MIRA
INFORM REPORT
|
Report Date : |
05.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
THERMAX LIMITED |
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|
|
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Registered
Office : |
D-13, MIDC Industrial
Area, R D Aga Road, Chinchwad, Pune - 411 019, Maharashtra, India |
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Country : |
India |
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Financials (as
on) : |
31.03.2007 |
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Year of
Establishment : |
30.06.1980 |
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Com. Reg. No.: |
25-22787 |
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CIN No.: [Company
Identification No.] |
U29299MH1980PLC022787 |
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TAN No.: (Tax Deduction
& Collection Account No.) |
PNET03854E/PNET00017D |
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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 of
Steam or other Vapour Generating Boilers, other Refrigerating or Freezing
Equipment and Ion Exchangers of the Polymerisation or Co-Polymerisation type. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 23167000 |
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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 an old
and well established company. The company is engaged in manufacturing and selling
Air Pollution Control Plants & Systems, water work treatment plants and
Ion Exchange Resins and Chemicals. It is a professionally managed
company. The company is progressing
well. Trade relations
are reported as fair. Payments are usually correct and as per commitments.
The company can be considered good for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered
Office : |
D-13, MIDC
Industrial Area, R D Aga Road, Chinchwad, Pune - 411 019, Maharashtra, India |
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Tel. No.: |
91-20-27475941 |
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Fax No.: |
91-20-27472049 |
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E-Mail : |
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Website : |
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Corporate
Office : |
Thermax House, 4,
Mumbai – Pune Road, Shivajinagar, Pune – 411 005, Maharashtra, India |
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Tel. No.: |
91-20-25512122 |
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Fax No.: |
91-20-25512242/
25511226 |
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E-Mail : |
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Factory 1 : |
Pimpri - Chinchwad, Pune, Maharashtra |
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Tel. No.: |
91-20-27475941 |
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Fax No.: |
91-20-27472049 |
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E-Mail : |
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Area : |
66,000 sq. fts |
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Factory 2 : |
Village Paudh, Mazgaon, Via Pategarga, Taluka Khalapur, District
Raigad – 410 206, Maharashtra |
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Overseas
Offices : |
Ø Thermax International Limited, Mauritius Ø Thermax (Rus) Limited, Russia Ø Thermax Europe Limited, U.K. Ø Thermax Europe Limited, U.K. Ø ME Engineering Limited, U.K. Ø Thermax Inc., U.S.A. |
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Branches : |
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DIRECTORS
|
Name : |
Ms. Meher Pudumjee |
|
Designation : |
Chairperson |
|
Age : |
36 Years |
|
Qualification
: |
Master in Chemical Engineering, B.E. |
|
Experience : |
13 Years |
|
Date of
Appointment : |
1st August, 1991 |
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|
|
|
Name : |
Mr. Prakash M. Kulkarni |
|
Designation : |
Managing Director |
|
Age : |
55 Years |
|
Qualification
: |
B.E. Mech. |
|
Experience : |
34 Years |
|
Date of
Appointment : |
1st July, 1999 |
|
Previous
Employment |
Thermax Babcock & Wilcox Limited – Managing Director |
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|
|
|
Name : |
Mrs. Anu R. Aga |
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Designation : |
Director |
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|
Name : |
Mr. Tapan Mitra |
|
Designation : |
Director |
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|
Name : |
Mr. Pheroz
Pudumjee |
|
Designation : |
Director |
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|
Name : |
Dr. Manu Seth |
|
Designation : |
Director |
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|
Name : |
Dr. Jairam
Varadaraj |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Ravi
Venkatesan |
|
Designation : |
Director |
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|
|
|
Name : |
Dr. Valentin Von Massow |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sunil Lalai |
|
Designation : |
Company Secretary |
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|
|
|
Name : |
Mr. Amitabh
Mukhopadhyay |
|
Designation : |
Executive Vice President and Chief Financial Officer |
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EXECUTIVE COUNCIL :
|
|
|
|
|
|
Name : |
Mr. Ravinder
Advani |
|
Designation : |
Executive Vice
President – ESD |
|
Age : |
56 Years |
|
Qualification
: |
B. E. (Hons)
(Mech.), PGDBM |
|
Experience : |
34 Years |
|
Date of
Appointment : |
01.05.2000 |
|
Previous Employment
: |
Thermax Babcock
and Wilcox Limtied – General Marketing Manager. |
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|
|
|
Name : |
Mr. Shishir
Joshipura |
|
Designation : |
Executive Vice
President - PHD |
|
Age : |
44 Years |
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Qualification
: |
B. E. (Mech.) |
|
Experience : |
22 Years |
|
Date of
Appointment : |
01.03.2003 |
|
Previous Employment
: |
Thermax Energy
Performance Services Limited – CEO |
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|
|
|
Name : |
Mr. Prakash
Kulkarni |
|
Designation : |
Managing Director
|
|
Age : |
58 Years |
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Qualification
: |
B. E. (Mech.) |
|
Experience : |
38 Years |
|
Date of
Appointment : |
01.07.1999 |
|
Previous Employment
: |
Thermax Babcock
and Wilcox Limited – Managing Director |
|
|
|
|
Name : |
Mr. Amitabha
Mukhopadhyay |
|
Designation : |
Executive Vice President
and CFO |
|
Age : |
41 Years |
|
Qualification
: |
B. Sc. (Hons.),
ACA |
|
Experience : |
17 Years |
|
Date of
Appointment : |
24.10.2001 |
|
Previous Employment
: |
IFB Industries
Limited – Vice President Finance |
|
|
|
|
Name : |
Mr. M. S. Unnikrishnan |
|
Designation : |
Executive Vice
President |
|
Age : |
45 Years |
|
Qualification
: |
B. E. (Mech.) |
|
Experience : |
24 Years |
|
Date of
Appointment : |
01.08.1997 |
|
Previous Employment
: |
Terrazzo Limited
– Assistance General Manager |
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|
|
|
Name : |
Mr. Sudhir Sohoni
|
|
Designation : |
Executive Vice
President |
|
Age : |
48 Years |
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Qualification
: |
M A (PM and IR) |
|
Experience : |
26 Years |
|
Date of
Appointment : |
01.03.2006 |
|
Previous Employment
: |
CEAT Limited – Vice
President – Human Resource (Tyre Sector)
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|
|
|
|
Name : |
Mr. R V Ramani |
|
Designation : |
Divisional Head |
|
Age : |
54 Years |
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Qualification
: |
B. E. (Mech.) |
|
Experience : |
31 Years |
|
Date of
Appointment : |
01.10.1974 |
|
Previous Employment
: |
Indowse
Engineering Private Limited – Sales Engineer |
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|
|
|
Name : |
Mr. V J Shah |
|
Designation : |
Divisional Head |
|
Age : |
58 Years |
|
Qualification
: |
B. Tech. (Chem.
Engg.), MBM |
|
Experience : |
30 Years |
|
Date of Appointment
: |
15.05.1988 |
|
Previous Employment
: |
Rieco Industries
Limited – Senior Manager |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
Promoters' Holdings
|
73855305 |
61.98 |
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|
|
|
Non Promoter's Holdings
|
|
|
|
Mutual Funds and
UTI Banks, Financial Institutions and
Insurance Companies |
19165729 |
16.08 |
|
FIIs |
5008383 |
4.20 |
|
Private Corporate
Bodies |
4252943 |
3.57 |
|
Indian Public and
Others |
16665162 |
13.99 |
|
NRIs / OCBs |
208778 |
0.18 |
|
Total |
119156300 |
100.00 |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturing of Steam
or other Vapour Generating Boilers, other Refrigerating or Freezing Equipment
and Ion Exchangers of the Polymerisation or Co-polymerisation type. |
|
|
|
|
Products : |
v Steam or
Other Vapour Generating Boilers v
Other Refrigerating
or Freezing Equipment v
Ion
Exchangers of the Polymerisation or co-Polymerisation type |
PRODUCTION STATUS
|
Particulars |
|
Unit |
Installed Capacity |
Actual Production |
|
|
|
|
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|
Energy Products & Systems a. Boilers Capacity
upto 30MT / Chillers b. Boilers
Capacity above 30MT c. Heaters d. Power Plants |
|
Nos. MT Mn. Kg Cal MW |
3281 5700 -- -- |
2080 2727 14 101 |
|
Environmental Products & Systems : |
|
|
|
|
|
a. Air Pollution Control Plants and Systems |
|
Nos. |
-- |
940 |
|
b. Water and Waste Treatment Plants |
|
Nos. |
-- |
1713 |
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c. Ion Exchange Resins & Chemicals |
|
MT |
34890 |
15856 |
GENERAL
INFORMATION
|
No. of
Employees : |
2876 |
|
|
|
|
Bankers : |
v Union Bank of India, Chinchwad Branch,
Pune – 411 015 v Bank of Baroda, Shivajinagar Branch, Pune
– 411 015 v Canara Bank v Citibank N.A. v Corporation Bank v
Standard
Chartered Bank v
Bank of
America NA, Express Towers, Nariman Point, v
Mumbai – 400
021 v
ICICI Bank
Limited |
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|
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Banking Relations : |
Good |
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Auditors : |
B. K. Khare and
Company Chartered
Accountants |
|
Address : |
706/707, Sharda
Chambers, New Marine Lines, Mumbai – 400 020, Maharashtra, India |
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|
|
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Associates : |
v Thermax Culligan Water Technologies Limited v Thermax Systems & Software Limited |
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|
|
|
Subsidiaries : |
v Thermax Babcock and Wilcox Limited v Thermax Energy Performance Services
Limited v Thermax Surface Coatings Limited v Thermax Capital Limited v Thermax Electronics Limited v Thermax Engineering Construction Company
Limited v Thermax Instrumentation Limited v Thermax Co-gen Limited v Winman Gas Limited v Thermax International Limited, MAuritius v Thermax (Rus) Limited, Russia v Thermax Europe Limited, U.K. v ME Engineering Limited, U.K. v Thermax Inc., U.S.A. v Thermax do Brasil Energia e Equipmentos
Limiteda, Brazil v Thermax Hong Kong Limited, Hong Kong |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
37,50,00,000 |
Equity Shares |
Rs.2/- each |
Rs. 750.000 millions |
|
|
|
Total |
|
Rs. 750.000 millions |
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
11,91,56,300 |
Equity Shares
fully paid up |
Rs.2/- each |
Rs. 238.300 millions |
|
|
|
Total |
|
Rs. 238.300 millions |
|
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
238.300 |
238.300 |
714.900 |
|
|
2] Reserves &
Surplus |
5553.600 |
4547.600 |
3386.000 |
|
NETWORTH
|
5791.900 |
4785.900 |
4100.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured
Loans |
0.000 |
0.000 |
0.000 |
|
TOTAL BORROWING
|
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX
LIABILITIES |
103.900 |
92.900 |
82.000 |
|
|
|
|
|
|
|
TOTAL
|
5895.800 |
4878.800 |
4182.900 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
1578.800 |
1332.400 |
926.400 |
|
Capital work-in-progress
|
116.700 |
43.800 |
89.800 |
|
|
|
|
|
|
|
INVESTMENT
|
5776.100 |
4174.900 |
3161.600 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
2002.400 |
1187.400 |
859.200 |
|
|
Contracts in Progress
|
753.200 |
435.400 |
196.500 |
|
|
Sundry Debtors
|
3825.100 |
2263.000 |
1728.600 |
|
|
Cash & Bank Balances
|
624.700 |
361.100 |
111.500 |
|
|
Other Current Assets
|
219.200 |
215.400 |
84.800 |
|
|
Loans & Advances
|
1869.500 |
867.300 |
699.600 |
Total Current Assets
|
9294.100 |
5329.600 |
3680.200 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
10000.400 |
4787.200 |
2971.500 |
|
|
Contracts in Progress
|
304.600 |
654.300 |
294.300 |
|
|
Provisions
|
565.900 |
562.400 |
416.400 |
Total Current Liabilities
|
10870.900
|
6003.900
|
3682.200
|
|
Net Current Assets
|
(1576.800) |
(674.300) |
(2.000) |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
1.000 |
2.000 |
7.100 |
|
|
|
|
|
|
|
TOTAL
|
5895.800 |
4878.800 |
4182.900 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
||
Sales Turnover [including other income]
|
22100.300 |
14980.000 |
9411.600 |
||
|
|
|
|
|
||
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
|
Export of goods on FOB |
3039.800 |
2403.900 |
N.A. |
|
|
|
Other Earnings |
16.500 |
16.000 |
N.A. |
|
|
Total Earnings |
3056.300 |
2419.900 |
|
|
|
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
|
Raw Materials |
1801.300 |
999.800 |
N.A. |
|
|
|
Stores & Spares |
647.100 |
547.900 |
- |
|
|
|
Capital Goods |
63.900 |
11.700 |
- |
|
|
|
Others |
70.900 |
11.300 |
- |
|
|
Total Imports |
2583.200 |
1570.700 |
- |
|
|
|
|
|
|
|
||
Profit/(Loss) Before Tax
|
2905.400 |
1925.300 |
830.200 |
||
Provision for Taxation
|
1027.400 |
692.800 |
277.300 |
||
Profit/(Loss) After Tax
|
1878.000 |
1232.500 |
552.900 |
||
|
|
|
|
|
||
Dividend
|
405.100 |
405.100 |
286.000 |
||
|
|
|
|
|
||
Total Expenditure
|
19140.100 |
13054.700 |
8581.400 |
||
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Sales Turnover |
6665.300
|
7701.000
|
8454.300
|
|
Other Income |
97.700
|
108.600
|
85.900
|
|
Total Income |
6763.000
|
7809.600
|
8540.200
|
|
Total Expenditure |
5900.100
|
6690.400
|
7404.900
|
|
Operating Profit |
862.900
|
1119.200
|
1135.300
|
|
Interest |
03.700
|
2.000
|
2.500
|
|
Gross Profit |
859.200
|
1117.200
|
1132.800
|
|
Depreciation |
50.200
|
54.000
|
52.800
|
|
Tax |
246.900
|
371.200
|
329.700
|
|
Reported PAT |
560.100
|
692.000
|
750.300
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
|
0.00
|
0.00 |
0.00 |
|
Long Term Ratio |
|
0.00
|
0.00 |
0.00 |
|
Current Ratio |
|
0.90
|
0.94 |
1.02 |
|
Turnover Ratios |
|
|
|
|
|
Fixed Assets |
|
8.30
|
7.50 |
5.65 |
|
Inventory |
|
9.90
|
11.76 |
10.94 |
|
Debtors |
|
7.12
|
7.89 |
6.64 |
|
Interest Cover Ratio |
|
40.10
|
38.46 |
24.79 |
|
Operating Profit Margin (%) |
|
14.61
|
13.51 |
10.94 |
|
Profit Before Interest and Tax Margin (%) |
|
13.74
|
12.55 |
9.98 |
|
Cash Profit Margin (%) |
|
9.53
|
8.79 |
7.33 |
|
Adjusted Net Profit Margin (%) |
|
8.66
|
7.82 |
6.38 |
|
Return on Capital Employed (%) |
|
56.35
|
44.53 |
24.14 |
|
Return on Net Worth (%) |
|
35.51
|
29.09 |
16.67 |
|
|
|
|
|
|
LOCAL AGENCY
FURTHER INFORMATION
HISTORY :
In 1980, Wanson (India)
Private Limited, manufacturing coil type packaged boilers, was amalgamated with
Thermax India Private Limited and Thermo-Dynamics Private Limited. The
amalgamated company was renamed Thermax Private Limited. Three companies -
Tulsi Fine Chemicals Private Limited, Kailas Castings Private Limited and T K
Steel Industries were later amalgamated with it and the company is now known as
Thermax Limited. The company manufactures boilers upto capacities of 30 tph.
In 1995-96, the company
received the ISO 9002 certification from Lloyd’s Register of Quality Assurance.
Its COGEN division signed a distributorship agreement with Kawasaki Heavy
Industries for Packaging Kawasaki’s gas turbines upto 6 MW.
During 1996-97 the
company received the AD-Merkblatt certification for the entire manufacturing
unit at Chinchwad. An electronic network called Thermet Linking all
establishments of the company in the country was introduced during the year,
making Thermax virtually a single workplace.
During the year
1999-2000, Thermax Instrumentation Limited, a joint venture between Thermax and
Fuji Electric of Japan was amicably dissolved. It acquired ME Engineering, a
UK-based company belonging to the Beel Industrial Boilers Plc (BIB) group.
Thermax recently exited from Thermax System and Software by selling it at a
valuation of Rs. 110 millions in exchange for one lakh shares of Global Tele
Systems which are to be locked in for a specified period. Thermax has also sold
its industrial fans division to a Pune-based company, Universal Fans, for a
valuation of Rs. 12.500 millions.
Subject has
restructed its business activities and had closed down or hived off unrelated
business and took some strategic initiatives. Lloyds Register of Quality
Assurance has awarded ISO 9001 certificate to the quality management system of
the Absorption Cooling Division.
During 2001-2002,
Thermax Water Technologies a wholly owned subsidiary of the subject was
amalgamated with it. Subject to approval of Hon’ble High Court at Judicature at
Mumbai. Subject has proposed to issue bonus shares by way of redeemable
preference shares in the ratio of 2 redeemable preference shares for each
equity held in subject. The issue was subject to approval in the forthcoming
AGM. The 36 MW power plant for Shree Cement was commenced during 2002-03.
The Boiler &
Heater business of the company has received an order during December 2004 from
a leading company in the Steel Industry for supply, erection & installation
of 8 Nos of Waste Heat Recovery Boilers alongwith associated piping &
fittings. The value of the order is Rs.900 millions.
The Cogen Division of the company has received the Letter of Intent from a
leading company in the Iron & Steel industry, valued at Rs.650 millions.
This is for setting up a 18.5 MW Captive Power Plant(CPP) using waste from
their sponge iron kiln. The CPP is a fast track project and expected to be
commissioned within 16 months from December 2004.
Business:
The company has
developed new generation sewage treatment plant that occupies only 10% of the
space required by a conventional plant. Pilot plant trials had been completed
successfully and this technology will be commercialised soon for municipal
sewage treatment.
The company has
obtained the prestigious Det Norske Veritas ISO 14001 certification for its
environmental management system in its manufacturing plant at Chinchwad. The
company is planning a restructuring exercise and plans to close down or hive
off unrelated businesses and take some strategic initiatives. Lloyds Register
of Quality Assurance has awarded ISO 9001 certificate to the quality management
system of the Absorption Cooling Division.
In January 2002,
the Board of Directors of the company has approved the proposal for
amalgamation of Thermax Water Technologies, a wholly owned subsidiary with the
company.
Directors Report:
Performance:
Your company has posted robust results during the year with total income at Rs. 22100.000 Millions, up from Rs 14980.000 Millions in he previous year, registering a growth of 47.5 percent. Profit before tax and extraordinary items at Rs. 2960.000 Millions (Rs. 925.000 Millions in the previous year), recorded a growth of 53.8 percent.
Profit after tax is higher at Rs. 1878.000 Millions from Rs." 1233.000 Millions of the previous year. Earnings per share (EPS) moved up significantly to Rs. 157.6 compared to Rs. 96.9 in 2005-06. During the year exports have risen to Rs. 4017.000 Millions from Rs. 3076.000 Millions last year, recording a growth of 30.6 percent.
The current year's figures are not strictly comparable with those of the previous year as three wholly-owned subsidiary companies - Thermax Co-Gen Limited, Thermax Electronics Limited and Winman Gas Limited — were amalgamated with Thermax Limited during the year. However, as there has been no sales income from the three amalgamated companies, it does not have any material impact on the income/profit of the company.
A detailed review of the company's performance and future prospects is included in the Management Discussion and Analysis section of the Annual Report.
Consolidated Results:
The consolidated income of the Thermax Group has gone up by 44.1 percent toRs. 23626.000 Millions. Income from international business has increased to Rs. 4412.000 Millions from Rs. 3925.000 Millions. Profit before tax has increased 75.8 percent to Rs. 3038.000 Millions. Profit after tax and minority interest has increased 88.9 percent to Rs. 1937.000 Millions. Earnings per share (EPS) on a consolidated basis more than doubled to Rs. 1626.000 Millions as compared to Rs. 796.000 Millions in the previous year. ME Engineering Ltd., the UK based step-down subsidiary, was referred to Administration during the year and has not been considered for consolidation. Thermax Energy Performance Services Ltd, the joint venture subsidiary company, has been referred for voluntary winding up and also has not been considered for consolidation.
In terms of approval granted by the Central Government pursuant to the provisions of Section 212(8) of the Companies Act, 1956, copies of the Balance Sheet and Pr6fit and Loss Account, Directors' Report and Auditors' Report of the subsidiary companies have not been attached to the Accounts of the company for the year 2006-07. However, on request by any member of the company/ statutory authority interested in obtaining them, these documents will be made available for examination, at its corporate office. The audited consolidated financial statement presented by the company include the financial information of all its subsidiary companies prepared in accordance with the Accounting Standard 21 (AS 21) issued by The Institute of Chartered Accountants of India. Pursuant to the approval, a statement of summarised financials of all the subsidiaries is attached with the consolidated financial statement.
Amalgamation:
Thermax Co-gen Limited (TCGL), Thermax Electronics Limited (TEL) and Winman Gas Limited (WGL), three wholly owned subsidiary companies, have been amalgamated with your company with effect from April 1, 2006, the Appointed Date as per the Scheme of Amalgamation sanctioned by the Hon'ble High Court of Judicature at Bombay.
After amalgamation, Rs. 5 Millions, 1 Million and Rs. 31.000 Millions that the company had invested as equity in TCGL, TEL and WGL respectively stand extinguished. The net worth of your company has decreased by Rs. 48.000 Millions.
Dividend:
In March 2007, the Board of Directors have declared and paid an interim dividend of Rs. 3.40 per equity share (170 percent) efface value of Rs. 2 each for the financial year 2006-07.
The Directors have recommended a final dividend of Rs. 2.60 per equity share (130percent).
The total dividend, including interim, for the financial year 2006-07 aggregates to Rs. 6 per equity share (300 percent), as against 170 percent paid last year. The final dividend, if approved by the shareholders, will entail an outgo of Rs. 363.000 Millions towards final dividend payout, including tax, and Rs. 824.000 Millions as total payout, including tax for the year.
Thermax Energy
Performance Services Ltd.
Thermax Energy Performance Services Ltd. (TEPS) was a joint venture company between Subject and EPS Asia Inc., with 51 percent and 49 percent shareholding respectively. As reported last year, the company had no potential for a turnaround due to the non acceptance of its business model and lack of technical and financial investments from the joint venture partner. Accordingly, foreclosing all open contracts during the year, the company has been referred for voluntary winding-up which became effective on February 28, 2007. This has no material impact on the profit of the parent company for the year. Overseas Subsidiaries Thermax Inc., U.S.A. This wholly owned step-down subsidiary is the front-end value chain for the parent company's two key businesses in the Americas — Chemical and Cooling. Though there has been an increase of 8.3 percent in income, the company reported a loss of USD 0.2 million because of cost pressures and write down of inventory as per corporate provisioning norms. While the chemical business has shown good growth, rising prices of natural gas have slowed down chiller sales. With an improved order book for both business segments - chemical and cooling – and continued focus on specialty chemicals having higher margins, your company expects to turn around this operation.
Thermax Hong Kong
Limited, Hong Kong
Thermax Hong Kong Limited (THKL), a wholly owned overseas
subsidiary, had been set up to develop business for absorption chillers in China
and to create a sourcing base for raw materials and components for the parent
company.
Its Shanghai representative office continued to receive orders from the Chinese market, laying the foundation for future business. Besides this, it has doubled its sourcing by value, improving the competitiveness of the various business divisions of Subject. During the year, your company has provided Rs. 35.000 Millions towards diminution of its investment in this subsidiary.
Thermax (Zhejiang)
Cooling & Heating Engineering Co. Ltd., China
Thermax (Zhejiang) Cooling & Heating Engineering Co. Ltd., the newly formed subsidiary, has been incorporated to set up an absorption chiller manufacturing facility in the Zhejiang province of China at an investment of USD 8 million. As China accounts for more than 50 percent of the world market for absorption chillers, the new facility is planned to avail the lower cost of production and also to be close to this major market. The new facility will complement Thermax's manufacturing base and play a key role in its selective intemationalisation programme. During the year, your company has invested USD 1.2 million in the share capital of this subsidiary. Thermax do Brasil - Energia e Equipamentos Ltda., Brazil (TdB) During the fiscal year income of the subsidiary remained stagnant at BR 0.7 million. Your company has invested an additional USD 80,000 towards the share capital of TdB during the year. Owing to higher import duties and local currency transactions accepted by competitors, no major business transactions are expected in FY 2007-08 also. Your company will take a considered decision' about the continuation of this subsidiary during 2007-08.
ME Engineering Limited, U.K.
This wholly owned step-down subsidiary had been facing financial difficulties due to cost overruns and delays in execution of projects. Though your company gave adequate technical and financial support to tide over the crisis, the revival of ME Engineering seemed unlikely.
It was therefore decided to refer the company to Administration as per the UK laws. Consequently, the accounts of the company have not been considered for consolidation with the Thermax Group. Thermax International Limited, Mauritius, a subsidiary of your company which is the holding company of ME Engineering, has provided for the diminution in value of investment of USD 2.3 million. Based thereon Subject has made a provision for diminution in value of investment and also possible financial obligations on account of counter guarantees given by the company, aggregating to Rs. 168.000 Millions.
Awards and Recognition
Ø
“Asia Best Under a Billion” in year 2005.
Ø
ACREX Award for Thermax in year 2006.
Ø
Younger Achiever Award for Chairperson in year 2006.
OHSAS Certification:
The chemical plant of Thermax at Paudh, near Mumbai, has received the OHSAS
18001:1999 certification from BVQI for implementing the occupational health and
safety management system.
Comfex award for Thermax:
Comfex 2005 honoured Prakash Kulkarni, Managing Director of Thermax, with a
special award for Thermax's contribution to the HVAC industry.
Recognition for Anu Aga:
Former Chairperson Anu Aga was featured as one of the 25 Most Powerful Women in
Indian Business in the special issue of Business Today, in September
2004.
The company is
in trade terms with :
Ø Ashok Surfactants Private Limited
Ø Balaji Chemicals
Ø Davale Packing Contractors
Ø Gadia Industries
Ø Metal Arts
Ø National Engineers
Ø Chemi Flow Rubber Industries
Ø Arca Control Private Limited
Ø Annapurna Engineering and Manufacturing
Private Limited
Ø Arem Engineering
Ø Arun Plast
Ø Autocon Engineering
Ø Blue Stone Enterprises
Ø Creative Mouldings
Ø Elcon Industries
Ø Elcon Instruments
Ø Elder Instruments
Ø Electro Fab
Ø Friends Engineers
Ø Guddi Plasticom
Ø Hercules Speciality
Ø Initiative Inc
Ø Jai Ganesh Enterprises
Ø K. J. Engineering Works
Ø K. K. Nag Limited
Ø Kalyani Marg
Ø Khandelwal Engineering
Ø Lebracs Rubber Lining
Ø Lokesh Auto
Ø Mangalam Enterprises
Ø Maruti Enterprises
Subject has joint
venture with the following :
Ø Thermax, Babcock & Wilcox
Ø Thermax Culligan Water Technologies Limited
Ø Thermax Energy Performance Services Limited
The company has
strategic alliances with the following :
Ø Struthers Wells, USA
Ø Kawasaki Engineering, Japan
Ø Ecotec, Canada
Ø Aqua-Chem, USA
Ø Allied Signals, USA
Ø
Bloom
Engineering, Germany
Subject has network
of 150 distributors, dealers and franchisees.
The company's fixed
assets of important value include Freehold Land, Leasehold Land, Buildings, Plant
& Machinery, Machinery on Lease, Electrical Installation, Furniture,
Fixtures, Computers & Office Equipment and Vehicles.
PRESS
RELEASES:
Thermax revenues up
56 %; declares 120 % dividend
Pune, May 11, 2005.
Thermax Limited, today presented its audited financial results for 2004-05
announcing a 56 % revenue growth to Rs. 9412.000 Millions . Exports have
increased to Rs. 1760.000 Millions from Rs. 1180.000 Millions last year.
Consolidated revenue for the group has climbed 55 % to Rs.12810.000 Millions.
Profit after tax in 2004-05 was Rs. 553.000 Millions and Earning Per Share was
Rs. 218.300 Millions, about the same level as last year after expensing Rs.
90.000 Millions on a transformation project and a fall of Rs.100.000 Millions
in investment income on its portfolio of Rs. 2720.000 Millions.
Consolidated profit after tax this year was up 10% to Rs.683.000 Millions and
Earning Per Share was Rs. 27.3 (last year Rs. 25.4).
The Board of Directors have recommended a dividend of 6% on the Redeemable
Preference Shares and announced an early redemption of the 6% Redeemable
Preference Shares of face value of Rs. 10 each, aggregating Rs. 477 millions.
The Board also recommended a dividend of Rs. 12 per Equity Share of face value
Rs. 10 each (120%).
During 2004-05, as a launching platform for the future, the Company’s capital
expenditure has accelerated. Several new products were introduced and research
and development revamped. Thermax is currently engaged in a company-wide
initiative to transform the way it does business aimed at significant increase
in customer satisfaction and its top line and bottom line growth. The company
is investing substantial resources in attaining operational excellence –
focusing on processes and systems that have a direct impact on cost, quality,
lead-time and on-time performance at every point of customer engagement.
The order book of the company stood at Rs 773 Millions, which is 80 % higher
than same time last year. The consolidated order book was Rs 1127 Millions 65 %
higher than last year. Based on the momentum in ferrous-, non-ferrous, cement,
energy, textile, chemicals and other customer segments, the company is
confident of continued growth
About Thermax Limited
Thermax Limited, a leading player in energy and environment management, is one
of the few companies in the world that offers total integrated, solutions in
the areas of heating, cooling, power, water and waste management, air pollution
control and chemicals. The sustainable solutions Thermax develops for client
companies are environmentally friendly and enable efficient deployment of
energy resources. Headquartered in Pune, India, Thermax’s international
operations are spread over South East Asia, Middle East, Africa, Russia, UK and
the US.
Thermax Q 3 Net
up 33%, Sales up 79%.
All India,
January 31, 2005: Thermax Limited, a leading player in energy and environment
solutions, today announced sharply improved results for the third quarter ended
December 2004, posting a net profit of Rs.126 Millions , compared to Rs.96
Millions in the corresponding quarter last year. Sales in Q3 were
Rs.237Millions (previous period Rs.132 Millions). The company's revenues from
exports have increased 125 percent to Rs.462 Millions from Rs.205 Millions in
the same period last year. The results were taken on record at the Board
meeting today.
The results for the nine month period ended December 2004 showed an increase in
sales by 67 percent to Rs.579 Millions. However, net profit marginally declined
to Rs.291 Millions from 306 Millions, due to sharp fall in Other Income from
Rs.212 Millions to Rs.79.700 Millions.
During the quarter, while demand was buoyant the cost of input materials and
components continued to escalate, putting margins under pressure. However,
effective cost management and aggressive team effort helped increase operating
profit from Rs.102 Millions to Rs.182 Millions. The profit for the quarter is
after considering fees of Rs.32 Millions paid to management consultant for the business
transformation initiative, which aims to leverage Thermax''s historic strengths
to achieve accelerated sustainable growth. The initiative is making good
progress.
Compared to the same quarter last year, the company's order intake was 77
percent higher at Rs.466 Millions Orders in hand at end December 2004 was 112
percent higher at Rs.847 Millions. On consolidated basis, orders in hand
totalled Rs.1226 Millions. The company therefore expects to end the financial
year with a topline growth of over 50 percent on consolidated basis compared to
earlier growth estimate of 40 percent. To serve its buoyant market, the company
is taking steps to add to capacity. For the longer term the company is actively
considering substantial investment in new facilities for its boiler and heater
business.
Thermax Limited is one of the few companies in the world that offer integrated
and innovative solutions in the areas of heating, cooling, power, water and
waste management, air pollution control and chemicals. The sustainable
solutions Thermax develop for client companies are environment friendly and
enable efficient deployment of energy and water resources. For more
information, visit wws.thermaxindia.com
Thermax Q2 Sales up 58 %, Net Rs.10.8 crores
Thermax Q2 Sales
up 58 %, Net Rs.10.8 crores, Strong order book.
All India, November 9, 2004 : Thermax Limited, a leading player in energy and
environment solutions, today announced results for the second quarter ended
September 2004.
Sales for Q2 were Rs. 217 crores, up 58 percent compared to the corresponding
quarter last year. The company’s EBIDT from operations increased 18 percent to
Rs. 164.000 Millions. Net profit was, however, down to Rs. 108.300 Millions.
(Last year Q2, Rs. 154.200 Millions) During the quarter the company continued
to face repeated price escalations of its raw materials like steel, copper and
styrene putting severe pressure on margins. Further, declining interest rates
and the softening of the debt market sharply reduced Other Income in the quarter
by Rs. 58.700 Millions. Also, during the quarter the company spent Rs 31.700
Millions to launch a business transformation exercise which is expected to lead
to significant improvement in the quality and quantity of its business.
In the half year, compared to the same period last year, the company’s
consolidated results show a top line increase by 59 percent to Rs.483 crores;
EBIDT from operations improved 61 percent to Rs. 346.200Millions and net profit
by 5 percent to Rs. 240.200 Millions from Rs. 228.700 Millions in H1 of the
previous year. Earning per share has improved to Rs. 10.10 from Rs. 9.40.
Orders at hand on a consolidated basis at end September 2004 were Rs. 9560
millions compared to Rs. 4470 millions last year. Recently, the company has bagged
an order for a captive power plant valued at Rs. 930 millions for a leading
cement company.
Thermax Limited is one of the few companies in the world that offers integrated
and innovative solutions in the areas of heating, cooling, power, water and waste
management, air pollution control and chemicals. The sustainable solutions
Thermax develops for client companies are environment friendly and enable
efficient deployment of energy and water resources.
Thermax
posts 60 % increase in invoicing in Q1
Thermax Limited, a
leading player in the energy and environment sectors, today announced results
for the first quarter of fiscal 2004-05, showing an increase in sales from Rs.
779 Millions last year to Rs. 1248 Millions.
Thermax
announces 2003-04 results
Thermax Limited,
the leading player in energy and environment management, today announced its
audited financial results for the year 2003-04. Sales and other income stood at
Rs. 6038.100 Millions up from Rs 5525.300 Millions in the previous year. Profit
after tax is up at Rs. 540.900 Millions from Rs. 482.400 Millions last year.
Earnings per share was Rs. 21.99 compared to Rs. 20.24 in the previous year.
The consolidated revenue of Thermax Group has gone up by 11.9 per cent to Rs.
8293.500 Millions Profit before tax increased 13.6 per cent to Rs.894.0000
Millions. Profit after tax and minority interest increased 12.8 per cent to Rs.
628.600 Millions. Thermax consolidated earnings per share has gone up to Rs.
26.32 as compared to Rs. 23.37 in the previous year.
The Board of Directors has recommended a dividend of 120 per cent. (Rs.12 per
equity share of Rs. 10 each).
During the year there was a record 86 per cent growth in order intake to Rs.
867 Millions. The order intake for the Thermax Group was Rs 1214 Millions, the
highest ever.
The order backlog on 1st April 2004 was Rs. 429 Millions for Thermax Limited as
against Rs. 134 Millions in the previous year. The order backlog on a
consolidated basis was Rs. 683 Millions as compared to Rs. 256 Millions in the
previous year.
The company is currently engaged in capability building to offer significantly
improved end-to-end solutions in energy and environment to its customers.
The company is in the process of buying out the 40 per cent minority stake from
Babcock & Wilcox International investments (BWII) in their joint venture
company in India, Thermax Babcock & Wilcox Limited (TBW). Consequently, the
JV will become a wholly owned subsidiary of Thermax. However, it will continue
to operate under its present name. BWII will continue to support technology
transfer, revamp and retrofit in the utility market and help in augmenting
business in the international market.
About Thermax Limited
Thermax Limited, a leading player in energy and environment management, is one
of the few companies in the world that offers total integrated solutions in the
areas of heating, cooling, power, water and waste management, air pollution
control and chemicals. The sustainable solutions Thermax develops for client
companies are environmentally friendly and enable efficient deployment of
energy and water resources. Headquartered in Pune, India, Thermax’s
international operations are spread over South East Asia, Middle East, Africa,
Russia, UK and the US.
Thermax revenues up 56 %;
declares 120 % dividend
Pune, May 11, 2005.
Thermax Limited, today presented its audited financial results for 2004-05
announcing a 56 % revenue growth to Rs. 9412 Millions Exports have increased to Rs. 176 Millions from Rs. 118 Millions last year. Consolidated revenue for the
group has climbed 55 % to Rs.1281 Millions.
Profit after tax in 2004-05 was Rs. 553 Millions and Earning Per Share was Rs.
21.83, about the same level as last year after expensing Rs. 9 Millions on a
transformation project and a fall of Rs.10 Milliions in investment income on
its portfolio of Rs. 272 Millions
Consolidated profit after tax this year was up 10% to Rs.683 Millions and
Earning Per Share was Rs. 27.3 (last year Rs. 25.4).
The Board of Directors have recommended a dividend of 6% on the Redeemable
Preference Shares and announced an early redemption of the 6% Redeemable
Preference Shares of face value of Rs. 10 each, aggregating Rs. 477 Millions.
The Board also recommended a dividend of Rs. 12 per Equity Share of face value
Rs. 10 each (120%).
During 2004-05, as a launching platform for the future, the Company’s capital
expenditure has accelerated. Several new products were introduced and research
and development revamped. Thermax is currently engaged in a company-wide
initiative to transform the way it does business aimed at significant increase
in customer satisfaction and its top line and bottom line growth. The company
is investing substantial resources in attaining operational excellence –
focusing on processes and systems that have a direct impact on cost, quality,
lead-time and on-time performance at every point of customer engagement.
The order book of the company stood at Rs 773 Millions, which is 80 % higher
than same time last year. The consolidated order book was Rs 1127 Millions, 65
% higher than last year. Based on the momentum in ferrous-, non-ferrous,
cement, energy, textile, chemicals and other customer segments, the company is
confident of continued growth
About Thermax Limited
Thermax Limited, a leading player in energy and environment management, is one
of the few companies in the world that offers total integrated, solutions in
the areas of heating, cooling, power, water and waste management, air pollution
control and chemicals. The sustainable solutions Thermax develops for client
companies are environmentally friendly and enable efficient deployment of
energy resources. Headquartered in Pune, India, Thermax’s international
operations are spread over South East Asia, Middle East, Africa, Russia, UK and
the US.
PRESS RELEASE:
Thermax signs license agreement with Babcock & Wilcox for utility
boilers
Mumbai:
February 12, 2008
Thermax Limited and Babcock & Wilcox Power Generation Group, Inc. (B&W PGG),
USA, have recently signed a technical transfer license agreement that grants
Thermax the right to engineer, manufacture and sell subcritical B&W Radiant
utility boilers in India. The agreement was signed by Mr. M. S. Unnikrishnan,
Managing Director, Thermax Limited, and Mr. Brandon C. Bethards, President
& Chief Operating Officer, B&W PGG.
The boilers will be used to generate steam in thermal power plants, primarily
owned by independent power producers. The units can be designed to fire a
variety of fossil fuels including pulverized coal, fuel oil, natural gas and
synthesis gases such as blast furnace gas and coke oven gas. Through this
agreement, which covers a period of 15 years and boilers up to 800 MW in size,
Thermax can begin engineering and production of the units at its new
manufacturing facility in Gujarat.
Thermax and Babcock & Wilcox have had a business relationship for 20 years,
including a successful joint venture for industrial boilers and heat recovery
steam generators. The latest agreement will give Thermax the right to use
B&W PGG’s proven technology to make a significant impact in the private and
public power generation sector where an estimated 80,000 MW of capacity will be
added in the next five years.
“We are very happy to source this technology from the original Babcock &
Wilcox,” said Mr. Unnikrishnan. “The Babcock & Wilcox name stands for
quality and reliability. These are critical factors in India, and we are proud
to work closely with this global leader.”
“Babcock & Wilcox technology is backed by more than 140 years of
experience, and we have designed and supplied some of the largest, most
efficient steam generating systems in the world,” said Mr. Bethards. “We are
pleased to bring our leading technology to India through this agreement and we
look forward to continuing our strong relationship with Thermax to help meet
the country’s power needs.”
B&W utility boilers installed worldwide generate more than 300,000 MW of
electric power.
Thermax has 40 years of experience in designing and manufacturing a wide range
of boilers, heaters and heat recovery steam generating systems on a variety of
solid, liquid and gaseous fuels including biomass and wet distillery sludge. It
is also a leading EPC (engineer-procure-construct) supplier of captive power
and cogeneration plants in India.
About Thermax Limited
Thermax Limited, a leading company in energy and environment
management, is one of the few companies in the world that offers integrated,
innovative solutions in the areas of heating, cooling, power, water and waste
management, air pollution control and chemicals. The sustainable solutions
Thermax develops for client companies are environment-friendly and enable
efficient deployment of energy and water resources. For more information visit:
www.thermaxindia.com
About the Babcock & Wilcox Power Generation Group, Inc.
The Babcock & Wilcox Power Generation Group, Inc.
(B&W PGG) is a major operating unit of The Babcock & Wilcox Company, a
wholly owned subsidiary of McDermott International, Inc. B&W PGG is a world
leader in the power generation industry and designs, engineers, manufactures,
services and constructs steam generating and environmental equipment for
utilities and industries worldwide. It is located on the Internet at
www.babcock.com.
For further information contact:
Thermax Limited
Ahmed Bunglowala
Email: abunglow@thermaxindia.com
Tel: 9823291825
Genesis Burson-Marsteller
Urvashi Kadam
Email: urvashi.kadam@bm.com
Tel: 9989590387
Anu Soman –
Email: anu.soman@bm.com
Tel: 9850837393
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 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. 42.63 |
|
UK Pound |
1 |
Rs. 83.40 |
|
Euro |
1 |
Rs. 65.80 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
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. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|