MIRA
INFORM REPORT
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Report Date : |
13.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
ACCURATE TRANSFORMERS LIMITED |
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Registered Office : |
8, Local Shopping Centre, Vardhaman Sidhant Plaza, New Delhi -110092,
Delhi |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
18.04.1988 |
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Com. Reg. No.: |
095092 |
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CIN No.: [Company
Identification No.] |
L74899DL1988PLC095092 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRTA00834B |
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PAN No.: [Permanent
Account No.] |
AACCA7126L |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business : |
Manufacturer of Electrical Transformers, Power Transformers,
Distribution Transformers and Repair of Old Transformers. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 1350000 |
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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 and reputed company meeting its normal
commitments timeously. Trade relations are fair. General financial position
is good. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
8, Local Shopping Centre, Vardhaman Sidhant Plaza, New Delhi – 110092,
Delhi, India |
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Tel No.: |
91-11-22161926 |
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Fax No.: |
91-11-22149456 |
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E-Mail : |
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Website : |
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Factory 1 : |
Meerut
Road ,Opp. Raj Nagar Chowki, Ghaziabad, Uttar Pradesh, India |
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Factory 2 : |
D-16-17,
UPSIDC Industrial Area, Greater Noida, Uttar Pradesh, India |
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Factory 3 : |
A-97,
UPSIDC Industrial Area, Sikandrabad, Uttar Pradesh, India |
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Factory 4 : |
1394/2,
M. Langha Road, Dehradun, Uttranchal |
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Factory 5 : |
Plot
No.2, Sector 8A, Integrated Industrial Area, Rani Pur Haridwar, Uttranchal. |
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Factory 6 : |
F-88, Industrial
Area, Jamalpur Khurd, Bahadrabad, HaridwarUttranchal. |
DIRECTORS
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Name : |
Mr. C. L. Sharma |
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Designation : |
Chairman Cum Managing Director |
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Name : |
Mr. M. K. Basak |
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Designation : |
Whole Time Director |
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Name : |
Mr. K. L. Chauhan |
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Designation : |
Independent Director |
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Address : |
G-2, Block, Sterling Apartments, Charm wood Village, Eros Garden, Suraj kund Road, Faridabad, Haryana.-122016, India |
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Date of Birth/Age : |
10.02. |
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1935Date of Appointment : |
31.01.1997 |
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Qualifications : |
B.E (Electrical Engineering) |
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Profile: |
Mr. Kundan Lai Chauhan joined his first service as Assistant Engineer with Punjab State Electricity Board, Patiala in 1960. With the hard work, dedication and sincerely ha has attained various senor positions with the Board. He held the position as in charge of Procurement of Centrally. Purchase Engineering Equipments for several years. He also worked as Director Monitoring responsible for timely implementation of new thermal and hydro plants. He was reporting to Chairman in this assignment. He also held the position of Deputy Secretary (Personal) as well as Executive Engineer System Study. He was elevated to the position of Engineer in Chief .as well as officer on special duty. . |
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Name : |
Mr. O. P. Sharma |
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Designation : |
Whole Time Director |
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Name : |
Mr. Bhupal Singh |
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Designation : |
Independent Director |
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Address : |
357, Civil Lines, Kutcheri, Meerut, Uttar Pradesh, India |
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Date of Birth/Age : |
04.10.1929 |
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Date of Appointment : |
31.01.2007 |
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Qualifications : |
B. Sc., B. E. |
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Profile: |
Mr. Bhupal Singh started his illustrious
carrier in 1953 by joining service with Ministry of Power, U.P Govt. as
Assistant Engineer, later on U.P State Electricity Board was carved out of
Ministry of Power and his services were transferred to the said Board. He
served in various senior positions with the Board. By dedication, sincerity
and hard work he rose to the position of Chairman of U.P State Electricity
Board. He retired from the position of Chairman 1989 after serving for about
37 years. During his illustrious carrier he has opportunity to visit and
examine closely Electricity installations and Power utilities of Globe including
at U.S. A, Japan, italy, France, Sweden and Switzerland etc. since then he
worked as Electrical Consultant. |
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Name : |
Dr. Om Prakash Sharma |
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Designation : |
Independent Director |
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Date of Birth/Age : |
01.12.1949 |
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Date of Appointment : |
31.01.2007 |
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Qualifications : |
M.A
(Pol. Sc.) |
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Profile: |
Dr.
O.P.Sharma has done M.A (Pol. Sc.) in 1974 and started his carrier as
lecturer in Political Science. Thereafter he has done Doctorate in Political
Science in 1987. He was promoted to the position of principal of Mr. Jai
Singh Inter College, Pachauta, (Distt. Bulandshahr), U.P. In 1995. He is an
ardent sports lover. He is a dedicated worker of Bharat Scouts and Guides.
Presently he is a Chief Commissioner of District Bulandshahr Bharat Scouts
and Guides. |
KEY EXECUTIVES
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Name : |
Mr. V. K. Chhabra |
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Designation : |
Company Secretary |
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Tel No.: |
91-11-22161926 |
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Mobile : |
91-9810035031 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
1111900 |
36.59 |
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Indian Public |
1925200 |
63.41 |
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Total |
3037100 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Electrical Transformers, Power Transformers,
Distribution Transformers and Repair of Old Transformers. |
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Products : |
· Power
Transformers · Distribution
Transformers · Repair of Old
Transformers |
PRODUCTION STATUS
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Particulars |
Actual
Production |
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Distribution |
9933 |
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Power Transformers |
66 |
GENERAL
INFORMATION
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Suppliers
: |
· Airen
Metals (Private) Limited · Heritage
Promoters Private Limited · Heritage
Promoters Private Limited · Ami
Shree Electrical · Indian
Paints · Electrical
Engineers · Kesri
Oil Private Limited · electrical
Engineers India · M.C.S
Ceramics · S&S
Engg. Carporation · Matal
Corp. · Arhant
Industries (Meerut) · Shiv
Engineer Works · Auto
Mech. Industries · Neptune
Stamping · Advance
Steel Tube Limited · Nu-Cork
Products Private Limited. · Aditya
Power Devices · Kejriwal
Metal Industries · Maruri
Weld Limited · Kriton
Power India Private Limited · Navin
Dhatu Udyog · The
Conventional Fasteners |
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Bankers : |
· Bank of
Maharashtra Preet Vihar, Delhi – 110092, India · Induslnd Bank World Trade Centre, Nehru Place, New Delhi – 110019, India |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. Lal and Company Chartered Accountant |
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Address : |
87/88, Navyug Market Ghaziabad, Uttar Pradesh, India |
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Associates/Subsidiaries : |
· Accurate Meters
Limited · Modern
Instruments Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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3500000 |
Equity Shares |
Rs.10/- each |
Rs.35.000 Millions |
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Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
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3037100 |
Equity Shares |
Rs.10/- each |
Rs.30.371
Millions |
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Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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3037100 |
Equity Shares |
Rs.10/- each |
Rs.30.371
Millions |
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Less : Call Money Due |
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Rs.0.682
Million |
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Rs.29.689 Millions |
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Add : Share Application Money Pending
Allotment |
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Rs.22.749
Millions |
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Total |
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Rs.52.438 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
52.438 |
29.636 |
29.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
217.361 |
152.962 |
108.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
269.799 |
182.598 |
138.300 |
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LOAN FUNDS |
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1] Secured Loans |
243.150 |
154.173 |
90.900 |
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2] Unsecured Loans |
8.696 |
5.629 |
4.400 |
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TOTAL BORROWING |
251.846 |
159.802 |
95.300 |
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DEFERRED TAX LIABILITIES |
2.171 |
2.605 |
0.000 |
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TOTAL |
523.816 |
345.005 |
233.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
55.520 |
58.889 |
57.000 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.936 |
0.936 |
0.900 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
38.684
|
70.498 |
50.500 |
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Sundry Debtors |
698.233
|
519.104 |
387.300 |
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Cash & Bank Balances |
160.250
|
105.384 |
29.900 |
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Other Current Assets |
77.531
|
49.939 |
0.000 |
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Loans & Advances |
47.512
|
28.274 |
46.800 |
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Total
Current Assets |
1022.210
|
773.199 |
514.500 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
540.673
|
483.377 |
336.500 |
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Provisions |
14.177
|
4.661 |
2.500 |
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Total
Current Liabilities |
554.850
|
488.038 |
339.000 |
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Net Current Assets |
467.360
|
285.161 |
175.500 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.019 |
0.200 |
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TOTAL |
523.816 |
345.005 |
233.600 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
1690.795 |
1531.301 |
1087.600 |
|
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Other Income |
21.678 |
2.697 |
3.600 |
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Total Income |
1712.473 |
1533.998 |
1091.200 |
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Profit/(Loss) Before Tax |
73.482 |
48.999 |
31.700 |
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Provision for Taxation |
9.084 |
4.775 |
3.600 |
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Profit/(Loss) After Tax |
64.398 |
44.224 |
28.100 |
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Expenditures : |
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Cost of Goods Sold |
1349.878 |
1287.920 |
864.100 |
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Manufacturing Expenses |
49.279 |
44.838 |
77.000 |
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Personnel Expenses |
19.022 |
11.994 |
11.600 |
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Raw Material Consumed |
0.000 |
0.000 |
22.700 |
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Administrative Expenses |
150.096 |
92.132 |
7.400 |
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Consumption of stores and spares parts |
0.000 |
0.000 |
0.000 |
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Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
0.000 |
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Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
52.700 |
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Managerial Remuneration |
1.301 |
1.094 |
1.200 |
|
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Financial Charges |
62.363 |
41.094 |
17.900 |
|
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Interest |
0.000 |
0.000 |
0.000 |
|
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Insurance Expenses |
0.000 |
0.000 |
0.000 |
|
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Power & Fuel |
0.000 |
0.000 |
0.000 |
|
|
Depreciation & Amortization |
7.052 |
6.927 |
4.900 |
|
|
Other Expenditure |
0.000 |
0.000 |
0.000 |
|
Total Expenditure |
1638.991 |
1485.999 |
1059.500 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
31.03.2008 4th
Quarter |
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Sales turnover |
264.000 |
333.600 |
425.600 |
947.000 |
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Other income |
0.800 |
1.500 |
0.800 |
2.000 |
|
Total income |
264.800 |
335.100 |
426.400 |
949.000 |
|
Total expenditure |
235.900 |
301.300 |
394.300 |
873.500 |
|
Operating profit |
28.900 |
33.800 |
32.100 |
75.500 |
|
Interest |
10.600 |
18.000 |
9.600 |
35.400 |
|
Gross profit |
18.300 |
15.800 |
22.500 |
40.100 |
|
Depreciation |
1.300 |
2.200 |
1.800 |
2.000 |
|
Tax |
2.000 |
2.400 |
1.900 |
4.200 |
|
Reported PAT |
15.000 |
11.200 |
18.800 |
33.900 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
0.96 |
0.79 |
0.87 |
|
Long Term Debt Equity Ratio |
0.12 |
0.15 |
0.21 |
|
Current Ratio |
1.26 |
1.24 |
1.26 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed Assets |
17.39 |
16.20 |
13.73 |
|
Inventory |
33.07 |
26.13 |
23.57 |
|
Debtors |
2.97 |
3.49 |
2.96 |
|
Interest Cover Ratio |
2.18 |
2.19 |
2.77 |
|
Operating Profit Margin (%) |
7.91 |
6.14 |
5.01 |
|
Profit Before Interest and Tax Margin (%) |
7.53 |
5.70 |
4.56 |
|
Cash Profit Margin (%) |
3.95 |
3.24 |
3.03 |
|
Adjusted Net Profit Margin (%) |
3.57 |
2.80 |
2.58 |
|
Return on Capital Employed (%) |
32.31 |
31.30 |
21.37 |
|
Return on Net Worth (%) |
29.97 |
27.61 |
22.61 |
LOCAL AGENCY
FURTHER INFORMATION
Operation:
The company achieved a turnover of Rs.1743.083 Millions as
against Rs.1510.173 Millions for the previous year. The net Profit after tax at
Rs.64.358 Millions which is higher as compared to the Previous year by
Rs.44.224 Millions. The company accordingly has registered an increase of
Rs.232.910 Millions in turnover and Rs.20.174 Millions In net profit during the
Financial Year 2006-2007.
Till now the Company's product are being sold to State
Electricity Boards / Govt. Sectors. With a view to diversify its marketing
strategy to private sector and public sector undertakings the Company has
initiated proactive steps, the results of which shall be visible in near
future.
The Company is manufacturing Power Transformers upto 40 MVA
capacity. There is tremendous scope: of growth and better profitability in
higher capacity Power Transformers. Keeping the same in mind, the company has
started developing prototype Power Transformers of 160 MVA which is likely to
be completed by June 2008. In order to obtain benefit of tax exemption efforts
are being made to utilize maximum capacity of Haridwar and Dehradun plants.
The Company has diversified its activities by obtaining
substantial business in two Projects of rural electrification one at Etah
District of Uttar Pradesh and another at Nanital District of Uttaranchal. Both
the projects shall be completed in F. Y 2007 08. Efforts are being made to
obtain further projects in near future
Revocation
of Suspension of Trading
The Equity Shares of the Company are listed at Bombay,
Delhi, Ahmedabad, Jaipur, and Kanpur Stock Exchanges. The trading is not in
operation at Delhi, Ahmedabad, Jaipur and Kanpur Exchanges due to paucity of
business. Trading of Equity Shares was lying suspended for last several years
at Bombay Stock Exchange on account of non-compliance of a few clauses of the
listing agreement. The company had complied with the requirements of Bombay
Stock Exchange and normal trading has resumed w.e.f. 19-06-2007
Management Discussion and Analysis Report
Overview:
Subject has its registered office at Delhi and manufacturing units located at the following locations:
· Meerut Road (Opp. Raj Nagar Chowki, Ghaziabad, U.P.
· D-16-17, UPSIDC Industrial Area, Greater Noida, U.P.
· A-97, UPSIDC Industrial Area, Sikandrabad, U.P
· 1394/2, M, Langha Road, Dehradun, Uttranchal
· Plot No.2, Sector 8 A, Integrated Industrial Area, Rani pur, Haridwar, Uttranchal.
· F-88, Industrial Area, Jamalpur Khurd, Bahadrabad, Haridwar, Uttranchal.
The Directors' Report gives in detail the performance of the Company and therefore, please refers to "Review of operations" in this regard.
The Company has achieved 12% higher sales and 45% higher net profit as compared to last year. The better profitability has been achieved by effective management of resources, better product mix, and diversification in rural electrification projects.
A number of opportunities exist for Transformer Industry. The need of the hour is to take proactive steps both internal and external to the organisation.
Globalization and Liberalization have opened up a New World for the Indian economy offering new opportunities along with new challenges. The Govt. of India has an ambition mission of "POWER FOR ALL BY 2012". The present installed capacity of the Company is 1,15,000 MW. To achieve the goal additional power generation of 85,000 MW is to be implemented by 2012. Various projects in Thermal, Hydro-electric and Nuclear Power Sector are under implementation to which the Company may be benefited immensely.
Opportunities in
Power Sector
Recognizing the fact that the power sector is of vital importance for development of the economy, the Government of India has taken many policy initiatives in the recent past like:-
· Setting up of Central Electricity Regulatory Commission in 1998
· The Electricity Act. 2003
·
The National Power Policy. 2005
·
Rajiv
Gandhi Grameen Vidyutikaran Yojana (RGGVY)
·
Clean-up
of State Electricity Board losses.
·
Guidelines
for private investment in transmission, 2006
Upswing
in the Indian Economy, high GDP growth of around 9 %, reasonable interest rate
and free availability of credit resulting in boom in reality sector, thrust on
development of infrastructure etc, have also contributed significantly for
growth of electrical equipment industry.
Additional
capacity of 85,000 Mega Watt is being implemented through several initiatives
of Govt. of India for setting up of several new projects in public and private
sectors. Eight Ultra Mega Projects of 4000 MW each are at various stages of
implementation. Proposals are under consideration to implement Nuclear Power
Projects of 45,000 MW capacity through public private partnership.
Power
Sector needs investment of Rs.10000000.000 Millions in the llth Five Year Plan,
i.e. 2007-12. To meet the huge funding requirement the Govt. of India is
considering a number of initiative including lending by Banks to Power Sector
may be treated as priority sector lending. Further a proposal is under
consideration to issue Vidyut Vikas Patras of Rs.500000.000 Millions which
shall also be tax exempt for investors.
Industry
size, Growth rate:
The
Transformer Industry in India has been in the forefront for over 50 years and
has a well matured technology base up to 800 KV class. There is a strong base
of about 150 Transformer Companies in India, with an overall production over
90,000 MVA per annum. The production capacity is estimated to increase to
1,50,000 MVA per annum by 2012. Besides meeting the domestic requirement, India
is exporting transformers to over 50 countries covering USA, Europe, South
Africa, Cyprus, Syria, Iraq and other Middle East and Far East countries all
over the world.
Transformer
industry growth due to: -
·
Government
spending
·
Replacement
demand
·
Industrial
Demand
·
Captive
power
·
Huge
Infrastructure Development
·
Exports
With
every Megawatt of generating capacity being added, an additional requirement of
5 times transformer capacity is needed. This provides opportunity for players
in the transformer manufacturing space to benefit to the most. This
demand coupled with demand
arising out of the replacement market also poses a promising future for the players in the sector. The
average life of a transformer is 20-30 years, which means that the transformers installed during
the IVth Vllth plan would be replaced now.
Indian
Power Scenario:
The growth of the economy calls for matching rate of growth
in infrastructure facilities. The Indian Power Sector is a core component of
the Indian infrastructure and its expansion is essential for the success of
economic liberalization of India. At present, a ratio of infrastructure
development of around 1.5 to G.D.P is projected. Therefore, in order to support
a rate of growth of GDP of around 9 % per annum, the rate of growth of power supply
needs to be over 14 % annually. This is evident from ever increasing power
demand of the country's vibrant economy leading to a widening gap between the
supply and demand.
Per capita consumption of electricity is expected to rise to
over 1000 kilowatt hours per annum in next 10 years (from present level of 580
kwh). .Developed countries has per capita consumption of 10,000 kwh per annum
reflecting huge growth potential for the sector
Strength
of the Company
·
The company has a proven track record of successfully
operating in the power sector, hence continue to be in the priority list of
various State Electricity Boards.
·
Company's major customers are various SEBs who have
initiated restructuring for better efficiency hence the business prospects of the
company is good. In most of the cases, payments are made out of Word Bank
Funds.
·
The exposure falls under SSI sector which is their thrust
area.
·
Rural Electrification Projects is another profitable area
where Company has gained substantial ground.
·
Two of their manufacturing units are located in tax
exemption zone leading to substantial tax savings.
Threats:
·
Major customers of the company are various SEBs .
Though the SEBs is under restructuring process, they are still
facing with liquidity constraint resulting in delayed payments to their
suppliers.
·
The entry of multi-nationals in the field of power and
distribution transformers can not be ruled out. This may result in cut throat
competition.
Fixed Assets:
· Land
· Building
· Factory Sheds
· Furniture and Fixture
· Electric and Fittings
· Plant and Machinery
· Air Conditioners
· Office Equipments
· Vehicles
· Computers
History:
Subject was established in 1987, and pioneered the manufacture
of Transformers at a time when most electrical equipment was imported. The
total personnel strength was then around 50 and Turnover was a mere Rs.10.000
Millions
The first plant was set up at Ghaziabad. Since then further
plants have been added which are situated at Greater Noida, Sikandrabad,
Dehradun, and Haridwar
The company was maintaining closely held status till 1995
and came out with its first IPO of Equity Shares of Rs.10 each at a premium of
Rs.5 Per Share. The issue was oversubscribed and Pro-rata allotment was made to
subscribers. The Equity Shares of the company are listed at BSE, Delhi, Jaipur,
Kanpur and Ahmedabad Stock Exchanges.
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.42.81 |
|
UK Pound |
1 |
Rs.83.75 |
|
Euro |
1 |
Rs.66.10 |
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 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
58 |
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 |
|