MIRA INFORM REPORT
|
Report Date : |
23.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BHARAT HEAVY
ELECTRICALS LIMITED |
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|
Registered Office : |
BHEL House, Siri Fort, Asian Games
Village, New Delhi – 110 049 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
13.11.1964 |
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Com. Reg. No.: |
55-4281 |
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CIN No.: [Company
Identification No.] |
U28999AP1966GOI001202 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELB06995C |
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PAN No.: [Permanent
Account No.] |
AAACB4146P |
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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 and
sale of Boilers, Hydro Turbines, Gas Turbines etc. |
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 400000000 |
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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 the
largest engineering Company in India. It was a wholly owned Government of
India Company, but now Government’s equity stake is 68%. The Company is making
steady progress in its performance. Trade relations are fair. Payments are
correct and as per commitments. It can be
considered good for business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
BHEL House, Siri Fort, Asian Games
Village, New Delhi – 110 049, India |
|
Tel. No.: |
91-11-26001010
(15 Lines) / 26493031 |
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Fax No.: |
91-11-26493021 |
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E-Mail : |
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Website : |
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Factory : |
v Heavy Electrical
Equipment Plant, Hardwar v Central Foundry
Forge Plant, Hardwar v Heavy Power Equipment
Plant, Hyderabad v High Pressure
Boiler Plant, Trichy v Heavy
Electricals Plant, Bhopal v Transformer
Plant, Jhansi v Electronics
Division, Bangalore v Boiler
Auxiliaries Plant, Ranipet v Industrial
Valves Plant, Goindwal v Electro-Porcelains
Division, Bangalore v Insulator Plant,
Jagdishpur v Component
Fabrication Plant, Rudrapur v Heavy Equipment
Repair Plant, Varanasi v
Electrical Machine Repair Plant, Mumbai |
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|
|
|
Other Office : |
International Operations Division, Integrated Office Complex, Lodhi Road,
New Delhi – 110003, India |
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Tel No.: |
91-11-41793428 |
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Fax No.: |
91-11-24368406 |
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Mobile No.: |
91-9871556490 |
DIRECTORS
|
Name : |
Mr. Ashok K. Puri
|
|
Designation : |
Chairman & Managing Director |
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|
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|
Name : |
Mr. Naresh
Chaturvedi |
|
Designation : |
Director |
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Name : |
Mr. Surajit Mitra
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Designation : |
Director |
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|
Name : |
Mr. Vineet Nayyar
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|
Designation : |
Director |
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|
Name : |
Mr. Sanjay M.
Dadlika |
|
Designation : |
Director |
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Date of
Appointment : |
16.11.2005 |
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|
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|
Name : |
Mr. Ashok K. Aggarwal |
|
Designation : |
Director |
|
Date of
Appointment : |
16.11.2005 |
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|
Name : |
Mr. Manish Gupta |
|
Designation : |
Director |
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Date of
Appointment : |
16.11.2005 |
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|
Name : |
Mr. Shekhar Datta |
|
Designation : |
Director |
|
Date of
Appointment : |
16.11.2005 |
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|
Name : |
Mr. Raman Singh Sidhu |
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Designation : |
Director |
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Date of
Appointment : |
04.01.2006 |
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|
Name : |
Mr. Madhukar |
|
Designation : |
Director |
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Date of
Appointment : |
05.07.2006 |
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|
Name : |
Mr. Ramji Rai |
|
Designation : |
Director |
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|
Name : |
Mr. S.K. Jain |
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Designation : |
Director |
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|
Name : |
Mr. A. K. Mathur |
|
Designation : |
Director |
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|
Name : |
Mr. K. Ravi Kumar |
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Designation : |
Director (Power) |
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|
Name : |
Mr. C.S. Verma |
|
Designation : |
Director (Finance) |
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|
Name : |
Mr. N.K. Sinha |
|
Designation : |
Company Secretary |
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Name : |
Mrs. B S Meena |
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Designation : |
Part Time
Director |
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Name : |
Mr. S Ravi |
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Designation : |
Part Time
Director |
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|
Name : |
Mr. B P Rao |
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Designation : |
Director |
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|
Name : |
Mr. Anil Sachdev |
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Designation : |
Director |
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Name : |
Mr. C P Singh |
|
Designation : |
Director |
KEY EXECUTIVES
|
OTHER PERSONNEL : |
|
|
Mr. Ashok K. Puri |
Chairman and
Managing Director |
|
Mr. Ramji Rai |
Engg. Research
& Development Corporate
Research & Development Corporate
Monitoring, Materials Management Investment
Planning, Manufacturing Technology |
|
Mr. S.K. Jain |
Human Resources Human Resource
Development Institute Corporate
Information Technology Corporate
Communication |
|
Mr. K. Ravi
Kumar |
Power Business Power Sector
Regions-North, East, South & West Spares &
Services Business |
|
Mr. A.K. Mathur |
Industrial
Systems including Captive Power Plants & Products
Business Transmission
Business Transportation
Business Ceramics
Business Unit Component
Fabrication Plant |
|
Mr. C.S. Verma |
Finance Internal Audit
& Taxation Financial Services |
|
Mr A. Bhattacharya |
Corporate Planning & Development |
|
Mr P.T.Deo |
Heavy Electrical
Equipment Plant Electrical
Machines Repair Plant |
|
Mr. R.K. Belapurkar |
International Operations Business |
|
Mr. C.P. Singh |
Heavy Power Equipment Plant |
|
Mr. S.K. Gupta |
Heavy Electrical
Equipment Plant Central Foundry
Forge Plant Pollution
Control Research Institute |
|
Dr. V. Gopalakrishnan |
High Pressure
Boiler Plant Seamless Steel
Tube Plant Industrial
Valves Plant Piping Centre Welding Research Institute |
|
Mr. V.K. Pande |
Transmission Business |
|
Mr. S.C. Vig |
Power Sector – Marketing |
|
Mr. R.K. Singh |
Power Sector-
Western Region |
|
Mr. V. Viswanathan |
Electronics
Division Electronics
Systems Division Industrial Systems Group |
|
Mr. D. Indran |
Power Sector-Southern Region |
|
Mr. M.L. Sah |
Power Sector-Eastern Region |
|
Mr P.S. Kulshrestha |
Corporate Human
Resource Corporate Communication Corporate
Productivity Health, Safety
& Environment |
|
Mr. R.K. Bhattacharya |
Corporate Engg.
& Product Development Advance Research
Project Technology IJ censing & Joint Ventures |
|
Mr. S.
Sathyanarayanan |
Boiler
Auxiliaries Plant |
|
Dr. V.K. Jain |
Transformer Plant |
|
Mr. Pankaj Sharma |
Power Sector-Northern Region |
|
Mr. B.P. Rao |
Secretary, Management Committee |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names
of Shareholders (as on 31.03.2006) |
No. of Shares |
Percentage of Holding |
Promoters' Holdings
|
|
|
|
Indian Promoters i)
President of
India ii)
Nominees of
POI |
165755000 200 |
67.72 0.00 |
|
Foreign Promoters |
-- |
-- |
|
Person Acting in
Concert Directors and
Relatives |
1310 |
0.00 0.00 |
|
Sub
Total |
165756510 |
67.72 |
Non Promoter's Holdings
|
|
|
|
Mutual Funds and
UTI |
11732542 |
4.79 |
|
Banks, Financial
Institutions and Insurance Companies |
6160550 |
2.52 |
|
FIIs |
54874330 |
22.42 |
Others
|
|
|
|
Private Corporate
Bodies |
3354519 |
1.37 |
|
Indian Public |
2670383 |
1.09 |
|
NRIs / OCBs
/Foreign Others |
136036 |
0.06 |
|
Trust |
8203 |
0.00 |
|
Shares in
Transit |
66937 |
0.03 |
|
|
|
|
|
Grand Total |
244760000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
sale of Boilers, Hydro Turbines, Gas Turbines etc. |
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Products : |
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PRODUCTION STATUS (as on 31.03.2006):-
BHOPAL
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
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|
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|
Turbo Sets n
Steam
Turbines n
Marine
Turbine n
Nuclear Turbine
n
Industrial
Turbine |
Nos. MW Nos. MW Nos. MW Nos. MW |
0.3 36 0.2 2.4 0.1 23.6 0.00 0.00 |
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 |
|
Hydro Sets n
Hydro
Turbine n
Hydro
Generator |
Nos. MW Nos. MW |
1.2 72 1.2 72 |
0.7 60.6 10 54.6 |
|
Large Electrical Machine |
Nos. |
10 |
16.4 |
|
Traction Machine |
Nos. |
285 |
260.8 |
|
Power Transformers |
Nos. MVA |
6.5 1200 |
11.7 1067.2 |
|
Instrument Transformers |
Nos. |
20 |
77 |
|
Electrical Machines |
Nos. |
55 |
60.5 |
|
Switchgear |
Nos. |
300 |
420.1 |
|
Capacitor |
MVAR |
320 |
271.4 |
|
Industrial Controlgear |
Nos. |
25 |
0.00 |
|
Traction Controlgear |
Set |
22 |
27.6 |
|
Control Equipment |
Nos. |
60 |
116 |
|
Heat Exchangers |
Nos. MT |
5.2 110 |
1.8 0.00 |
|
Cathodic Protection System |
Tonne |
270 |
0.00 |
JHANSI
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Power Transformers 33kv/ 132kv |
Nos. MVA |
6.5/ 400 |
8.5/ 417.5 |
|
Other Transformers n
Special Purpose
Transformers n
Traction
Transformers n
Instrument
Transformers n
ESP
Transformers |
Nos. Nos. Nos. Nos.
|
18 14 196 * |
13.1 13.1 100.5 54.9 |
|
Bus Duct |
Set |
@ |
0.00 |
|
Diesel Shunters |
Nos. |
1 |
1.2 |
|
AC Locomotives |
Nos. |
3 |
0.00 |
|
|
|
|
|
HEEP HARDWAR
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Turbo Sets |
MW |
350 |
188 |
|
Hydro Sets |
MW |
62.5 |
0.00 |
|
Electrical Machines |
MW |
45 |
7.4 |
|
Gas Turbines |
MW |
@ |
30 |
|
Super Rapid Guns |
Nos. |
0.3 |
0.2 |
CFFP HARDWAR
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Steel Castings |
MT |
600 |
399.8 |
|
Steel Forging n
Heavy
Forgings n
Medium
Forgings |
MT MT |
241 300 |
74 208.7 |
|
Billets and Blooms |
MT |
400 |
78.5 |
|
N F Casting |
MT |
25 |
5.6 |
HYDERABAD
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
Thermal Sets |
MW |
0.000 |
27.2 |
|
Industrial Turbines |
MW |
835 |
449.9 |
|
Gas Turbines and Accessories |
MW |
0.00 |
485.4 |
|
Compressors |
Nos. |
0.00 |
10 |
|
Drive Turbines |
Nos. |
12 |
11 |
|
Pumps |
Nos. |
137 |
161 |
|
Beakers 132 kv EQU |
Nos. |
1050 1035xx |
64 306.5 |
|
Bowl Mills |
Nos. |
80 |
85 |
|
HP Heaters |
Nos. |
20 |
44 |
|
De- aerators |
Nos. |
0.00 |
15 |
EDN – BANGALORE
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
Energy Meters |
Nos. |
600000 |
68266 |
|
Control Equipments |
Cubicle |
1200 |
2118 |
|
Power Devices |
Nos. |
30000 |
11779 |
|
Photovoltaics |
KWS |
2000 |
1800 |
|
Simulators |
Sets |
0.000 |
0.000 |
TRICHY
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
Boilers |
MT |
108000 |
208732 |
|
Valves |
MT Nos. |
2712 0.000 |
4414 61059 |
|
Nuclear Steam Generating Equipments |
MW |
382/500 |
XX |
|
Armoured Recorvery Vehicles |
Nos. |
25 |
0.000 |
BAP – RANIPET
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
Boiler Auxiliaries |
MT |
57000 |
106792 |
IVP –GOINDWAL
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
Industrial Valves |
MT Nos. |
788 0.000 |
835 7887 |
EPD - BANGALORE
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
Insulators and Bushings |
CMT |
6250 |
5695 |
|
Assembled Production |
MT |
0.000 |
9781 |
|
Ceralin |
CMT |
745 |
1000 |
|
Ceralin (Assembled) |
MT |
0.000 |
2622 |
IP - JAGDISHPUR
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
Insulators |
CMT |
6000 |
6658 |
|
Ceralin |
MT |
330 |
780 |
|
Ceralin (Assembled) |
MT |
0.000 |
1690 |
CFP - RUDRAPUR
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
S W H S |
Nos. |
4000 |
1871 |
|
Solar Lanterns |
Nos. |
4000 |
6156 |
GENERAL
INFORMATION
|
No. of Employees : |
46935 |
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Bankers : |
v Arab Bank, Jordan v ABN AMRO Bank NV v Bank of Baroda v Canara Bank v CITI Bank NA v Deutsche Bank v HDFC Bank Limited v Hong Kong & Shanghai Banking Corp.
Limited v ICICI Bank Limited v IDBI Bank Limited v Punjab National Bank v Standard Chartered Bank v State Bank of Hyderabad v State Bank of India v
State Bank of
Travancore v
Bank Muskat, Oman v
Barclays Bank
Limited, Zambia v
Bhumiputra Commerce
(Bank of Commerce) Malaysia v
Indo Jambia Bank,
Lusaka v
Jamahouria Bank,
Libya v
National Bank of
Egypt |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
|
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|
Name : |
J C Bhalla &
Company Chartered
Accountants |
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Statutory Auditors
: |
v Vasan & Sampath Chartered Accountants, Bangalore, Karnataka, India v Bhasin Raghavan & Company Chartered Accountants, New Delhi, India v S. L. Chhajed & Company Chartered Accountants, Bhopal, Madhya Pradesh, India v M. Bhaskara Rao & Company Chartered Accountants, Hyderabad, Andhra Pradesh, India v Bansal & Company Chartered Accountants, New Delhi, India v Raj Gupta & Company Chartered Accountants, Ludhiana, Punjab, India v Mehra Malhotra & Company Chartered Accountant New Delhi v Swamy & Company Chartered Accountants Chennai, Tamilnadu v S. P. Puri & Company, Chartered Accountants, New Delhi, India v V. Ramaswamy Iyer & Company, Chartered Accountants, Vellore, Tamil Nadu, India v Vinay Kant & Associates, Chartered Accountants, Varanasi, Uttar Pradesh, India v Sagar & Associates, Chartered Accountants, Hyderabad, Andhra Pradesh v Dinesh Ashok & Company, Chartered Accountants, Kanpur, Uttar Pradesh v V. Soundrarajan & Company, Chartered Accountants, Chennai, Tamilnadu v P. G. Joshi & Company, Chartered Accountants, Nagpur, Maharashtra v Nundy Roy & Company Chartered Accountants Kolkata, West Bengal v K. L. Banerjee & Company Chartered Accountants Kolkata, West Bengal v D. R. Mehta & Associates Chartered Accountants Mumbai, Maharashtra v Suri & Company Chartered Accountants, Chennai, Tamilnadu |
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Memberships : |
Confederation of
Indian Industry |
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Associates/Subsidiaries : |
v All the Government of India Undertaking
Companies v Power Plant Performance Improvement
Limited v BHEL-GE Gas Turbine Services Limited v SWIL Limited v Tata Refractories Limited v
Spectrum Power
Generation Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
325000000 |
Equity Shares |
Rs.10/- each |
Rs. 3250.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
244760000 |
Equity Shares |
Rs.10/- each |
Rs. 2447.600 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 |
2447.600 |
2447.600 |
2447.600 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
85435.000 |
70566.176 |
57821.300 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
87882.600 |
73013.776 |
60268.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
5000.000 |
5000.000 |
|
|
2] Unsecured Loans |
893.300 |
582.404 |
369.800 |
|
|
TOTAL BORROWING |
893.300 |
5582.404 |
5369.800 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
88775.900 |
78596.180 |
65638.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
9887.400 |
9822.765 |
10442.400 |
|
|
Capital work-in-progress |
3025.400 |
1845.718 |
953.200 |
|
|
|
|
|
|
|
|
INVESTMENT |
82.900 |
82.926 |
89.500 |
|
|
DEFERREX TAX ASSETS |
9351.600 |
6737.204 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
42176.700
|
37443.706 |
2961.100 |
|
|
Sundry Debtors |
96958.200
|
71680.649 |
59721.400 |
|
|
Cash & Bank Balances |
58089.100
|
41339.754 |
31778.600 |
|
|
Other Current Assets |
1997.000
|
844.951 |
0.000 |
|
|
Loans & Advances |
11408.700
|
11998.730 |
33991.500 |
|
Total
Current Assets |
210629.700
|
163307.790 |
128452.600 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
118978.700
|
88077.480 |
72489.900 |
|
|
Provisions |
25222.400
|
15122.743 |
28009.100 |
|
Total
Current Liabilities |
144201.100
|
103200.223 |
100499.000 |
|
|
Net Current Assets |
66428.600
|
60107.567 |
54153.600 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
88775.900 |
78596.180 |
65638.700 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
172375.300 |
133740.300 |
107226.093 |
|
|
Other Income |
8235.600 |
5469.200 |
0.000 |
|
|
Total Income |
180610.900 |
139209.500 |
107226.093 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
37360.700 |
25643.500 |
15816.356 |
|
|
Provision for Taxation |
13213.700 |
8851.900 |
6282.309 |
|
|
Profit/(Loss) After Tax |
24147.000 |
16791.600 |
9534.047 |
|
|
|
|
|
|
|
Export Value
|
36601.400 |
19294.000 |
7643.383 |
|
|
|
|
|
|
|
Import Value
|
|
23571.710 |
17259.653 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
14961.100 |
11700.500 |
|
|
|
Administrative Expenses |
1718.600 |
2827.500 |
|
|
|
Raw Material Consumed |
99718.000 |
81465.200 |
|
|
|
Salaries, Wages, Bonus, etc. |
23689.500 |
14526.000 |
91209.526 |
|
|
Interest |
433.300 |
587.500 |
|
|
|
Depreciation & Amortization |
2729.700 |
2459.300 |
|
|
Total Expenditure |
143250.200 |
113566.000 |
91209.526 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
32339.200 |
39653.600 |
49641.400 |
|
Other Income |
2063.200 |
5008.900 |
2648.600 |
|
Total Income |
34402.400 |
44662.500 |
52290.000 |
|
Total Expenditure |
29232.500 |
32701.600 |
39665.700 |
|
Operating Profit |
5169.900 |
11960.900 |
12624.300 |
|
Interest |
21.600 |
192.700 |
97.600 |
|
Gross Profit |
5148.300 |
11768.200 |
12526.700 |
|
Depreciation |
689.100 |
694.400 |
761.500 |
|
Tax |
1570.100 |
4197.200 |
4046.200 |
|
Reported PAT |
2889.100 |
6876.600 |
7719.000 |
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.04 |
0.08 |
0.10 |
|
Long Term Debt-Equity Ratio |
0.04 |
0.08 |
0.10 |
|
Current Ratio |
1.47 |
1.54 |
1.57 |
|
TURNOVER RATIOS |
|||
|
Fixed Assets |
4.78 |
3.96 |
2.98 |
|
Inventory |
4.78 |
4.43 |
4.21 |
|
Debtors |
2.26 |
2.24 |
2.00 |
|
Interest Cover Ratio |
87.22 |
44.65 |
20.43 |
|
Operating Profit Margin(%) |
21.31 |
19.46 |
17.82 |
|
Profit Before Interest And Tax Margin(%) |
19.87 |
17.79 |
15.75 |
|
Cash Profit Margin(%) |
14.13 |
13.06 |
11.10 |
|
Adjusted Net Profit Margin(%) |
12.70 |
11.39 |
9.03 |
|
Return On Capital Employed(%) |
45.16 |
36.37 |
26.86 |
|
Return On Net Worth(%) |
30.02 |
25.20 |
16.84 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was wholly owned by the Government of India. On liberalisation,
the government disinvested a portion of its share holding in December 1991 and February,
1992. Unit Trust of India, Bank of India, LIC and some insurance companies had
purchased these shares. At present Government of India’s equity stake is 68%.
This company is the largest engineering enterprise of India. Its first
plant was set up at Bhopal in 1956 under technical collaboration with AEI, UK
followed by three more major plants at Hardwar, Hyderabad and Tiruchirapalli
with Russian and Czechoslovak assistance.
The plants have been at the core of the company’s efforts to grow and
diversify and become India’s leading engineering company. The company now has
14 manufacturing divisions, 8 service centres and 4 power sector regional
centres, besides project sites spread all over India and abroad and also
regional operations divisions in various state capitals in India for providing
quick service to customers. The company manufactures over 180 products and
meets the needs of core-sectors like power, industry, transmission,
transportation (including railways), defense, telecommunications, oil business,
etc. The Products of the company have established an enviable reputation for
high quality and reliability.
The company has installed equipment for over 62,000 MW of power
generation – for Utilities, Captive and Industrial users. It has supplied 2,00,000
MVA transformer capacity and sustained equipment operating in Transmission and
Distribution network upto 400 KV-AC and DC.
This is due to the emphasis placed all along on designing, engineering
and manufacturing to international standards by acquiring and assimilating some
of the best technologies in the world from leading companies in USA, Europe and
Japan together with technologies from its-own Research and Development Centres.
The company has acquired ISO 9000 certification for its operations and has also
adopted the concepts of Total Quality Management. Company’s major clients are
State Electricity Boards, NTPC, World Bank aided projects, the Railways and a
host of private companies. Its products are exported mainly to the Middle East
and the far-east countries.
Recently the company’s performance has been affected due to long delays
in placement of orders by the clients (on account of paucity of funds and
industrial slowdown) and large VRS outgo.
BUSINESS
The company is serving the country as supplier of wide range of
equipment, systems and service to the core sectors of the Indian economy. Its
areas of operation broadly covers conversion, transmission, utilisation and
conservation of energy in the power industry and transportation sectors, thus
fulfilling a vital infrastructure need of the economy. The company has 14 manufacturing divisions,
9 service centres and 4 power sector regional centers, besides project sites
spread all over India and abroad. Its operations are organized along three business
sectors, viz. Power, Industry and International operations.
FINANCIAL
HIGHLIGHTS:
During the year the turnover increased by 29.01% to Rs.
187389.500 millions from Rs.145254.900 millions in the previous year. Profit
after tax registered an increase of 43.80% to Rs. 24147.000 millions as against
Re. 16791.600 millions in the previous year. The increase in profit is driven
by the higher volume of operations. Net worth of the company has gone up from
Rs. 73013.800 millions in 2005-06 to Rs. 87882.600 millions in 2006-07
registering an increase of 20.36%. NAV per share has increased from Rs. 298.31
in 2005-06 to Rs. 359.06 in 2006-07. The company has also redeemed the bonds of
Rs. 5000.000 millions, on its maturity during the year.
CORPORATE PROFILE
The company is the largest engineering and manufacturing enterprise of
its kind in India and is one of the leading international companies in the
field of power equipment manufacture. The first plant of the company, set up at
Bhopal in 1956, signalled the dawn of the Heavy Electrical Industry in India.
In the sixties, three more major plants were set up at Haridwar, Hyderabad and
Tiruchirapalli that form the core of the diversified product range, systems and
services that the company offers today. The Company's range of services extends
from project feasibility studies to after-sales-service, successfully meeting
diverse needs through turnkey capability. The company has 14 manufacturing
units, 4 power sector regions, 8 service centers and 18 regional offices,
besides project sites spread all over India and abroad. The Company has a well
recognized track record of performance, making profits continuously since
1971-72 and paying dividends since 1976-77. The Company manufactures over 180
products under 30 major product groups and caters to core sectors of the Indian
economy viz., Power Generation and Transmission, Industry, Transportation,
Renewable Energy, Defense, etc. The quality and reliability of its products is
due to the emphasis on design, engineering and manufacturing to international
standards by acquiring and adapting some of the best technologies from leading
companies in the world, together with technologies developed in its own R and D
centers. The Company has been constantly adapting itself to face the challenges
thrown-up by the new business environment. The Company has already attained ISO
9000 certification for quality management and all the manufacturing units
/divisions have been upgraded to the latest ISO 9001-2000 version. The Company
Has also secured ISO 14001 certification for environmental management systems
and OHSAS,-18001 certification for occupational health and safety management
systems for all its major units/divisions. The Company is continuing its
journey towards Business Excellence. The Company has committed to support the
Global Compact and the set of core values enshrined in its ten principles in
the areas of human rights, labour standards and environment.
BUSINESS SECTORS
The Company's operations are organized around three business sectors,
namely Power, Industry including Transmission, Transportation and Renewable
Energy, and International Operations. This enables the company to have a strong
customer orientation and respond quickly to the changes in the market.
POWER SECTOR
Power is the focal area for the company and comprises thermal, nuclear,
gas, diesel and hydro businesses. The Company has taken India from a position
of total dependence on overseas sources to complete self-reliance in power
plant equipment. Today, the company sets account for nearly 65% of the total
installed capacity in the country. The Company Has contracted for boilers and
auxiliaries, turbo generator sets and associated controls, piping and station
Control and Instrumentation of up to 500 MW unit rating and has the technology
and capability to produce thermal sets up higher unit ratings including 1000
MW.- The Company has access to technology for higher size gas turbines and can
supply gas turbines up to 270 MW unit size. It engineers and constructs custom
built combined cycle power plants, Hydro sets of Francis, Pelton, Kaplan and
bulb types for different head - discharge combinations, with matching
generators, are also designed and manufactured by the company. To give a thrust
to refurbishing and modernization for plant performance improvement of old
fossil fuel power plants and repair and service of GE design gas turbines, two
joint venture companies have been floated with Siemens and GE respectively,
which have completed eight full financial years of successful commercial
operation. With a focus to provide a single window facility to the customers
for services and spares of power generation equipments, a 'Spares and Services
Business Group' has been created.
INDUSTRY SECTOR
The Company Manufactures and supplies major capital equipment and
systems like captive power plants, centrifugal compressors, drive turbines,
industrial boilers and auxiliaries, waste heat recovery boilers, gas turbines,
pumps, heat exchangers, electric machines, valves, heavy castings and forgings,
electrostatic precipitators, ID/FD fans, seamless pipes etc. These serve a
number of industries like metallurgical, mining, cement, paper, fertilizers,
refineries and petro-chemicals, etc. in addition to power utilities. THE
COMPANY has also emerged as a major supplier of controls and instrumentation
systems, especially distributed digital control systems for various power
plants and industries.
Industrial output, as measured by Index of
Industrial Production (IIP) is progressing steadily. Index of capital goods
production under use-based classification has registered double digit growth in
the first six months of 2004-05. With India's industrial activity picking up in
recent years, companies are using up their capacities which could trigger
capital investments in an effort to build size and improve efficiencies.
There are signs of increased activity in Infrastructure, Oil and Gas, Steel,
Petro-chemicals, Cement, Sugar, etc. The principal sectors in which investments
could be made are metals, petroleum products, synthetic textiles, fertilizers,
paper and paper products, among others, such as food products, drugs and
pharmaceuticals, organic chemicals, etc. The Captive Power segment of the
industry, has been witnessing expansion of capacities and the trend is likely
to continue.
Manufacturing Sector is looking at investments to scale up the production
capacities as heavy industries like oil, cement, steel and aluminum have
increased their capacity utilization and are now looking at future demand.
Along with mega infrastructure projects underway, the revival of private
investment is expected to give a further boost to the multipliers in the
economy.
JOINT VENTURES
The two Joint Venture Companies promoted by
BHEL viz. "BHEL-GE Gas Turbine Services Limited" (BGGTS) with GE, USA
for repair and servicing of GE designed Gas Turbines and "Powerplant
Performance Improvement Limited" (PPIL) with Siemens AG, Germany for plant
performance improvement of old fossil fuel power plants, have now completed
eight full financial years of operation. During the year, PPIL successfully
completed PG Test on 120 MW Korba East - Unit 5 and the unit was handed over to
CSEB for commercial operation. O and M supervision for BOP was also organised
for CSEB, Korba in line with the contract. PPIL has so far successfully uprated
four units of Kothagudem TPS (4x11 OMW) and also enhanced performance of five
units of DPL Durgapur (3x77MW, 2x30MW) and two units of Korba (East) TPS. The
total income of PPIL during 2005-06 was Rs. 13.39 million (unaudited). BGGTS
achieved a sales turnover of Rs. 2703 million during the year 2005-06 with a
profit after tax of Rs. 282 million. Orders for Rs. 3029 million were booked by
BGGTS during the year. During the year BGGTS successfully executed Mark VI
Controls retrofits for IFFCO, Aonla and Essar Power besides bagging CMU/Value
pack orders from IFFCO/Phulpur, Indo-Gulf and Nagarjuna Fertilisers. BGGTS also
secured its biggest ever export order of Rs. 240 million from RPC, Bangladesh
for rehabilitation of Frame 6 DLN Gas Turbine. BGGTS has already paid an
interim dividend of 225% for the year 2005-06 in Dec, 2005. The board of BGGTS
has recommended a further dividend of 225% for the year 2005- 06 in May, 2006.
AWARDS:
Awards won by the
company units and Employees during 2003-04 were as under :
Ø
BHEL Excel Awards
Ø
Prime
Minister’s Shram Awards
Ø
Vishwakarma
Rashtriya Puraskars
Ø
National
Safety Awards
Ø
National Award
for Excellence in Energy Management
Ø
National
Design Award
Ø CII Energy
Excellence Award
Ø Indian
National Suggestion Schemes' Association Award (INSAAN Award)
Ø Padma Shree
The company has joint venture with:
-
·
Powerplant
Performance Improvement Limited
·
BHEL-GE
Gas Turbine Services Limited
·
SWIL
Limited
·
Tata
Refractories Limited
·
Spectrum
Power Generation Limited
The company
is in trade terms with:-
v
2M Company
v
21st
Century Fabricators
v
A Bond Strands
Private Limited
v
A-1 Industries
v
AB Metal
Formers (Private) Limited
v
Acme Forgings
Private Limited
v
Aerovent Projects
Private Limited
v
Ag
Measurematics Private Limited
v
Agile Heavy
Engineering Private Limited
v
Ahsanali
Engineering Workshop
v
Aishu Castings
Private Limited
v
Ajantha
Fabrication Works
v
Ajmer Minerals
and Grinding Company
v
Alert
Engineering Enterprises
v
Aliasons
Industries
v
Allied Rubber
Products
v
Altec
Fabricators
v
Alcoat
Aplicators Private Limited
v
Browns Hitech
Structures Private Limited
v
Aishyu
Castings Private Limited
v
G. S. Alloys
Castings Private Limited
v
GEI Godavari
Engineering Limited
v
Hyderabad
Heavy Engineering Private Limited
v
T. M. Private
Limited
v
Krishna
Engineering Company (Private) Limited
v
SOL Engineers
Limited
v
Patny Systems
Private Limited
v
Rama Ferro
Alloys and Finance Private Limited
v
Thermopads
Private Limited
v
Vikas Machino
Fabs (Private) Limited
v
Voltamp
Transformers Private Limited
v
Vansanti Heavy
Machining (Private) Limited
v
Trimech
Engineering Private Limited
v
Uppar
Ferrocast Private Limited
v
Sri Balamurgan
Engineering Works Private Limited
v
G. B.
Engineering Enterprises Private Limited
v
Ghaziabad
Ispat Udyog (Private) Limited
v
Chhari
Electricals (Private) Limited
v
Hydropack
(India) Private Limited
v
Acme Forgings
(Private) Limited
v
Popular
Swichtgear (Private) Limited
v
M. P.
Electricals Limited
v
M. J. Patel
(India) Limited
v
Pearl
Insulations Limited
v
Rajasthan
Coach Builders Private Limited
v
Super Forgings
and Steels Limited
v
Benchmark
Electronics Systems Limited
v
Associated
Cables Limited
v
V. Valves
Limited
v
Reva
Industries Limited
v
Techno
Electric and Engineering Company Limited
v
Techno Fab
Engineering Limited
v
Spirax
Marshall Limited
Subject has been
accredited with ISO 9001 and ISO 9002 Certifications.
The company’s fixed
assets of important value includes freehold land, leasehold land, roads,
bridges and culverts, buildings, railway siding, plant and machinery,
construction equipment, electrical installations, vehicles, furniture and
fixtures, office and other equipments, trade marks, patents and designs,
electronic data processing equipments, etc.
AS PER
WEBSITE
Press Release
16-Sep-2005
BHEL employees bag three Vishwakarma
National Awards; Manufacturing plants win five National Safety Awards.
For their
innovations, employees of Bharat Heavy Electricals Limited (BHEL) have once
again bagged several 'Vishwakarma Rashtriya Puraskars', among a host of public
and private sector companies in the country.
Various innovations and modifications in manufacturing systems and processes
undertaken by these awardees have resulted in a cumulative saving of more than
Rs. Ten Million to the company.
In addition, five 'National Safety Awards' have been won by BHEL's
manufacturing plants at Trichy and Bangalore, for outstanding achievements in
terms of longest accident free period and lowest accident frequency rate at
their works.
Significantly, BHEL and its employees have been winning both these prestigious
national awards, instituted by the Government of India, Ministry of Labour,
consistently, since their inception.
Three Vishwakarma Rashtriya Puraskars, under different categories, have been
shared by seven employees from BHEL’s units at Haridwar and Hyderabad, for
their innovative suggestions leading to cost reduction, higher productivity,
import substitution etc.
Notably, the team of Mr. Sumant Nagar, Mr. Karan Singh Chauhan and Mr. Satish
Kumar re-designed and renovated a Putty-filling machine for stators of 500 MW
Turbine Generators resulting in increased efficiency and productivity, reduced
manpower requirement and savings of valuable foreign exchange.
Similarly, Mr. Gulam Ahmed, a Vishwakarma award winner, developed an improved
process for overlaying of stainless steel material on heat exchanger tube
sheets leading to reduction in cycle time and improved quality. His efforts
resulted in enhanced customer satisfaction and significant recurring savings.
The awards will be presented by the Union Minister for Labour and Employment,
Mr. K. Chandrashekhar Rao, at a function, to be organized here on September 17,
’2005.
5-Sep-2005
BHEL becomes first PSU to win ‘Best of its Class Distinction’ from the International
Asia Pacific Quality Organization.
Bharat Heavy Electricals Limited (BHEL) has
added another feather in its cap by becoming the first Public Sector as well as
the first engineering and manufacturing organization in the country to have won
the coveted ‘Best of its Class Distinction’ from the International Asia Pacific
Quality Organization (APQO).
BHEL’s Ranipet plant has won the
recognition in the big manufacturing category as part of the International Asia
Pacific Quality Award (IAPQA – 2005), wherein more than 50 countries
participated. The Award will be presented during the 11th APQO Conference,
being organized in Hanoi, Vietnam on October 27 & 28, 2005.
The award has been
instituted by APQO adopting the criterion of ‘Malcom Baldrige National Award’
in USA and is administered by APQO’s ‘Walter L Hurd Foundation.’
Significantly, only those companies that have won quality awards at a national
level in their respective countries are eligible to apply for this prestigious
award. BHEL Ranipet participated as it had won the coveted ‘IMC
Ramakrishna Bajaj National Quality Award 2004’, where again BHEL was the
first Public Sector and the first engineering and manufacturing organization in
the country to have got the award.
Prior to that, four manufacturing units of BHEL located at Haridwar,
Trichy, Bhopal and Hyderabad besides its Power Sector-Northern Region were
conferred the coveted CII Exim, Commendation Certificate 2004 for business
excellence conforming to global standards.
A quality conscious organization with a strong customer focus, BHEL has acquired ISO-9001 (2000
version), ISO-14001 and OHSAS-18001 certification for all its operations. BHEL initiated TQM in 1995 at its
Trichy Unit. Later, the concept was extended company-wide and a road map for
business excellence was evolved. TQM concepts deployed under the ‘Movement
towards Business Excellence’, focused on benchmarking and improving its
products and internal processes to global standards
As a result of its thrust on quality and technology, BHEL today enjoys national and international recognition, in the
form of certification of products by international bodies like ASME, API etc.
Most of the manufacturing plants of BHEL
are equipped with state-of-the art testing and calibration labs, which are duly
accredited by the National Accreditation Board for Calibration and Testing Labs
(NABL).
3-Sep-2005
Mr. C S Verma appointed Director (Finance), BHEL.
On his appointment
as Director on the Board of Bharat Heavy Electricals Limited (BHEL), Mr.CS
Verma has assumed charge as Director (Finance) of India's Navratna Public
Sector engineering and manufacturing enterprise, here today.
Prior to this, he served as Director (Finance) on the Board of ITI, the
country’s premier telecom company under the administrative control of the
Department of Telecommunications, Ministry of Communications & IT,
Government of India.
Mr. Verma holds a Master’s degree in Commerce, a Master’s degree in Management
and a Bachelor’s degree in Law. He is a Fellow Member of the Institute of
Company Secretaries of India and also an Associate Member of the Institute of
Cost & Works Accountants of India.
During his tenure of more than three years in the Telecom major, through adroit
management of funds and strategic deployment of scarce resources, Mr. Verma
lent the much-needed financial muscle required for ITI to operate in the highly
competitive telecom markets.
With over two decades of professional experience behind him, he is credited to
be an expert in funds mobilisation having raised huge resources for the Indian
Railway Finance Corporation where he served as Group General Manager before
taking over as Director Finance in ITI in February 2002.
Mr. Verma has handled a number of foreign issues, swap transactions and derivative
products. His earlier assignments include a stint in Delhi Stock Exchange (DSE)
as its General Manager where he worked for about 4 years and in a Financial
Institution where he worked for about 9 years. He has widely traveled abroad
and has visited a number of countries.
11-Aug-2005
BHEL wins contract for World Bank-funded Project; Once again beats Chinese
Companies to make foray in Ethiopia.
Bharat Heavy
Electricals Limited (BHEL) has
achieved a major breakthrough on the export front by making a foray into the
Ethiopian market. Outbidding Chinese and other multinational companies, the
company has secured its first ever order from Ethiopia for setting up 230 kV
substations on EPC basis.
Valued at around Rs. 260 Million, the World Bank-funded contract has been
placed on BHEL by Ethiopian
Electric Power Corporation (EEPCO).
The project is a part of the rural electrification programme initiated by the
Ethiopian Government. BHEL’s
scope of work in the project includes design, supply, erection, civil construction
and commissioning of 230 KV Nefas-Mewucha and Gashena substations, apart from
the expansion of Couitebe substation. The substations are to be completed in a
schedule of 14 months.
On energisation, these substations will provide electrification to 17 towns in
Nefas-Mewucha and 11 towns in Gashena. This project is significant for the
ongoing rural electrification activities in Ethiopia. In addition to the 28
towns to be electrified, the project has been particularly designed to support
the agro industry and other developmental activities in the area.
Under its power development programme, EEPCO has identified a series of
substation and generation projects in the country. BHEL is working towards securing these businesses and associate
with EEPCO in their power development programme on a long-term basis, which
will benefit the people of Ethiopia in getting uninterrupted power supply.
BHEL has identified overseas
business as a major thrust area. The company has achieved significant successes
during the current financial year and is poised to achieve a quantum growth in
its export business by consolidation in existing markets and widening its
export base through expansion of existing basket of products and services and
entering new markets.
23-Oct-2006
BHEL pays all-time high 145% dividend for fiscal 2005-06
Bharat Heavy Electricals Limited (BHEL) has paid the highest ever equity
dividend of 145% for fiscal 2005-06 as against 80%, in the year before,
maintaining its track record of paying dividends uninterruptedly for the last
30 years.
A cheque for the payment of the final dividend for the year, on the equity
(67.72%) held by the Government of India, was presented here to Mr. Sontosh
Mohan Dev, Hon’ble Union Minister for Heavy Industries & Public Enterprises
by Mr. Ashok K. Puri, CMD, BHEL in New Delhi. With this, BHEL has made a total
dividend payout of Rs.2403.4 Million for the year 2005-06, to the Government of
India.
Senior officials of the Department of Heavy Industries & Public Enterprises
and BHEL were also present on this occasion.
During the year 2005-06, BHEL recorded an all-time high turnover of Rs. 145250
Million, notching a growth of nearly 41% on top of 19% and 16% top line growth
achieved in 2004-05 and 2003-04, respectively. This is also the highest
year-on-year growth in the last three decades. In the same period, net profit
soared over 76% to Rs. 16790 Million.
Significantly, in line with its vision -‘committed to enhancing stakeholder
value‘, BHEL recorded a surge in Economic Value Addition (EVA), which
catapulted to Rs. 10790 Million from Rs. 504 Million for the year before
BHEL is building Capacity and Capability for the future to contribute fully for
meeting the power forecast for the 11th Plan and beyond. For this,
the company is investing more than Rs. 16000 Million for holistic modernization
and capacity expansion of its facilities from 6,000 MW per annum at present to
10,000 MW per annum, which will be available in 2007. BHEL will be more than
willing to enhance it further as required by the country’s power sector in
future. These programmes are in the nature of brown field expansions and have
strong economic rationale in terms of time and cost benefits. BHEL has large
reserves in addition to leveraging its capacity and can fully meet the resource
requirements for its expansion on its own.
BHEL has already taken necessary steps to cater to the likely demand for the
next higher rating 800 MW Thermal sets and is actively looking at opportunities
in Ultra Mega projects with various project developers. In addition, the
company is shoring up its capability for higher rating Hydro sets and advanced
class Gas Turbines to cater to upcoming market requirements.
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.43.15 |
|
UK Pound |
1 |
Rs.85.08 |
|
Euro |
1 |
Rs.68.10 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
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 |
|