MIRA
INFORM REPORT
|
Report Date : |
20.03.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BHARAT
ELECTRONICS LIMITED |
|
|
|
|
Registered Office : |
Nagavara, Outer
Ring Road, Bangalore – 560 045, Karnataka |
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Country : |
India |
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|
Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
21.04.1954 |
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Com. Reg. No.: |
08-787 |
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CIN No.: [Company
Identification No.] |
L32309KA1954G0l000787 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRB04051F BLRC00582B |
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PAN No.: [Permanent
Account No.] |
AAACB5985C |
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Legal Form : |
Public Limited
Liability Company. Company’s shares are listed on the stock Exchanges. |
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Line of Business : |
Engaged in
manufacturing, importing and exporting of Radars and Communication Equipments
for the defence services communication including Satcom Systems, Optical
& Opto Electronics and Telecommunications, Broadcast (Radio and TV) for I
& B Ministry and Electronic Components I.E. Semiconductors Electron Tubes
and X-Ray Tubes. |
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 |
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Maximum Credit Limit : |
USD 100000000 |
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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 very
old, well established and reputed company. The company is making steady
progress in its turnover and profits. Its products are well accepted in
Indian as well as overseas markets. The company’s payments are correct and as
per commitments. It can be
considered good for business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
Nagavara, Outer
Ring Road, Bangalore-560045, Karnataka, India |
|
Tel. No.: |
91-80-25039300/25039266 |
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Fax No.: |
91-80-25039305/25039233 |
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E-Mail : |
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Website : |
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Corporate
Office : |
2nd
Floor, Shankaranarayana Building, 25, M. G. Road, Bangalore - 560 001,
Karnataka, India |
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Tel. No.: |
91-80-2559 5001 /
2559 5017 / 2558 3851 |
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Fax No.: |
91-80-2558 4911 /
2558 3675 |
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E-Mail : |
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Factory 1 : |
Jalahalli Post,
Bangalore - 560 013, Karnataka, India |
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Tel. No.: |
91-80-28382626 /
22195621 |
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Fax No.: |
91-80-28380266 |
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Factory 2 : |
Bharat Nagar
Post, Ghaziabad - 201 010, Uttar Pradesh, India |
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Tel. No.: |
91-120-2619786 /
2619500 |
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Fax No.: |
91-120-2776730 /
2770926 |
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Factory 3 : |
NDA Road, Pashan,
Pune - 411 021, Maharashtra, India |
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Tel. No.: |
91-20-25881400/01/02 |
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Fax No.: |
91-20-25880577/5888789 |
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Factory 4 : |
Post Box No. 26,
Ravindranath Tagore Road, Machalipatnam - 521 001, Andhra Pradesh, India |
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Tel. No.: |
91-8672-223581-83 |
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Fax No.: |
91-8672-222640 |
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Factory 5 : |
Plot No. 405,
Industrial Area, Phase III, Panchkula - 134 113, Haryana, India |
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Tel. No.: |
91-172-2588252 /
2588400 |
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Fax No.: |
91-172-2594548 /
2591463 |
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Factory 6 : |
Balbhadrapur,
Kotdwara - 246 149, Uttaranchal, India |
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Tel. No.: |
91-1382-231171 /
231178 |
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Fax No.: |
91-1382-231132 /
231112 / 231156 |
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Factory 7 : |
Plot No. L-1,
MIDC, Industrial Area, Raigad District, Taloja - 410 308, Maharashtra, India |
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Tel. No.: |
91-22-27412701 |
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Fax No.: |
91-22-27412888 /
27412887 |
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Factory 8 : |
Post Box No. 981,
Nandambakkam, Chennai – 600 089, Tamil Nadu, India |
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Tel. No.: |
91-44-22326906 |
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Fax No.: |
91-44-22326905 |
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Factory 9 : |
Nacharam
Industrial Estate, Hyderabad – 500076, Andhra Pradesh, India |
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Tel. No.: |
91-40-27150113-17 |
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Fax No.: |
91-40-27171406 |
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Overseas
Office: |
53-55, Hilton
Avenue, Garden City, New York – 11530, USA |
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Tel. No.: |
516-248-4020 |
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Fax No.: |
516-741-5894 /
516-877-7907 |
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Email: |
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Overseas
Office: |
06-01, BSL
Industrial Building, 156, MacPherson Road, Singapore – 348 528 |
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Tel. No.: |
65-741-8401 |
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Fax No.: |
65-741-8402 |
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Email: |
DIRECTORS
|
Name : |
Mr. V V R. Sastry |
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Designation : |
Chairman and
Managing Director |
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Name : |
Mr. P. R. K. Hara
Gopal |
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Designation : |
Director
(Finance) |
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Address : |
“Trade Centre”,
116/2, Race Course Road, Bangalore-560001, Karnataka, India |
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Name: |
Mr. S K Mehta |
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Designation: |
Director (
Research & Development) |
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Address : |
“Trade Centre”,
116/2, Race Course Road, Bangalore-560001, Karnataka, India |
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|
Name: |
Mr. M. L.
Shanmukh |
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Designation: |
Director
(Personnel) |
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Name : |
Mr. A.K. Datt |
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Designation : |
Director (Other Units) |
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Name : |
Mr. H.S. Bhadona |
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Designation : |
Director (Bangalore Complex) |
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Name : |
Mr. N.K. Sharma |
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Designation : |
Director (Marketing) |
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Part-time Government
Directors |
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Name: |
Mr. Alok Perti |
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Designation: |
Joint Secretary (Shipyards), Ministry of
Defence, Department of Defence Production |
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|
Name: |
Lt. Gen. Davinder Kumar |
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Designation: |
PVSM, VSM &
Bar, ADC, Signal Officer in Chief, Army Headquarters |
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Independent
Directors |
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Name: |
Dr. V Bakthavatsalam |
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Designation: |
Former MD, Indian Renewable Energy
Development Agency |
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Name: |
Prof. N. Balakrishnan |
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Designation: |
Associate Director, Indian Institute of
Science, Bangalore |
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Name: |
Dr. Ashok Jhunjhunwala |
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Designation: |
Professor (Electrical Engg.), NT, Chennai |
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Name: |
Prof. Goverdhan Mehta |
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Designation: |
CSIR Bhatnagar Fellow, Indian Institute of
Science, Bangalore |
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Name: |
Dr. S.P Parashar |
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Designation: |
Director, Indian Institute of Management,
Indore |
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Name: |
Mr. K.G. Ramachandran |
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Designation: |
Director, Infosys Leadership Institute,
Mysore |
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Name: |
Dr. M. Rammohan Rao |
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Designation: |
Dean, Indian School of Business, Hyderabad |
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Name: |
Prof. S. Sadagopan |
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Designation: |
Director, International Institute of
Information Technology, Bangalore |
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|
Name: |
Mr. Bhupindar Singh |
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Designation: |
Former CMD, State Trading Corporation of
India |
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Permanent Special Invitees to all the Board
meetings : |
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Name: |
Air Marshal B.N. Gokhale, |
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Designation: |
PVSM, VM, Vice Chief of Air Staff, Indian Air Force |
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Name: |
Vice Admiral D.S.P. Varma, |
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Designation: |
PVSM, AVSM, VSM, Chief of Material, Indian Navy |
KEY EXECUTIVES
|
Name: |
Mr. CM. Bhat, IPS |
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Designation: |
Chief Vigilance Officer |
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Name: |
Mr. C.R. Prakash |
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Designation: |
Company Secretary |
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Principal Executives : |
Chennai |
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|
Mr. Anil Kumar |
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General
Managers |
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Ghaziabad |
Mr. Anand Kumar |
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Mr. Chander
Prakash |
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Mr. Sushil Chand
Jain |
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Hyderabad |
Mr. Sunil Kumar Sharma |
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Kotdwara |
Mr. Ramesh Kumar
Marhatha |
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Machilipacnam |
Mr. Vijay Gundannavar |
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Navi Mumbai |
Mr. M.V
Narayanan |
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Panchkula |
Mr. R.K. Singhal |
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Pune |
Mr. Ramesh Chandra Nautiyal |
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|
CRL, Bangalore |
Dr. AjitT.
Kalghatgi, Chief Scientist |
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CRL, Delhi |
Mr. K.C. Pandita,
Chief Scientist |
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CRL, Ghaziabad |
Mr. K.C. Pandita - Chief Scientist |
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Bangalore |
Mr. M.G.
Raghuveer |
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Mr. D.A. Mohan |
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Mr. I.V. Sarma |
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Mr. M.S.
Sreedhara |
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Mr. A.A. Mohan
Ram |
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Mr. K.L Rajaram |
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Mr. H.N.
Ramakrishna |
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|
Mr. H.S.
Satyanarayana |
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|
Mr. Philip Jacob |
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|
Mr. Amol
Newaskar |
|
|
Mr. C. Nageshwar
Rao |
SHAREHOLDING
PATTERN
AS ON 31.03.2007
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Indian Promoters
(Government of India) |
60689600 |
75.86% |
|
Foreign
Promoters |
Nil |
Nil |
|
Persons acting in
concert |
Nil |
Nil |
|
Mutual Funds a
UTI |
5501010 |
6.88% |
|
Banks, Financial
Institutions & Insurance Companies |
1654127 |
2.07% |
|
Foreign
Institutional Investors |
8273721 |
10.34% |
|
Private
Corporate Bodies |
1909849 |
2.38% |
|
NRI's/OCB's |
85825 |
0.11% |
|
Others (Indian
public) |
1885868 |
2.36% |
|
GRAND TOTAL |
80000000 |
100.00% |
BUSINESS DETAILS
|
Line of Business : |
Engaged in
manufacturing, importing and exporting of Radars and Communication Equipments
for the defence services communication including Satcom Systems, Optical
& Opto Electronics and Telecommunications, Broadcast (Radio and TV) for I
& B Ministry and Electronic Components I.E. Semiconductors Electron Tubes
and X-Ray Tubes. |
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Products : |
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Imports : |
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Countries : |
France, Germany,
Japan, Netherlands, Singapore, Sweden, Switzerland, UK and USA. |
GENERAL
INFORMATION
|
No. of Employees : |
12357 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
STATUTORY AUDITORS
Chartered Accountants BRANCH AUDITORS
Chartered Accountants
Chartered Accountants
Chartered Accountants |
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|
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Memberships : |
Confederation of
Indian Industry |
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Associates/Subsidiaries : |
This company is a subsidiary company of the subject for conducting
research, development and manufacture of Image Intensifier Tubes and
associated high voltage power supply units for use in military, security and
commercial systems. 1440 I series, GEN II, 18 mm Microchannel Wafer Image Intensifiers are
high gain, minimum volume, proximity focussed devices, designed to produce
high resolution, intensified images. These devices are used in applications
where ambient illumination levels are low and auxiliary lighting is inadvisable or not available. Its applications are :- Night vision goggles and binoculars Night vision weapon sights Low light level input applications |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 1000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
80,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 800.000 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 |
800.000 |
800.000 |
800.000 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
24923.123 |
19493.111 |
15000.755 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
25723.123 |
20293.111 |
15800.755 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
8.805 |
15.081 |
5.987 |
|
|
2] Unsecured
Loans |
8.357 |
72.985 |
147.070 |
|
TOTAL BORROWING
|
17.162 |
88.066 |
153.057 |
|
|
DEFERRED TAX
LIABILITIES |
198.370 |
131.453 |
132.424 |
|
|
|
|
|
|
|
TOTAL
|
25938.655 |
20512.630 |
16086.236 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
3856.667 |
3703.806 |
3193.393 |
|
Capital work-in-progress
|
336.750 |
211.473 |
473.585 |
|
|
|
|
|
|
|
INVESTMENT
|
122.801 |
122.801 |
122.801 |
|
DEFERREX TAX ASSETS
|
1513.203 |
1274.338 |
1169.647 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
12463.533 |
10371.376 |
10649.567 |
|
|
Sundry Debtors
|
16934.143 |
10176.876 |
6991.177 |
|
|
Cash & Bank Balances
|
20817.283 |
18314.091 |
13158.673 |
|
|
Loans & Advances
|
2362.958 |
7542.844 |
7419.872 |
Total Current Assets
|
52577.917 |
46405.187 |
38219.289 |
|
Less : CURRENT
LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
28291.605 |
22534.202 |
20116.341 |
|
|
Provisions
|
4186.671 |
8693.111 |
7013.195 |
Total Current Liabilities
|
32478.276 |
31227.313 |
27129.536 |
|
Net Current Assets
|
20099.641 |
15177.874 |
11089.753 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
9.593 |
22.338 |
37.057 |
|
|
|
|
|
|
|
TOTAL
|
25938.655 |
20512.630 |
16086.236 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
|
|
|
|
|
|
Sales Turnover |
39527.000
|
35362.800
|
32120.900
|
|
|
Other Income |
1964.400
|
1186.900
|
1222.800
|
|
|
Total Income |
41491.400 |
36549.700 |
33343.700 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
10524.700
|
8552.600
|
6859.600
|
|
|
Provision for Taxation |
3343.100
|
2722.500
|
2396.400
|
|
|
Profit/(Loss) After Tax |
7181.600
|
5830.100
|
4463.200
|
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Materials |
20960.800
|
18215.000
|
17260.400
|
|
|
Excise Duty |
637.000
|
354.700
|
289.700
|
|
|
Stock Adjustments |
[600.600]
|
862.400
|
[228.800]
|
|
|
Power & Fuel Cost |
327.600
|
326.600
|
331.100
|
|
|
Other Manufacturing Expenses |
1115.900
|
938.700
|
946.200
|
|
|
Employee Cost |
5044.200
|
4170.300
|
4721.300
|
|
|
Selling and Administration Expenses |
842.300
|
719.500
|
777.400
|
|
|
Miscellaneous Expenses |
1755.300
|
1339.100
|
1563.400
|
|
|
Interest & Financial Charges |
42.400
|
281.500
|
115.700
|
|
|
Depreciation |
845.900
|
794.400
|
714.700
|
|
Total Expenditure |
30970.800 |
28002.200 |
26491.100 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
4043.900
|
7089.200
|
6622.300 |
|
Other Income |
656.300
|
497.000
|
647.000 |
|
Total Income |
4700.200
|
7586.200
|
7269.300 |
|
Total Expediture |
4090.000
|
5555.700
|
5353.700 |
|
Operating Profit |
610.200
|
2030.500
|
1915.600 |
|
Interest |
1.200
|
0.400
|
0.300 |
|
Gross Profit |
609.000
|
2030.100
|
1915.300 |
|
Depreciation |
211.000
|
220.900
|
234.000 |
|
Tax |
135.000
|
580.800
|
551.600 |
|
Reported PAT |
263.000
|
1228.400
|
1129.700 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
0.00 |
0.01 |
0.02 |
|
Long Term Debt Equity Ratio |
0.00 |
0.01 |
0.02 |
|
Current Ratio |
1.53 |
1.48 |
1.38 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.08 |
2.98 |
2.96 |
|
Inventory |
3.26 |
3.19 |
2.95 |
|
Debtors |
2.92 |
4.12 |
4.70 |
|
Interest Cover Ratio |
249.22 |
30.15 |
60.29 |
|
Operating Profit Margin (%) |
28.87 |
27.27 |
23.94 |
|
Profit Before Interest and Tax Margin (%) |
26.73 |
25.02 |
21.72 |
|
Cash Profit Margin (%) |
20.31 |
18.74 |
16.12 |
|
Adjusted Net Profit Margin (%) |
18.17 |
16.49 |
13.90 |
|
Return on Capital Employed (%) |
45.53 |
48.42 |
48.44 |
|
Return on Net Worth (%) |
30.99 |
32.07 |
31.41 |
LOCAL AGENCY
FURTHER INFORMATION
History:
Subject was
established to meet the Defence needs of the Government of India. Since then, it has grown to a multi-product,
multi-unit and technology driven company.
Subject is a public sector giant and one of the
largest manufacturers of radars, wireless communication systems and other
technical equipments for the defence forces in the country. Until recently, the company’s performance
was under strain due to the post-Pokhran nuclear blast sanctions by the
USA. However, post Kargil, the
government has realised the need to increase its focus on acquiring strategic
technical equipment for defence forces which had dramatically changed the
fortunes of the company.
Subject was incorporated at Bangalore and wholly
owned by the Government of India, till disinvestment took place in 1991-92.
In 1989-90, the company diversified into consumer
and entertainment electronics and telecommunications. In 1991-92, it entered into a joint venture with Delft
Instruments, Holland, under the name BE-Delft Electronics to manufacture second
generation image intensifier tubes at Pune.
Another joint venture was formed with the HMT and the Karnataka
Government to manufacture quartz watch crystals. In addition to the Defence department, Department of
Telecommunications, Doordarshan and Videsh Sanchar Nigam are the major clients
of the company.
During 2001-02, the company became the first
Defence Public Sector Enterprise to acquire operational Mini Ratna Category – I
Status. The company has also been
awarded Satellite Network contract by Andhra Pradesh Beverages Corporation
Limited. The main application is for
consolidating the sales transactions on-line by 31 remote centres with APBCL HQ
at Hyderabad. These projects were being
executed under B-O-O-T model.
Significant landmark
|
Year |
Achievements |
|
1954 |
Incorporation |
|
1956 |
Production of First Communication Equipment |
|
1961 |
Production of Receiving Value |
|
1963 |
In-house R and D
established |
|
1964 |
Manufacture of Radio
Transmitter for All India Radio |
|
1966 |
Military Radar
Manufacturing |
|
1967 |
Manufacture of
Transmitting, Tubes, Silicon, Devices and Integrated Circuits |
|
1972 |
TV Transmitters
for Doordarshan |
|
1974 |
Second Unit at
Ghaziabad for Air Defence Ground Environment Systems |
|
1976 |
First SFM Radar
exported |
|
1979 |
Third Unit set up
at Pune |
|
1980 |
First Overseas
office at New York |
Business:
The company is
engaged in manufacturing, importing and exporting of radars and communication
equipments for the defence services communication including satcom systems,
optical & opto electronics and telecommunications, broadcast (radio and TV)
for I & B ministry and electronic components i.e. semiconductors electron
tubes and X-ray tubes.
It also offers
services such as contract manufacturing, telecom consultancy and semiconductor
device packaging.
The company meets
the bulk of electronic equipment needs of Indian Defence Services,
Parliamentary Forces and other Government users like All India Radio,
Doordarshan, Department of Telecommunication, Police Wireless, Airport
Authority of India, Meteorological Department, Railways, etc. It has a very wide product range and makes
over 350 different products.
The company is also
taking export promotional efforts like appointment of overseas agents,
participation in foreign exhibitions, etc.
The company has 9 operating units.
The company is setting up a subsidiary in the IT
sector and is in the process of arranging venture capital and is also forging
venture capital alliances.
It also introduced new and upgraded products based
on in-house technology. Many of the
products like decoy radars, upgraded air defence weapon control radars, coastal
surveillance systems, lower power transmitters, telemedicine systems, PC
motherboard-based chipsets, etc. have been inducted into services or are under
final stages of evaluation by various customer groups.
The list of
products and services being exported to several countries is given below:
|
Products |
Countries |
|
Defence
Communication |
Algeria, Botswana,
Brazil, France, Germany, Malaysia, Mauritius, Russia, Sweden, Switzerland and
UK |
|
Civilian
Communication |
Brazil, Iran,
Italy, Kenya, Malaysia, Netherlands, Philippines, Germany, South Korea,
Singapore, Spain, Taiwan, Turkey, UAE, UK and USA |
|
Electron Tubes,
Magnetrons, Transmitting Tubes, TV Picture Tubes and parts |
Algeria, Armenia,
Bangladesh, Brazil Egypt, France, Greece, Hong Kong, Italy, Nepal, UK, USA
and Zambia |
|
Otpo Electronic
Products and parts |
Australia, Egypt,
France, Germany, Israel, Malaysia, Netherlands, New Zealand, Saudi Arabia,
Singapore, UAE, UK and USA |
|
Sound and Vision
Broadcast Equipments |
Vietnam, Brazil
and Middle East |
|
Radar and
Sub-systems |
Switzerland and
Ukraine |
|
Contract
Manufacturing |
USA, Australia,
Japan, Brazil and Canada |
|
Batteries, Energy
Saver and other products |
Australia,
Bahrain, Kuwait, Mauritius, Nepal, Oman, Philippines, Saudi Arabia, UAE and
USA |
Vision, mission, values and
objectives
The existing Mission and Objectives of the Company were formulated almost a
decade ago. Since then, the global scenario and the business environment in the
country have undergone significant changes. A need was felt to revisit the
Mission and Objectives of the Company and reframe these in line with the
current realities. It was also felt necessary to spell out the Company's Vision
so that along-term direction for future growth of the Company comes into focus.
In this background the Company has formulated the Vision, Mission, Values and
Objectives afresh as stated in the beginning of the Annual Report.
Performance
The Directors are inform that in recognition of its past performance and
considering its potential for faster growth towards its journey in becoming a
globally competitive company, Government has conferred on the Company the
status of 'Navratna Public Sector Enterprise'. By elevating the Company from
'Miniratna' to the 'Navratna' status, the Government has conferred on it
greater autonomy and freedom in capital expenditure, formation of joint
ventures, etc.
Continuing with its past proven performance track record and steady growth, the
Company has achieved an all time high turnover of Rs.39526.9 million during the
year 2006-07 as against Rs.35362.8 million in the previous year, registering an
increase of 11.78% over previous year. The Value of Production for 2006-07 was
Rs.40127.5 million as against Rs.34500.3 million in the previous year, an
increase of 16.31%. The Profit After Tax for 2006-07 was Rs.7181.6 million as
against Rs.5830.1 million last year, 23.18% higher than the previous year.
Supplies to the Defence Sector constituted 76% of the sales, balance 24% being
supplies to the civilian sector.
All the nine manufacturing Units of the Company have performed well and
achieved profit. 25 new products and systems were rolled out during the year
under report. Indigenously developed products contributed to 81% of turnover
during 2006-07 as against 73% in the previous year.
Finance:
During the financial year 2006-07 the Company has been able to meet all its funds
requirements without resorting to borrowings despite an increase in working
capital requirement due to increased level of activity as well as
implementation of certain projects where the Company's funding during the
implementation stage is required as per the tender conditions. Entire
requirement of working capital and the funding for capital expenditure has been
met from the internal resources. This has been possible by a vigilant and
prudent cash management effort. The inventory position of the Company has
increased from 110 days of production as on 31.03.2006 to 113 days of
production. The increase is mainly in RMC/WIP which is required to cater to the
increase in the planned turnover of the financial year 2007-08. There has been
an increase in debtors from 105 days of sales as on 31-03-2006 to 156 days of
sales as on 31.03.2007 mainly because of: (a) increased sales during fag end of
the year due to late receipt of orders/cycle time of production of the products
sold (b) products sold with payment terms different from the standard payment
terms, etc. However, the ongoing efforts in collection will continue to realise
the debtors as per the terms of payment. Public deposits with the Company came
down from Rs.72.9 million on 31.03.2006 to Rs.12.2 million as on 31.03.2007. No
fresh deposits were accepted during the year. Rs.3.9 million of deposits that
had matured but has not been claimed as on 31st March 2007 has been included
under current liabilities.
Performance against MoU:
As a Government Company, BEL has been signing every year a Memorandum of
Understanding (MoU) with its Administrative Ministry, the Ministry of Defence
(MoD). The Directors are happy to share with you that the Company has been
achieving Excellent Performance' rating under the MoU for the past nine years,
including 2006-07. The MoU between BEL and MoD for the year 2007-08 was signed
on 26th March 2007. Sales target set in the MoU for 2007-08, for achieving
Excellent Performance' rating is Rs.47250 million, including exports equivalent
to US $ 22 million.
Order book position:
The order book position of the Company as on 1st April 2007 was Rs.91300
million, out of which Rs.36960 million is executable during 2007-08.
Important achievements and new business
initiatives:
Some of the significant orders executed by the Company during the year 2006-07
include. supply of Flycatcher Radar, Reporter Radar, Surveillance Radar
Element, Electronic Warfare Systems, Hand Held Thermal Imager, Integrated
Observation Equipment, Advanced Land Navigation System for use in Tanks /
Armored Vehicles, implementation of Convergent Billing for MTNL, Upgraded
Electronic Voting Machines and solar products. These equipments have been
supplied to different customers, e.g. Army, Navy, Air Force, Paramilitary
forces, MTNL, Election Commission of India and others.
New products:
More than 25 new products / systems were introduced and supplied by the Company
during the year. New products supplied to the Army include Safari Mk II,
Advanced Land Navigation System, Intelligent Message Terminals, VPS Mk III (a
hand-held, UHF radio) and Anti Tank Guided Missile (ATGM) Simulator.
New products supplied to the Navy include new generation Sonars for Submarines,
Drishti - an Electronic Warfare System and Lynx - a Fire Control System. New
products to the Air Force include High Accuracy Direction Finder. BEL also
supplied Advanced Ground Control Station and Avionics Preparation Vehicle for
Unmanned Aerial Vehicles.
New products / projects in the civilian segment are upgraded Electronic Voting
Machine, Convergent Billing, Power Steering Unit for automobiles, Synchronous
Transfer Mode Multiplex equipment for BSNL and Bharati, a Frequency Hopping VHF
Radio.
Exports
The Company achieved an export turnover of US $11.60 million during the year
2006-07. Radar Warning Receiver supplied for MIG 29 Fighter Aircraft, export of
HF and VHF Communication equipment, 500W TV Transmitter, Night Vision
Binoculars and electronic components, viz. Vacuum Interrupter Tubes, Transmitting
Tubes, Magnetron, contract manufacturing operations related to parts supplied
to GE Medical Systems, etc., contributed to this turnover.
These
exports were to various countries including, Russia, USA, Suriname, Maldives
and Sri Lanka.
Patents:
During 2006-07, the Company received following patent rights in India:
* Non-symmetric Surface Acoustic Wave Filter.
* Minimisation of effects of
diffraction in SAW Filters.
Subsidiary/joint ventures
BEL's subsidiary, BEL Optronic
Devices Limited (BELOP) at Pune continued to perform well. BELOP was set up for
manufacture of Image Intensifier Tubes (I.I. Tubes). The Company has
successfully manufactured and supplied I.I.
Tubes
to the Army for over a decade. To meet the emerging needs of the Army, BELOP is
now proposing to go in for the latest technology of SUPERGEN/3rd Gen. Tubes.
There are only a handful of companies in the world, which manufacture I.I.
Tubes. These tubes are used in the Night Vision Devices manufactured by BEL.
BELOP recorded a turnover of Rs.604.9 million as against the turnover of
Rs.516.55 million in the previous year, an increase of 17%. The Profit After
Tax rose by 36% from Rs.60.05 million in the previous year to Rs.81.56 million
during the year.
In
accordance with Section 212(8) of the Companies Act 1956 (the Act), the Company
has obtained exemption from the Government from attaching the Balance Sheet,
Profit It Loss Account, Auditors Report, Directors' Report, etc., of the
subsidiary company to the Balance Sheet of BEL. Hence, Annual Accounts of the
subsidiary company, BEL Optronic Devices Limited, are not attached to the
Balance Sheet of BEL. We will make available a copy of the Annual Accounts of
BELOP and the related information upon request by any member of BEL or BELOR
The Annual Accounts of BELOP are kept for inspection by investors at the
registered office of BEL and BELOR Any investor interested to inspect the same
may please contact the Company Secretary of BEL or BELOR A statement as per
Section 212 of the Act relating to the subsidiary Company, BELOP, is annexed to
this report. Further, the information required to be disclosed as per the
directions while granting exemption under Section 212(8) of the Companies Act,
1956 is provided in this Annual Report.
The
Joint Venture Company (JVC) with General Electric, USA, viz. GE BE Private
Limited was set up to manufacture CT Max and other latest version X-Ray Tubes
for the first time in the country. Initially, technology for CT Max X Ray Tube
manufacture was provided to BEL by GE based on which BEL manufactured and
supplied CT Max Tubes to GE. BEL now supplies parts required for the products
manufactured by this JVC. This JVC achieved a turnover of Rs.4365.4 million as
against Rs.4157.6 million in the previous year. The Profit After Tax was
Rs.439.62 million as against Rs.348.66 million in the previous year.
The
other JVC, viz. BEL Multitone Limited, is jointly promoted by BEL and Multitone
plc, UK. This JVC has achieved a turnover of Rs.9.7 million during the year as
against Rs.14.49 million in the previous year. The Profit After Tax recorded
was Rs.1.35 million as against Rs.3.3 million in the previous year. The main
objective of this JVC was to supply, install and service Private Paging Systems
and Pagers. With paging systems no longer in demand there is no scope of
continuing the core business for this JVC. Hence, it is decided to close down
this JVC and steps are initiated for winding up of the JVC.
Personnel:
The employee strength of the Company was 12357 as on 31.3.2007 as against 12262
as on 31.3.2006. Of this, 2532 were women employees as on 31.3.2007.
As a
reflection of the Company operating in high tech area, it employed 2750
engineers and scientists as on 31.3.2007 and more than 1600 engineers,
scientists It support staff are engaged in research, design and development
activities.
The list of
products and services with some of its major customers are as under :-
|
Products and Services |
Customers |
|
Defence Communication |
Indian Defence Services, Para-military forces |
|
Radars and Sonars |
Indian Defence Services, Civil Aviation,
Meteorological Department, Space Department. |
|
Telecommunication |
Department of Telecommunication, Para-Military
Forces, Powers Sector, Oil Industry, Railways. |
|
Broadcasting Equipments and Studio Systems |
All India. Radio, Doordarshan (National Radio
and TV Broadcasters) |
|
Electronic Voting Machine |
Election Commission of India |
|
Solar Products and Systems |
Individuals, Private and Government
Organisations. |
|
Turnkey Systems, E-Governance Networks |
Police, State Governments, Public Sector
Undertakings. |
|
Components |
All India Radio and Doordarshan the National
Radio and TV Broadcasters, Instrumentation Industry, Switching Industry,
Entertainment Industry, Telephone Industry. |
The company is in trade terms with the following :
- Agis
Industries
- Allied
Electronic Corporation
- Arien
Inc.
- Balhara
Industrial Corporation
- Borate
Plastic
- Carter
Hydraulic Powers Private Limited
- Dass
Electronics
- Gilard
Electronics Private Limited
- Kadevi
Engineering Company Private Limited
- MACR
Precision Components
- Mahip
Iron Company
- MCE
Products Sales Services Private Limited
- Microfine
Bushing Private Limited
- Rajshi
Processors
- Shashi
Packing Products
- Southern
Machine Tools
- Spare
Age Auto Industries
- Unique
Punch Systems Private Limited
- Victory
Heat Treaters
- Yoshma
and Company Private Limited
- Unisys
The company has been accredited with ISO 9000 and
ISO 9002 Certifications.
The company's fixed assets of important value
include freehold land, leasehold land, roads and culverts, buildings,
installations, plant & machinery, electronic equipment, equipment for R
& D Lab, Vehicles, office equipment and furniture, fixtures & other
equipment.
February, 2007
Mr V V
R Sastry (57) has taken over as the Chairman and Managing Director of premier
Defence Public Sector Undertaking Bharat Electronics Limited (BEL), with effect
from February 1, 2007. He succeeds Mr Y Gopala Rao, who retired on
superannuation on January 31, 2007.
Mr V V
R Sastry was Director (Marketing) of BEL before his elevation as CMD. During
his tenure as Director (Marketing) he took initiatives to bring in marketing
orientation to the organization and gave a strong thrust to exports.
After
graduating with two degrees - in Science and Engineering (Electronics &
Communication) from Andhra University, he joined BEL-Bangalore in 1969 as
Probationary Engineer. He has 38 years of experience in diverse areas such as
development and engineering, manufacturing, project management, technology
management and marketing.
Mr
Sastry has rich experience in various fields of defence electronics like
military communication, electronic warfare and strategic components.
He has
widely travelled abroad. He has worked for 13 months in the Development
Laboratories of Philips (Mullard), UK, on electronic circuit design and
development of microprocessor based electrical appliances.
He also
headed BEL’s New York office for 3 years, during which he had extensive
interactions with the US Department of Commerce & State.
He is a
Senior Assessor for the CII-EXIM Bank Business Excellence Model. Mr Sastry is
on the Board of BEL Optronic Devices Limited, a wholly owned subsidiary of BEL.
He has keen interest in classical music, gardening and spiritual pursuits.
January, 2007
BEL to showcase exportable products, contract manufacturing
capabilities
Premier
Defence PSU Bharat Electronics Limited (BEL) is constantly innovating to
manufacture state-of-the-art professional electronic equipment and components
for the international market. BEL manufactures a wide range of Military
Communication Systems, Radars and Sonars, Naval Systems, Telecom &
Broadcast Systems, Electronic Warfare Systems, Tank Electronics, Opto
Electronics, Professional Electronic Components and Solar Powered Systems.
At Aero
India 2007, BEL will be displaying products and equipment from its wide range which
have very good export potential. They include Communication equipment, Command
and Control Systems, Radars and Sonars, Opto Electronics and Thermal Imaging
products, Electronic Warfare Systems, Tank Electronics, Simulators and Avionic
Systems.
BEL will
also showcase its capabilities to offer both ‘Build to Print’ and ‘Build to
Spec’ solutions for foreign manufacturers seeking Indian partners to meet their
offset requirements. Some of BEL’s facilities like electronic and mechanical
assembly, vacuum brazing and dip brazing will be highlighted.
The
Communication equipment on display will include UHF and VHF Hand Held
Transreceivers; Secure Tactical Radio in VHF band - STARS V Mark II; VHF and
UHF Base Stations; Digital Radio Trunking System, Secure Telephone and Secure
Fax; CDMA and SATCOM Systems; S-Band Mobile Radio; Encryption equipment; Unit
Level Switch Board (ULSB) Mk II and Mk III – portable telephone Switch Boards
for field use at battalion level; Semi-Ruggedised Automatic Exchange, SRAX Mk
II; Ruggedised Data Terminal; ATM Switch; and Tactical Communication System.
The
Command and Control Systems on display will include Artillery Combat Command
Control System (ACCCS), Battlefield Surveillance System (BSS), Battlefield
Management System (BMS), Integrated Air Command Control System (IACCS),
Composite Communication System, Intelligent Message Terminal and Ruggedised
Simputer.
BEL’s
Radars and Sonars on display will include Battle Field Surveillance Radar –
Short Range; Target Designator Sight, Transducer – Sonar, IFF Mk XI (CLIFF),
Surveillance Radar Element, Schilka Upgrade, Navigational Radar and Electro
Optical Director. Models of 3D Medium Range Radar, Battery Level Radar,
Reporter Radar, Weapon Locating Radar, Flycatcher Radar and INDRA II Radar will
also be exhibited.
Opto
Electronics and Thermal Imager Products on display will be Night Vision
Binoculars; Night Vision Goggles; Night Weapon Sights; Hand Held Thermal
Imager; Hand Held Thermal Imager – Uncooled; Integrated Observation Equipment
(IOE) – an imaging system for observation and fire monitoring by Artillery, it
consists of a Thermal Imager, Laser Range Finder mounted on a Goniometer with
North Finding Facility and a Global Positioning System; Laser Range Finder -
Air Defence; Laser Range Finder – Hand Held Eye Safe; Laser Range Finder –
Binocular Eye Safe; Gap Measuring Device Mk II; Laser Designator cum Range
Finder for Mortar Fire Control; Video Communication System with Image
Compresseion and Image Intensifier Tubes Gen 2+.
Tank
Electronics systems on display will be Advanced Land Navigation System; Combat
Net Radio; Tank Intercom System R-174 Mk II; Digital Universal Control Harness;
Indigenous Gunner’s Main Sight and Driver’s Night Periscope. The L-70 and Zu-23
Gun Upgrades will also be shown.
A few
of BEL’s Electronic Warfare Systems will also be on display including Cellphone
Jammer and Sanket.
Avionic
Systems on display will be Head Up Display, Radar Warning Receiver and Airborne
Electronic Warfare Systems.
Simulators
on display will be Mortar Simulator, Anti Tank Guided Missile Simulator, BMP II
Driving Simulator and Forward Observation Simulator.
BEL
will also show some of its non-defence products like Batteries, Simputer,
Electronic Voting Machines, Direct To Home Set Top Box, ADSL Modem, MEMS,
Microwave Tubes, Smart Card-based Access System, Intermediate Data Rate and
Super Components.
In
addition to an indoor display in Hall D, BEL will also have an outdoor display
of some of its larger products. These will include the Upgraded Flycatcher
Radar – an all weather anti-aircraft weapon control system; Battle Field
Surveillance Radar – Short Range with Thermal Imager; 2-Axis Stabilised
Optronic Pedestal to work in association with Guns to make them operate in
autonomous mode; Low Probability of Intercept Radar, which is mounted on a
wheeled vehicle; Radar SV 2000; Weapon Locating Radar; Battery Level Radar and
Aluminium Skin Shelter with NBC Power Source and Antenna Mast.
For the
first time, BEL will be selling some of its products like the Solar Lantern,
Set Top Box for Free To Air Channels and Memory Stick at its outdoor display
area at Aero India 2007. A special discount of 10 per cent is being offered on
the products.
May, 2007
Sweden’s Foreign Minister visits BEL
Top Swedish firms are upbeat about forging new business ties with Bharat Electronics Limited (BEL) in the defence and civilian segments.
On a two-day visit to the City, Sweden’s Minister for Foreign Affairs Mr Carl Bildt on Wednesday said there were many areas where BEL, with its wide range of products – from radars to electronic voting machines – and Swedish companies could explore fresh business avenues.
The minister visited the Bangalore Complex of the premier defence public sector unit along with a high-level Swedish business delegation today.
On the occasion, BEL’s Chairman and Managing Director Mr V V R Sastry made a
presentation on the PSU’s capabilities and areas of operations in the defence
and civilian sectors, such as military communication systems, radars and
sonars, naval systems, telecom and broadcast systems, electronic warfare
systems, tank electronics, opto electronics, professional electronic components,
solar-powered systems et al.
Mr Sastry highlighted the possible areas where BEL could contribute in meeting the offset requirements of Swedish firms. This includes design modifications to customise products, software development in embedded processes, real time applications, development of command control systems and encryption products/modules, assembly and testing of electronic assemblies/products, maintenance, repair and overhaul (MRO), system integration, installation and commissioning, as well as contract manufacturing based on ‘Build to Print’ and ‘Build to Spec’.
BEL has already tied up with a few Swedish firms to take advantage of the offset clause for defence procurements from abroad. The offset policy of the Government of India makes it mandatory for foreign companies to invest 30 per cent of the contract amount in India for procurements valued at Rs.3000 Millions or more.
The delegation later took a tour of the Electronic Warfare and Avionics and Telecom & Broadcast Systems strategic business units and Quality Assurance facilities at BEL.
BEL conferred
Navratna status today
Premier defence PSU Bharat Electronics Limited (BEL) was formally conferred the Navratna status by the Finance Minister, Mr P Chidambaram, at an investiture ceremony held at New Delhi today (June 22, 2007).
Bharat Electronics Limited, the leading Indian defence PSU, manufactures a wide range of products in the areas of Military Communication, Radars, Naval Systems, Telecom & Broadcast, Electronic Warfare, Tank Electronics, Opto-electronics, Professional Electronic Components and Solar Photovoltaic Systems. BEL became a Mini Ratna Category I company in February 2002 and has now been elevated to a Navratna based on its consistent performance.
BEL was started in 1954 to meet the defence electronics requirements of the Indian Armed Forces. Starting with a single Unit at Bangalore, BEL now has nine Units spread across the country. From a humble beginning, BEL has grown steadily over the years to register a CAGR of around 15% in the last 5 years. During 2006-07, BEL recorded a turnover of Rs.39603.800 millions (provisional), PAT of Rs.7138.500 millions (provisional). 81% of the turnover accrued from products of indigenous design, which included BEL's own R&D efforts and its collaboration with DRDO labs. BEL spends nearly 5 per cent of its turnover on R&D. BEL is constantly innovating and coming out with new products to meet customers' requirements.
Mr V V R Sastry, Chairman and Managing Director of BEL, says, "They are delighted. It is a recognition of the company's inherent strengths in research and development, manufacturing, quality and thrust on self-reliance. It is also a recognition of the company's ability to face global competition and become an international player."
"On the occasion of BEL formally being conferred Navratna status, they would like to thank all their stakeholders – the Ministry of Defence, customers, particularly the Armed Forces, employees, technology partners like DRDO, business associates, vendors and shareholders, without whose unstinting support they would not have reached this milestone," Mr Sastry reiterates.
The eligibility for considering a PSU for Navratna status is that it should be a Mini Ratna I, Schedule 'A' company and have obtained 'excellent or 'very good' MoU rating in three of the last five years and a composite performance score of 60 or above on various financial
parameters for the last three years including Net Profit to Net Worth, Manpower
Cost to Total Cost of Production, PBDIT to Capital Employed, PBIT to Turnover
and Earning Per Share.
It is also appropriate to mention that BEL has been ranked first among mid-size aerospace / defence companies worldwide by Aviation Week and Space Technology for 2004 and 2005. BEL was named Star PSU for 2004-05 by Business Standard.
By becoming a Navratna PSU, BEL will have greater financial and operational autonomy. BEL looks forward to leverage this for further business growth and diversification.
BEL hands over
spacecraft components to ISRO
Premier defence PSU Bharat Electronics Limited (BEL) on Thursday handed over to the Indian Space Research Organisation (ISRO) two Flight Model Travelling Wave Tubes (TWTs), Space-Qualified Components that are used on board Communication Satellites.
At present, there are only a handful of companies in the world, which make Space-Qualified Components for spacecrafts.
Speaking on the occasion, ISRO Chairman Mr Madhavan Nair complimented the indigenisation effort, saying it opened a new leaf in the area of space-qualified components. He also stressed on the need to develop highly efficient solar cells for satellite applications.
BEL Chairman and Managing Director Mr V V R Sastry said that Bharat Electronics Limited, which supplied state-of-the-art defence equipment to the armed forces, was keen to explore the space segment. “They have had successes on land, underwater and air. And now they are all set to venture into the realm of space,” Mr Sastry said.
The TWTs were designed and developed as part of a joint project of BEL, Bangalore, ISRO Satellite Centre, Bangalore, and Central Electronic Engineering Research Institute (CEERI), Pilani.
Based on a design provided by CEERI, Pilani, BEL developed the two Flight Model TWTs called BTC 60 FM1 and BTC 60 FM2 after a series of acceptance tests at its Bangalore unit.
BEL also handed over to ISRO an indigenously developed and tested Application Specific Integrated Circuit (ASIC) called BE03RD Relay Driver on the occasion. Ideal for industrial purposes, the relay driver replaces a bulky HMC version and has high breakdown voltage, internal suppression diodes and can resist inductive loads operating with a peak current of 500 milli amperes.
The BE03RD Relay Driver comes in a six-in-one package and all six channels can be used simultaneously. The circuit design, simulation, physical verification and wafer fabrication for this product has been done by BEL using high-voltage, bi-polar technology at its Bangalore unit.
The Relay Driver ASICs were used in SRE, HAMSAT and CartoSAT-2 spacecrafts successfully.
The successful completion of these Space Qualified Components heralds a new era in the synergistic indigenisation and development efforts of scientific organisations in India.
Dr K N Shankara, Director, ISAC, and Dr S N Joshi, Director, CEERI, also spoke
on the occasion.
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.40.45 |
|
UK Pound |
1 |
Rs.81.20 |
|
Euro |
1 |
Rs.63.48 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
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/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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|