MIRA
INFORM REPORT
|
Report Date : |
11.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BAJAJ ELECTRICALS LIMITED |
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Registered Office : |
45 – 47, Veer
Nariman Road, Mumbai – 400 001, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
14.07.1938 |
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Com. Reg. No.: |
L31500MH1938PLC009887 |
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CIN No.: [Company
Identification No.] |
11-009887 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMB01798G |
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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 : |
Manufacturer of Steel,
Sugar, Two Wheelers and Three Wheelers |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 8700000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well - established and reputed company having fine track
records. Available information indicates high financial responsibility of the
company. General financial position is satisfactory. Fundamental are strong
and healthy. Payments are reported as usually correct and as per commitments.
The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in a medium to long
run. |
LOCATIONS
|
Registered
Office : |
45 – 47, Veer
Nariman Road, Mumbai – 400 001, Maharashtra, India. |
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Tel. No.: |
91 – 22 –
22823090 / 2204 3842 / 2204 3843 |
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Fax No.: |
91 – 22 – 22851279 |
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E-Mail : |
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Website : |
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Head Office : |
51, Mahatma
Gandhi Road, Mumbai – 400 023, Maharashtra, India. |
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Tel. No.: |
91-22-22043780 /
22875135 |
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Fax No.: |
91-22-22828250 |
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Corporate
Office 1 : |
45 – 47, Veer Nariman
Road, Mumbai – 400 023, Maharashtra, India |
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Tel. No.: |
91 – 22 – 204
3842 / 204 3843 / 204 3841 / 204 5341 / 204 5046 |
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Fax No.: |
91 – 22 – 2851279 |
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E-Mail : |
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Website : |
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Corporate
Office 2 : |
Ground Floor, L – 9, Type Building, Rajalaxmi Commercial Complex, Mane
Farm House, Opposite Durgesh Park, Kalher Village, Bhiwandi, Thane – 421 302,
Maharashtra, India |
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Mobile No.: |
91-9821025954 |
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Plant
Locations : |
Matchwel
Unit Off Nagar Road,
Pune – 411 014, Maharashtra, India Chakan
Unit Mahalunge, Chakan
Talegaon Road, Khed, Pune – 410 501, Maharashtra, India Wind
farm Village
Vankusawade, Taluka Patan, District Satara - 415 206, Maharashtra, India Ranjangaon
unit Village
Dhoksanghvi, Taluka Shirur, Ranjangaon, District Pune - 412 210, Maharashtra
, India [Jayant K.Deshmukh, Chief General Manager and Head (Operations)] |
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Depots : |
Located at: Daman, Dehradun,
Goa, Zirakhpur, Faridabad, Jabalpur, Jalandhar, Ranchi and Roorkee |
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Showroom : |
‘World of Bajaj Electricals’
Bajaj Bhavan, Nariman Point, Mumbai – 400 021, Maharashtra, India |
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Tel. No.: |
91-22-20236626 |
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Branches : |
SCO 52, Sector – 26, Madhya
Marg, Chandigarh 160026, India Tele No. 91-172-791414 Fax No. 91-172-792832 Email: chd_cic@bajajelectricals.com 1/10, Asaf Ali Road, New Delhi
– 110 002 Tele No. 91-11-23236055 Fax No. 91-11-23230214 Email: cic@bajajelectricals.com A-1. 1st Floor
Sector 19, Dist. Gautam Budh Nagar, Noida – 201 301, Uttar Pradesh, India Tele No. 91-120-2441887 Fax No. 91-120-2441779 Email: d12_cic@bajajelectricals.com Raghukamal Niwas, M. I. Road, Jaipur
– 302 001, Rajasthan , India Tele No. 91-141-377364 Fax No. 91-141-374261 Email: jai_cic@bajajelectricals.com Bajaj Bhavan, 21/32 A, Tilak Marg,
Lucknow – 226 001, India Tele No. 91-522-281391 Fax No. 91-522-275513 Email: luc_cic@bajajelectricals.com Eastern Region Kharvela Nagar, Janpath,
Bhubaneshwar – 751 001, India Tele No. 91-674-2400697 Fax No. 91-674-2400294 10, Ganesh Chandra Avenue,
Kolkata – 700 013, West Bengal, India Tele No. 91-33-22379270 Fax No. 91-33-22259111 Email: cal_cic@bajajelectricals.com Agarwal House, Christian Basti, G. S. Road,
Guwahati - 781 005, India Tele NO. 91-361-2346497 Fax No. 91-361-2346496 Email: guw_cic@bajajelectricals.com Kashi Palace 5th Floor, Dak
Bungalow Road, Patna – 800 001 Tele No. 91-612-2231978 Fax No. 91-612-2231978 Email: pat_cic@bajajelectricals.com Western Region 106, Sarkar III, Near Income
Tax Char Rasta, Off Ashram Road,
Navrangpura, Ahmedabad – 380 014, Gujarat, India Tele No. 91-79-7543964 Fax No. 91-79-7543950 Email: ahm_cic@bajajelectricals.com 15/17 Sant Savta Marg, Reay Road,
Mumbai – 400 010, Maharashtra, India Tele No. 91-22-23724192 Fax No. 91-22-23730505 / 23730504 Email: mum_cic@bajajelectricals.com Basant Mansion,165, R.N. Tagore
Marg, Indore – 452 001, India Tele No. 91-731-2527317 Fax No. 91-731-2514818 Email: ind_cic@bajajelectricals.com Manek Hall, 2, General Thimmayya
Road, Pune – 411 001, Maharashtra, India Tele No. 91-20-26360801 Fax No. 91-20-26360698 Email: pun_cic@bajajelectricals.com Bajaj Bhavan, Doongaji
Colony, G. E. Road, Near Anupam Udayan, Raipur– 492 001, India Tele No. 91-771-2263986 Fax No. 91-771-2263310 Email: rai_cic@bajajelectricals.com 1, Bachhraj Road, Wardha – 442 001,
India Tele No. 91-7152-243841 Fax No. 91-7152-244025 Email: war_cic@bajajelectricals.com Southern Region Bajaj Bhavan, No.16, Residency Road,
Bangalore – 560 025, Karnataka, India Tele No. 91-80-2235486 Fax No. 91-80-2214878 Email: ban_cic@bajajelectricals.com Bajaj Bhavan, XL/11/877ABC, Power House Road, Ernakulam
– 682 018, Kerala, India Tele
No. 91-484-2391119 Fax
No. 91-484-2391744 Email:
ccn_cic@bajajelectricals.com 1-2-2/1,
Domalguda, Hyderabad – 560029, Andhra Pradesh,
India Tele No.
91-40-23223371 Fax No.
91-40-23220081 Email: hyd_cic@bajajelectricals.com 142 (New No.
195), Anna Salai, Chennai – 600 002, Tamil Nadu,
India Tele No.
91-44-28570969 Fax No.
91-44-28544813 Email: che_cic@bajajelectricals.com
Ahmedabad, Bangalore, Bhubaneshwar, Chandigarh, Chennai, Cochin,
Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kolkata, Lucknow,
Mumbai, Noida, Patna, Pune, Raipur and Wardha. |
DIRECTORS
|
Name : |
Mr. Shekhar Bajaj |
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Designation : |
Chairman and
Managing Director |
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Date of
Birth/Age : |
53 years |
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Qualification
: |
B.Sc. (Hons.),
M.B.A. |
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Experience : |
31 years |
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Date of
Appointment : |
01.04.1980 |
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Name : |
Mr. Harsh Vardhan
Goenka |
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Designation : |
Director |
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Name : |
Mr. A. K. Jalan |
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Designation : |
Director |
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Name : |
Mr. Ajit
Gulabchand |
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Designation : |
Director |
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Name : |
Mr. M. R. Pai |
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Designation : |
Director |
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Name : |
Mr. V. B.
Haribhakti |
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Designation : |
Director |
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Name : |
Mr. Madhur Bajaj |
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Designation : |
Director |
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Name : |
Mr. S. C. Batra |
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Designation : |
Director |
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Name : |
Mr. Dakshesh B.
Dhruv |
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Designation : |
Director |
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Name : |
Mr. Anant Bajaj |
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Designation : |
Executive
Director |
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Name : |
Mr. R.
Ramakrishnan |
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Designation : |
Executive
Director |
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Name : |
Dr. Indu Shahani |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Mangesh Patil |
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Designation : |
Company Secretary |
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Name : |
Mr. L. K. Mehta |
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Designation : |
President Engineering and Projects BU |
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Name : |
Mr. P. S. Tandon |
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Designation : |
President Appliances BU |
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Name : |
Mr. A. S. Radhakrishna |
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Designation : |
Executive Vice President and Head – Fans BU |
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Name : |
Mr. Pravin Jathar |
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Designation : |
Executive Vice President and CFO |
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Name : |
Mr. C. G. S.Mani |
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Designation : |
Executive Vice President and Head -Lighting BU |
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Name : |
Mr. Gulshan Aghi |
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Designation : |
Executive Vice President and Head Luminaires BU |
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Name : |
Mr. Vivek Sharma |
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Designation : |
Vice President and Business Head (Morphy Richards) |
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Name : |
Mr. Prataprao S. Gharge |
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Designation : |
Vice President and CIO |
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Name : |
Mr. R. Ramesh |
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Designation : |
Vice President - Human Resources and Administration |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2008
|
Particulars |
No. of Shares |
Percentage of
Holding |
|
Promoters |
11651690 |
67.41 |
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Financial Institutions, Banks etc. |
2874445 |
16.63 |
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Others |
2759625 |
15.96 |
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Total |
17285760 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of
Steel, Sugar, Two Wheelers and Three Wheelers |
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Products: |
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PRODUCTION STATUS as on 31.03.2008-
Class of goods
|
Unit
|
Licensed Capacity
|
Installed Capacity
|
Actual
Production |
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Fans |
Nos. |
1000000 |
800000 |
287474 |
|
Parts and
Accessories of Fans |
Nos. |
50000 |
--- |
-- |
|
Magneto
assemblies |
Nos. |
500000 |
300000 |
-- |
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Parts and
Accessories for Magneto |
Nos. |
25000 |
25000 |
-- |
|
Electric Motors |
Nos. |
25000 |
-- |
-- |
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Parts and Accessories for electric motors |
Nos. |
5000 |
-- |
-- |
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Dies made of
Steel |
Nos. |
90 |
24 |
-- |
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Power Generated |
|
-- |
2.8 MW |
2702563 KWH |
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Highmast Shafts |
Nos. |
-- |
2275 |
3169 |
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Swaged /
Octagonal Poles |
Nos. |
-- |
19700 |
29518 |
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Lattice Mast /
Transmission Line Towers/ Others (Galvanising Job Work etc.) |
M. Tons |
-- |
24000 |
21604 |
GENERAL
INFORMATION
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No. of
Employees : |
1500 |
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Bankers : |
Ø State Bank of Bikaner and Jaipur, Mumbai Ø Bank of Rajasthan Limited, Mumbai Ø Bank of India, Mumbai Ø State Bank of India Ø Yes Bank Limited Ø Union Bank of India Ø Industrial Development Bank of India Limited Ø ICICI Bank Ø HDFC Bank Limited Ø Dena Bank Ø Barclays Bank PLC |
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Banking Relations : |
Good |
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Auditors : |
Dalal and Shah Chartered
Accountants |
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Memberships: |
Confederation of Indian Industry |
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Associates : |
Ø Bajaj International Private Limited Ø Hercules Hoist Limited Ø Bajaj Auto Limited Ø Hind Lamps Limited Ø Konark Fixtures Limited Ø Utkal Electricals Limited Ø Mayank Electro Limited Ø M. P. Lamps Limited
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs. 10/- each |
Rs.200.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17285760 |
Equity Shares |
Rs. 10/- each |
Rs.172.858
millions |
Notes:
1. Of the above
equity shares:
(a) 2,800 Equity Shares
of Rs.10/- each are allotted as fully paid pursuant to a contract without
payment being received in cash,
(b) 172,780 Equity
Shares of Rs.10/- each are issued to the Deferred Shareholders pursuant to the
Scheme of Conversion of Deferred Shares into Equity Shares,
(c) 37,540 Equity
Shares of Rs.10/- each are issued as fully paid to the Shareholders of the
erstwhile Matchwel Electricals (India) Limited in terms of the Scheme of
Amalgamation,
(d) 2,400,800 Equity
Shares of Rs.10/- each are allotted as fully paid Bonus Shares by capitalising
Reserves,
(e) 8,642,880
Equity Shares of Rs.10/- each are allotted as fully paid Bonus Shares by
capitalising Reserves during the year.
2. 10,000,000, 11
% Cumulative Redeemable Preference Shares of Rs.10/- each fully paid issued
during 1998-99 on private placement basis were redeemable at par after 5 years
with put / call option after 3 years from the date of allotment, i.e., 7th
January, 1999 w.r.t. 7,000,000 shares and 21st January, 1999 w.r.t. the balance
3,000,000 shares. The tenure of the said Preference Shares was extended and the
same were redeemable in four installments, commencing January 2006, with put
and call option after 3 years from previous redemption due date. On and after
1st April, 2004, Preference Shares carry dividend at the rate of 10%.
Of this,
8,000,000, 10% cumulative Preference Shares of Rs.10/- each were fully redeemed
and balance 2,000,000 Perference Shares were partly redeemed by Rs.2/- per
share during the year 2005-06. During the year 2006-07, the Company exercised
‘Call Option’ and fully redeemed balance amount of Rs.8/- per share of
2,000,000 Preference Shares.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
172.858 |
86.429 |
102.400 |
|
|
2] Stock option outstanding |
13.151 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1561.772 |
1081.815 |
805.300 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1747.781 |
1168.244 |
907.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1559.258 |
1690.309 |
1174.000 |
|
|
2] Unsecured Loans |
807.734 |
681.397 |
754.200 |
|
|
TOTAL BORROWING |
2366.992 |
2371.706 |
1928.200 |
|
|
DEFERRED TAX LIABILITIES |
41.254 |
72.645 |
0.000 |
|
|
|
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|
|
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TOTAL |
4156.027 |
3612.595 |
2835.900 |
|
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APPLICATION OF FUNDS |
|
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|
|
|
|
FIXED ASSETS [Net Block] |
916.196 |
908.614 |
940.200 |
|
|
Capital work-in-progress |
3.003 |
5.662 |
0.300 |
|
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INVESTMENT |
223.276 |
222.953 |
149.400 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1621.750
|
1198.880
|
1031.500 |
|
|
Sundry Debtors |
4253.471
|
3579.315
|
2778.400 |
|
|
Cash & Bank Balances |
319.555
|
293.662
|
191.000 |
|
|
Other Current Assets |
0.218
|
0.267
|
0.000 |
|
|
Loans & Advances |
889.535
|
584.171
|
418.200 |
|
Total
Current Assets |
7084.529
|
5656.295 |
4419.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
3645.264
|
3008.746
|
2474.800 |
|
|
Provisions |
425.713
|
172.470
|
204.600 |
|
Total
Current Liabilities |
4070.977
|
3181.216 |
2679.400 |
|
|
Net Current Assets |
3013.552
|
2475.079
|
1739.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.287 |
6.300 |
|
|
|
|
|
|
|
|
TOTAL |
4156.027 |
3612.595 |
2835.900 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
13731.652 |
11130.050 |
8783.600 |
|
|
Operating Income |
13.109 |
73.275 |
|
|
|
Other Income |
50.139 |
283.820 |
95.200 |
|
|
Total Income |
13794.900 |
11487.145 |
8878.800 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1114.376 |
602.907 |
469.300 |
|
|
Provision for Taxation |
383.109 |
216.758 |
171.000 |
|
|
Profit/(Loss) After Tax |
731.267 |
386.149 |
298.300 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
Total Earnings |
26.347 |
2.809 |
NA |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
3.350 |
|
|
|
|
Stores & Spares |
3.832 |
1.836 |
|
|
|
Capital Goods |
4.352 |
5.387 |
NA |
|
|
Others |
654.595 |
405.197 |
|
|
Total Imports |
666.129 |
421.177 |
NA |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
0.000 |
0.000 |
407.700 |
|
|
Administrative Expenses |
0.000 |
0.000 |
804.900 |
|
|
Raw Material Consumed |
10081.018 |
8200.228 |
6124.800 |
|
|
Excise Duty |
0.000 |
0.000 |
294.000 |
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
[116.100] |
|
|
Interest |
293.415 |
230.733 |
198.900 |
|
|
Power & Fuel |
0.000 |
0.000 |
12.800 |
|
|
Personnel Cost |
636.340 |
442.614 |
0.000 |
|
|
Amounts Written off |
47.470 |
230.733 |
0.000 |
|
|
Extra Ordinary Items and Tax |
0.000 |
5.753 |
0.000 |
|
|
Depreciation & Amortization |
74.524 |
68.092 |
63.800 |
|
|
Other Expenditure |
1547.757 |
1258.411 |
261.800 |
|
Total Expenditure |
12680.524 |
10436.564 |
8052.600 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2008 |
30.09.2008 |
|
Type
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
3175.800 |
3793.200 |
|
Other Income |
5.100 |
8.200 |
|
Total Income |
3180.900 |
3801.400 |
|
Total Expenditure |
2925.500 |
3493.400 |
|
Operating Profit |
255.400 |
308.000 |
|
Interest |
80.100 |
98.100 |
|
Gross Profit |
175.300 |
209.900 |
|
Depreciation |
18.900 |
19.900 |
|
Tax |
66.700 |
76.100 |
|
Reported PAT |
100.200 |
122.000 |
KEY RATIOS
|
Year |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
1.75 |
2.30 |
2.40 |
|
Long Term Debt-Equity Ratio |
0.68 |
1.00 |
1.22 |
|
Current Ratio |
1.24 |
1.20 |
1.23 |
|
TURNOVER RATIOS |
|||
|
Fixed Assets |
10.79 |
9.00 |
7.55 |
|
Inventory |
9.96 |
9.99 |
9.22 |
|
Debtors |
3.59 |
3.51 |
3.80 |
|
Interest Cover Ratio |
4.30 |
3.38 |
3.36 |
|
Operating Profit Margin(%) |
10.86 |
8.33 |
8.33 |
|
Profit Before Interest And Tax Margin(%) |
10.33 |
7.68 |
7.61 |
|
Cash Profit Margin(%) |
5.73 |
4.11 |
4.12 |
|
Adjusted Net Profit Margin(%) |
5.20 |
3.46 |
3.40 |
|
Return On Capital Employed(%) |
39.01 |
27.79 |
26.23 |
|
Return On Net Worth(%) |
54.09 |
41.52 |
41.72 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Subject is a 68 year old diversified Company with its operations in Lighting,
Luminaires, Appliances, Fans and Engineering and Projects. Incorporated in
1938, subject commenced its operations as Radio Lamp Works and changed its name
to the present one in 1960.
The company has its Factories situated at Chakan, Village Vankusawade and
Village Dhoksanghvi respectively. Subject has 19 branch offices, a chain of 600
distributors, 3000 authorised dealers, over 1,20,000 retail outlets and over
200 service franchises spread across the country. At present, subject has five
major strategic business units comprising of home appliances, fans, lighting,
luminaires and engineering and projects. Subject is in the business of
manufacturing, erection and commissioning of Transmission Line Towers, Telecom
Towers, Mobile Telecom Towers and Wind Energy Towers. Export of all subject's
products except of its engineering and projects business unit is taken care of
by group company Bajaj International Private Limited
In 1992-93, a Memorandum of Understanding was concluded with The Black and Decker
Corporation of USA for setting up a Joint Venture Company for the manufacture
of Portable Electric Power Tools and Small Home Appliances in India.
During 1994-95, subject subdivided the equity shares of Rs.100/- each in to
shares of Rs.10/- each.
Subject offered rights issues in Apr.'95 at a premium of Rs 190 per share to
part-finance its project to implement a joint venture, Black and Decker Bajaj
Private Limited with the Black and Decker Corporation, US, for the manufacture
of power tools and houseware, and to expand the capacity of die-casting
components from 25,000 pa to 40,000 pa. In 1996 subject's Matchwel unit has
been awarded ISO 9002 Certification by TUV, Bayan, Germany, in respect of fans,
die-castings and magneto assemblies manufactured at Matchwel unit.
During 1998-99, the company entered an agreement with the Black and Decker
Corp, USA to purchase their 50% holding in the Black and Decker bajaj, thus
making it a 100% subsidiary in 1999-2000. Subsequently, the company was renamed
Bajaj Ventures Limited and subject with a view to unlock part of the
investments, disposed off 50% of the shareholding in Bajaj Ventures Limited
during 2001-2002, due to which the company ceased to be the subsidiary of
subject. Subject had set up facilities for manufacture of highmast and other
related products along with galvanizing plant at an approximate cost of Rs.450
millions. The plant located at Ranjangaon near Pune commenced its commercial
production from April 2001.
The company has introduced two models of nature switches which turn on/off
depending upon the ambient lux level. The switches being automatic, willcontain
the waste in use of electricity due to human errors. The Ranjangaonunit, a
division of Engineering and Projects, has received the coveted ISO-9001certification
and from 2002 it is actively working on ISO-14001certification.
During December 2002 the company has executed one of the prestigious orders for
illumination of eight outdoor and indoor stadiums at Hyderabad for the National
Games 2002.
During 2003-04, the company issued 43,21,440 equity shares of Rs.10/- each at a
premium of Rs.15/- per share aggregating 108.036 millions as rights issue in
the ratio of 1:1. The proceeds of the rights issue has been utilised for the
repayment of ICDs.
During 2005-2006, the companies production capacity of Swaged/Octagonal Poles
expanded from 10,000 Nos to 19700 Nos and Lattice Mast/Transmission Line
Towers/Others expanded from 22525 Nos to 24000 Nos. The companies production
capacity of Products like Fans, Parts and Accessories for Magneto, Magneto
Assemblies, Dies made of Steel, Power, Highmast Shafts, stood at 1000000 Nos,
25000 Nos, 300000 Nos, 24 (2.8 MW), 2275 Nos respectively.
Financial Highlights / Sales and Other Income:
For the financial year 2007-08, the Company achieved an overall growth
in turnover of 27.46% and Profit After Tax registered a growth of 89.41%. All
BUs have achieved over 100% of their respective profit budgets.
Dividend:
During the year the Company issued Bonus Equity Shares in the ratio of 1:1. The
Directors are now to recommend, for the year ended 31st March, 2008, a dividend
of 80% on the Equity Shares of the Company (Previous year 80%). The payment of
dividend is subject to the approval of the shareholders at the Annual General
Meeting and will be paid on 1,72,85,760 Equity Shares @ Rs.8/- per share. The
dividend will absorb a sum of Rs.161.800 millions (including dividend tax of
Rs.23.500 millions).
Operations:
Lighting:
The turnover of lighting products viz. Lamps, Tubes, Luminaires, and Domestic
fittings increased by about 24% at Rs.4100 millions during the year from
Rs.3300 millions in the previous year.
The Division is continuously working on developing energy efficient consumer
luminaire. It has successfully launched LED based luminaries for landscape and
decorative lighting. It has also entered into an arrangement with Helvar
Limited of Finland for Dimming and Non-Dimming electronic ballasts as also for
Lighting Controls to offer complete energy saving solutions to discerning class
of customers and has partnered with Securiton of Switzerland and Delta Controls
of Canada to offer the latest and cutting edge Security and BMS (Building
Management Systems) to its institutional customers.
Consumer Durables:
The turnover of consumer durables, which include fans and small appliances,
increased by over 35% at Rs.6110 millions during the year from Rs.4530 millions
in the previous year. The Company's Morphy Richard brand has emerged as the
fasted growing premium brand with a growth of 51% and a CAGR of 44%. The
Company has continued to introduce new range of products with varied models and
improve the technology and quality in order to gain a competitive advantage.
Chakan Unit:
The production at this Unit showed decrease during the year with production of
2,87,474 nos. of fans as against 3,78,822 nos. of fans in the previous year.
They are developing this Unit to cater to their growing export
requirement.
Engineering and Projects:
The E and P BU has achieved a turnover of Rs.3820 millions as compared to
Rs.3300 millions in the previous year, registering a growth of 16% and a CAGR
of 20%. The Unit produced 3,169 nos. of Highmasts and 29,518 nos. of Poles as
against 2,970 nos. and 17,181 nos. respectively in the previous year. The Unit
also manufactured 21,604 MT of transmission line towers as against 25,223 MT in
the previous year.
The infra-structure development continues to be the Government's focus area,
which offers a good opportunity to this division to improve its growth and
profitability in the future.
Wind Energy:
The 2.8 MW Wind Farm at Village Vankusawade in Maharashtra generated 27,02,563
electrical units during the year (previous year 40,93,311 units).
MANAGEMENT DISCUSSION
AND ANALYSIS:
The Management Discussion and Analysis presented in this Annual Report focuses
on the theme 'ACTION 2008', a Company-wide initiative to attain a sales target
of Rs.20010 millions by the FY 2009-10.
Overall Review:
Subject is a 70-year-old diversified Company, with interests in
Lighting, Luminaires, Appliances, Fans, and Engineering and Projects. In the
financial year 2007-08, the net turnover of the Company has increased to
Rs.14030 millions as against Rs.11130 millions last year, registering a growth
of 26.06%. The costs of inputs in key raw materials like Steel, Copper, Plastic
and Aluminum continued to escalate, thereby affecting the material costs
adversely. The industry continued to witness intense competition for market
share and significant pressures on margins and profits. With the dereservation
of some of the items, which were earlier reserved for exclusive manufacture in
the small scale sector, the entry of giant multi-national players in the
manufacture of products in which the Company deals will further intensify the
competition and may squeeze the margins and profits.
As in the past, during the current year also the Company continued its focus on
enhancing revenue growth through introduction of new products, expansion of the
dealer and retailer network along with good brand building efforts. The various
actions that the Company had taken for effective cost control, value
engineering, competitive sourcing and improving credit discipline including
introduction of channel finance continue and are giving good results. India
continues to be a high growth economy with exciting opportunities for all and
the Company has also geared to reap the benefits of industrial growth.
Business Review:
Engineering and Projects Business Unit (E and P BU):
E and P BU has been consistently performing and contributing to the growth and
strong bottom line of the Company and has achieved a turnover of Rs.3820
millions. This translates into a growth of 16% and a CAGR of 20%. Orders worth
Rs.5220 millions were received during the year.
The Business Unit has achieved some fresh landmarks with their Highmast
Division clocking a sale of Rs.1520 millions and Special Projects Division
crossing Rs.1000 millions mark for the first time. Record number of 3,200
Highmasts were sold during year as also over 29,000 Poles of various
categories.
The TLT Industry has been going through a recession due to the spurt in
manufacturing capacity in the country. As per IEEMA estimates, the industry capacity
utilization during the year was only 49%. This coupled with the drop in prices
of Transmission Line Towers has affected the revenues of E and P BU's
transmission line business.
The BU continues to be the leader in Power Station Lighting with 24 projects
under execution and has also received and executed some prestigious sports
lighting orders. Floodlighting of the new Uppal Cricket Stadium at Hyderabad
was completed in a record time and is the first stadium in India to be floodlit
as per ICC guidelines using six highmasts.
The Rural Electrification contract at Chattisgarh district has progressed well
and the BU is now poised to receive two more similar high value orders in the
near future. The Transmission Line Industry is also showing signs of looking up
and the BU is well placed in large value tenders exceeding Rs.4500 millions.
The prestigious PWD Delhi order for the illumination of important roads of
Delhi for the forthcoming Common Wealth Games, 2010 has also been received
worth Rs.510 millions, which is slated to be executed within the next 18
months.
The infra-structure development continues to be the Government's focus area,
which augers well for the BU's businesses both in terms of growth and
profitability.
Appliances BU:
The Appliances BU offers a wide range of small domestic appliances, which
include water heaters, mixers, microwave ovens, air coolers, irons, electric
kettles, water filters, water purifiers, toasters, oven-toaster-grillers,
juicer-mixer-grinder, juicers, hair dryer, hobs, chimneys, gas-stoves, room
heaters, etc.
The Appliances BU continues to be on the path of aggressive growth by achieving
a turnover of Rs.3180 millions with a growth of 37% and a CAGR of 35%. During
the year it has attained 'A Dominant No.1' player in the small appliances
industry, nearly double the size of its closest competitor. In the Mixer
category with sales of over 5,60,000 units, BU is now a dominant No.1 player.
Furthermore, in Irons segment the BU continues to dominate the category by
achieving a record sale of over 1.4 million Irons in the last financial year.
The BU has entered the Modern Retail format in a big way with a sale of over
Rs.460 millions in 2007-08. Bajaj Water Heaters emerged as Winners in 'Consumer
World Awards - 2008' held by FMCG Federation of India and received the
Prestigious 'MERA BRAND' Award.
The Morphy Richards (MR) BU achieved sales of over Rs.460 millions despite
intense competition from other international brands. MR brand has emerged as
the fastest growing premium brand with a growth of 51% and a CAGR of 44%.
Fans BU:
The Fans BU offers an attractive range of ceiling, table, pedestal, wall
mounted, exhaust and fresh air fans, in various sizes and colours, manufactured
in plants having ISO 9001 / 9002 certifications. The Fans BU has done
exceedingly well by achieving a turnover of Rs.2480 millions with a growth of
28% and a CAGR of 28%, despite a spirited fight from competition. The BU has
sold over 27.07 lacs fans against 21.78 lacs fans last year. The BU has many
successes attributable to its credit in terms of introduction of new models,
gains in market and shop shares, a successful Dealer Privilege Club Program
etc. to name a few. In a unique Marketing coup bajaj fans have tied-up
exclusively with 'Disney' for introducing Children's Fans with Disney
Characters. Bajaj Fans emerged as Winners in 'Consumer World Awards - 2008' and
received the Prestigious 'MERA BRAND' Award. The BU continued its aggressive
expansion of the dealer network, (according to Fansis Kanoi latest report Bajaj
Fans are available at 40,000 Retail Outlets across India), while continuing on
excellent marketing efforts to ensure that they reach the number 2 position in
the industry in 2 years.
Luminaires BU:
The Luminaires BU markets a comprehensive range of luminaires (light fittings)
covering, commercial, industrial, flood lighting, street lighting, post-top
lighting luminaires besides special luminaires for flame proof and increased
safety applications. This BU is certified for ISO 9001 while the various
products are manufactured in plants conforming to ISO 9002 requirements. The
luminaires are offered to suit a wide variety of light sources ranging from
CFL, FTL to HID lamps of various types and ratings. The BU has a technical
design cell to carry out scientific illumination layouts for various
applications and a well-equipped laboratory approved by the Department of
Science and Technology. At present BU is developing a new generation of energy saving
luminaires with LEDs.
The Luminaries BU has achieved a turnover of Rs.2320 millions with a growth of
20% and CAGR of 21%.
The BU successfully launched LED based luminaries for landscape and decorative
lighting. This is the beginning of a major foray into solid state lighting
having electronic controls. It will culminate into introduction of LEDs for
general lighting also. A prestigious order for such high-tech lighting was
secured by the BU from TCS for their new software facility in SEZ near Chennai.
The BU has aggressive plans to enter retail lighting segment. It has developed
products suitable for display/accent/ambient lighting for malls, hyper markets,
chain of stores etc. Large orders from Big Bazaar, Reliance Retail, Aditya
Birla Retail, Pyramid, etc. have been executed and fresh orders are on
anvil.
Photolux application design software has been developed by the BU for lighting
professionals. It empowers them to make illumination designs accurately and
with speed. This software is given without any obligation in the interest of
energy saving lighting.
The BU has entered into an arrangement with Helvar Limited of Finland for DALI,
other Dimming and non-Dimming electronic ballasts as also for Lighting
Controls. This gives Company an opportunity to offer complete energy saving
solutions to discerning class of customers. The BU continues to promote the
premium end Trilux Luminaires from Germany.
The BU has the ability to quickly design, develop and launch products as per
emerging needs and presence in all high growth segments viz. Infrastructure,
Retail. IT, ITES, Hospitality, Health Care, Manufacturing, etc.
In keeping with Company's commitment to protect the environment, the BU
has assisted all its major vendors to obtain ISO 14001 certification.
As a part of the strategic diversification in product lines, the BU has
entered into new business line viz. iBMS (integrated intelligent Building
Management Systems). This covers HVAC Controls, Fire, Access and Security
controls, managed by a BMS. The BU has tied up with two major partners i.e
Securiton of Switzerland and Delta Controls of Canada to offer the latest and
cutting edge BAC Net technology to its institutional customers. This venture
will provide a competitive edge and the Bajaj can be looked upon by customers
for end to end solution in total energy management and controls of Buildings
and facilities.
Lighting BU:
The Lighting BU markets a wide range of lamps and tube lights, which includes
General Lighting Service (GLS) lamps, Fluorescent Tube Lights (FTL), Compact
Fluorescent Lamps (CFL) and special purpose lamps. A strong distribution
network exists for marketing these lamps both in urban and rural areas. The
manufacturing of GLS and FTL lamps is undertaken at Hind Lamps Limited, an
associate company of subject, located in U.P. The equity investment in Starlite
Lighting Limited, a CFL manufacturer, last year, has added to the CFL marketing
strength. The plant makes world class products on one of its kind Swiss Falma'
machine.
The Lighting BU has done well despite competition and has achieved a turnover
of Rs.1780 millions with a growth of 31% and a CAGR of 27%. The CFL segment
continues to register a strong growth due to greater adoption of energy saving
lamps. The BU is continuously working on developing energy-efficient
(electronic type) consumer luminaire. It has recently participated in HAREDA's
(Haryana Renewable Energy Development Authority) initiative for major supplies
of T-5 consumer luminaire. The BU has continued to improve its retail presence
by expanding its network and reaching to over 2,25,000 outlets.
The BU's dealer-customer relationship management program 'JOSH' is being
carried forward to ensure a very strong and healthy relationship with its top
channel partners. The BU with its improved distribution network, wide product
range, and efficient sourcing strategies is poised for improved growth in the
future.
Financial Review:
The Company achieved a sales turnover of Rs.14030 millions as against Rs.11130
millions in the previous year, which is higher by about 26%. The net profit
after tax stands at Rs.731.300 millions as against Rs.386.100 millions in the
previous year, which is a growth of 89.41%.
Action 2008:
The Team Bajaj has embarked on a journey of ACTION 2008' to achieve a set
target of Rs.20010 millions sales turnover in FY 2009-10 after emerging
victories in mission Zoom Ahead' by becoming over Rs.14010 millions company.
Despite some signs of global slowdown, Indian economy continues to be high
growth economy with exciting opportunities for all. The Company aims at
superior business performance driven by continuous improvements in products and
processes, enlargement of product range and by entering new categories and
geographies.
Range of Products
�� APPLIANCES
Ø
Irons
Ø
Toasters
Ø
OTGs
Ø
Electric Kettles
Ø
Coolest
Ø
Room Heaters
Ø
Storage Water Heaters
Ø
Instant Water Heaters
Ø
Immersion Heaters
Ø
Microwave Ovens
Ø
Mixers
Ø
Food Processor
Ø
Emergency Light
Ø
Coffee Maker
Ø
DVD Players
OTHER INFORMATION:
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER
AND HALF YEAR ENDED 30TH SEPTEMBER, 2008
(In Millions)
|
Particulars |
Quarter Ended |
Six Months Ended |
31.03.2008 (Audited ) |
||
|
|
30.09.2008 (Unaudited) |
30.09.2007 (Unaudited) |
30.09.2008 (Unaudited) |
30.09.2007 (Unaudited) |
|
|
1)a) Net Sales/Income from Operations |
3785.700 |
3042.800 |
6959.100 |
5564.100 |
13731.700 |
|
b) Other Operating Income |
7.500 |
6.100 |
9.900 |
7.500 |
13.100 |
|
2) Expenditure |
|
|
|
|
|
|
a)
(Increase)/decrease in stock in trade and work in progress |
(337.400) |
(413.000) |
(583.800) |
(524.900) |
(416.400) |
|
b) Consumption of raw materials |
463.700 |
410.700 |
828.300 |
757.700 |
1399.800 |
|
c) Purchase of traded goods |
2733.200 |
2222.300 |
4904.300 |
3810.900 |
9097.600 |
|
d) Employees cost |
234.100 |
168.100 |
400.700 |
293.800 |
636.300 |
|
e) Depreciation |
19.900 |
18.200 |
38.800 |
35.400 |
74.500 |
|
f ) Other expenditure |
398.900 |
360.200 |
867.700 |
727.800 |
1595.300 |
|
g) Total |
3512.400 |
2766.500 |
6456.000 |
5100.700 |
12387.100 |
|
3) Profit
from Operations before Other Income, Interest and Exceptional Items |
280.800 |
282.400 |
513.000 |
470.900 |
1357.700 |
|
4) Other Income |
8.200 |
2.800 |
13.400 |
5.500 |
50.100 |
|
5) Profit
before Interest and Exceptional Items (3+4) |
289.000 |
285.200 |
526.400 |
476.400 |
1407.800 |
|
6) Interest |
98.100 |
76.600 |
178.200 |
146.100 |
293.400 |
|
7) Profit after Interest but before & after Exceptional Items
(5-6) |
190.900 |
208.600 |
348.200 |
330.300 |
1114.400 |
|
8) Profit from Ordinary Activities before Tax |
190.900 |
208.600 |
348.200 |
330.300 |
1114.400 |
|
9) Tax Expense - Current |
71.100 |
76.200 |
135.300 |
125.200 |
400.000 |
|
- Deferred |
(8.100) |
(3.900) |
(18.600) |
(11.200) |
(31.400) |
|
- Fringe Benefit Tax |
5.000 |
4.500 |
7.500 |
6.700 |
14.500 |
|
10) Net
Profit from Ordinary Activities after tax (8-9) |
122.900 |
131.800 |
224.000 |
209.600 |
731.300 |
|
11) Prior Period Adjustments |
0.900 |
-- |
1.800 |
-- |
0.300 |
|
12) Net
Profit for the period before extraordinary
items (10-11) |
122.000 |
131.800 |
222.200 |
209.600 |
731.000 |
|
13) Extra-Ordinary Items |
-- |
-- |
-- |
-- |
-- |
|
14) Net Profit
for the period after extraordinary items (12-13) |
122.000 |
131.800 |
222.200 |
209.600 |
731.000 |
|
15) Paid-up equity share capital (Face value of Rs. 10/- ) |
172.900 |
172.900 |
172.900 |
172.900 |
172.900 |
|
16) Reserves excluding
Revaluation Reserves as per balance sheet of previous accounting year |
-- |
-- |
-- |
-- |
1463.100 |
|
17) Earnings
per Share befor extra Ordinary Items for the period (Rs.) (Not Annualised) |
|
|
|
|
|
|
-Basic |
0.707 |
0.763 |
1.286 |
1.212 |
4.229 |
|
-Diluted |
0.690 |
0.763 |
1.259 |
1.212 |
4.156 |
|
18) Earnings per Share after extra Ordinary Items for the period
(Rs.) (Not Annualised) |
|
|
|
|
|
|
-Basic |
0.707 |
0.763 |
1.286 |
1.212 |
4.229 |
|
-Diluted |
0.690 |
0.763 |
1.259 |
1.212 |
4.156 |
|
19) Public Shareholding - Number of Shares |
5634070 |
5634070 |
5634070 |
5634070 |
5634070 |
|
- Percentage of Shareholding |
32.59 |
32.59 |
32.59 |
32.59 |
32.59 |
The company is in trade terms
with:
· Prakash Corrugated
· KSP Electricals Private Limited
· Jaysri Industries
· Decpro Paints
· Pramuk Stampings Private Limited
· Goa Precision Stampings (Private) Limited
· Spotwell Engineering Works Private Limited
· Paradise Industries
· Gild Packaging
· Shree Plastics
Contingent
Liabilities not provided for:
|
|
As
on 31.03.2008 Rs.
In Millions |
|
Disputed Income-tax Matters |
5.541 |
|
Disputed Excise Matters – Gross |
6.802 |
|
- Net to tax |
4.489 |
|
Disputed Sales-tax Matters – Gross |
81.934 |
|
- Net to tax |
54.084 |
|
Claims against the company not acknowledge–
Gross |
31.942 |
|
- Net to tax |
21.085 |
|
Guarantees/ Letter of Comfort given on behalf of other companies |
275.000 |
|
Penalty/ damages/ interests, if any due to non-fulfillment of any of
the terms of works contracts |
Amounts not
ascertainable |
|
Uncalled liability in respect of partly paid
shares held as investments |
0.720 |
|
|
|
Fixed
Assets:
- Goodwill
- Freehold and Leasehold Land
- Roads and Culverts
- Buildings
- Ownership Premises
- Dies
- Jigs and Patterns
- Trade Marks
- Vehicles
- Temporary Structures
- Furniture and Fixtures and Equipments
- Plant and Machinery
WEBSITE DETAILS:
Profile:
Subject is a part of the Rs.200000 millions "Bajaj Group" who are in the business of steel, sugar, two wheelers and three wheelers besides an impressive range of consumer electrical products. They are a 70 year old company with a turnover of over Rs.14040 millions aiming to be a Rs.20010 millions company in the next couple of years.
Bajaj Electricals has 19 branch offices, a chain of 600 distributors, 3000 authorised dealers, over 2,50,000 retail outlets and over 230 service franchises spread across the country. BEL today has five major strategic business units comprising of home appliances, fans, lighting, luminaires and engineering and projects. They are also in the business of manufacturing, erection and commissioning of Transmission Line Towers, Telecom Towers, Mobile Telecom Towers and Wind Energy Towers. Export of all subject's products except of its engineering and projects business unit is taken care of by group company Bajaj International Private Limited.
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] 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.47.59 |
|
UK Pound |
1 |
Rs.74.55 |
|
Euro |
1 |
Rs.60.57 |
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 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--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. |
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 |
|