MIRA INFORM
REPORT
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Report
Date : |
07.07.2007 |
IDENTIFICATION DETAILS
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Name : |
ELECTRONICS CORPORATION OF INDIA LIMITED |
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Registered
Office : |
ECIL Post Office, |
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Country
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
11.04. 1967 |
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Com.
Reg. No.: |
01-1149 |
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CIN
No.: [Company
Identification No.] |
L32100AP1967PLC001149 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
HYDE00006G |
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Legal
Form : |
Public
Limited Liability Company owned by the Government of India. |
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Line
of Business : |
Promote and Develop industrial electronics with indigenous
know-how and to attain self sufficiency in Atomic Energy programme |
RATING
& COMMENTS
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MIRA’s
Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum
Credit Limit : |
USD
14500000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
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Subject is a well-established company having satisfactory
track. It is a Government of India
company. Trade relations are
fair. Payments are correct and as per
commitments. The company can be considered good for normal business
dealings. |
LOCATIONS
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Registered
Office : |
ECIL Post
Office, |
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Tel.
No.: |
91-40-27120131/27123409/27120671/2620131/27120131 |
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Fax
No.: |
91-40-2721802/27122535/2622535 |
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E-Mail
: |
ecil.cpmkt@ecil.sprintrpg.ems.vsnl.net.in |
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Website
: |
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Corporate
Office : |
ECIL
Post, |
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Tel.
No.: |
91-40-27123409 |
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Fax
No.: |
91-40-27121802 |
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E-Mail
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Unit : |
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Guest
Houses: |
Located
at |
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Zonal
Office: |
27,
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Tel.
No.: |
91-11-23324507 |
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Fax
No.: |
91-11-23725951 |
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Email: |
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Contact
Person: |
Mr.
V. K. Malik (Zonal Manager) |
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Zonal
Office: |
1207,
Veer Savarkar Marg, Dadar (Prabha Devi), Mumbai – 400028, |
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Tel.
No.: |
91-22-24223443 |
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Fax
No.: |
91-22-24302105 |
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Email: |
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Contact
Person: |
Mr.
C. N. Noronha (Zonal Manager) |
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Zonal
Office: |
Tamilnadu
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Tel.
No.: |
91-44-24349085 |
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Fax
No.: |
91-44-24340130 |
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Email: |
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Contact
Person: |
Mr.
Anbalagan (Deputy Zonal Manager) |
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Zonal
Office: |
IV
Floor, Apeejay House, 15, |
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Tel.
No.: |
91-33-2495523 |
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Fax
No.: |
91-33-2495523 |
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E-mail: |
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Resident
Representatives at |
ECIL
North Zone Office, B-7, DDA Local Shopping Centre, A Block, Ring Road,
Naraina, New Delhi – 110 028 |
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Tel.
No.: |
91-11-25895041
/ 49 |
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Fax
No.: |
91-11-25895329 |
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Tel.
No.: |
91-11-26196354
(Res.) |
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Contact
Person: |
Mr. V. K.
Malik |
DIRECTORS
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Name : |
Mr. G. P. Srivastava |
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Designation
: |
Chairman & Managing Director |
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Name : |
Mr. A. Murugesan |
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Designation
: |
Director (Finance) |
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Name : |
Mr. R. R. Pandalai |
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Designation
: |
Director – Personnel |
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Name : |
Mr. G. N. V. Satyandarayana |
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Designation
: |
Director – Technical |
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Name : |
Mr. G. Kumaraswamy Rao |
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Designation
: |
Director – DLRL [up to 31.10.2005] |
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Name : |
Mr. Umesh Chandra |
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Designation
: |
Senior Executive Director [CA and R & D], NPCIL [from
08.08.2005] |
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Name : |
Lt. Gen. Davinder Kumar |
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Designation
: |
Director |
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Name : |
Mr. A. R. Gore |
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Designation
: |
Senior Executive Director [O], NPCIL [up to 30.06.2005] |
KEY
EXECUTIVES
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Name : |
Mr. B. Panduranga Rao |
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Designation
: |
Company Secretary |
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Name : |
Mr. Rahul Asthana |
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Designation
: |
Joint Secretary [Finance], DAE |
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Name : |
Mr. VP. Raja |
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Designation
: |
Additional Secretary [I & M], DAE |
BUSINESS
DETAILS
|
Line
of Business : |
Promote and Develop industrial electronics with indigenous
know-how and to attain self sufficiency in Atomic Energy programme |
GENERAL
INFORMATION
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No. of
Employees : |
5746 |
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Bankers
: |
·
State Bank of ·
Andhra Bank, |
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Banking Relations : |
Satisfactory |
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Auditors
: |
v D. V. Ramana Rao &
Company Chartered Accountants v M Anandam & Company Chartered Accountants |
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Associates/Subsidiaries
: |
·
All Government of India Undertaking Companies. |
CAPITAL
STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
2000000 |
Equity Shares |
Rs. 1000/- each |
Rs. 2000.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
1548812 |
Equity Shares |
Rs. 1000/- each |
Rs. 1548.812 millions |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS
FUNDS |
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1] Share
Capital |
1548.812 |
1458.812 |
1368.800 |
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2]
Reserves & Surplus |
2085.762 |
1759.486 |
1627.600 |
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NETWORTH
|
3634.574 |
3218.298 |
2996.400 |
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LOAN
FUNDS |
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1]
Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured
Loans |
0.000 |
0.000 |
0.000 |
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TOTAL
BORROWING
|
0.000 |
0.000 |
0.000 |
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DEFERRED
TAX LIABILITIES |
0.000 |
26.630 |
0.000 |
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TOTAL
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3634.574 |
3244.928 |
2996.400 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
694.272 |
720.796 |
741.200 |
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Capital work-in-progress
|
69.159 |
4.780 |
61.300 |
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INVESTMENT
|
16.464 |
16.464 |
16.500 |
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DEFERREX TAX ASSETS
|
57.412 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
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768.196 |
662.264 |
1071.100 |
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Sundry Debtors
|
7946.868 |
5807.298 |
4294.700 |
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Cash & Bank Balances
|
1894.094 |
2257.029 |
2118.200 |
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Loans & Advances
|
1365.598 |
1174.957 |
1709.500 |
Total Current Assets
|
11974.756 |
9901.548 |
9193.500 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
8027.370 |
6156.131 |
6072.100 |
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Provisions
|
1150.419 |
1245.411 |
947.700 |
Total Current Liabilities
|
9177.789 |
7401.542 |
7019.800 |
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Net
Current Assets
|
2796.967 |
2500.006 |
2173.700 |
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MISCELLANEOUS EXPENSES
|
0.300 |
2.882 |
3.700 |
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TOTAL
|
3634.574 |
3244.928 |
2996.400 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
6804.638 |
7278.087 |
9623.400 |
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Profit/(Loss) Before Tax
|
520.442 |
507.063 |
1305.500 |
Provision for Taxation
|
97.777 |
135.783 |
328.700 |
Profit/(Loss) After Tax
|
422.665 |
371.280 |
976.800 |
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Export Value
|
133.898 |
54.632 |
N.A. |
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Total Expenditure
|
6182.358 |
6585.386 |
8907.800 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT /
Total Income |
(%) |
6.21
|
5.10 |
10.15 |
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Net Profit Margin (PBT/Sales) |
(%) |
7.64
|
6.96 |
13.56 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
4.10
|
4.77 |
13.14 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.15 |
0.43 |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.52
|
2.29 |
2.34 |
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Current Ratio (Current Asset/Current Liability) |
|
1.30
|
1.33 |
1.30 |
LOCAL
AGENCY FURTHER INFORMATION
History:
The company was incorporated as a Government of India Enterprise
under the Department of Atomic Energy on 11th April, 1967 at
Today, subject is well known in
Over the years, the company has set up extensive
infrastructure for design, development, manufacturing and quality assurance
which includes computer aided design and manufacturing, computer networks for
material management and MIS, antenna spinning facility, antenna test range,
quality control and calibration laboratories and all that is required to enable
the company to perform.
The company had earlier received National Awards
for Excellence in Communications (1990) and Excellence in Strategic Electronics
(1992) both instituted by the Department of Electronics, Government of
India. It developed some of the first in
the country, like the first Digital Computer TDC - 316, first Black & White and Colour Television, first
Oscilloscope and so on. R & D had remained as a focus of the company all
through its existence. As many as 450 products were developed in the last 30
years, through in-house R & D, some of them in the strategic areas.
The company wants to
grow as a centre of Excellence in R & D, developing key technologies in the
area of image and signal processing, digital communications, information
security and networking, areas of core competency at the company.
Business:
The company's main aims and objectives are to promote and
develop industrial electronics with indigenous know-how and to attain self
sufficiency in Atomic Energy programme. The know-how for various electronic
equipments and components developed by Bhabha Atomic Research Centre, Trombay,
was transferred to the Corporation for commercial exploitation in initial
years.
The company's areas of business operations cover automation
and controls including related instrumentation, information technology
including a wide range of IT based solutions and related tele communications,
strategic electronics and communications covering a wide area, such as
information and broadcasting and civil aviation apart from defence.
The main product portfolio of the company is in the three
important sectors like atomic energy, defence and commercial. It is the leading electronics company in the
country providing solutions of strategic importance and national building
activities.
The main areas of business of the company are computers,
automation and controls, strategic electronics and communications,
instrumentation, components and consumer electronics.
Subject is a leading electronics company in the country
providing solutions of strategic importance and national buildings activities.
Generic
Names of the Principal Products / Services of the company are :
·
Special Products (Defence Equipment including fuses)
·
V/
UHF Transreceivers / Radio Communication System
·
Electronic
Voting Machine
HIGHLIGHTS
OF OPERATIONS
During the year under report, the initiatives taken by the
company in the High technology Low volume areas of Strategic Electronics
started yielding results. Even though the company set impressive targets for
the year, certain factors beyond its control constrained the expected
performance.
The Company recorded a Sales of Rs. 7002.900 millions and a
Profit Before Tax of Rs. 520.400 millions.
It is necessary that the reasons for the shortfall in the
targets are shared with you, the shareholders so that effective corrective and
preventive actions are initiated. The Ministry of Defense revised its
procurement procedure, which takes longer period for the placement of orders
for MSRS, HFDF and Radio Communication products valued around Rs. 2300
millions. Similarly the decision of the Election Commission of India to refer
the modified EVM to a Technical Committee, delayed the placement of orders for
replacement of old EVMs as well as for new requirements. This affected the
business to the tune of Rs 2000 millions. The ready to deliver order for EVMs
from
With the changed techno-economic scenario, ECIL’s operations
are not only shifting from the factory to the field but they are getting
carried out by various agencies in different parts of the world. The shift from
products to projects is resulting in involvement of a number of organizations
in decision making and longer gestation periods. The definitions of the
milestones, matching of efforts and the associated revenues are proving to be
an evolving process. However the company is well aware of these essential
ingredients of the global business environment today and is fine-tuning its
business strategies, plans and
programmes suitably.
In the Nuclear Sector, the company completed all its
supplies to TAPP-3. Special Nuclear Material Detection System for Vehicle
Monitoring was successfully developed and commissioned at JNPT.
In the Defense Sector, ECIL has been identified as the
Production Agency for Ka-Band Active Radar Seekers for Missile programme by
DRDO. The company entered into a strategic partnership with BEL for the supply
of sophisticated Electronic Warfare Systems to Army during the XI and XII plan
periods.
Acceptance tests were successfully completed for 25 sites of
MSRS. ECIL entered into an MoU with DRDO for productionisation of Flight Data
Recorder for AN32 Aircrafts.
The Company’s inroads into the Space Sector are very
encouraging. Stabilisation Antenna Platform developed for LCAMMR has
successfully gone through Safety of Flight Tests. Preliminary design review for
Chandrayaan Project was completed.
In the Security Sector, Integrated Security System for Prime
Minister’s residence was completed. The company also successfully developed a
100W Cell Phone Jammer for strategic applications.
A modified Electronic Voting Machine(EVM) was developed by
ECIL for replacement of earlier supplies made to the Election Commission. The
Company entered into an MoU with
The Company’s sectoral contribution during the year
indicates 40% for Defence, 18% for Nuclear, 10% for Security, 7% for Space, 7%
for Telecom and Services and the rest to all areas of national importance.
The MoU rating of the Company stood at ‘Good’ for the year.
OUTLOOK
FOR 2006-07
With reasonable Order Book position and strong leads in the
areas of ECIL core competences, the company envisages a reasonably better
performance during the year 2006-07. It is also expected that some of the
orders which did not materialize during the year 2005-06 will be received for
timely execution
during the year. An exercise to internalize the MoU to
ensure more pragmatic and aggressive operations management was initiated and it
is expected that as a result of this, performance of the company will be in an
expected and planned way.
NEW
PRODUCTS INTRODUCED
The Company introduced a number of new products during the
year, which are expected to yield substantial business benefits in the years to
come. Significant among them are: Transportable Earth Station for Remote
Sensing Ground Station; 6.1 M Kaband Earth Station Terminal; Antennae for
non-communication area; Cell phone jammers for Police and Prison Applications;
Subscriber End Secrecy Devices, Solid State Cockpit Voice Recorder; Special
Nuclear Material Detection System for Vehicle
Monitoring and 1.0 KW VHF Amplifier for Jamming
applications.
JOINT
VENTURE COMPANY
The Joint Venture, ECIL-Rapiscan Limited registered a total
income of Rs. 302 millions during 2005-06 by way of supply of Multi-energy
X-Ray machines etc. to Indian Airlines, Ship Building Centre, Police Department
& Prison of various States,
The total income has increased by 24% as compared to the
previous year due to receipt of good orders. Provisional profit before tax for
the year is Rs. 60 millions, the profit before tax has gone up by Rs. 10
milions, a growth of 20% over the previous year. The income target set for the
year 2006-07 is Rs. 350 millions and the JV Company is confident of achieving
it considering the requirement of security products in the country due to
threat from terrorists and introduction of large cargo scanning machines.
SMALL
SCALE UNITS
During the
year, orders to the tune of Rs. 92.200 millions were placed on 226 small scale
units.
Notes :
Where the cost of the asset(s) acquired is not
readily ascertainable, accounting is done on provisional valuation subject to
adjustments in subsequent years in value where the variation exceeds Rs. 0.015
million or 15% of the actual valuation whichever is higher. The decrease in profit
on account of this method is Rs. 0.051 million for the year (Previous year Rs.
0.006 million).
a) The Department of Atomic Energy (DAE) vide
their letter no: 5/10(5)/2000-PSU/Vol. III/61 dated 10.01.2002 conveyed the
approval of the President of India for transfer of ownership to the Company
(free of cost) of the land on which the factory is located at Hyderabad (about
278 acres). Further, out of 278 Acres of Land, a “Deed Of Grant” for the land
admeasuring 229.01 Acres is executed by DAE in accordance with President Of
India’s approval for transfer of ownership of land to ECIL at free of cost
through letter dated 06.01.2006. For the remaining Land admeasuring about 49
Acres, the matter for transfer is under process.
b) Title Deed in favour of the Company is yet
to be executed for the freehold land admeasuring 0.533 Acres at Moula-Ali
acquired by the Company from Andhra Pradesh Industrial Infrastructure
Corporation Limited,
c) The Department of Atomic Energy (DAE) vide
their letter no: 5/10(5)/2000-PSU/Vol. III/61 dated 10.01.2002 conveyed the
approval of the President of India for transfer of ownership to the Company
(free of cost) Zonal office located in Mumbai (about 2773.50 sq. yards). The
actions required for giving effect to the above approval are under process.
d) ECIL had executed Deeds of Lease with M/s
Indian Rare Earths Limited, a Govt. of India Undertaking, for leasing out a
part of Zonal office building at Mumbai, admeasuring 12,820 Sq. Ft in Ground Floor
and First Floor for a period of 20 years under the following payment conditions
(i) Security Deposit of leased premises for Rs. 106.920 millions and (ii)
Annual Rent of Rs. 1070/- per annum.
e) An area of 1.7 acres of land along with
building occupied by Kushaiguda Police Station in Survey No.303, Moula - Ali,
belonging to DAE was leased to the Govt. of AP in the year 1998-99 at lease
rent of Re.1/- per annum.
3. Deductions and adjustments shown under the
column of the gross block include Rs. 6.236 millions (Previous year Rs. 7.126
millions) in respect of assets acquired out of Government grants.
4. As a part of phased programme, physical
verification of Fixed Assets was carried out by the external Auditors M/s D L
Sastry & Associates for the cycle period starting from 2005-2006. The
external Auditors have physically verified the assets at Head Office and
submitted the report to the management. The same was communicated to concerned
divisions for reconciliation which is under progress. Zonal Office, West has
verified the assets physically available at various locations/ divisions within
the Zonal Office and submitted a report. Based on the report, Head Office has
carried out appropriate corrections in the Fixed
Assets Ledger. At the other Zonal Offices,
Physical verification of fixed assets and reconciliation are under progress.
Contingent
liabilities: Rs. in millions
All
known liabilities have been duly provided for, except the following:
|
|
As at 31.03.2006 |
As at 31.03.2005 |
|
a) Letters of Credit (Net) |
220.843 |
307.948 |
|
b) Bank Guarantees |
184.327 |
269.573 |
|
c) Corporate Guarantees favouring Govt. Depts./PSUs |
2785.560 |
3533.305 |
|
d) Indemnity Bonds |
2248.242 |
2812.061 |
|
e) Guarantee on behalf of employees |
0.132 |
0.622 |
|
f) Court/Arbitration cases |
16.820 |
16.992 |
|
g) i) Demands from Government authorities contested by the
Company before appropriate authorities not provided for in respect of – Property Tax/Vacant Land Tax – Excise/Customs (including Stay Petitions pending) – Income Tax – Sales Tax (including Stay Petitions pending) – Licence fees to All India Radio ii) Appeals filed by the Govt., departments against the
Company in respect of – Central Excise – Service Tax – Income Tax |
9.133 60.714 631.625 16.497 24.833 9.048 125.384 12.327 |
8.596 2.368 107.435 17.908 24.833 9.048 125.384 12.327 |
|
h) Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) |
83.070 |
31.961 |
|
i) Liquidated damages not provided for |
4.387 |
0.000 |
|
j) Claim by DTC in respect of reactivation charges collected
by M/s.SARK Systems India Limited (Business partner) from bus pass holders under dispute |
10.264 |
0.000 |
The company
exports X-Ray Generators, Notch Indicators, Power Transistor, AMSS Systems,
etc. to
The company
imports ICs, Convertors, Mother Boards, Transreceivers, Monitor Chips, etc.
from
The company
has collaborations / joint ventures with :
·
C-Band
Earth Station
·
Main
Frame Computers, France
·
Rapiscan
Security Products, Inc.,
·
Rapiscan
Security Products, Inc.,
·
Grintek
Communication Systems,
The company
has been accredited with ISO 9001 and ISO 9002 Certifications.
MEMBERSHIPS
·
Confederation of Indian Industry
Fixed Assets :
Land, Factory Building, Administration & Other
Buildings, Plant & Machinery, Electronic, Testing & Measuring
Equipment, Computer Systems, Air Conditioners & Air Coolers /
Refrigerators, Electrical Installation & Equipment, Furniture, Fittings
& Equipment, Vehicles, Library, etc.
Press Release:
PRESIDENT PRESENTS ROBUST SECURE COMMUNICATION SYSTEM OF SOCIETY
FOR ELECTRONIC TRANSACTIONS AND SECURITY (SETS) TO ELECTRONICS CORPORATION OF
22-06-2005 : RASHTRAPATI
BHAWAN,
The
President of India Dr. A.P.J. Abdul Kalam, presented the robust and secure
communication system designed and developed by Society for Electronic
Transactions and Security (SETS), to M/s Electronics Corporation of India
Limited (ECIL),
In
his address the President congratulated the composite team from SETS, ECIL and
the Bhabha Atomic Research Centre (BARC) for developing this unique system that
has multiple civil and governmental applications. He further added that in view
of many more secure communication systems that are likely to be developed in
the future it is essential to strengthen the process of certification and
standardization of Information Security products. SETS has to work in this
direction, Dr Kalam observed.
The
Principal Scientific Advisor to the Government of India, Dr. Chidambaram said
with the design of such a communication system a major milestone has been
achieved by SETS working closely with ECIL and after multiple peer reviews by
the Director General, National Informatics Centre (NIC) and BARC. He said
confidence of both the private sector and academic community in SETS is high of
the potential for SETS to contribute in areas like certification and setting of
standards with emphasis on Research & Development.
The secure communication system is used for transmission of data and voice over
public networks in a highly confidential and secure manner at a speed of 2 Mbps
or higher. The system has been designed and developed in-house at SETS in
record time. M/s ECIL will shortly integrate this unit into a configuration
that is targeted for use in multiple applications including inter-bank
transactions, large Electronic Data Exchange applications etc.
SETS
is the first Public-Private-Partnership initiative in the area of Information
Security Research &Development.
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 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.40.46 |
|
|
1 |
Rs.81.29 |
|
Euro |
1 |
Rs.54.96 |
SCORE
& RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT
LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
47 |
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 |
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 |