MIRA INFORM REPORT
|
Report
Date : |
26.05.2008 |
IDENTIFICATION DETAILS
|
Name : |
KALPATARU POWER
TRANSMISSION LIMITED |
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Formerly
Known As : |
HT POWER STRUCTURE
LIMITED |
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Registered
Office : |
Plot
No. 101, Part III, G.I.D.C. Estate,
Sector 28, Gandhinagar - 382 028, Gujarat. |
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Country
: |
India |
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Financials
(as on) : |
31.03.2007 |
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Date
of Incorporation : |
23.04.1981 |
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CIN
No.: [Company
Identification No.] |
L40100GJ1981PLC004281 |
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Legal
Form : |
It is a public
limited liability company. The
company’s shares are listed on the Stock Exchanges. |
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Line
of Business : |
Designing, Manufacturing and erection
of transmission line towers and steel structures on a turnkey basis. |
RATING & COMMENTS
|
MIRA’s
Rating : |
A |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum
Credit Limit : |
USD
25600000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject is a
well-established company of the Kalpataru Group, a well-diversified group. It
caters requirements of Power Grid Corporation of India, National Thermal
Power Corporation (NTPC), State Electricity Boards, etc. Available
information indicates high financial responsibility of the company. Their
trade relations are reported as fair. Payments are usually correct and as per
commitments. The company can be
considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office / Factory: |
Plot
No. 101, Part III, G.I.D.C. Estate, Sector 28, Gandhinagar - 382 028,
Gujarat, India. |
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Tel.
No.: |
91 -79 -23211951 / 23211955 /
23214000 |
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Fax
No.: |
91 - 79 - 23211966 /68/71 |
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E-Mail
: |
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Website
: |
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Factory
1 : |
Plot No. A-4
/1, A-4/2, A-5, G. I. D. C. Electronic Estate, Sector – 25, Gandhinagar – 382
025. |
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Tel.
No.: |
91-79-23244941
/ 942 |
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Corporate
Office : |
8th Floor, Opp. Grand
Hyatt Hotel, Vakola, Santa Cruz (East), Mumbai – 400 055, India. |
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Tel.
No.: |
91-22-30645000 |
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Fax
No.: |
91-22-30643131 |
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Website: |
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Overseas
Office : |
Located at: Mexico, Peru, Algeria,
Turkey, Syria, Ethiopia, UAE, Thailand, Vietnam, Philippines, Malaysia and
Australia |
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Factory
2 : |
111,
Maker Chambers IV, Nariman Point, Mumbai - 400 021. India. |
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Tel.
No.: |
91 - 22 - 2282 2888 / 2288 4780 |
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Fax
No.: |
91 -22-2204 1548 |
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Branches
: |
Real Estate Division Kalpataru Habitat, Dr. S.S. Road,
Parel, Mumbai - 400012 Telefax : 91-22-24185249 R & D Centre Punadara Village, Near Talod Dam,
Taluka – Prantij, Dist. Sabarkantha (Gujarat). Tel. : 91-2770-255414 Biomass Energy Division 27BB, Tehsil Padampur, Dist. Sriganganagar, Rajasthan – 335041 Tel.: 91-154-2464725 Fax No.: 91-154-2464724 Near Village Khatoll, Tehsil Uniara,
District Tonk, Rajasthan – 304 024. Tel: 91-1436-260665 Fax: 91-1436-260666 Delhi Office 408-410, Somdatt Chambers – II, 9, Bhikaji Cama Place, New
Delhi 110066, India Tel. No.: 91-11-26104904 / 26104905 Fax No.: 91-11-26712608 E-mail: ya@kalpatarupower.com |
DIRECTORS
|
Name : |
Mr. Mofatraj P. Munot |
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Designation
: |
Chairman |
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Experience
: |
42 Years |
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|
Name : |
Mr. Mahendra G. Punatar |
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Designation
: |
Executive Vice Chairman |
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Experience
: |
47 Years |
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|
Name : |
Mr. K. V. Mani |
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Designation
: |
Managing Director |
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Experience
: |
42 Years |
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|
Name : |
Mr. Parag Munot |
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Designation
: |
Promoter Director |
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Experience
: |
14 Years |
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|
Name : |
Mr. Ajay Munot |
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Designation
: |
Executive Director |
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Experience
: |
12 Years |
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|
Name : |
Mr. Imtiaz Kanga |
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Designation
: |
Promoter Director |
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Experience
: |
27 Years |
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Name : |
Mr. Sajjanraj Mehta |
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Designation
: |
Independent Director |
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Experience
: |
32 Years |
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Name : |
Mr. Vimal Bhandari |
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Designation
: |
Independent Director |
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Experience
: |
22 Years |
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|
Name : |
Mr. J. C. Shah |
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Designation
: |
Independent Director |
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|
Name : |
Mr. Dinesh B. Patel |
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Designation
: |
President (Operations) |
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Name : |
Mr. Kamal K. Jain |
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Designation
: |
President (Finance &
Administration) |
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|
Name : |
Mr. B. K. Satish |
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Designation
: |
President (Engineering &
Marketing) |
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|
Name : |
Mr. Gyan Prakash |
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Designation
: |
President (Pipelines) |
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Name : |
Mr. Shitin Desai |
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Designation
: |
Director |
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Experience
: |
26 Years |
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|
Name : |
Mr. Narayan Seshadri |
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Designation
: |
Independent Director |
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Experience
: |
25 Years |
KEY EXECUTIVES
|
Name : |
Mr.
Bajrang Ramdharani |
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Designation
: |
Company
Secretary |
MAJOR SHAREHOLDERS
[As on 31.03.2007]
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
PROMOTERS' HOLDINGS |
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Indian |
16876266 |
63.68 |
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Public Share Holding
|
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Institutional:
|
|
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|
Mutual Funds And Axis |
2601178 |
9.82 |
|
Banks, Financial Institutions |
21797 |
0.08 |
|
Venture Capital Fund |
1514000 |
5.71 |
|
Insurance Companies |
816836 |
3.08 |
|
Flls |
2343165 |
8.84 |
|
Non
Institutional : |
|
|
Private
Corporate Bodies
|
674520 |
2.55 |
|
NRIs/OCBs |
112043 |
0.42 |
|
Indian Public |
1538741 |
5.81 |
|
Clearing Member |
1454 |
0.01 |
|
Total |
26500000 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Designing, Manufacturing and erection
of transmission line towers and steel structures on a turnkey basis. |
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|
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Products
: |
ITEM CODE NO.
(ITC CODE) PRODUCT
DESCRIPTION
7308.20 Transmission
Line Towers ---------- Real
Estate Division ---------- Power Generation – Conventional |
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Exports
to : |
Philippines,
Indonesia, Malaysia, Thailand, Vietnam, Australia, Syria, Turkey, Abu Dhabi/UAE,
Algeria, Ethopia and Mexico |
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Imports
from : |
Europe, UK and
Italy |
PRODUCTION
STATUS
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Transmission
line towers and steel structures |
MT |
84,000 |
78404 |
GENERAL INFORMATION
|
Suppliers
: |
v Bikaner Ceramics Private Limited v Lumino Industries Limited v Rajesh Engineering Works v VMS Chemical Industries v Nike Industries v Petro Synth (India) Private
Limited v Sanvijay Rolling and Engineering
Limited v Modern Engineering v Venson Electric Private
Limited v M/s. Cogent Engineers Private
Limited v Navfn Heavy Lifters, R.D. v Patil, Rajlaxmi Construction
Company v Quipo Infrastructure Equipment
Private Limited v E-Mech Engineers v Himalayan. Earth Movers v Shandhu Road Lines Private Limited
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No. of
Employees : |
10000 |
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Bankers
: |
v Citi Bank, Algeria v Rizzal commercial Bank (US$) v 3.. Rizzal commercial Bank (Peso) v Everest Bank Limited, Nepal v WBAF, Paris v Indo-Zambia Bank, Chingola v Indo-Zambia Bank, Lusaka v Stanbic Bank, Solwezi (Kwc) v HSBC- Qatar (QR) v HSBC - Qatar ($) v Alwar Bharatpur Anchalik Gramin
Bank-Bharatpur v Alwar Bharatpur Anchalik Gramin
Bank-Bharatpur v BMP Paribas, Algeria ($) v BMP Paribas.Algeria (CEDAC) v BMP Paribas, Algeria (INR) v Commercial Bank of Ethiopia (US$) v Commercial Bank of Ethiopia (Birr) v Giro Commercial Bank Limited (US$) v Giro Commercial Bank Limited (Ksh) v British Arab Commercial Bank (US$) |
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Facilities : |
SECURED LOANS [As on
31.03.2007] A Term Loan
B Working Capital
Facilities from bank
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Banking Relations : |
Good |
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Auditors
: |
Mr. Kishan M. Mehta & Co.,
Ahmedabad Chartered Accountants 6, Premchand House,
Ashram Road, Ahmedabad - 380 009, Gujarat. |
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Parent
Companies: |
Kalpataru Group Established in the
year 1969, promoted by Mr. Mafotraj P. Munot |
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Associates/Subsidiaries
: |
v
Kalpataru Construction Overseas
Limited v
Kalpataru Constructions Private
Limited v
Kalpataru Grih Nirman Private Limited v
Kalpataru Holdings Private Limited v
Kalpataru Land Development Private
Limited v
Kalpataru Plaza Private Limited v
Kalpataru Homes Private Limited v
Kalpataru Griha Vitt Viniyog Private
Limited v
Kalpataru Developers and Granite
Industries Private Limited v
Kalpataru Soham Property Developers
Private Limited v
Kalpataru Properties Private Limited v
Kalpataru Tapes Private Limited v
Kalpataru Estate Private Limited v
Kalpataru Viniyog Private Limited v
Kalpataru Premises Private Limited v
Kalpataru Gardens Private Limited v
M/s.
Habitat, Property Solution (India) Private Limited v
Yugdharam
Real Estate Private Limited v
Durable
Trading Company Private Limited v
P.K.
Velu & Company Private Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs. 10/-
each |
Rs.
300.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
26500000 |
Equity Shares |
Rs. 10/-
each |
Rs.
265.000 Millions |
Out of above
a)
3,325,000 (3,325,000) Equity Shares allotted as fully paid up Bonus shares by capitalisation
out of general reserve and 3,060,000 (3,060,000) Equity Shares allotted for
consideration other than cash in earlier years
b)
10,861,500 (Nil) Equity Shares have been allotted as fully paid up bonus shares
by capitalisation of capital redemption reserve and share premium account
during the year
c) 4,777,000 (Nil) Equity Shares are allotted during the
year.
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 |
265.000 |
108.615 |
108.615 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
6159.335 |
1570.746 |
1029.406 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
6424.335 |
1679.361 |
1138.021 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
3367.106 |
2327.817 |
1004.814 |
|
|
2]
Unsecured Loans |
0.000 |
0.000 |
100.000 |
|
TOTAL
BORROWING
|
3367.106 |
2327.817 |
1104.814 |
|
|
DEFERRED
TAX LIABILITIES |
76.363 |
57.948 |
54.692 |
|
|
|
|
|
|
|
TOTAL
|
9867.804 |
4065.126 |
2297.527 |
|
|
|
|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
2050.435 |
1240.211 |
705.714 |
|
Capital work-in-progress
|
41.174 |
283.610 |
2.083 |
|
|
|
|
|
|
|
INVESTMENT
|
2189.235 |
294.458 |
101.331 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Accrued Value of
Work Done
|
1747.424
|
811.865
|
369.107 |
|
|
Inventories
|
1582.699
|
1387.025
|
1150.240 |
|
|
Sundry Debtors
|
5370.510
|
2973.483
|
908.868 |
|
|
Cash & Bank Balances
|
936.524
|
166.488
|
139.125 |
|
|
Loans & Advances
|
1210.468
|
669.846
|
145.208 |
Total Current Assets
|
10847.625 |
6008.707 |
2712.548 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
4549.488
|
3369.162
|
1076.312 |
|
|
Provisions
|
711.677
|
393.699
|
44.277 |
Total Current Liabilities
|
5261.165 |
3762.861 |
1120.589 |
|
Net
Current Assets
|
5586.460 |
2245.846 |
1486.896 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.500 |
1.001 |
1.503 |
|
|
|
|
|
|
|
TOTAL
|
9867.804 |
4065.126 |
2297.524 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales
Turnover |
15248.476 |
8403.779 |
4985.239 |
|
|
Other Income |
124.671 |
48.758 |
0.000 |
|
|
Total
Income |
15373.147 |
8452.537 |
4985.239 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
2166.518 |
944.058 |
434.564 |
|
|
Provision for Taxation |
571.566 |
278.655 |
147.414 |
|
|
Profit/(Loss) After Tax |
1594.952 |
665.403 |
287.150 |
|
|
|
|
|
|
|
|
Earnings
in Foreign Currency : |
3769.110 |
2036.450 |
1294.971 |
|
|
|
|
|
|
|
|
Total
Imports |
1207.710 |
1545.570 |
825.553 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Material Cost |
7892.308 |
4570.374 |
|
|
|
Manufacturing Expenses |
3168.390 |
1618.039 |
|
|
|
Administrative Expenses |
1001.715 |
516.863 |
4550.674 |
|
|
Employees emolument |
716.109 |
389.006 |
|
|
|
Financial expenses |
433.263 |
310.478 |
|
|
|
Depreciation & Amortization |
167.644 |
87.867 |
|
|
|
Increase/Decrease in Stock |
[172.800] |
15.860 |
|
|
|
Provision of Diminution in value of Investment
reversed |
0.000 |
[0.008] |
|
|
Total
Expenditure |
13206.629 |
7508.479 |
4550.674 |
|
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1ST
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales
Turnover |
3686.300 |
3852.000 |
3519.400 |
|
Other
Income |
48.000 |
58.500 |
42.700 |
|
Total
Income |
3734.300 |
3910.500 |
3562.100 |
|
Total
Expediture |
3083.300 |
3318.800 |
2997.100 |
|
Operating
Profit |
651.000 |
591.700 |
565.000 |
|
Interest |
89.500 |
94.200 |
100.200 |
|
Gross
Profit |
561.500 |
497.500 |
464.800 |
|
Depreciation |
46.500 |
47.700 |
53.800 |
|
Tax |
135.300 |
116.800 |
103.000 |
|
Reported
PAT |
371.400 |
321.500 |
302.900 |
KEY
RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.70 |
1.22 |
1.10 |
|
Long Term Debt-Equity Ratio |
0.23 |
0.44 |
0.37 |
|
Current Ratio |
1.30 |
1.18 |
1.30 |
|
Fixed Assets |
7.55 |
6.82 |
6.40 |
|
Inventory |
10.55 |
6.67 |
4.78 |
|
Debtors |
3.75 |
4.10 |
5.18 |
|
Interest Cover Ratio |
6.00 |
4.04 |
3.68 |
|
Operating Profit Margin(%) |
17.67 |
15.40 |
11.47 |
|
Profit Before Interest And Tax Margin(%) |
16.60 |
14.39 |
10.50 |
|
Cash Profit Margin(%) |
11.25 |
8.64 |
6.02 |
|
Adjusted Net Profit Margin(%) |
10.18 |
7.63 |
5.06 |
|
Return On Capital Employed(%) |
37.72 |
40.25 |
27.93 |
|
Return On Net Worth(%) |
39.43 |
47.46 |
28.19 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets:
- Leasehold
land
- Freehold
land
- Building
- Plant
and machinery
- Electric
installation
- Furniture
fixture and office equipments
- Vehicles
|
Contingent liabilities in respect
of: |
31.03.2007 [Rs. in Millions] |
|
Bank
guarantees |
23.010 |
|
Claims
against company not acknowledged as debt |
39.630 |
|
Bonds/Undertaking
given by company for concessional duty/exemption to customs |
350.000 |
|
Show
Cause Notice issued by the Service tax/Entry Tax/ Stamps authority, disputed
by the company |
156.990 |
|
Benefit
of countervailing duty under Custom Law disputed by the department |
5.710 |
|
Penalty
for delayed payment of Service tax disputed before Appellate authority
already stayed unconditionally |
12.030 |
|
The
estimated amount of contracts remaining to be executed on capital account not
provided for |
80.020 |
|
Capital Commitment
to subscribe 6% Optionally Convertible Preference Shares in JMC Projects
(India) Ltd. not provided for |
222.200 |
OPERATIONS
The overall Indian Industrial outlook and robust Infrastructure spending has contributed
in excellent performance in all the business segments of the Company.
During the year, the Company has achieved a record level turnover of Rs.15,670
million (USD 359 million) as against Rs.8,712 million (USD 200 million) in the
previous year which shows a healthy growth of 80% for the year.
Profit before tax increased by 129% from Rs.944 million in 2005-2006 to
Rs.2,167 million (USD 50 million) in 2006-2007 and Profit after tax increased
by 140% from Rs.665 million in 2005-2006 to Rs.1,595 million (USD 37 million)
in 2006-2007.
The order backlog (including L1 bids) with the Company is above Rs.23 billion
(USD 528 million).
The total export turnover (including overseas projects and deemed exports) was
Rs.4,578 million (USD 105 million) or approx 30% of revenues in 2006-07 as
against Rs.2,226 million (USD 51 million) in 2005-06.
TRANSMISSION
AND DISTRIBUTION DIVISION
In line with Company's motto to remain a leading global EPC player in
Transmission & Distribution (T & D), the Company has achieved certain
milestones during the reporting year which are evident from the robust all
round performance of the Company.
The Company has a production capacity of 84,000 MTs per annum which was
utilised 93% to produce 78,404 MTs as against 62,452 MTs in the preceding year.
The 100% Export Oriented Unit (EOU) set up by the Company in 2005, for design,
fabrication and galvanizing of Transmission line towers and structures has
produced 25,985 MTs as against 9,786 MTs during the first 7 months. EOU has
booked export revenue of Rs.1,768 million (USD 40 million) as against Rs.528
million. The unit has optimally utilized its capacity and contributed
significantly in top and bottom-line of the Company. Apart from being certified
as ISO 9000, this unit has also accredited with ISO 14000 certification from
Intertek, UK for environment safety.
The reporting year was also extremely good for International business,
particularly in African region where the Company has secured few more jobs in
Algeria, Tanzania & Zambia, apart from securing their first rural
distribution jobs overseas in Kenya.
Foray into rural electrification projects has also contributed significantly
and 15 rural electrification jobs are under execution in the State of Bihar,
Maharashtra, Uttar Pradesh, Rajasthan, Uttaranchal and West Bengal. The
company's skills in supply chain management and construction management has
resulted in superior execution and improved margins.
The T & D Division has achieved gross revenue of Rs.13,943 million (over
USD 319 million) registering a growth of over 76% and contributing to approx
88% of the Company's revenues. The Division would continue to maintain the
higher growth momentum in the current year also.
It is expected that the T & D division would continue to perform well,
given the increased government spending on building the National Grid, healthy
order book, cost leadership and operational efficiency of the Company. The
Ministry of Power is also keen to enhance private sector participation by
inviting bids for Independent Private Transmission projects in 2007
itself.
INFRASTRUCTURE DIVISION
During the reporting period, the Infrastructure
Division has also completed two jobs which includes laying cross country
Pipeline for Bharat Petroleum Corporation Ltd. for 16' & 8' - 442 Kms of
Mumbai- Manmad-Mangliya Pipeline extension Project and 18' - 110 Kms
Vijaypur-Kota Pipeline Project for Gas Authority of India Ltd., which was
secured during the year. The Company has further secured a more prestigious
project of Rs.1.8 billion from GAIL for laying of 30' - 74 Kms Panvel-Dabhol
Gas Pipeline, nearing completion.
The Company has so far invested Rs.676 million in fleet of pipeline laying
equipments which includes Rs.311 million spent during the current year.
In the reporting period, this Division has
booked a revenue of Rs.1465 million (USD 34 million) as against Rs.371 million
in the corresponding period.
BIO-MASS ENERGY DIVISION
In the month of November, 2006 the Uniara Plant commenced operation, after an
initial delay. However, the plant has been able to generate revenue of Rs.72
million by exporting 18 million units.
The Padampur plant has also run efficiently and generated revenue of Rs.203
million as against revenue of Rs.181 million on export of 49 million
units.
The Padampur plant is registered with UNFCCC for its Certified Emission
Reductions (CERs), under the CDM mechanism of Kyoto Protocol. This CER is being
sold to Senter Novem, an agency of Government of Netherlands. So far the
Company has booked income of Rs.26 million on account of sale of CERs.
It was unfortunate that on 26th April 2007 a fire took place in the raw
material of the Uniara (Tonk) plant which was spread and affected the main
plant. The entire raw material which was in the form of mustard husk was burnt.
Preliminary estimated loss is Rs.120 million. The plant and raw material are
adequately insured along with loss of profit policy. The plant will remain
un-operational for a period of 4 to 6 months.
REAL ESTATE DIVISION
There was no major activity in this division during the year 2006-07.
Looking
to the booming real estate market all over the country and the Kalpataru
Group's core competence, the Company will further venture into real estate
projects under the same Division or through a subsidiary / SPV route.
SUBSIDIARIES
JMC Projects (India) Limited (JMC)
The
Company has further increased its stake in JMC Projects (India) Ltd. by acquiring
2,489,420 shares under the Right Issue and 1,169,352 shares on conversion of
warrants for Rs.429 million during the reporting period. Presently the company holds 52% stake in JMC
at total investment of Rs.722 million (USD 16.6 million). JMC become subsidiary
of the company w.e.f 6th February 2007.
During
the reporting period JMC has also reported strong financial by achieving the
total revenue of Rs.5,002 million (USD 115 million), an annualized rise of 76%,
as against Rs.1,420 million in the previous reporting 6-month period. The
profit before tax as well as profit after tax are at Rs.253 million (USD 5.8
million) and Rs.161 million as against Rs.22 million and Rs.13 million
respectively, reflecting a strong turnaround performance.
The
company has strengthened JMC in terms of its capital base and business profile,
improved financial discipline and involved in all Strategic and HRD initiatives
to take the company to a path of rapid growth.
The
JMC has secured new multiple contracts and present order backlog of the company
stands at approx. Rs.12 billion (USD 275 million). The JMC has secured various
prestigious projects during the reporting period, few of them includes;
*
Construction of IT/ITES and Software Buildings for Tata Housing, Wipro, Sierra
Atlantic, Bagmane, Rajiv Tech park, Vridavan Tech Park, etc. in Bangalore and
Hyderabad.
*
Multiple Factory and Office buildings for Dr Reddy Labs, Welspun, VSNL, New
Maharashtra Sadan, Delhi Judicial Academy, HAL, etc. across India.
*
Civil, Structural and Architectural work for 194 MW CPP for Larsen & Toubro
Ltd at IOCL Panipat, Haryana and for BHEL near Surat.
*
Construction of Adarsh Shangri-La Retreat Hotel for Adarsh Developers at
Bangalore
*
Complete Civil Package for Coal Handling Plant (2*490 MW) for Elecon at Dadri
(NTPC)
* Construction of Flyover for Maharashtra State Road Development Corporation
Ltd at CST Airport Junction, Santacruz, Mumbai.
The
company made commitment to subscribe 1,100,000 6% Optionally Convertible
Preference Share (OCPS) of Rs.202 each on preferential basis, convertible into
1,100,000 Equity Shares of Rs.10 each at a premium of Rs.192 per share within
18 months from the date of allotment at the option of subscribers. It is
subject to compliance of Securities & Exchange Board of India (Substantial
Acquisition of Shares and Takeovers) Regulation, 1997.
Shree Shubham Logistics Limited
(SSL)
During
the year 2006-07, Company decided to diversify into rapidly growing sectors
like Warehousing, Cold Storage and Logistics activities. The Company has
invested an initial capital of Rs.65 million in SSL, to make an entry by
building high-end warehouses (both for dry and cold storage) across the country,
including 3PL. Land has been purchased at several places in the States of
Rajasthan and Gujarat and the construction is due to commence soon.
This
company was incorporated in January 2007 only, during which the company has
generated revenue of Rs.1.8 million and incurred a loss of Rs.1.1 million
during the same period due to amortization of preliminary expenses of Rs.1.2
million. This Company became subsidiary of the Company w.e.f. 19th March
2007.
Energylink (India) Private Limited
Energylink,
a wholly owned subsidiary plans to foray into construction of large integrated
Townships, targeting middle and upper middle class income households. The
company is yet to commence its operations so there is no revenue as well as
profit or loss till the reporting period. This Company became subsidiary of the
Company w.e.f. 30th January 2007.
STATEMENT OF DIRECTORS'
RESPONSIBILITY
Pursuant
to the requirement under Section 217(2AA) of the Companies Act, 1956, Directors
based on the representations received from the Operating Management,
confirm:
(i)
That in the preparation of the annual accounts for the financial year ended
31st March, 2007, the applicable accounting standards had been followed;
(ii)
That the Directors had selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and prudent
so as to give a true and fair view of the state of affairs of the company at
the end of the financial year and of the profit or loss of the company for the
year;
(iii)
That the Directors had taken proper and sufficient care for the maintenance of
adequate accounting in accordance with the provisions of the Companies Act,
1956 for safeguarding the assets of the company and for preventing and
detecting fraud and other irregularities;
(iv)
That the Directors had prepared the annual accounts for the financial year
ended 31st March, 2007 on a 'going concern' basis.
CORPORATE GOVERNANCE
As
per Clause 49 of the Listing Agreement with the Stock Exchanges, a separate
section on Corporate Governance and Management Discussion and Analysis,
confirming compliance is set out in the Annexure forming part of this
report.
The
company has been practicing the principles of good corporate governance over
the years. The Board of Directors supports the broad principles of corporate
governance. In addition to the basic governance issues, the Board lays strong
emphasis on transparency, accountability and integrity.
INDUSTRY SCENARIO
Economic Scenario:
The
Indian Economy continued its high growth performance and improved its GDP Rate
to 9% in 2006- 07 from 7.5% in 2004-05. Growth plan targeted for Tenth Five
Year Plan of 8% will be almost achieved. The declared objective of 'Faster and
more inclusive growth' for Eleventh Five Year Plan beginning from 2007-08 will
aim at putting economy on a sustainable growth rate of approx. 10% by end of
its Plan period with greater focus on basic physical infrastructure, health and
education services to all and a strong focus on public as well as private investment
in infrastructure and construction industry. Therefore sustained investment in
India's infrastructure development of over USD 320 billion has been planned
till 2012.
The
increasing trend of investment was witnessed during 2006-07 in transmission and
distribution sectors specifically from Oil and Gas economies of Middle East and
African Countries and the company expects the capex trend to continue.
Power Sector Scenario:
Reliable
Transmission and Distribution system is important for the proper and efficient
transfer of power from generating station to load centers. The Central
Government plans to increase installed power generation capacity to 200,000 MW
by 2012 from the present level of 140,000 MW. This would facilitate expansion
of regional transmission network and inter regional capacity to transmit
power.
This
regional grids are expected to be integrated to form the national grid where by
power in region of surplus can be transferred to another, resulting in the
optimal utilization of generating capacity. With the proposed addition of
20,700 MW, the total inter regional transmission capacity is expected to be
37,150 MW at the end of XI Five Year Plan i.e.
by 2012 when the National grid is expected to be fully operational.
Setting up a National grid requires the gradual strengthening and improvement
of regional grids and their progressive integration, through extra high voltage
and HVDC transmission lines.
The
Government has announced in budget proposal for 2007-08 that seven more Ultra
Mega Power projects are under process and at least two to be awarded in 2007.
Further initiatives include facilitation of setting up of merchant power plants
by Private Developers and Private Participation in transmission projects
through IPTC/ JV route.
Distribution and Rural
Electrification:
Power
distribution is a critical link between generation, transmission and end users
of power. To improve distribution of power, the Central Government has
formulated the Accelerated Power Development Reform Programme (APDRP) with the
objectives of improving the financial viability of state power utilities,
reduction of aggregate technical and commercial losses, to improve customer's
satisfaction, increasing reliability and quality of power supply. The
Government of India launched 'Rajiv Gandhi Grameen Vidhyutikaran Yojana'
(RGGVY) to strengthen the pace of rural electrification and with an objective
to electrify all villages and rural households in 5 years.
Oil and Gas Pipeline Sector:
The
increased demand in the energy industry has resulted in the need to develop an
efficient distribution network for oil & natural gas transportation.
The
pipeline network available in India today is grossly inadequate to transport
the products to demand centres in an efficient, safe and environment friendly
way. In view of the above it is projected that an estimated 7,000 kms of gas
pipelines and over 4,000 kms of product and crude pipelines will be set up in
the next 3-4 years, mainly by IOCL, BPCL, HPCL, GSPC, Reliance and GAIL.
Under
the budget proposal for 2007-08, the infrastructure status to be extended to
cross country natural gas distribution networks, including gas pipeline has
been granted concessions under Section 80IA which will further boost investment
activity.
OUTLOOK
Transmission & Distribution
Division:
The
Company is one of the India's largest Engineering, Procurement and Construction
(EPC) companies that provides integrated design, testing, fabrication, erection
and construction services to the Indian as well as overseas Power Transmission
Industry. The Company also provides EPC services to distribution utilities for
installation of 11/33 KV lines and 33KV sub-station and rural electrification
in Indian as well as overseas market.
Transmission
Line Industry has been growing year after year and is likely to grow further
considering the proposed addition of 56,040 Circuit KM of 400 KV and above
transmission Lines and estimated capital outlay of Rs. 394 billion by Power
grid and private sector in the XI Five year plan.
Based
on multiple invitation of bids from African Countries like Algeria, Nigeria,
Ethiopia, Kenya, Tanzania, apart from Middle East and South East Asia, for
Transmission Line and Rural Electrification, and also enquiries from North
American and Australian markets for Tower supplies, the Company expects lot of
business opportunities in overseas market.
The
100% Export Oriented Unit (EOU) established last year to cater exclusively to
export demand is operating at more than 85% capacity.
The
Company has secured its first rural electrification contracts from Kenya Power
& Lighting Co. Ltd., and Ministry of Energy, Kenya for 16 million USD.
On
the strength of a healthy order backlog and the emerging business opportunities
in domestics as well as overseas market the Transmission & Distribution
segment foresees a good year ahead.
Threats and Competition:
Considering
the enormous business potential in this sector, several contracting firms and
Telecom tower fabricators have been taking steps to enter this sector which is
a natural extension of their expertise in handling infrastructure and telecom
Projects. Therefore they operate in an intensely competitive environment. Their
company is continuously taking steps to optimize cost and productivity in the areas
of production, procurement and construction and also retain their people so as
to be able to meet the emerging competition and gain market share through their
continuous goal of attaining cost leadership and consistently comply to agreed
specifications and contractual requirements and in the manner that results in
highest degree of customer satisfaction.
Oil & Gas Pipeline Sector:
The
recent discovery of large Oil and Gas reserves in various parts of the country
will dramatically increase the demand for an extensive gas transportation
pipeline infrastructure or National Grid to be put in place rapidly. The
business prospects for the Company in cross country pipelines sector is
expected to be good.
Civil Construction Sector:
As
they all know, road connectivity is the key to socioeconomic development.
According
to the World Bank and several other reports, every rupee spent on Roads is
worth almost seven times as much in return on the socio economic development
front. Lot of four laning and sixlaning highways/ expressways are likely to be
promoted in next 3-4 years under various National Highway Development
Programmes where more private participation are sought on BOT basis. Kalpataru
Power is considering entering into Road sector BOT projects on selective basis,
wherein JMC Projects would support as EPC contractor.
Real Estate Development:
Government
of Gujarat invited various Companies to Urban Development Summit to encourage
investment in Gujarat for development of integrated Township, Commercial Complexes,
IT Parks, etc. Energylink (India) Pvt. Ltd, a wholly owned subsidiary plans to
foray into construction of large integrated Townships targeting middle and
upper middle class income households.
Logistics & Warehousing
Business:
During
the year 2006-07, Company decided to diversify to tap the growing sector like
Warehousing, Cold Storage and Logistics activities.
The
private sector role in the warehousing industry has so far been very limited
and unorganized. However, the big private players have now woken up to the
potential and have planned substantial investments in the warehouses, in the
years to come, mainly to cater to their captive requirements.
SEGMENT-WISE OPERATIONAL
PERFORMANCE
The
company has four primary business segments constituting Power Transmission
& Distribution, Real Estate, Biomass Energy and Infrastructure.
The
revenue of the company can further be divided by geographically in two
different segments - sales within India and sales outside India considering the
location of the customers. The total revenue Rs.15,373 million of the company
is divided into sales within India Rs.11,361 million (74%) and outside India
Rs.4,012 million (26%) respectively.
Transmission & Distribution
Division:
This
Division's revenue was higher by 78% at Rs.13522 million. The production for
the year was at 78,404 MT as against 62,452 MT in the preceding year which is
highest ever production achieved by the Company.
Real Estate Division:
There
is no major activity in this division during the year 2006-07.
Biomass Energy Division:
The
Padampur plant is running successfully. During the year the plant has generated
54 million units and exported 49 million units running at 93% PLF (excluding
plant shut down). The total revenue was Rs.203 million as against revenue of
Rs.181 million in the year 2005-06.
Second
Power Plant of 7MW (net) capacity in Tonk District of Rajasthan has
commissioned in November, 2006. During the year Plant has generated 20 million
units and exported 18 million units running at 92% PLF (excluding plant shut
down) with the revenue of Rs.72 million.
Infrastructure Division:
The
Company has completed its first 'Mumbai- Manmad-Mangliya' Product Pipeline
project of Bharat Petroleum Corporation Ltd. (BPCL). The Company has also
completed its second 'Vijaipur-Kota' Gas Pipeline Project received during the
year from GAIL (India) Ltd. and registered a total revenue of Rs.1,465 million
as against Rs.371 million in the previous year. This represents a growth of
295% over Company's revenue from Oil & Gas Pipeline during the previous
year.
FINANCIAL REVIEW
The
sustained capex and increased government spending in Power Transmission &
Distribution and Infrastructure sectors has played major role in Company's
phenomenal growth. The competition continues to be intense and prices &
margins continue to be subject to competitive pressure.
The gross sales and service revenue of the Company for the year 2006-07 was at
Rs.15670 million. This represents a growth of 80% over the Company's revenue
for 2005-06. The revenue of Power Transmission and Distribution segment grew by
77%, Infrastructure segment grew by 295% and Bio-mass Energy segment grew by
51%.
Export
(including deemed exports & overseas projects) earnings during the year
were at Rs.4,578 million representing approx. 30% of the Company's gross
revenue.
The
operating profit for 2006-07 is Rs.2,489 million showed a remarkable
improvement of 115% over the previous year on a comparable basis.
Improved
operating profit combined with lower interest cost and depreciation has enabled
the Company to report a higher profit before tax. The Company's Profit before
tax has increased to Rs.2,167 million from Rs.944 million showing a jump of
129%. The Company has made a provision of Rs.536 million towards current tax
and Rs.18 million on account of deferred tax. Profit after tax stood at
Rs.1,595 million as against Rs.665 million, which is a steep increase of
140%.
The
net cash position saw an increase of Rs.92 million as compared to increase of
Rs.121 million in the previous year. The net fixed assets (including capital st
work in progress) as at 31 March, 2007 was Rs.2,092 million as compared to
Rs.1,524 million in the previous year, indicating increase of Rs.568 million,
mainly for purchase of Pipe Laying equipments for Infrastructure Division and
balance capital expenditure of Bio-mass based 7 MW (net) Power Plant at
Tonk.
The
investment level has increased to Rs.2,189 million as against Rs.294 million in
the previous year mainly due to investment in mutual funds and investment in
subsidiary companies.
The
net current assets as on 31st March, 2007 was at Rs.5,586 million as against
Rs.2,246 million over the previous year. The current assets level of the
Company has gone up on account of increased activities. Long term borrowing of
the Company has decreased by Rs.115 million on account of repayment as against
increase of Rs.750 million in the previous year. The total Debit/Equity ratio
is at 0.50 and Long Term Debt / Equity ratio is at 0.14.
During
the year Company has raised Rs.3,473 million by issue of fresh capital under
the Qualified Institutional Placement (QIP) route which has been utilized for
capital expenditure Rs.71 million, investments in subsidiary companies Rs.504
million, and temporarily deployed in loans to subsidiary companies Rs.26
million, inter corporate deposits Rs.240 million, investments in units of
mutual funds Rs.1,358 million, fixed deposits with banks Rs.627 million,
reduction in working capital borrowings Rs.526 million and issue expenditures
Rs.75 million.
The
Company enjoys fund based working capital facilities to the tune of Rs.3,000
million from a consortium of banks for T&D and Infrastructure Division but
utilization was to the extent of Rs.2,458 million only due to the use of QIP
funds of Rs.526 million. These facilities are subject to annual review and
enhancement.
Trade
Terms:
·
Reliance Wire Products, India
·
EMI Transmission Limited, India
·
Maharashtra Steel Private Limited , India
·
Jyoti Power Transmission Private
Limited, India
·
Power Grid Corporation of India
Limited, India
·
Maharashtra State Electricity Board,
Maharashtra, India
·
Gujarat Electricity Board, Gujarat,
India
·
Tamilnadu Electricity Board, Tamilnadu,
India
·
Madhya Pradesh Electricity Board,
Madhya Pradesh, India
·
RRVOPNL, Rajasthan, India
·
APTRANSCO, Andhra Pradesh, India
·
GRIDCO, Orissa, India
·
KPTCL, Karnataka, India
·
World Bank, India
·
ADB, India
·
J-Exim, India
·
KEC, India
·
Hyundai Motors India Limited, India
·
NPC, Philippines
·
PEEGT, Syria
·
EGAT, Thailand
·
Powerlink, Australia
·
EDI-PTR, Australia
·
HEC, Tasmania
·
HEC, Australia
·
CFE, Mexico
·
PT.PLN, Indonesia
·
TNB, Malaysia
·
EVN, Vietnam
·
GCEP, Iraq
·
Sonelgaz, Algeria
·
EEPCO, Ethopia
·
Powergrid Company of Bangladesh,
Bangladesh
·
TEAIS, Turkey
·
ABB SAE, Italy
·
Evans Deakin Industries, Australia
(Formerly – ABB Engineering (Australia) – Powerlines Transmission & Railway
(PTR) Division)
·
Alstom / Cegelec, France
·
Cobra, Spain
·
Sumitomo Electric, Japan
·
Power Transmission Corporation, Part of
ETA Group, UAE
·
ABB, Germany
·
Pivot, Nigeria
·
GYM, Peru
It imports the following technology:
·
CNC Fabrication Machine, Italy
·
Furnace, UK
·
CNC Drilling machine, Italy
·
Drill Sharpening Machine, Italy
·
Milling Machine, Italy
Subject has been accredited with ISO 9001
Certification.
The Group’s core
competence lies in the following fields:
-
Real Estate and Property Development
-
Power Transmission Lines
The Group also has
presence in:
-
Plastic Films and Sheets
-
Stationery / Office Supplies
-
International Trading
-
Consumer Products & E-commerce
The group has an
asset base of over USD 150 millions, annual turnover over USD 100 millions.
AS PER
WEBSITE DETAILS:
PRESS
RELEASE
Mumbai , January, 2008
Power packed performance of Kalpataru Power
Kalpataru Power Transmission Ltd., a global
player providing EPC services for the Power T&D sectors, has reported a
reduction of 10% in total revenue for the quarter ended December 31, 2007 as
compared to the corresponding period in the previous year. The total revenue
for the quarter ended 31st December, 2007 is Rs. 3,562.10 Million as against
Rs. 3,978.40 Million in the same period of previous year.
However,
for nine months ending December, 2007, the total revenue of the Company has
increased by 11% to Rs. 11,206.90 Million as against Rs. 10,087.80 Million in
the same period of the previous year. The key reason for the reduced turnover
in the quarter is due to delay in commencement of several projects, primarily
due to client related issues.
For
the quarter ended 31st December, 2007, PBT reduced by 22% to Rs. 411 Million as
against Rs. 526 Million in the previous year. PAT has reduced by 22% to Rs.
302.90 Million as against Rs. 388 Million in the previous year.
For
nine months period, PBT has increased by 6% to Rs. 1,375.80 Million as against
Rs. 1,299.60 Million in the previous year. PAT has increased by 5% to Rs.
995.80 Million as against Rs. 950.30 Million in the previous year.
- Order booking (including L1
positions) of above Rs. 33 Billion (USD 765 Million) as of date.
- JMC Projects (India) Ltd, in
which your company holds 52% stake has reported revenue of Rs. 2,423.30
Million (a rise of 73% ) compared to Rs. 1,398.80 Million and a profit
before tax of Rs. 128.80 Million, a rise of 82%, as against Rs. 70.80
Million in the corresponding period of previous year.
- For the 9 months period ended
December, 2007, revenues rose by 80% to Rs 6,094.90 million and Profit
before tax rose by 95% to Rs. 313.10 Million.
- JMC has an order book of approx
Rs. 21 Billion including a mix of various factories & building, civil
works for power projects, water pipelines and road & bridge projects.
We
are on track to achieve our target revenue of Rs 1,800 crores for KPTL and Rs
900 crores for JMC, for the current year.
Mumbai , October, 2007
Power packed performance of Kalpataru Power
Kalpataru Power Transmission Ltd., a global
player providing EPC services for the Power T&D sectors, has shown a
powerful performance by reporting 26% increase in the total revenue for the
second quarter ended September 30, 2007 vis-ŕ-vis corresponding period by
achieving Rs. 3,852 Million revenue as against Rs. 3066 Million revenue in the
same period of previous year.
The
PBT has jumped by 21% to Rs. 450 Million as against Rs. 372 Million in the
corresponding quarter. The PAT has also jumped by 18% to Rs. 321 Million as
against Rs. 272 Million in the corresponding period of previous year.
For
the 6 months period ended Sept 07, revenues rose 25% to Rs 7,645 million and
Profit before tax rose by 25 % to Rs 965 Million.
Major
Achievements of the Company:
- Record order booking (including
L1 positions) of above Rs. 33 Billion (USD 825 Million) as of date.
- Key orders in this quarter
include :
- Single largest order, the first
of its kind in Power Distribution Industry for feeder separation from
Maharashtra State Electricity Distribution Company Ltd. worth Rs.9,970
Million (USD 250 Million).
- GRTE Sonelgaz, Algeria for
laying 400 KV Transmission Line Project worth Rs.1,550 Million (USD 39
Million).
- An AfDB (African Development
Bank) funded export contracts from Ethiopian Electric Power Corporation,
Ethiopia and Electricity De Djibouti, Djibouti for construction of 230 KV
and 63 KV Transmission Lines of Ethiopia-Djibouti Power Interconnection
Projects worth Rs.1,580 Million (USD 41 Million).
- Secured Spur Lines from
Reliance Gas Transportation Infrastructure Ltd. having contract value of
Rs.240 Million.
- The Company is favorably placed
in securing a Hydro BOOT project of 150 MW in Himachal Pradesh. The tender
for this project was opened in the second week of October 07 and we are
the highest bidder in the projects.
- JMC Projects (India) Ltd, in
which your company holds 52% stake has reported revenue of Rs. 1,860
Million (a rise of 61%) compared to Rs 1,160 Million and a profit before
tax of Rs. 100 Million, a rise of 89%, as against Rs. 53 Million in the
corresponding period of previous year.
- For the 6 months period ended
Sept 07, revenues rose 84% to Rs 3,672 million and Profit before tax rose
by 105 % to Rs 184 Million.
- JMC has an order book of approx
Rs. 21 Billion including a mix of various factories & building, civil
works for power projects, water pipelines and road projects.
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
records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money Laundering
Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.84 |
|
UK Pound |
1 |
Rs.84.78 |
|
Euro |
1 |
Rs.67.32 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP
CAPITAL |
1~10 |
7 |
|
OPERATING
SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT
LINES |
1~10 |
7 |
|
--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 |
|
63 |
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 |
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 |