MIRA INFORM REPORT
|
Report Date : |
01.11.2006 |
IDENTIFICATION DETAILS
|
Name : |
WEBEL
SL ENERGY SYSTEMS LIMITED |
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Registered Office : |
Plot
No. 1, Block GP, Sector 5, Salt Lake Electronics Complex, Kolkata - 700 091,
West Bengal, India |
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Country : |
India
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
08.02.1990 |
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Com. Reg. No.: |
21-48350 |
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CIN No.: [Company Identification No.] |
L29307WB1990PLC048350 |
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TAN No.: [Tax Deduction & Collection Account No.] |
CALW01118F |
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Legal Form : |
Public limited liability
company. The company's shares are
listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing,
Supplying and Distributing of solar photovoltaic cells, modules, PV systems
and components. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 550000 |
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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 satisfactory track. The company has
improved its performance in 2004-05 and also in current year. Financial
position is satisfactory. Payments are correct and as per commitments. The
company can be considered good for normal business dealings at usual trade
terms and conditions. |
LOCATIONS
|
Registered Office : |
Plot
No. 1, Block GP, Sector 5, Salt Lake Electronics Complex, Kolkata - 700 091,
West Bengal, India |
|
Tel. No.: |
91-33-23578840/23371739 |
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Fax No.: |
91-33-23578094 |
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E-Mail : |
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Website : |
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Corporate Office : |
Plot No. N1, Block GP,
Sector 5, Salt Lake Electronics Complex, Kolkata - 700 091, West Bengal,
India |
|
Tel. No.: |
91-33-23578840
/ 23371739/23573754 |
|
Fax No.: |
91-33-23578094/23573258 |
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|
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|
Factory 1 : |
Plot No. N1, Block GP, Sector
5, Salt Lake Electronics Complex, Kolkata - 700 091, West
Bengal, India |
|
Tel. No.: |
91-33-23578840
/ 23371739/23573754 |
|
Fax No.: |
91-33-23578094/23573258 |
DIRECTORS
|
Name : |
Mr.
I. Biswas |
|
Designation : |
Chairman |
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|
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Name : |
Mr.
S. L. Agarwal |
|
Designation : |
Managing Director |
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|
Name : |
Mr.
Franco Traverso |
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Designation : |
Director |
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Name : |
Mr.
J. N. Maiti |
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Designation : |
Director |
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|
Name : |
Mr.
R. K. Poddar |
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Designation : |
Director |
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|
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|
Name : |
Mr.
D. K. Basu |
|
Designation : |
Director |
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|
Name : |
Mr.
S. K. Pal |
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Designation : |
Director |
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|
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|
Name : |
Mr.
D. Chakraborty |
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Designation : |
Nominee Director (IDBI) |
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|
Name : |
Mr.
S. Vasanthi |
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Designation : |
Director |
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|
Name : |
Mr.
S. P. Bangar |
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Designation : |
Director |
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|
Name : |
Mr.
Freddy Goh |
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Designation : |
Director |
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Name : |
Mr. O P Agarwal |
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Designation : |
Director |
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Name : |
Mr. P K Roy |
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Designation : |
Additional Director |
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Name : |
Mr. J Tiwari |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
|
Category |
No. of shares |
%age of shareholding |
|
Promoter's Holding |
|
|
|
- Indian promoters |
632,670 |
9.71 |
|
|
|
|
|
Non Promoter's Holding |
|
|
|
- Mutual funds |
10,500 |
0.16 |
|
|
|
|
|
Other
Investors |
|
|
|
- Private Corporate Bodies |
3,074,639 |
47.21 |
|
- NRI's/OCB’s/Foreign
Others |
1,131,816 |
17.38 |
|
- Indian Public |
1,663,575 |
25.54 |
|
GRAND TOTAL |
6,513,200 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing,
Supplying and Distributing of solar photovoltaic cells, modules, PV systems
and components. |
|
|
|
|
Exports to : |
South
Africa, Singapore, Indonesia, Sri Lanka, Bangladesh and Greece |
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Imports from : |
Europe |
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Terms : |
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Purchasing : |
L/C,
D/A and D/P |
GENERAL INFORMATION
|
No. of Employees : |
100 |
|
|
|
|
Bankers : |
v
Allahabad Bank,
Kolkata, West Bengal v
Federal Bank, Kolkata,
West Bengal |
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Facilities : |
-- |
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Banking Relations : |
Satisfactory |
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|
|
|
Auditors : |
Agarwal Bhuwania &
Company Chartered Accountants |
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|
|
|
Associates/Subsidiaries
: |
v
Webel Communication
Industries Limited v
Webel Informations
Limited v
Webel Nicco
Electronics Private Limited v
Webel Power
Electronics Private Limited v
Webel Power
Electronics Limited v
Webel Sen Capacitors
Limited v
Webel Toolsind Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7,500,000 |
Equity
Shares |
Rs. 10/- each |
Rs. 75.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5,810,000 |
Equity
Shares (paid up in cash) |
Rs. 10/- each |
Rs. 58.100 millions |
|
700,000 |
Equity
Shares (paid for consideration other than cash) |
Rs. 10/- each |
Rs. 7.000 millions |
|
|
TOTAL |
|
Rs. 65.100 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
65.100 |
65.132 |
65.132 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
74.200 |
17.469 |
2.804 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
139.300 |
82.601 |
67.936 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
208.800 |
105.287 |
101.153 |
|
|
2] Unsecured Loans |
24.400 |
4.595 |
4.918 |
|
TOTAL
BORROWING
|
233.200 |
109.882 |
106.071 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
372.500 |
192.483 |
174.007 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
166.400 |
155.940 |
133.858 |
|
Capital work-in-progress
|
1.900 |
5.808 |
0.116 |
|
|
|
|
|
|
|
INVESTMENT
|
13.500 |
0.000 |
0.000 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
277.000
|
105.900
|
114.835 |
|
|
Sundry Debtors
|
31.200
|
7.392
|
11.801 |
|
|
Cash & Bank Balances
|
9.200
|
25.386
|
19.970 |
|
|
Loans & Advances
|
64.300
|
34.923
|
14.646 |
Total Current Assets
|
381.700
|
173.601
|
161.252 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities & Provisions
|
102.300
|
69.800
|
121.603 |
|
|
Provisions
|
88.700
|
73.142
|
0.000 |
Total Current Liabilities
|
191.000
|
142.942
|
121.603 |
|
Net Current
Assets
|
190.700
|
30.659
|
39.649 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.076 |
0.384 |
|
|
|
|
|
|
|
TOTAL
|
372.500 |
192.483 |
174.007 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
681.500 |
537.933 |
300.491 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
80.400 |
47.233 |
27.281 |
Provision for Taxation
|
16.300 |
25.141 |
6.696 |
Profit/(Loss) After Tax
|
64.100 |
22.092 |
20.585 |
|
|
|
|
|
Export Value
|
NA |
527.284 |
250.687 |
|
|
|
|
|
Import Value
|
NA |
389.025 |
201.276 |
|
|
|
|
|
Total Expenditure
|
675.800 |
462.506 |
245.325 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
|
30.06.2006 (1ST Quarter) |
|
Sales Turnover |
|
|
186.200 |
|
Other Income |
|
|
9.300 |
|
Total Income |
|
|
195.500 |
|
Total Expenditure |
|
|
151.100 |
|
Operating Profit |
|
|
44.400 |
|
Interest |
|
|
5.700 |
|
Gross Profit |
|
|
38.700 |
|
Depreciation |
|
|
2.800 |
|
Tax |
|
|
7.200 |
|
Reported PAT |
|
|
28.700 |
200606
Quarter 1 - EPS is Basic & Diluted Status of Investor Complaints for
the quarter ended 30.06.2006 Complaints Pending at the beginning of the quarter
Nil Complaints Received during the quarter 5 Complaints disposed off during the
quarter 5 Complaints unresolved at the end of the quarter Nil 1.This Statement
duly reviewed by Audit Committee was placed before the Board of Directors at
their meeting held on 29.07.2006 and approved. 2.Figures for the corresponding
Previous Quarter / Year have been regrouped / rearranged where necessary.
3.Provision for deferred Tax, if any shall be made at the time of finalisation
of accounts. 4.The Quarterly results have been subjected to a 'Limited Review'
by Auditors of the Company and the review report will be submitted to the
concerned Stock Exchanges within stipulated time. 5.The Company has only one
primary business segment namely Production of Photovoltaic Modules so AS 17
relating to Segment Reporting does not apply. 6.The value of Closing Stock
purchased in foreign currency has been taken as per the exchange rate
prevailing at the Date of purchase. Fluctuations arising, if any, on disposal
of said goods will be accounted for at the time of sales / end of financial
year, whichever is earlier. 7.Other income includes Rs.80.78 Lacs, one time
profit on sale of company's stake of shares held in joint Venture at Singapore.
8.Excise Duty on company's product has been reduced to Zero w.e.f 01.03.2006.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
1.55 |
1.44 |
1.98 |
|
Long
Term Debt Equity Ratio |
0.26 |
0.36 |
0.86 |
|
Current
Ratio |
0.90 |
0.79 |
0.86 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
2.95 |
2.72 |
1.49 |
|
Inventory
|
3.56 |
5.13 |
2.87 |
|
Debtors |
35.33 |
58.99 |
25.46 |
|
Interest
Cover Ratio |
3.70 |
2.63 |
2.18 |
|
Operating
Profit Margin (%) |
17.82 |
13.07 |
20.33 |
|
Profit
Before Interest and Tax Margin (%) |
16.16 |
11.32 |
17.13 |
|
Cash
Profit Margin (%) |
11.06 |
6.15 |
10.69 |
|
Adjusted
Net Profit Margin (%) |
9.40 |
4.40 |
7.49 |
|
Return
on Capital Employed (%) |
39.02 |
35.03 |
26.04 |
|
Return
on Net Worth (%) |
57.77 |
33.09 |
30.52 |
STOCK PRICES
|
Face
Value |
Rs. 10.00/- |
|
High |
Rs.
267.00/- |
|
Low |
Rs.
261.25/- |
LOCAL AGENCY FURTHER INFORMATION
BUSINESS:
Subject is engaged in the
business of manufacturing, supplying and distributing of solar photovoltic
cells, modules, PV systems and Components.
Generic Name of Principal
Product/Service of the company is as under:-
|
Item Code No. |
Product Description |
|
8541.00 |
Solar Photovoltaic Cells,
Modules and Systems |
It is in trade terms with :-
Ø
Helios Technology, Italy
The company’s fixed assets of
important value include leasehold land, buildings, plant & machinery,
furniture & fixture, computer, office equipment and motor vehicles.
Current Operations
During the year under review, the company generated attractive
realisations due to firm prices in the international and domestic markets,
strengthening margins. Correspondingly, the company's financial performance
improved, reflected in a rise in the turnover to Rs 681.800 Millions and net
profit to Rs 64.100 Millions during the year.
Dividend
The Board recommended a dividend of Rs. 1 per equity share for the
financial year ended on 31.03.2006. The same will be paid, on the approval in
the Annual General Meeting, to those shareholders whose names appear in the
Register of Members of the company as on 23.09. 2006.
In spite of a better performance, the Board considered it prudent to
maintain dividend at the same rate as in the previous financial year in view of
capital requirements for its proposed expansion. This saving will enable the
company to maximise the use of accruals in the long-term interest of
shareholders.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry overview
The amount of solar energy that reaches the earth is estimated at 770
trillion kilowatts - or 5,000 times bigger than the sum of all energy resources
they are using (nuclear, geothermal, or gravitational). Considering that the
remaining life of the sun is estimated at around 4.5 billion years, one may
consider the resource as practically inexhaustible for all contemporary
practical relevance.
The total terrestrial solar power incidence is 175,000 TW (terrawatts)
out of which 125,000 TW reaches the surface (the rest being reflected by clouds
and absorbed by the atmosphere), which compares well with about 13 TW of total
energy consumption by humans (oil, gas, nuclear, hydro), and 100 TW total
photosynthetic activity (basically supporting all life/food on Earth, less than
0.1% of available radiation energy captured) meaning that solar energy could
cover humanity's energy needs many times over.
The rate at which the sun's radiation reaches a certain unit of area in
space in the region of the Earth's orbit is estimated to be at 1,400 watts per
square meter. Out of this, photovoltaic cells (also known as solar cells) can
capture 19 to 56 watts per square meter (15% efficiency) or an equivalent of
0.45 to 1.35 kilowatt per hour (kWh) in an annual day-night average. Therefore,
if there would be more area covered by several solar panels, these panels could
produce slightly more energy than what is currently available from oil, gas,
and other energy sources combined (assuming 80/ solar cell efficiency).
At noon on a clear March or September equinox day, the solar radiation at
the equator is about 1000 W/m . Hence, the 'standard' solar radiation (known as
the 'air mass 1.5 spectrum') has a power density of 1000 watts per square
meter. Thus, a 12% efficiency solar cell having 1 m_ of surface area in full
sunlight at solar noon at a temperature of 250C at the equator during either
the March or September equinox will produce approximately 120 watts of peak
power.
Profile:
Webel
Solar is a leading producer of Solar Photovotaic Cells and Modules in India. It
is one of the fastest growing companies within the solar photovoltaic industry
in India with a 30 per cent annual growth rate and a 5 MW manufacturing
facility for cells and modules.
The
solar cells are being produced at the company's state-of-the-art integrated
production facility in Kolkata with automated processes and a unique captive
technology. In this integrated production system, Webel Solar produces high
efficiency photovotaic cells and modules using mono-crystalline silicon wafers.
A high standard of quality is maintained throughout the entire process of
making cells to modules.
Webel
Solar has established the reputation for making highly reliable photovoltaic
modules for various domestic and commercial applications. All Webel Solar's
modules are suitable for grid-connected and stand-alone power plants of high
performance and reliability.
Application
The
webel solar quality commitment extends from a first-rate product to a number of
intangibles, confidence - inducing international quality certifications like
UL, ISPRA and ISO 9000, which contribute to a smooth - and extended - customer
experience
Webel
Solar delivers a price-competitive product that can be afforded by its buyers
across a number of countries.
Webel
Solar helps its international customers manages their onward production and
delivery logistics through a timely dispatch of supplies.
Webel
Solar's periodic dispatch schedule replenishes customer stocks at regular
intervals and helps them rationalise their inventory cost.
Webel
Solar is organisationally equipped to supply customers with different
denomination products of varying quantities within a single batch.
At
Webel Solar, no order is too small and no customer request is too
insignificant. The company responds with speed and sensitivity to even the
smallest of orders.
The
proof of Webel Solar's customer commitment is reflected in the numbers. Nearly
80 percent of the company's turnover is derived from repeat customers.
Quality
Production
commenced with technical support from a European established Company. The
company processed 5" wafers. Installed capacity: 1 MW.
Production
evolved to 6" wafers and modules upto 95 Wp for type W900. A quality
cetificate for JRC-ISPRA IEC 61215 standards was obtained.
Production
commenced on 8" wafers. Module capacity increased to 125 Wp. For type
W1000. Intalled capacity - 3 MW
The
JRC-ISPRA IEC 61215 standards certificate was obtained for all W1000 modules.
UL 1703 listing was obtained for all W900 type modules.
Installed
capcity increased from 3 MW to 5 MW. UL 1703 listing was obtained for W1000
type modules. Production of 160/190 Wp modules commenced
CMT REPORT [Corruption, Money laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No records 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 records exist to suggest that subject is or was the
subject of any formal or informal allegations, prosecutions or other official
proceeding for making any prohibited payments or other improper payments to
government officials for engaging in prohibited transactions or with designated
parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation
with Government :
No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.
9] Compensation
Package :
Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on the subject.
CORPORATE
GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN
EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs. 44.45 |
|
UK
Pound |
1 |
Rs. 84.83 |
|
Euro |
1 |
Rs. 57.12 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
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 |
|
TOTAL |
|
54 |
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
|
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 |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
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 |