MIRA INFORM REPORT
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Report No. : |
304217 |
|
Report Date : |
21.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
VINDHYA
TELELINKS LIMITED |
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Registered
Office : |
Udyog Vihar, P. O. Chorhata, Rewa - 486 006, 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 : |
27.01.1983 |
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Com. Reg. No.: |
10-002134 |
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Capital
Investment / Paid-up Capital : |
Rs.118.408 Millions |
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CIN No.: [Company Identification
No.] |
L31300MP1983PLC002134 |
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IEC No.: |
Not Available |
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TAN No.: [Tax Deduction &
Collection Account No.] |
JBPV00018E |
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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
: |
Subject is engaged in the business of manufacturing and sale of
Telecommunication cables, other types of wires and cables, FRP rods/Glass
rovings, etc. and Engineering, Procurement and Construction (EPC) business. |
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|
|
|
No. of Employees
: |
364 (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 |
|
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 financial risk profile marked by
sound liquidity position and fair profitability levels 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 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities = A- |
|
Rating Explanation |
Adequate degree of safety and low credit risk |
|
Date |
07.10.2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities = A2 |
|
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 Office / Factory: |
Udyog Vihar, P. O. Chorhata, Rewa - 486006, Madhya Pradesh,
India |
|
Tel. No.: |
91-7662-400400 |
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Fax No.: |
91-7662-400591 |
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E-Mail : |
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Website : |
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EPC Division: |
605 and 608, DDA Building No.2, District Centre, Janakpuri, New
Delhi-110058,India |
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OFC Unit: |
Plot No.1- C and 1 – D, P.O. Chorhata, Udyog Vihar, Rewa, (M.P.) 486006
India |
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Marketing Offices : |
Located at :
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DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Haresh. V. Lodha |
|
Designation : |
Chairman |
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Name : |
Mr. J. Veera Raghavan |
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Designation : |
Director |
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Name : |
Mr. S. K. Misra |
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Designation : |
Director |
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Name : |
Mr. R. C. Tapuriah |
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Designation : |
Director |
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Name : |
Mr. D. R. Bansal |
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Designation : |
Director |
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Name : |
Mrs. Pracheta Majumdar |
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Designation : |
Director |
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Name : |
Mr. Y. S. Lodha |
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Designation : |
Managing Director |
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Name : |
Mr. Shiv Dayal Kapoor |
|
Designation : |
Director (w.e.f 19.05.2014) |
KEY EXECUTIVES
|
Name : |
Mr. R. Radhakrishnan |
|
Designation : |
President and Secretary |
SHAREHOLDING PATTERN
As on 30.09.2014
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
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 |
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|
|
|
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|
1050763 |
8.87 |
|
|
|
|
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|
973983 |
8.22 |
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|
2185117 |
18.44 |
|
|
1365658 |
11.52 |
|
|
1253886 |
10.58 |
|
|
78427 |
0.66 |
|
|
33345 |
0.28 |
|
|
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 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
|
Total (A)+(B)+(C) |
11850863 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is
engaged in the business of manufacturing and sale of Telecommunication
cables, other types of wires and cables, FRP rods/Glass rovings, etc. and
Engineering, Procurement and Construction (EPC) business. |
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Products : |
· Coiled /Straight Cords · Stranded Copper Wire · Insulated Cables. Cords, Flexes ·
Fiber Ribbon
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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 : |
Not Available |
PRODUCTION STATUS = NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
364 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
|
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Auditors : |
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|
Name : |
V. Sanjar Aiyar and Company Chartered Accountants |
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Address : |
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Solicitors : |
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Name : |
NMS and Company |
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Address : |
New Delhi, India |
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Subsidiaries : |
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Joint Venture : |
Birla Ericsson Optical Limited (BEOL) |
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Enterprises over
which a director is able to exercise significant influence: |
Shakun Polymers Limited (SPL) |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11852014 |
Equity Shares |
Rs.10/- each |
Rs.118.520
Millions |
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|
|
|
|
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 |
(a)
Reconciliation of number of shares outstanding and
the amount of share capital as at March 31,2014 and March 31, 2013 is as under:-
|
|
As at March 31,
2014 |
|
|
|
No. of Shares |
Rs. In lacs |
|
Outstanding at
the beginning of the year |
11850863 |
1185.09 |
|
Outstanding at
the end of the year |
11850863 |
1185.09 |
(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 Rs.2/-
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
Shareholders |
As at March 31,
2014 |
|
|
|
No. of Shares |
Rs. In lacs |
|
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 |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
118.408 |
118.408 |
118.397 |
|
(b) Reserves & Surplus |
2316.585 |
2135.723 |
2078.318 |
|
(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) |
2434.993 |
2254.131 |
2196.715 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
612.583 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities
(Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
0.000 |
5.525 |
0.000 |
|
(d) long-term provisions |
21.571 |
21.566 |
18.648 |
|
Total
Non-current Liabilities (3) |
634.154 |
27.091 |
18.648 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1239.953 |
1388.378 |
1219.877 |
|
(b) Trade payables |
1337.033 |
705.280 |
528.203 |
|
(c) Other current liabilities |
132.907 |
200.333 |
108.278 |
|
(d) Short-term provisions |
57.371 |
30.961 |
12.610 |
|
Total
Current Liabilities (4) |
2767.264 |
2324.952 |
1868.968 |
|
|
|
|
|
|
TOTAL |
5836.411 |
4606.174 |
4084.331 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
539.948 |
423.057 |
443.207 |
|
(ii) Intangible Assets |
1.420 |
2.478 |
3.655 |
|
(iii) Capital work-in-progress |
46.880 |
4.924 |
2.820 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1176.837 |
1176.837 |
1176.837 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
12.225 |
49.774 |
54.761 |
|
(e) Other Non-current assets |
176.853 |
78.646 |
28.626 |
|
Total
Non-Current Assets |
1954.163 |
1735.716 |
1709.906 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
757.953 |
475.740 |
323.468 |
|
(c) Trade receivables |
2627.404 |
1903.436 |
1757.822 |
|
(d) Cash and cash equivalents |
97.598 |
146.134 |
90.651 |
|
(e) Short-term loans and
advances |
217.658 |
169.355 |
151.986 |
|
(f) Other current assets |
181.635 |
175.793 |
50.498 |
|
Total
Current Assets |
3882.248 |
2870.458 |
2374.425 |
|
|
|
|
|
|
TOTAL |
5836.411 |
4606.174 |
4084.331 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
4241.537 |
3379.202 |
2505.198 |
|
|
Other Income |
63.681 |
91.740 |
68.196 |
|
|
TOTAL
(A) |
4305.218 |
3470.942 |
2573.394 |
|
|
|
|||
|
Less |
EXPENSES |
|||
|
|
Cost of Materials Consumed |
2186.706 |
1588.079 |
1206.042 |
|
|
Purchases of Stock-in-Trade |
10.896 |
15.051 |
10.709 |
|
|
Changes in inventories of finished
goods, work-in-progress and Stock-in-Trade |
(130.385) |
(64.872) |
139.142 |
|
|
Employees benefits expense |
216.940 |
202.039 |
190.139 |
|
|
Materials
Purchased-Subcontract expenses |
1136.220 |
1099.714 |
984.991 |
|
|
Other expenses |
350.305 |
325.007 |
282.949 |
|
|
TOTAL
(B) |
3770.682 |
3165.018 |
2535.688 |
|
|
|
|||
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
534.536 |
305.924 |
37.706 |
|
|
|
|||
|
Less |
FINANCIAL
EXPENSES (D) |
221.798 |
199.487 |
120.158 |
|
|
|
|||
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
312.738 |
106.437 |
(82.452) |
|
|
|
|||
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
55.282 |
47.662 |
47.576 |
|
|
|
|||
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
257.456 |
58.775 |
(130.028) |
|
|
|
|||
|
Less |
TAX
(I) |
48.833 |
1.381 |
0.318 |
|
|
|
|||
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
208.623 |
57.394 |
(130.346) |
|
|
|
|||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD (K) |
81.101 |
23.707 |
154.053 |
|
|
|
|||
|
Less |
APPROPRIATIONS |
\ |
||
|
|
Transfer to General Reserve |
20.000 |
0.000 |
0.000 |
|
|
Dividend |
23.702 |
0.000 |
0.000 |
|
|
Tax on Dividend |
4.028 |
0.000 |
0.000 |
|
|
Total
(M) |
47.730 |
0.000 |
0.000 |
|
|
|
|||
|
|
Balance
Carried to the B/S (J+K+L-M) |
241.994 |
81.101 |
23.707 |
|
|
|
|||
|
|
EARNINGS
IN FOREIGN CURRENCY |
|||
|
|
F.O.B. Value of Exports |
316.004 |
330.164 |
197.073 |
|
|
TOTAL
EARNINGS |
316.004 |
330.164 |
197.073 |
|
|
|
|||
|
|
IMPORTS |
|||
|
|
Raw Materials |
925.066 |
777.915 |
577.668 |
|
|
Components and Stores parts |
4.535 |
5.959 |
1.182 |
|
|
Traded goods |
0.655 |
2.846 |
588.158 |
|
|
Capital Goods |
139.595 |
10.612 |
1.440 |
|
|
TOTAL
IMPORTS |
1069.851 |
797.332 |
1168.448 |
|
|
|
|||
|
|
Earnings
/ (Loss) Per Share (Rs.) |
17.62 |
4.85 |
(11.01) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
4.92 |
1.70 |
(5.20) |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT / Sales) |
(%) |
12.60 |
9.05 |
1.51 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.58 |
1.72 |
-4.48 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11 |
0.03 |
-0.06 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.76 |
0.62 |
0.56 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.40 |
1.23 |
1.27 |
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 |
118.397 |
118.408 |
118.408 |
|
Reserves & Surplus |
2078.318 |
2135.723 |
2316.585 |
|
Net
worth |
2196.715 |
2254.131 |
2434.993 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
612.583 |
|
Short term borrowings |
1219.877 |
1388.378 |
1239.953 |
|
Total
borrowings |
1219.877 |
1388.378 |
1852.536 |
|
Debt/Equity
ratio |
0.555 |
0.616 |
0.761 |
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 |
2505.198 |
3379.202 |
4241.537 |
|
|
|
34.888 |
25.519 |
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 |
2505.198 |
3379.202 |
4241.537 |
|
Profit |
(130.346) |
57.394 |
208.623 |
|
|
(5.20%) |
1.70% |
4.92% |
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 |
No |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
---------------------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm
/ promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOAN
(Rs.
In Million)
|
Particulars |
As
on 31.03.2014 |
As
on 31.03.2013 |
|
LONG TERM
BORROWING |
|
|
|
From Bodies corporate |
540.000 |
0.000 |
|
|
|
|
|
SHORT TERM
BORROWING |
|
|
|
From bodies corporate |
230.000 |
250.000 |
|
From related parties |
320.000 |
375.500 |
|
|
|
|
|
Total |
1090.000 |
625.500 |
NATURE OF
OPERATIONS
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.
GENERAL AND
CORPORATE MATTERS
The Company has reported a continued improved performance when viewed
against the backdrop of extremely challenging business context in which it was
achieved. Gross revenue from operations for the year grew by 26.30% to Rs.
452.3786 Millions as compared to Rs. 3581.584 l Millions during the previous
year. The Exports revenue including project exports, stood at Rs. 418.507
Millions during the year under review as compared to Rs. 382.419 Millions for
the previous year. Despite a significant increase in finance costs with
interest rates remaining at elevated levels throughout the year, the Gross
Profit (after interest) for the year increased by 193.82% and stood at Rs. 312.738
Millions as compared to Rs. 106.437 Millions in the previous year mainly due to
increased revenue from cables business segment. Although the EPC business
segment recorded moderate growth in Revenue which increased by 12.54% to Rs.
1534.419 Millions, its profitability was impacted on account of the competitive
market environment coupled with slow down in the business verticals in which
EPC segment of the Company operates. 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 and a special emphasis on sewerage pipelines and
telecommunication networks in which the Company possesses requisites skill and
knowledge quotient meeting the contemporary technological requirements.
The domestic
telecom cable industry is expected to grow at a reasonable pace over the
medium-term. The Company consolidated its pre-eminent position in the industry through
capacity augmentation and new product launches at its OFC plant which became
operational at the end of the financial year. The full benefit of expansion is
expected to accrue in future which will further strengthen the performance of
the Company. To keep abreast with the latest trends in the industry, the
Company shall continue to accord priority for technological upgradation of its
production facilities, with the aim of improving assets performance and cost
competitiveness. Their Company’s consciously pursued strategy of de-risking the
infrastructure of traditional
PIJF Cables
business by scaling up the production facilities for Quad, Railway Signaling
and other specialty copper cables has yielded positive results in terms of
sustained market share and margin improvement.
Their Company
continues to focus on developing 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 overall 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. Jelly Filled Telephone Cable (JFTC) has been
passing through a verydiffi cult time in the last decade. 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 based products has become a challenge for every cable manufacturer.
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
indicate focused attention on data and converged services as also making the solutions
more robust. OFC with its virtual limitless capacity to transfer bandwidth is
the noticeable preference of telecom operators for new network rollout and
upgrades of existing ones to meet growing bandwidth demand. The deployment of
4G LTE wireless networks is already propelling the growth of OFC in India as
the next level of demand of bandwidth for data and video can only be met
through investment in optical fibre network infrastructure. The optical fibre
market, growth of which is linked solely on growth in OFC business, showed
spectacular year-on-year growth in India during the year 2013-14. The total
worldwide fibre shipment during the period April, 2013 to March, 2014 was
approx.278.50 Million fibre KMs out of which Indian market was estimated to be
around 19.50 Million fibre KMs translating a share of about 7% of global demand
with a year-on-year growth of approx.30%. The growth momentum is likely to
continue for few more years given the significant investments planned by the
telecom operators for 3G and 4G networks infrastructure.
The Government has
played a pivotal role in developing broadband infrastructure in the country
with the ambitious National Optical Fiber Network (NOFN) project which will
unleash the broadband revolution and open up infinite possibilities to connect
people to each other, to markets and to reach every citizen in the most
seamless way possible. Further, with the rural development ministry having
recently agreed to foot the operational expenses for delivering government-to-citizen
e-services, the way is paved for creation of a rural broadband ecosystem by
leveraging the NOFN project. The much awaited mobile internet movement in India
is therefore gaining scale. The recent regulatory changes will provide the
necessary impetus to mobile internet growth and drive investment in the sector.
Going forward, telecom operators have to tap into three main areas of rural
telephony, broadband and digitization services and infrastructure. These will
be supported by the requisite back-end infrastructure mainly optical fibre
cable based for the next wave of broadband revolution as operators will invest
into improving the network speed, coverage and quality of services for
consumers. In general, broadband cannot takeoff until fibre optic infrastructure
is rolled out.
The EPC Division
of the Company currently concentrates on three primary business verticals viz.
Telecom, Power and Sewage Projects. In Telecom, it provides solutions in
trenching and laying of optical fibre cables, installation and commissioning of
telecom equipments, FTTx installation, civil work 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 bank, lighting projects, and end to end LED solutions, etc.
The Company has also gained credential in city sewage projects which are being
executed through trenchless technology.
There is no
material change in the industry structure as was reported last year.
BUSINESS REVIEW
AND OUTLOOK
Since last few
years, the telecom sector has been witnessing a downward drift whether it was
the viability of the operators offering telecom services or the
quality-of-service provided for new connections. The much expected broadband
revolution was stalled due to lack of competitiveness, high cost of spectrum
through auction process as well as non-availability of PAN India presence of
operators for 3G services. The fallout of this on procurement was shortage of
capital leading to fall in demand for capacity expansion. However, the year
2013-14 was a turnaround year for telecom equipment sector with the launch of
certain projects of national importance by the Government and significant
rollout of telecom networks by the BWA and other telecom operators.
The National
Optical Fibre Network (NOFN) project undertaken by the Government aims at
connecting 2,50,000 gram panchayats in the country by laying 4,00,000 KMs of
optical fiber cable for creating a robust telecom network and digital highways
for providing internet connectivity to about six lacs villages and deliver
services like education, healthcare, e-commerce online will be the backbone for
mobile networks carrying 3G and 4G services. The NOFN project upon
implementation will also provide synergies between wireless networks and optic
fibre networks for broadband proliferation. In addition to NOFN project, the
Government is set to speed up, after much delay, the process for building an
alternative communication network (NFS) for the defence forces to free-up
spectrum for telecom department. The state run BSNL, which is entrusted to
execute the task is likely to take decision on tender floated for the said NFS
project soon. Other private telecom operators are also aggressively upgrading
their existing 2G and 3G networks by providing fibre backhaul and fibre links
to the radio base stations. The spread of 4G-LTE mobile network by BWA
operators is also driving up the demand for high fibre count optical fibre
cables in the mobile backhaul besides deployment of optical fibre in tower
verticals in lieu of co-axial cable that runs between the ratio heads and
ground level base stations. FTTx will obviously be the choice for all the
players in the telecom industry to have ultimate experience of triple play
services (voice, video, and data) with 100 Mbps download and upload speeds.
Accordingly, the deployment of contemporary products e.g.micro optical fibre
cable and drop cable in access and last mile connectivity will accelerate the
demand growth for a variety of optical fibre cables. All the above projects and
initiatives speak for better prospects for telecom cable industry in the near
to medium term. However, considering high capital spending requirement,
collaboration among operators is likely to increase. Over past one year many
operators have entered into several mutually beneficial arrangements for
sharing their infrastructure including optical fibre networks, etc., which may
restrict anticipated demand growth. Despite this, your Company with its
underlying strength of better quality of products with state-of-the-art
manufacturing infrastructure will strive to maintain its market share and
profitability in the upcoming demand of telecom cables.
OPPORTUNITIES,
THREATS & BUSINESS OUTLOOK
• The Government’s
mandate to all telecom service providers to procure a minimum percentage of
total infrastructure spending by sourcing from local manufacturers and Preferential
Market Access Policy (PMA) may provide sustained demand for telecom cables to
domestic manufacturers.
• The Indian
optical fibre cable manufacturers 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, since the domestic market has been erratic both
in procurement and payments. With changed environment in telecom sector, the
industry is finally seeing improved business sentiment with better capacity
utilisaton 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(s), with the greater exposure to social media networks, 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.
• With clarity on
the licensing and spectrum front workable guidelines around merger and
acquisition for telecom operators, allowing 100 percent foreign direct
investment, permission to sell and trade spectrum will ensure much needed
consolidation and long term viability in the sector. Further, with the
satisfactory progress in certain large scale projects e.g. NOFN and dedicated countrywide optical fibre cable
network for the defence forces (NFS), the outlook for telecom cable industry
seems promising over medium-term.
• 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 reduction of
import duties under various regional and bilateral Free Trade Agreements is
impacting the profitability and economic viability of the domestic telecom
cable industry. Clearly, there is a need to ensure that the current duty
structure are, at the very least, kept unchanged.
• 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 other specialty Copper Cable market now forecast to be
set for a period of strong growth, some of the global cable manufacturers may
enter the market which shall further intensify the competition. Though growth
in demand is expected to absorb additional capacity to certain extent,
increasing market share and sustaining margins will pose a challenge in the
short-term.
• The projects
undertaken by the Company’s EPC Division are sometimes faced with
Right-of-the-Way (RoW) and environmental related challenges which impact the
completion timeline of the projects. Large part of project cash flows is linked
to the project completion and hence a delay in the completion impacts the
working capital cycle. It is hoped that the new Government will simplify the
processes, costs and rules in rolling out networks and acquiring permissions,
specifically put in place a national framework for enabling the rollout of
fibre on the ground and eliminate the mind boggling complexity and liaising
with scores of municipal corporations that set their own rules with costs that
vary dramatically from one to another.
STANDALONE
FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH
SEPTEMBER, 2014
|
Sr. No. |
Particular |
Quarter Ended |
Half Year Ended |
|
|
|
|
30.09.2014 (Unaudited) |
30.06.2014 (Unaudited) |
30.09.2014 (Unaudited) |
|
1. |
Income from
Operations |
|
|
|
|
|
Net Sales |
1133.017 |
1198.106 |
2331.123 |
|
|
Other Operating Income |
28.435 |
19.955 |
48.365 |
|
|
Net Sales/Income
from Operations |
1161.452 |
1218.061 |
2379.513 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
(a) Cost of
materials consumed (b) Cost of
material and other contract expenses |
582.805 280.003 |
687.151 267.345 |
1269.956 547.348 |
|
|
(b) Purchase of stock-in-trade |
7.757 |
7.513 |
15.270 |
|
|
Change in Inventories of Finished Goods, Work-In-Progress
and Stock In Trade |
2.414 |
(44.690) |
(42.276) |
|
|
Employee Benefits Expenses |
71.715 |
64.192 |
135.907 |
|
|
Depreciation and Amortization Expenses |
22.283 |
21.805 |
44.088 |
|
|
Other Expenses |
107.574 |
90.261 |
197.835 |
|
|
f) Total |
1074.551 |
1093.577 |
2168.128 |
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items |
86.901 |
124.284 |
211.385 |
|
|
|
|
|
|
|
4. |
Other Income |
55.195 |
11.947 |
67.142 |
|
|
|
|
|
|
|
5. |
Profit
Before ordinary activities and Finance cost |
142.096 |
136.431 |
278.527 |
|
|
|
|
|
|
|
6. |
Finance
cost |
71.173 |
65.326 |
136.499 |
|
|
|
|
|
|
|
7. |
Profit
from Ordinary Activities before Tax |
70.923 |
71.105 |
142.028 |
|
|
|
|
|
|
|
8. |
Tax Expense |
6.000 |
15.483 |
21.483 |
|
|
|
|
|
|
|
9. |
Net
Profit from Ordinary Activities after Tax |
64.923 |
55.622 |
120.545 |
|
|
|
|
|
|
|
10. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
118.410 |
118.408 |
118.410 |
|
|
|
|
|
|
|
11. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
12. |
Basic and Diluted Earnings Per Share (EPS) (Rs.)-Not
Annualized |
5.48 |
4.70 |
10.18 |
SELECT INFORMATION FOR THE
QUARTER ENDED 30TH SEPTEMBER, 2014
(Rs.
in Millions)
|
|
Quarter Ended |
Half Year Ended |
|
|
|
30.09.2014 (Unaudited) |
30.06.2014 (Unaudited) |
30.09.2014 (Unaudited) |
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1. Public shareholding |
|
|
|
|
Number of
Shares |
6693558 |
6693558 |
6693558 |
|
Percentage of
Shareholding |
56.48 |
56.48 |
56.48 |
|
2. Promoters and promoter group
shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number of Shares |
-- |
-- |
-- |
|
- Percentage of Shares (as a % of the Total Shareholding of promoter
and promoter group) |
-- |
-- |
-- |
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
-- |
-- |
-- |
|
|
|
|
|
|
Non - encumbered |
|
|
|
|
- Number of
Shares |
5157305 |
5157305 |
5157305 |
|
- Percentage
of Shares (as a % of
the total shareholding of promoter and promoter
group) |
100.00 |
100.00 |
100.00 |
|
- Percentage
of Shares (as a % of the
total share capital of the company) |
43.52 |
43.52 |
43.52 |
|
|
Particulars |
Quarter ended 30.09.2014 |
|
B |
Investor
complaints |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
2 |
|
|
Disposed of during the quarter |
2 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
SR. No. |
Particulars |
Quarter Ended |
Half Year Ended |
|
|
1 |
Segment Revenue |
30.09.2014 (Unaudited) |
30.06.2014 (Unaudited) |
30.09.2014 (Unaudited) |
|
|
(a) Cables |
804.574 |
851.094 |
1655.668 |
|
|
(b) Engineering, Procurement and Construction |
356.878 |
366.967 |
723.845 |
|
|
Total |
1161.452 |
1218.061 |
2379.513 |
|
|
Less: Inter- Segment Revenue |
3.556 |
6.393 |
9.949 |
|
|
Net sales/Income
from Operations: |
|
|
|
|
|
Segment Results |
|
|
|
|
|
Segment Profit/(Loss) before Tax and Interest |
|
|
|
|
|
(a) Cables |
57.280 |
74.544 |
131.824 |
|
|
(b) Engineering, Procurement and Construction |
26.656 |
43.643 |
70.299 |
|
|
Total |
83.936 |
118.187 |
202.123 |
|
|
Less : Interest (Net) |
(55.431) |
(48.046) |
(70.225) |
|
|
Total Profit/
(Loss) Before Tax |
|
|
|
|
3. |
Capital Employed: |
|
|
|
|
|
(Segment Assets- Segment Liabilities) |
|
|
|
|
|
(a) Cables |
-- |
1839.474 |
2117.267 |
|
|
(b) Engineering, Procurement and Construction |
-- |
1689.139 |
1903.665 |
|
|
(c) Unallocated |
-- |
(1040.541) |
(1468.044) |
|
|
Total |
|
2488.072 |
2552.888 |
STANDALONE
STATEMENT OF ASSETS AND LIABILITIES
(Rs. In Millions)
|
Particulars |
As at half year ended on 30.09.2014 (Unaudited) |
|
|
A |
EQUITY AND LIABILITIES |
|
|
1 |
Shareholders' Funds |
|
|
|
(a) Share Capital |
118.410 |
|
|
(b) Reserves & Surplus |
2434.478 |
|
|
Total
Shareholders’ Funds |
2552.888 |
|
|
|
|
|
2 |
Non-Current
Liabilities |
|
|
|
(a) long-term borrowings |
1223.267 |
|
|
(b) Deferred tax liabilities (Net) |
0.000 |
|
|
(c) Other long term
liabilities |
0.000 |
|
|
(d) long-term
provisions |
25.675 |
|
|
Sub Total Non-current Liabilities |
1248.942 |
|
|
|
|
|
3 |
Current Liabilities |
|
|
|
(a) Short term
borrowings |
1428.152 |
|
|
(b) Trade payables |
1146.935 |
|
|
(c) Other current
liabilities |
140.813 |
|
|
(d) Short-term
provisions |
28.797 |
|
|
Sub
Total Current Liabilities |
2744.697 |
|
|
|
|
|
|
TOTAL- EQUITY AND
LIABILITIES |
6546.527 |
|
|
|
|
|
A |
ASSETS |
|
|
1 |
Non-current assets |
|
|
|
(a) Fixed Assets |
594.051 |
|
|
(b) Non-current Investments |
1176.837 |
|
|
(c) Long-term Loan and Advances |
180.477 |
|
|
(d) Other
Non-current assets |
189.776 |
|
|
Sub Total
Non-Current Assets |
2141.141 |
|
|
|
|
|
2 |
Current assets |
|
|
|
(a) Current investments |
0.000 |
|
|
(b) Inventories |
1042.859 |
|
|
(c) Trade receivables |
2697.675 |
|
|
(d) Cash and cash
equivalents |
130.505 |
|
|
(e) Short-term loans
and advances |
332.928 |
|
|
(f) Other current
assets |
201.419 |
|
|
Sub Total Current
Assets |
4405.386 |
|
|
|
|
|
|
TOTAL-ASSETS |
6546.527 |
Note :
- The above unaudited financial results duly reviewed by the Audit Committee have been approved by the Board of Directors in its meeting held on 10th November, 2014 and subjected to a Limited Review by the statutory auditors of the company.
- The amount of tax credit available to the Company in pursuance to section 115JAA of Income Tax Act. 1961, against provision for Current Tax (MAT) during the period shall be accounted for in the year in which MAT credit becomes eligible or allowed
- Figures of previous year/periods have been regrouped/recast, wherever considered necessary.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10524878 |
27/09/2014 * |
5,538,700,000.00 |
State Bank of India |
Corporate Accounts Group Branch, Reliance House, |
C28936896 |
|
2 |
10510729 |
10/07/2014 |
2,850,000,000.00 |
State Bank of India |
Corporate Accounts Group Branch, Reliance House, |
C12783676 |
|
3 |
10475649 |
13/02/2014 * |
144,700,000.00 |
State Bank of Patiala |
Mid Corporate Branch, Ambadeep Building, Ground Floor, K.G. Marg, New Delhi, Delhi - 110001, INDIA |
B96632427 |
|
4 |
10448282 |
13/02/2014 * |
250,000,000.00 |
STATE BANK OF PATIALA |
Mid Corporate Branch, Ambadeep Building, Ground Floor,K.G.Marg, New Delhi, Delhi - 110001, INDIA |
B96635800 |
|
5 |
10429301 |
06/06/2013 * |
370,000,000.00 |
STATE BANK OF INDIA |
CORPORATE ACCOUNTS GROUP BRANCH, RELIANCE HOUSE, |
B77462851 |
|
6 |
10406630 |
13/02/2014 * |
150,000,000.00 |
State Bank of Patiala |
Mid Corporate Branch, Ambadeep Building, Ground Floor, K.G.Marg, New Delhi, Delhi - 110001, INDIA |
B96632849 |
|
7 |
90202809 |
27/09/2014 * |
2,760,000,000.00 |
State Bank of India |
Corporate Accounts Group Branch, Reliance House, |
C28935310 |
* Date of charge modification
FIXED ASSETS
- Land
- Building
- Plant and E
- Furniture and
Fixture
- Office
Equipment
- Vehicles
- Leasehold
- Improvements
- 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.61.85 |
|
|
1 |
Rs.93.26 |
|
Euro |
1 |
Rs.71.57 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ART |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILITY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
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.