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Moser Baer Loss Widens

Moser Baer India Limited announced financial results for the third quarter and nine months ending December 31, 2013.

For more information visit: www.moserbaer.com


Unedited press release follows:

Moser Baer announces audited results for the period ended December 31st, 2013

New Delhi, February 28, 2014 Moser Baer India Limited (MBIL) today released its audited financial results for the third quarter and financial period (9 months) ending December 31, 2013 approved by its Board of Directors, at its meeting in New Delhi.

Talking about the Company’s Storage Media business and strategy, Bhaskar Sharma, CEO, Storage Media, MBIL, said, Given the need to transition in the Optical Media industry, our focus continued to be on rationalization of operating costs in manufacturing and consolidation of operations to generate cost efficiencies. We anticipate future growth in the business driven by increase in sales of Solid State Media segment. However, our ability to ramp up the Solid State Media operations further to cater to the burgeoning demand in the segment is currently constrained on account of short term liquidity issues.

Trends in Storage Media Business

• Net Sales stood at INR 2,847.6 million during the quarter constrained by liquidity position.

• The ongoing reshuffle in the global Optical Media industry affected the demand and ASPs for players.

• Drop in ASPs and Production Volumes adversely impacted the margins and profitability.

• Key raw material costs remained soft.

• Given the liquidity constrained manufacturing environment, Moser Baer was able to reduce inventory levels to meet part of the demand.

K N Subramaniam, CEO, Moser Baer Solar Limited, said, The recent announcement of four Ultra Mega Power Projects (UMPP) of 500 MWs each in solar, excites us from the perspective of solar manufacturing and providing EPC services. This visibility of 2,000 MW along with recent bids for 750 MW under National Solar Mission has put the spot light on the solar sector. Considering our technology lineage in manufacturing along with our leadership position as the largest solar EPC player, these developments augur well for us and the industry.

Trends in the Solar Photovoltaic business

• Global PV installations continued to remain strong during 2H CY 2013 due to high demand from China, Japan & USA global PV industry is forecast to grow by over 35% to reach 49 GW in CY 2014 (Solarbuzz)

• In October 2013, MNRE announced Phase II Batch I of the National Solar Mission, to be implemented within 13 months from execution of PPAs. Under this, 375 MW out of the total 750MW target installations had a mandatory requirement of domestic content.

• Tremendous response on bid of 2X on DCR category and 4X on open category was received from developers amid an overall receipt of bids of 2,170MW.

• During the 9 month period Apr-Dec‘13, Moser Baer Solar (MBSL) exported over 30 MW of Modules to the highly competitive and quality conscious Japanese market.

Summing up the financial results, Yogesh Mathur, Group Chief Financial Officer MBIL said, During the quarter, the company continued to face short term liquidity challenges affecting the income generated. Continuous operating losses during the period of revival have led to erosion of our reserves. The company continues to be in discussions with lenders to address the issues and ramp up operations.

About Moser Baer India
Moser Baer India Limited headquartered in New Delhi, is a leading global tech-manufacturing company. Established in 1983, the company has successfully developed cutting edge technologies to become one of the world’s largest manufacturers of Optical Storage media like CDs and DVDs. The company also emerged as the first to market the next-generation of storage formats like Blu-Ray discs in India. Over the years the company has entered into exciting areas of content replication, home entertainment and is a market

(Rs. in lacs)

Standalone Consolidated
S.No Particulars 3 months

ended

31.12.2013

Previous 3

months

ended

30.09.2013

Corresponding

3 months

ended in the

previous year

31.12.2012

For the

Period from

01.04.2013 to

31.12.2013

Previous Year

ended

31.03.2013

For the

Period from

01.04.2013 to

31.12.2013

Previous

Year ended

31.03.2013

(Audited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
1 a. Net Sales / Income from Operations 28,476 28,961 30,989 91,602 143,693 110,319 162,608
b. Other Operating Income 1,589 751 694 2 ,867 2 ,938 4 ,111 5,976
Total Income from Operations (net) 30,065 29,712 31,683 94,469 146,631 114,430 168,584
2 Expenses
a. Cost of materials consumed 15,591 1 9,156 17,559 5 2,920 7 7,837 6 3,919 89,091
b. Purchase of Stock in trade 19 1 01 64 1 37 9 16 5 ,730 5,043
c. Change in inventories of finished goods, work in progress and

stock in trade.

2,806 (3,864) (723) 29 1 ,010 (1,586) 3,917
d. Employees benefits expense 3,702 4 ,076 4,463 1 1,363 1 8,016 1 5,787 25,576
e. Depreciation and amortisation expense 4,834 5 ,006 7,014 1 5,427 2 9,023 3 8,296 40,868
f. Power and Fuel expense 3,897 5 ,104 4,492 1 3,721 1 9,291 2 ,879 4,926
g. Other expenses 5,594 4 ,701 6,867 1 5,349 2 9,817 3 2,716 49,149
Total expenses 36,443 34,280 39,736 108,946 175,910 157,741 218,570
3 Profit / (Loss) from Operations before Other Income, finance costs

and exceptional Items (1-2)

(6,378) (4,568) (8,053) (14,477) (29,279) (43,311) (49,986)
4 Other Income 858 1 ,951 2,060 6 ,111 7 ,999 5 ,250 6,747
5 Profit / (Loss) from ordinary activities before finance costs and

exceptional Items (3+4)

(5,520) (2,617) (5,993) (8,366) (21,280) (38,061) (43,239)
6 Finance costs 5,373 5 ,277 6,195 1 5,752 1 9,667 3 1,972 39,627
7 Profit / (Loss) from ordinary activities after finance costs but
before
exceptional Items (5-6)
(10,893) (7,894) (12,188) (24,118) (40,947) (70,033) (82,866)
8 Exceptional items (10,748) ( 5,281) (1,931) ( 20,547) (4,969) 4 77 (8,755)
9 Profit / (Loss) from ordinary activities before tax (7+8) (21,641) (13,175) (14,119) (44,665) (45,916) (69,556) (91,621)
10 Tax expense - - - - - 1 2
11 Net Profit / (Loss) from ordinary activities after tax (9-10) (21,641) (13,175) (14,119) (44,665) (45,916) (69,557) (91,623)
12 Extraordinary Items (net of tax expense) - - - - -
13 Net Profit / (Loss) for the period (11-12) (21,641) (13,175) (14,119) (44,665) (45,916) (69,557) (91,623)
14 Share of Profit / (Loss) of Associates - - - - - - -
15 Minority Interest - - - - - - -
16 Net Profit / (Loss) after taxes, minority interest and share of
profit /
(loss) of associates (13+14+15)
(21,641) (13,175) (14,119) (44,665) (45,916) (69,557) (91,623)
17 Paid-up equity share capital

(Face value:Rs.10/- per share)

19,831 1 8,831 16,831 19,831 16,831 16,831 16,831
18 Reserves excluding Revaluation Reserves as per balance sheet of

previous accounting year

18,071

(191,625)

19 Earnings Per Share: (not annualised)
i) Before Extraordinary items
- Basic (Rs.) (11.19) (7.00) (8.39) ( 24.07) ( 27.28) ( 35.08) (54.44)
- Diluted (Rs.) (11.19) (7.00) (8.39) ( 24.07) ( 27.28) ( 35.08) (54.44)
ii) After Extraordinary items
- Basic (Rs.) (11.18) (7.00) (8.39) ( 24.07) ( 27.28) ( 35.08) (54.44)
- Diluted (Rs.) (11.18) (7.00) (8.39) ( 24.07) ( 27.28) ( 35.08) (54.44)
Part – II Select information for the quarter and financial period ended
December 31, 2013
A Particulars of Shareholding
1 Public shareholding
- Number of shares 140,885,963 140,885,963 140,885,963 140,885,963 140,885,963 140,885,963 140,885,963
- Percentage of shareholding 71.04 74.82 83.71 71.04 83.71 71.04 83.71
2 Promoters and promoter
group Shareholding
a) Pledged/Encumbered
- Number of shares 27,420,141 2 7,420,141 - 2 7,420,141 - 27,420,141 -
- Percentage of shares (as a % of the total shareholding of

promoter and promoter group)

47.75 57.82 - 47.75 - 47.75
- Percentage of shares (as a% of the total share capital of the

Company)

13.83 14.56 - 13.83 - 13.83 -
b) Non-encumbered
- Number of shares 30,000,000  20,000,000 27,420,141 30,000,000 27,420,141 30,000,000 27,420,141
- Percentage of shares (as a % of the total shareholding of

promoter and promoter group)

52.25 42.18 100.00 52.25 100.00 52.25 100.00
- Percentage of shares (as a % of the total share capital of the

Company)

15.13 10.62 16.29 15.13 16.29 15.13 16.29
Particulars 3 months ended 30.09.2013
B INVESTOR COMPLAINTS
Pending at the beginning of the quarter Nil
Received during the quarter 1
Disposed of during the quarter 1
Remaining unresolved at the end of the quarter Nil

Notes:

  1. The Company is primarily in the business of manufacture and sale of Storage Media. The other activities of the Company comprise replication of content, sale of consumer electronic products and operation and maintenance of sector specific Special Economic Zone for non-conventional energy. The segment revenues, results and assets of the other activities do not constitute reportable segments under AS-17 and accordingly no disclosure is required.
  2. (a)The Profit / (Loss) from ordinary activities before finance costs and exceptional Items for the quarter ended December 31, 2013 includes foreign currency exchange fluctuation loss (net) of Rs. 164 lacs.(Quarter ended September 30, 2013 includes gain (net) of Rs 917 lacs).(b) The current quarter exceptional items pertains to exchange gain of Rs. 695 lacs on account of foreign currency convertible bond’s liability (Quarter ended September 30, 2013 exchange loss of Rs 2,845 lacs), provision for permanent diminution in investment amounting to Rs. 1,115 lacs (Quarter ended September 30, 2013 Rs. Nil) and provision for amounts recoverable from downstream subsidiaries amounting to Rs. 10,328 lacs (Quarter ended September 30, 2013 amounting to Rs. 2,436 lacs).
  3. Standalone Statement of Assets and Liabilities as at December 31, 2013 are as under:
S.No. Particulars Standalone (Audited) Consolidated (Audited)
As at

31.12.2013

As at

31.03.2013

As at

31.12.2013

As at

31.03.2013

A EQUITY AND LIABILITIES
1 Shareholder’s funds
(a) Share Capital 19,831 16,831 19,831 16,831
(b) Preference share capital of Subsidiaries - - 82,553 82,553
(b) Reserves and Surplus (34,364) 18,071 (268,950) (191,625)
Sub-total – Shareholders funds (14,533) 34,902 (166,566) (92,241)
2 Share application money pending allotment 630 2,000 825 2,000
3 Non-current liabilities
(a)
Long Term borrowings
97,203 108,826 242,322 209,030
(b) Other long term
liabilities
18,088 18,021 1,021 882
(c) Long-term provisions 2,336 2,263 5,032 5,292
Sub-total. Non-current liabilities 117,627 129,110 248,375 215,204
4 Current liabilities
(a) Short-term borrowings 68,104 66,703 88,528 94,415
(b) Trade payables 30,841 31,098 21,056 25,931
(c) Other current
liabilities
107,980 88,105 136,115 138,124
(d) Short-term provisions 16,229 10,740 16,340 10,897
Sub-total – Current liabilities 223,154 196,646 262,039 269,367
TOTAL – EQUITY AND LIABILITIES 326,878 362,658 344,673 394,330
B ASSETS
1 Non-current assets
(a) Fixed assets 81,694 97,049 200,181 235,208
(b) Non-current investments 67,289 68,404 81 81
(c) Long-term loans and
advances
11,119 15,470 5,818 21,371
(d) Other non-current
assets
40,333 27,932 2,300 1,049
(e) Foreign currency monetary item translation difference account
Sub-total. Non-current assets 200,435 208,855 208,380 257,709
2 Current assets
(a) Inventories 50,121 52,774 60,996 63,390
(b) Trade receivables 49,648 61,759 25,041 25,412
(c) Cash and cash
equivalents
7,155 13,090 10,967 17,673
(d) Short-term loans and
advances
6,305 6,013 26,833 14,246
(e) Other Current assets 13,214 20,167 12,456 15,900
Sub-total – Current assets 126,443 153,803 136,293 136,621
TOTAL -
ASSETS*
326,878 362,658 344,673 394,330

(* Under Section 450 of the Companies Act, 1956, the Hon’ble High Court of Delhi has taken symbolic charge of the Company and the company has been permitted to carry on its operations.)

  1. The Segment-wise revenues, results and capital employed of the Consolidated Financial Statements are given below:
Particulars For the

period ended

31.12.2013

For the

Previous

year ended

31.03.2013

(Audited) (Audited)
Segment Revenue (Net Sale/Income )
a. Storage Media Products 98,246 1 54,064
b. Solar Products 26,164 2 7,153
c. Others 10,202 2 2,581
Total 134,612 203,798
Less : Inter Segment Revenue 20,162 35,214
Net Sales /Income From Operations 114,450 168,584
Segment Results (Profit / (Loss) before
tax and interest)
a. Storage Media Products (16,971) (27,318)
b. Solar Products (20,162) (18,173)
c. Others (1,744) 401
Total (38,877) (45,090)
Less :(i) Interest expenses (net of interest/
dividend income)
31,287 3 8,705
(ii) Other Un-allocable corporate expenditure/
(income) (net)
(607) 7 ,828
Total (Loss) Before Tax (69,557) (91,623)
Capital Employed (Segment assets -
Segment Liabilities)
a. Storage Media Products 139,033 1 61,036
b. Solar Products 137,811 1 55,344
c. Others 16,846 9 0,215
Total 293,690 406,595
Unallocated Assets/ (Liabilities) (459,431) (496,836)
Total (165,741) (90,241)
  1. a)The Company performed a detailed assessment, including using valuations performed by an independent valuer, to determine whether its investments in and advances or other receivables as of December 31, 2013, from certain subsidiaries are recoverable. Material estimates and judgments used in such assessment were inter-alia, successful implementation of new technologies, new product initiatives, external market conditions, regulatory benefits and conclusion of debt restructuring in the terms as proposed by these subsidiaries. These estimates and judgments continue to be appropriate and accordingly, the management has provided for impairment of Rs. 5,115 lacs in the results for the period ended December 31, 2013, to the carrying values of underlying investments in and advances or other receivables from these subsidiaries aggregating to Rs 109,959 lacs.b) Pursuant to the impairment assessment of fixed assets, the Company has made an impairment provision of Rs. 11,379 lacs in respect of the carrying value of fixed assets of one of its subsidiaries, which is included under the head ‘depreciation and amortisation expense’ in the audited consolidated result of the Company for the nine months ended December 31, 2013.
  2. The outstanding foreign currency convertible bonds (FCCBs) aggregating to principal value of USD 885 lacs (equivalent to Rs 54,720 lacs) matured for redemption on June 21, 2012, which have since been claimed by the trustee of the bondholders. The Company has received approval from RBI for extension of redemption date of bonds and is in discussions with the bondholders through the Trustee to re-structure the terms of these bonds. Pending acceptance by the bondholders and approval from the concerned regulatory authorities of the terms proposed by the Company, the financial obligations of the Company, other than premium on redemption, are presently not reasonably determinable, and hence have not been provided for. The petition under section 434 of the Companies Act, 1956, filed by the trustee on behalf of certain bondholders with the Hon’ble High Court of Delhi which has since been admitted. Pending the outcome of aforementioned discussions with the bondholders and the related litigation, these results have been prepared on a going concern basis.
  3. Subject to necessary approvals, the Board of directors of the Company in their meeting held on Feb 28, 2014 has allotted 1,00,00,000 equity shares of Rs. 10/- each for cash at par on preferential basis to Mr. Deepak Puri, Promoter. The allotment is in terms of approval of shareholders accorded vide Special Resolution passed on May 20, 2013, by way of Postal Ballot and under the Corporate Debt Restructuring Scheme approved by CDR Empowered Group. The funds raised through preferential allotment have been utilised for working capital/operations of the Company.
  4. The Company changed its financial year from March 31 to December 31, hence current financial year consist of 9 months period from April 2013 to December 2013. Accordingly current financial year figures are not comparable with those of the previous year.
  5. Figures of the previous periods have been regrouped and rearranged wherever necessary, to make them comparable.
  6. The above results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on Feb 28, 2014. The information presented above is extracted from the respective audited financial statements as stated.
  7. The figures in respect of 3 months ended December 31, 2013 are the balancing figures between audited figures in respect of the financial year (9 months) and the published year to date figures up to the second quarter of the current financial year.
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