on the licensing and spectrum front, with merger and acquisition
guidelines finalized, government
investments committed in the NOFN project and dedicated countrywide optical
fibre cable network for the country’s
armed forces.
The customer base in telecommunication cable
industry is relatively concentrated. The Company has, however, been able to retain and expand its customer base in
domestic and overseas market places with enlargement of products range and consistent quality. The Company with the
excellent brand image apart from the value addition from the Joint Venture Partner viz. Ericsson Cables AB, Sweden, is
set to capitalize the surging growth opportunities in exports to a great
extent. Telecom Sector is impacted
substantially by government policies and investment. While no reversal in the
planned investment is envisaged, prices
and demand are definitely subject to changes in policies on tendering and
indenting. However, as explained above
the Government’s ambitious targets for telecommunication expansion and
broadband penetration seamlessly upto
village levels should see favourable regulatory environment in India. With the
Indian Optical Fibre Cables and LAN Data structured Cable market now forecast
to be set for a period of strong growth,
a number of leading international cable manufacturers may enter the market
which shall further intensify the cut
throat competition.
FINANCIAL
Financial risks would include, interalia, low
capacity utilization, unremunerative prices, highly concentrated customers base, shorter delivery schedule and
liquidated damages, foreign exchange exposure and related exchange rates
variation, commodity price including
adverse movements in prices of raw-materials, warranty and security, current or
future litigations, working capital
management and interest rate, contingent liabilities, etc. In addition, the
credit risks could increase, if the financial condition of Company’s customers
decline. The Company regularly identifies and monitors the financial risks as
well as potential business threats and develops appropriate risk mitigation
plans. The Company’s crisis management capability is also reasonably honed to
protect its reputation with its stakeholders.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10510731 |
19/07/2014 * |
850,000,000.00 |
State Bank of
India |
Corporate
Accounts Group Branch, Reliance House, |
C13973367 |
|
2 |
10429272 |
07/05/2013 * |
370,000,000.00 |
STATE BANK OF
INDIA |
CORPORATE
ACCOUNTS GROUP BRANCH, RELIANCE HOUSE, |
B76450857 |
|
3 |
10419674 |
10/04/2013 * |
60,000,000.00 |
STATE BANK OF
INDIA |
CORPORATE
ACCOUNT GROUP BRANCH, RELIANCE HOUSE, 3 |
B74258765 |
|
4 |
90207398 |
10/04/2013 * |
640,000,000.00 |
STATE BANK OF
INDIA |
CORPORATE
ACCOUNT GROUP BRANCH, RELIANCE HOUSE, 3 |
B74257742 |
* Date of charge modification
FIXED ASSETS
- Leasehold
Land
- Building
- Plant and
Machinery
- Furniture and
Fixtures
- Office
Equipment
- Vehicles
- Computer
Software
Contingent liabilities and Commitments (to the extent not provided for):
(a) Contingent liabilities
- Claims against the Company not
acknowledged as debts Rs.0.032 millions (Rs.0.32 millions).
- Sales tax matter under litigation Rs.
10.858 millions (Rs.10.858 millions).
- The Company has an ongoing process for
collection and submission of the relevant declaration forms to the
concerned authorities and the Company does not forsee any liability in
this regard.
- Bills of exchange under letter of
credit discounted with a bank and outstanding at the end of the year Rs.
244.367 (Rs. Nil).
- Cross corporate guarantee given by the
Company as a collateral security against working capital credit facilities aggregating to Rs.2295.000
millions (outstanding as on March 31, 2014 Rs. 1971.669 millions)
sanctioned by a bank to Vindhya
Telelinks Limited, a joint venturer.
The future cash outflow in respect of items (i) to (iv) above is
determinable only on receipt of the decisions/ judgements in the cases pending
at various forums and authorities concerned.
STATEMENT OF
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER,
2014
(Rs. in millions)
|
Sr. No. |
Particular |
Quarter Ended |
Half Year Ended |
|
|
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
|
(Unaudited) |
||
|
1. |
Net Sales/Income
from Operations |
457.219 |
716.664 |
1173.883 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost of Material Consumed |
331.601 |
610.761 |
942.362 |
|
|
Purchase of Stock In Trade |
3.579 |
1.196 |
4.775 |
|
|
Change in Inventories of Finished Goods, Work-In-Progress
and Stock In Trade |
30.059 |
(64.868) |
(34.809) |
|
|
Employee Benefits Expenses |
30.815 |
29.321 |
60.136 |
|
|
Depreciation and Amortization Expenses |
13.858 |
13.577 |
27.435 |
|
|
Other Expenses |
53.429 |
58.169 |
111.598 |
|
|
Total |
463.341 |
648.156 |
1111.497 |
|
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
18.892 |
78.194 |
97.086 |
|
|
|
|
|
|
|
4. |
Other Income |
9.038 |
5.778 |
14.816 |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
27.930 |
83.972 |
111.902 |
|
|
|
|
|
|
|
6. |
Financial Cost |
19.173 |
21.695 |
40.868 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
8.757 |
62.277 |
71.034 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
8.757 |
62.277 |
71.034 |
|
|
|
|
|
|
|
10. |
Tax Expense |
3.563 |
20.743 |
24.306 |
|
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
5.194 |
41.534 |
46.728 |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
5.194 |
41.534 |
46.728 |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
300.000 |
300.000 |
300.000 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic and Diluted Earning Per Share (EPS) (Rs.)-Not
Annualised |
0.17 |
1.38 |
1.56 |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
10094057 |
10094057 |
10094057 |
|
|
- Percentage of Shareholding |
33.65 |
33.65 |
33.65 |
|
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
1250000 |
1250000 |
1250000 |
|
|
- Percentage of Shares (as a % of the Total Shareholding of
promoter and promoter group) |
6.28 |
6.28 |
6.28 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
4.17 |
4.17 |
4.17 |
|
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
18655943 |
18655943 |
18655943 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
93.72 |
93.72 |
93.72 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
62.18 |
62.18 |
62.18 |
|
Particulars
|
Quarter
Ended 30.09.2014 |
|
INVESTOR
COMPLAINTS |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
5 |
|
Disposed of during the quarter |
5 |
|
Remaining unresolved at the end of the quarter |
Nil |
STATEMENT OF ASSETS AND LIABILITIES
|
PARTICULARS |
30.09.2014 Unaudited |
|
Equity and
liabilities |
|
|
Shareholders'
fund |
|
|
Share capital |
300.000 |
|
Reserve &
surplus |
522.937 |
|
Sub-total - Shareholders' funds |
822.937 |
|
Non - current
liabilities |
|
|
Long term
borrowings |
146.303 |
|
Deferred Tax
liabilities |
34.900 |
|
Long term
provisions |
13.366 |
|
Sub-total - Non-current liabilities |
194.569 |
|
Current
liabilities |
|
|
Short term
borrowings |
412.118 |
|
Trade payables |
472.799 |
|
Other current
liabilities |
47.746 |
|
Short term
provisions |
11.913 |
|
Sub-total - Current liabilities |
944.576 |
|
Total - Equity & Liabilities |
1962.082 |
|
|
|
|
Assets |
|
|
Non-current
assets |
|
|
Fixed assets |
415.175 |
|
Non-current
investment |
140.619 |
|
Long term loans
& advances |
40.900 |
|
Other
non-current assets |
16.834 |
|
Sub-total - Non-current Assets |
613.528 |
|
Current assets |
|
|
Inventories |
604.349 |
|
Trade receivables |
483.706 |
|
Cash & bank
balances |
82.453 |
|
Short term loans
& advances |
171.198 |
|
Other current
assets |
6.848 |
|
Sub-total - Current Assets |
1348.554 |
|
Total – Assets |
1962.082 |
Note:
- The above unaudited
financial results duly reviewed by the audit committee have approved by
the board of directors in its meeting held on 10th November,
2014 and subject to a limited review by the statutory auditors of the
company.
- Subsequent to
the end of Quarter, a fire erupted on 27th October, 2014 in the
optical fibre storage area inside the factory premises of the company.
Severely damaging stocks of optical fibre ( a key raw material) and
lab/testing equipments in the affected areas, without any human casualty.
The damaged stocks and operational of the company.
- The tax
expenses comprises of current tax and deferred tax.
- The company
has only one reportable primary business segment. Hence, no separate wise information
of revenue, results and capital employed is given.
- Figures of
previous year/periods have been regrouped/ recast, wherever considered
necessary.
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.61.44 |
|
|
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.77.38 |
INFORMATION DETAILS
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
ANU |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILITY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
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 |
|
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.