1. Summary Information
|
|
|
Country |
India |
|
Company Name |
WEBSOL ENERGY
SYSTEMS LIMITED |
Principal Name 1 |
Mr. S.L. Agarwal |
|
Status |
Good |
Principal Name 2 |
Mr. S Vasanthi |
|
|
|
Registration # |
21-48350 |
|
Street Address |
Plot No.N1,
Block - GP Sector – V, Salt Lake Electronics Complex, Kolkata – 700 091, West
Bengal, India |
||
|
Established Date |
08.02.1990 |
SIC Code |
-- |
|
Telephone# |
91 33 23573754 |
Business Style 1 |
Manufacturer |
|
Fax # |
91 33 23573258 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Photovoltaic
Monocrystalline Solar Cells |
|
|
# of employees |
-- |
Product Name 2 |
Modules |
|
Paid up capital |
Rs.209731000/- |
Product Name 3 |
-- |
|
Shareholders |
Promoters and Promoters Group – 36.72% Public Shareholding – 63.28% |
Banking |
Allahabad Bank |
|
Public Limited Corp. |
YES |
Business Period |
21 Years |
|
IPO |
YES |
International Ins. |
-- |
|
Public |
YES |
Rating |
Ba
(46) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Associates |
India
|
S.L. Industries Private Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
30.06.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
1,366,869,000 |
Current Liabilities |
233,802,000 |
|
Inventories |
696,848,000 |
Long-term Liabilities |
2,950,382000
|
|
Fixed Assets |
2,348,241,000 |
Other Liabilities |
100,321,000 |
|
Deferred Assets |
-- |
Total Liabilities |
3,284,505,000 |
|
Invest& other Assets |
426,205,000 |
Retained Earnings |
1,343,927,000 |
|
|
|
Net Worth |
1,553,658,000 |
|
Total Assets |
4,838,163,000 |
Total Liab. & Equity |
4,838,163,000 |
|
Total Assets (Previous Year) |
4,568,136,000 |
|
|
|
P/L Statement as of |
30.06.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
1,496,187,000 |
Net Profit |
(30,016,000) |
|
Sales(Previous yr) |
1,391,151,000 |
Net Profit(Prev.yr) |
105,591,000 |
MIRA
INFORM REPORT
|
The
Ref. No.: |
135-294851-01-020(20110615595) |
|
Report Date : |
20.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
WEBSOL ENERGY SYSTEMS LIMITED (w.e.f. 28.05.2011) |
|
|
|
|
Formerly Known As : |
WEBEL-SL ENERGY SYSTEMS LIMITED |
|
|
|
|
Registered Office : |
Plot No.N1, Block - GP Sector – V, Salt |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
30.06.2010 |
|
|
|
|
Date of Incorporation : |
08.02.1990 |
|
|
|
|
Com. Reg. No.: |
21-48350 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.209.731 millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L29307WB1990PLC048350 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CALW02490F |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACW3039L |
|
|
|
|
Legal Form : |
A public limited liability company.
The company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturer of
Photovoltaic Monocrystalline Solar Cells and Modules. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 6200000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track. The
company is incurring some losses in the current year, net worth is
satisfactory however , Trade relations are reported as fair. Business is active.
Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office/ Factory 1 : |
Plot No.N1, Block - GP Sector – V, Salt |
|
Tel. No.: |
91 33 23573754 |
|
Fax No.: |
91 33 23573258 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office/ Factory 2 : |
Falta SEZ, Sector II, Falta, Village Birsa, Mouza Akalmegh, P.S.
Ramnagar, District South 24 Parganas – 743 504, West |
|
Tel. No.: |
91 3174 222932 |
|
Fax No.: |
91 3174 222933 |
|
E-Mail : |
|
|
|
|
|
Overseas Office : |
Tel: 904 363 0679 E mail : ramesh@webelsolar.com
|
DIRECTORS
AS ON : 31.03.2010
|
Name : |
Mr. S.L. Agarwal |
|
Designation : |
Managing Director and CEO |
|
|
|
|
Name : |
Mr. S Vasanthi |
|
Designation : |
Director (Technical and Marketing) |
|
|
|
|
Name : |
Mr. S.K. Pal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. O.P. Agarwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.P. Bangur |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. R. Sathyamurthi |
|
Designation : |
President Finance |
|
|
|
|
Name : |
Mr. NItin Didwania |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.01.2011
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
Shareholding of Promoter and Promoter Group2 |
|
|
|
Indian |
|
|
|
Individuals/ Hindu Undivided Family |
549748 |
2.50 |
|
Bodies Corporate |
7517674 |
34.21 |
|
|
|
|
|
Public shareholding |
|
|
|
Institutions |
|
|
|
Mutual Funds/ UTI |
7800 |
0.04 |
|
Financial Institutions / Banks |
240 |
- |
|
Foreign Institutional Investors |
6089531 |
27.71 |
|
|
|
|
|
Non-institutions |
|
|
|
Bodies Corporate |
3014685 |
13.72 |
|
Individuals |
|
|
|
Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.100 Million |
2497904 |
11.37 |
|
ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
1695484 |
7.72 |
|
|
|
|
|
Any Others (Specify) |
600000 |
2.73 |
|
|
|
|
|
Shares held by Custodians and against which Depository Receipts have been
issued |
-- |
-- |
|
|
|
|
|
GRAND TOTAL |
21973066 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Photovoltaic Monocrystalline Solar Cells and Modules. |
||||
|
|
|
||||
|
Products : |
|
PRODUCTION STATUS (As on 31.03.2010)
|
Particulars |
|
|
|
2009-2010 Qty.
(KW) |
|
|
|
|
|
|
|
Installed Capacity |
|
|
|
40000.00 |
|
Actual Production |
|
|
|
17229.40 |
|
|
|
|
|
|
GENERAL INFORMATION
|
Bankers : |
·
Allahabad Bank ·
The Federal Bank Limited ·
Standard Chartered Bank ·
Dena Bank ·
Axis Bank ·
HDFC Bank ·
Exim Bank ·
ICICI Bank
|
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
Note: Above loans are secured by way of hypothecation of all fixed and movable properties including stocks of raw materials, stock in process, finished goods, consumables and book debts, both present and future situated at company’s units at Salt Lake, Kolkata and Falta SEZ and guaranteed by Managing Director and Corporate Guarantee of Promoter Company.
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Agarwal Sanganeria and Company Chartered Accountants |
|
|
|
|
Associates : |
|
CAPITAL STRUCTURE
As on : 30.06.2010
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 |
|
|
|
|
|
|
10286533 |
Equity Shares (fully paid up in cash) |
Rs.10/- each
|
Rs.102.866
millions |
|
9986533 |
Equity Shares ( issued as bonus shares by
capitalization of Securities Premium) |
Rs.10/- each
|
Rs.99.865
millions |
|
700000 |
Equity Shares (fully paid for consideration
other than cash) |
Rs.10- each |
Rs. 7.000
millions |
|
|
Total |
|
Rs.209.731 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
209.731 |
77.385 |
77.385 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1343.927 |
893.138 |
796.601 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1553.658 |
970.523 |
873.986 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2162.966 |
2292.731 |
660.064 |
|
|
2] Unsecured Loans |
787.416 |
862.058 |
664.406 |
|
|
TOTAL BORROWING |
2950.382 |
3154.789 |
1324.470 |
|
|
DEFERRED TAX LIABILITIES |
100.321 |
100.321 |
76.649 |
|
|
|
|
|
|
|
|
TOTAL |
4604.361 |
4225.633 |
2275.105 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2348.241 |
331.865 |
315.227 |
|
|
Capital work-in-progress |
50.278 |
1902.004 |
267.797 |
|
|
|
|
|
|
|
|
INVESTMENT |
351.258 |
351.258 |
311.258 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
696.848
|
480.090
|
378.808 |
|
|
Sundry Debtors |
202.904
|
58.922
|
49.323 |
|
|
Cash & Bank Balances |
71.586
|
71.839
|
51.335 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
1092.379
|
1372.158
|
1034.896 |
|
Total
Current Assets |
2063.717
|
1983.009
|
1514.362 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
178.328
|
227.088
|
53.652 |
|
|
Provisions |
55.474
|
115.415
|
79.887 |
|
Total
Current Liabilities |
233.802
|
342.503
|
133.539 |
|
|
Net Current Assets |
1829.915
|
1640.506
|
1380.823 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
24.669 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4604.361 |
4225.633 |
2275.105 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1496.187 |
1391.151 |
1006.321 |
|
|
|
Other Income |
177.953 |
69.945 |
20.372 |
|
|
|
TOTAL (A) |
1674.140 |
1461.096 |
1026.693 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
1159.517 |
1026.083 |
770.272 |
|
|
|
Stores and Spares Consumed |
25.444 |
36.935 |
23.363 |
|
|
|
Power and Electric Charged |
55.003 |
13.651 |
8.668 |
|
|
|
Managing Director’s Remuneration |
0.808 |
8.039 |
4.034 |
|
|
|
Provision for and Payment to Employees |
46.761 |
19.833 |
13.890 |
|
|
|
Administrative, Selling and Other Expenses |
141.941 |
89.167 |
79.940 |
|
|
|
Increase/(Decrease) in Finished Goods |
(40.790) |
(17.134) |
(20.021) |
|
|
|
TOTAL (B) |
1388.684 |
1176.574 |
880.146 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
285.456 |
284.522 |
146.547 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
190.696 |
95.689 |
52.499 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
94.760 |
188.833 |
94.048 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
124.468 |
20.994 |
12.974 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
(29.708) |
167.839 |
81.074 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
0.308 |
62.248 |
28.229 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
(30.016) |
105.591 |
52.845 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
289.043 |
192.506 |
149.061 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
0.000 |
(9.054) |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
259.027 |
289.043 |
192.506 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1474.957 |
1379.913 |
987.304 |
|
|
|
Interest on Unsecured Loans |
56.688 |
49.065 |
18.022 |
|
|
TOTAL EARNINGS |
1531.645 |
1428.978 |
1005.326 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1359.487 |
1026.887 |
668.141 |
|
|
|
Capital Goods |
601.579 |
997.192 |
154.578 |
|
|
|
Components & Spares |
4.317 |
5.752 |
9.584 |
|
|
TOTAL IMPORTS |
1965.383 |
2029.831 |
832.303 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share (Rs.) |
|
|
|
|
|
|
- Basic |
(1.43) |
13.64 |
6.83 |
|
|
|
- Diluted |
(1.43) |
13.64 |
7.28 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
524.690 |
525.660 |
641.250 |
|
Total Expenditure |
457.72 |
479.570 |
571.800 |
|
PBIDT (Excl
OI) |
66.970 |
46.090 |
69.450 |
|
Other Income |
12.350 |
22.330 |
56.860 |
|
Operating
Profit |
79.320 |
68.420 |
126.310 |
|
Interest |
45.860 |
32.380 |
51.050 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
33.460 |
36.040 |
75.260 |
|
Depreciation |
29.750 |
29.770 |
32.370 |
|
Profit
Before Tax |
3.710 |
6.270 |
42.900 |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
3.710 |
6.270 |
8.910 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
3.710 |
6.270 |
8.910 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(1.79) |
7.23 |
5.15 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(1.98) |
12.06 |
8.06 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.67) |
7.25 |
4.43 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01 |
0.17 |
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.04 |
3.60 |
1.67 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
8.82 |
5.79 |
11.34 |
LOCAL AGENCY FURTHER INFORMATION
FINANCIAL RESULTS
:
Business and Performance India, an emerging economy, has witnessed
unprecedented levels of economic expansion, along with countries like China,
Russia, Mexico and Brazil. India, being a cost effective and labor intensive
economy, has benefited immensely from a strong manufacturing and export
oriented industrial framework. With the economic pace picking up, global
commodity prices have also staged a comeback from their lows.
In the past few years, solar power has taken centre-stage globally as an
alternate energy source. The past few months, however, have been a dampener in
terms of investment flows into the sector because of the global recession. But
with China and India, the two most attractive markets for solar capacity
build-outs, setting ambitious targets for the next decade, the sector is
definitely poised for a fresh beginning.
The company being a pioneer in the industry of manufacturing of
photovoltaic cells and modules, strives to transcend all hurdles for noting
down remarkable growth. The last financial year of the Company, which was of fifteen months and
ended on 30th June’ 2010, saw many events, the major amongst them being the
start of state of the art manufacturing facility at Falta SEZ, West Bengal. The
turnover of the company for the last
financial year was Rs.1496.187 millions as against Rs.1391.151 millions in
2008-09. Despite the increase in the quantitative terms, the turnover was low
mainly because of the decrease in the selling prices of finished goods in
absolute terms. However, the company
posted a loss in the last financial year, which can be viewed as a temporary
phase, and was mainly due to fall in the prices of SPV cells and modules
globally, weakening of euro visa- vis dollar and higher depreciation and
interest costs.
Solar power, which is counted among one of the major
environment-friendly sources of energy, has a number of positives and
negatives. One of the most prominent advantages of solar power is that it can
be renewed. With government support to boost the growth of solar industry the
revival of smooth market conditions is warranted. The announcement of
Jawaharlal Nehru mission by the Govt. of India with a target ofsetting up of 20
GW of solar PV plants by 2020 has given a further boost to the industry and
domestic demand is also expected to pick – up.
CHANGE IN COMPANYS
NAME
The Company proposes to a change in Company name from Webel SL Energy
Systems Limited to Websol Energy Systems Limited This change will help them in long term to
develop their brand name in PV Solar Market. The main reason for the change of
name was to differentiate the Company from WEBEL (A State Government Company).
MANAGEMENT
DISCUSSION AND ANALYSIS
Global PV industry
The year 2009 was challenging for PV suppliers worldwide marked by
oversupply and price declines. Despite this, global PV installation increased
20% from 6.09 GW in 2008 to 7.20 GW in 2009. The total module production during
2009 was 8.95 GW and total cell production was 10.66 GW (increase of 51% over
2008 production of 7.05
GW). The overall thin-film production in 2009 doubled from 966 MW in
2008 to 1.98 GW in 2009.
The global renewable energy basket consists of 19% of the final energy
consumption. Solar energy is the fastest growing renewable energy source, with
grid-connected solar photovoltaic registering a CAGR of 60% in the last five
years.
The PV industry generated US $38.5 billion in global revenues in 2009,
successfully raising over US $13.5 billion in equity and debt, up 8% on the
prior year. European countries accounted for 5.60 GW (77% of world demand) in
2009. The top three countries in Europe were Germany, Italy and the Czech
Republic, which collectively accounted for 4.07 GW. All three countries
experienced soaring demand, with Italy becoming the second-largest market in
the world.
World solar cell production reached a consolidated 9.34 GW in 2009, up
from 6.85 GW a year earlier, with thin film production accounting for 18% of
that total. China and Taiwanese production continued to build share and now
account for 49% of global cell production. [Source: European Photovoltaics
Industry Association (EPIA)] Up to 31st December, 2009, a total of 34,750 solar
lanterns, 39,591 solar home lighting systems, 5,727 solar street lights, 1.5
MWp aggregate capacity of stand-alone SPV power plants and 725 kWp SPV rooftop
systems were sanctioned Sixteen regional rural banks proposed to sanction loans
for 1,19,000 solar PV systems, of which 37,865 loans were sanctioned by 31st
December 2009. The cumulative loan disbursement and loan sanction for solar
photovoltaics till 31st December 2009 were Rs. 3199.500 millions and Rs.
6193.100 millions.
Germany:
Germany became the world’s largest PV market, doubling PV installation
from 1.80 GW in 2008 to 3.80 GW in 2009. The combination of good financing,
skilled PV companies, proven FiT (Feed-in Tariff) and public awareness
accounted for this success. The decrease in FiT may reduce growth with
estimated additional installation of 5-7 GW in 2010 and 3-4 GW in 2011 [Source:
EPIA].
Italy:
Italy was second in the global PV market with an installation of 711 MW
in 2009 compared with 338 MW in 2008 owing to high feed-in tariffs and a good
national solar resource. It is expected to install nearly 1.50 GW and will be
the second-largest national market in 2010 as installations are rushed ahead of
planned feed-in-tariff cuts [Source: EPIA].
Japan:
The launch of a residential PV programme, net-metering and support for
local authorities and private sector led to Japan almost doubling its PV
installation from 280 MW in 2008 to 484 MW in 2009. It stood at the third
position and set an ambitious target of installing 28 GW by 2020 and 53 GW by
2030 [Source: EPIA].
United States:
The country added an estimated 477 MW of solar PV, including 40 MW of
off-grid PV in 2009, raising cumulative capacity to about 1.26 GW. In 2014, the
installation in the U.S. could reach 3 GW, surpassing all countries except
Germany [Source: EPIA].
Czech Republic:
The country was fifth in the global PV market with a PV installation of
411 MW in 2009 compared with 51 MW in 2008. Generous FiT and administrative
procedures led to a boom in its PV market. It is expected to add 1 GW in 2010
[Source: EPIA].
Spain:
Complex administrative policies, delays, economic crisis and price
decline led to a decline in this PV market. The leader in 2008 with PV
installation of 2.60 GW collapsed to 69 MW in 2009. It is expected to add
another 600 MW in 2010 and 700 MW in 2014 [Source: EPIA].
Indian PV industry
India ranked seventh worldwide for solar photovoltaic (PV) cell
production and was ninth in solar thermal power systems. The additional PVs
installed in India reached 30 MW in 2009. This sector grew rapidly owing to
government initiatives like tax exemptions and subsidies. Owing to a technical
potential of 5,000 trillion kWh per year and minimum operating cost, solar
power is considered the best suited energy source for India, expected to grow
25% y-o-y and reach 200 MW by 2012. The country adopted targets for solar power
of 1 GW by 2013 and 20 GW by 2020 (including 1 GW of off-grid solar PV by
2017). Besides, the implementation of the three-phase plan for solar PV
capacity expansion is likely to begin in 2010, with the Indian government
spending around US $20 billion over 30 years.
Production:
India’s production during 2009-10 was estimated at over 400 MW of solar
cells and about 1,000 MW of PV modules compared with 175 MW of solar cells and
240 MW of PV modules in the previous year. Even though India now produces
around 1 GW of modules a year, the total cumulative PV installation in India is
about 120 MW. It is expected that the capacity of solar cells and PV modules
will cross 750 MW and 1,250 MW by the end of 2010 [Source: India Semiconductor
Association (ISA)].
Foreign trade:
India has always been a net exporter of solar PV technology, with about
66% of cumulative domestic PV production till 2009 catering to overseas
markets. During 2009-10, the exports of photovoltaic’s in India accounted for
Rs. 13688.500 millions whereas the imports during the year were Rs. 10178.400
millions. The graph below represents the year wise export-import details of
solar PV:
JNNSM targets
·
To create an enabling policy framework for the
deployment of 20,000 MW of solar power by 2022
·
To ramp up capacity of grid-connected solar power
generation to 1,000 MW by 2013, an additional 3,000 MW by 2017 through the
mandatory use of the renewable purchase obligation by utilities backed with a
preferential tariff
·
To create favourable conditions for solar
manufacturing capability, particularly solar thermal for indigenous production
and market leadership
·
To promote programmes for off-grid applications,
reaching 1,000 MW by 2017 and 2,000 MW by 2022
·
To achieve 15 million square meters of solar
thermal collector area by 2017 and 20 million by 2022
·
To deploy 20 million solar lighting systems for
rural areas by 2022
Optimism:
The Ministry of New and Renewable Energy (MNRE) is deliberating a draft
national Renewable Energy Policy for India, which proposes a national renewable
portfolio standard (RPS) requiring 10% of Indian electricity to come from
renewable by 2010 and 20% by 2020. Renewable energy remains a small fraction of
installed capacity, yet India is blessed with over 150,000 MW of exploitable
renewable. With the increasingly favorable regulatory and policy environment
along with a growing number of entrepreneurs and project developers, India
ranked as the third most attractive country to invest in renewable energy after
the US and Germany (in the Ernst and Young Country Attractiveness Indices). The
government increased the budgetary allocation for MNRE by 61% from Rs. 6.2
billion to Rs. 10 billion. The government established National Clean Energy
Fund (NCEF) for funding research and innovative projects in clean energy
technologies. In order to provide fund for the research a cess of Rs. 50 per
ton on coal was imposed. According to CRISIL, nearly Rs. 30 billion would be
available as clean energy cess on coal.
Initiatives by the
Government of India Jawaharlal Nehru National Solar Mission (JNNSM):
The Government of India emphasizes the development of grid-connected
applications by offering feed-in-tariffs for the power producers over a period
of 25 years. There is no import duty on capital equipment, raw materials and
excise duty exemption low interest rates, incentives under SIPS and solar
manufacturing tech-parks, among others. The policy plans to develop R and D
strategy and train people to meet the demand for skilled manpower.
The National Rural
Electrification Policy, 2006:
The policy aims to provide electricity to all Indian households and a
minimum ‘lifeline’ level of consumption of 1 unit (KWh) per household, per day.
It also allows implementing off-grid solar PV solutions in areas where grid
electricity is not feasible.
Semiconductor
Policy (2007):
The policy aims to encourage semiconductor and ecosystem manufacturing.
It offers a capital subsidy of 20% for manufacturing plants in SEZs and 25% for
manufacturing plants outside SEZs.
State-level initiatives: There are various state level initiatives which
comprise the following:
Government of
Andhra Pradesh:
Develop a solar farm cluster called Solar City on a 10,000 acre land at
Kadiri, Anantapur district with a capacity to generate 2,000 MW
Karnataka Power
Corporation Limited :
Implemented two projects of 3 MWp and awarded a third project of the
same capacity to power irrigation pumps
Government of
Gujarat:
Fixed a target to develop a capacity of 716 MW by 2014 of which 365 MW
would be from solar PV and the rest from solar thermal
Government of
Haryana:
Signed six MoUs with private players to set solar PV plants of 12 MW in
the state
Industry demand
drivers
Rise in poly-silicon availability: India is planning to foray into the
production and processing of polysilicon. In 2009, India imported about 4,000
TPA of polysilicon and wafers.
Rising energy
needs:
The country’s primary energy demand is expected to grow from 400 million
tons of oil estimate (MTOE) to 1,200 MTOE by 2030; electrical energy will rise
from a low of 66 kWh per capita to 2,000 kWh by 2032 and grid- connected power
generation capacity is expected to rise from 147 GW to over 460 GW by 2030
Demand-supply gap:
There is a gap between power demand and supply in India with power
deficit of about 10% and peak deficit of 13.8% in June 2010. Almost a third of
the population has no access to grid electricity.
Demand for
off-grid PV application:
Apart from PV application in rural areas, there are other PV off-grid
applications with huge scope in India, comprising: off-grid lighting system,
irrigation pump, captive power and urban application.
Availability of
funds:
The solar PV players get financial assistance from FIIs and banks for
investing in projects. Geographical location: Most Indian regions enjoy 300
sunny days a year, 3,000 hours of clear sunshine a year and solar radiation of
about 5,000 trillion kWh/year.
Fall in raw
material costs:
In 2009, global polysilicon prices fell by 80%, silicon wafer prices
declined 50% while there was a 37.80% fall in crystalline module prices,
reducing the cost of generating solar photovoltaic energy. In 2010, crystalline
module prices are expected to fall 20%, silicon wafer prices will fall 18.20%,
polysilicon prices will fall 56.30%.
Global PV prices
The solar PV industry saw major declines in module prices in 2009, by
some estimates dropping over 50–60% from highs averaging US $3.50 per Wp in the
summer of 2008. After the economic slowdown in 2008, 2009 started with a high
inventory of about 2 GW and high prices. The manufacturers held stock in the
first half of 2009 while in the second half, prices fell to an all-time low of
US $1.90 per Wp for large quantity buyers and US $2.50 per Wp for medium
quantity buyers. The year 2010 began with an inventory level of 500 MW and
demand and prices are expected to recover [Source: Navigant].
Indian outlook
Indian solar power industry has tremendous potential. Cumulative power
generation capacity is about 152 GW, but faces a deficit of 10% in overall
demand and peak deficit of 13.80% in June 2010. With a 6% growth in demand for
power, peak load is expected to reach 176 GW by 2012 and cross 778 GW by
2031-32.
In India, more than 50% of the power in thermal and coal reserves are
expected to last another 40-45 years, making it imperative to invest in renewable
energy. The Indian solar PV industry recorded a CAGR of 35% from 2000-2010 and
its grid-connected solar power generation capacity is expected to increase from
6 MW to 1,000 MW by 2017.
It is also estimated that the cost of power generation from solar PV
will achieve grid parity by 2019-20 and match coal based power generation by
2025-26
Global outlook
Solar PV electricity, the fastest growing power generation technology,
is present across 100 countries. The overall global PV installation increased
nearly six times from 2004 and is expected to grow faster. Solar photovoltaic
(PV) power is a viable and reliable technology with a significant potential for
long-term growth in nearly all regions. As PV matures into mainstream
technology, grid integration and management and energy storage could become key
issues. In the PV industry, grid operators and utilities need to develop new
technologies and strategies to integrate large amounts of PV into flexible,
efficient and smart grids. IEA’s roadmap estimates that by 2050, PV will
provide around 11% of global electricity and reduce 2.3 giga tonnes (Gt) of CO2
emissions annually.
The new installation of PV in the world could reach 10.1 GW in 2010,
8.52 GW in 2011, 9.53 GW in 2012, 11.82 GW in 2013 and 13.73 GW in 2014 in the
moderate scenario.
Polysilicon and
wafer supply
Global poly-silicon supply will grow in 2010 and US $45-US $50/kg of
spot poly price can be expected by 2010/E as per industry sources, which can
stimulate PV demand. Wafer overcapacity exists in 2010. Consolidation and low
utilization can be observed in non-competitive wafer companies. In contrast,
cost competitive and quality wafer companies can leverage market growth.
FIXED ASSETS:
- Buildings
- Plant and Machinery
- Furniture and Fixture
- Computer
- Office Equipment
- Motor Vehicles
UNAUDITED FINANCIAL RESULTS FOR
THE QUARTER ENDED 31st MARCH 2011
(Rs. in millions)
|
Sr. No. |
Particular |
Unaudited |
Unaudited |
|
|
|
3
Months ended 31.03.2011 |
Current
Period ended 31.03.2011 |
|
1. |
Gross
Sales / Income |
|
|
|
|
a. Net Sales / Income from Operations (Net of Excise and Discounts) |
641.251 |
1691.597 |
|
|
b. Other Operating Income |
-- |
-- |
|
|
Total
Income (a+b) |
641.251 |
1691.597 |
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
a) (Increase) / Decrease in Stock in Trade and Work In
Process |
(67.094) |
(64.743) |
|
|
b) Consumption of Raw Materials (Net) |
580.940 |
1398.878 |
|
|
c) Purchase of Traded Goods |
-- |
-- |
|
|
d) Employee Cost |
11.967 |
33.306 |
|
|
e) Depreciation |
32.371 |
91.885 |
|
|
f) Other Expenditure |
45.978 |
141.638 |
|
|
g)
Total Expenditure (a to f) |
604.162 |
1600.964 |
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
37.089 |
90.633 |
|
|
|
|
|
|
4. |
Other Income |
56.861 |
91.535 |
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
93.950 |
182.168 |
|
|
|
|
|
|
6. |
Interest |
51.047 |
129.290 |
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
42.903 |
52.878 |
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
42.903 |
52.878 |
|
|
|
|
|
|
10. |
Tax
Expense |
|
|
|
|
a) Current tax |
(8.232) |
(8.232) |
|
|
b) Deferred tax |
(25.765) |
(25.765) |
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
8.906 |
18.881 |
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
0.727 |
0.727 |
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
219.731 |
219.731 |
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
1600.173 |
1600.173 |
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
0.38 |
0.85 |
|
|
b) Basic and diluted EPS after extraordinary items |
0.38 |
0.85 |
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
-Number of Shares |
13905644 |
13905644 |
|
|
- Percentage of Shareholding |
63.29 |
63.29 |
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
- Number of Shares |
1575000 |
1575000 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
19.52 |
19.52 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
7.16 |
7.16 |
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
- Number of Shares |
6492422 |
6492422 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
80.48 |
80.48 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
29.55 |
29.55 |
NOTES TO THE RESULTS
FOR THE QUARTER AND PERIOD ENDED 31ST MARCH 2011:-
1.
This
statement was duly reviewed by the audit committee and taken on record and approved
by the Board of Directors at their respective meetings held on 28th
May 2011.
2.
Figures
for the previous quarter / year including EPS have been regrouped / rearranged
where necessary to make them comparable with the current figures.
3.
In terms of Clause
41 of the Listing Agreement details of number of investor complaints (including
requests) for the quarter ended 31st March 2011: Beginning-NIL,
Received-19, Disposed off - 19, Pending - NIL.
4.
The Company has
only one primary business segment namely production of Photovoltaic Cells and
Modules and as such AS 17 relating to Segmental Reporting does not apply.
5.
The Company being
situated in Falta SEZ, there will be no tax liability on Operating Income.
6.
The provision for
deferred tax liability has been made keeping in view the applicability of MAT
on operating income.
7.
The year to date
figure sending 31st March 2011 is for a period of nine months, the
current financially ear being July 2010 to March 2011; as compared to previous
year ended 30th June 2010 for fifteen months, the last financial
year being April 2009 to June 2010.
8.
Other expenditure
for the quarter includes Electricity and Power cost of Rs. 15.790 millions
(corresponding previous quarter Rs. 13.791 millions).
9.
During the
Quarter, 4,66,700 equity shares of the face value of Rs.10/-each have been
allotted to a promoter company up on conversion of warrants and the same was
considered for EPS calculation. Application money received against 15,04,000
warrants from a strategic investor has been forfeited due to non-receipt of
balance amount thereon.
10. During the quarter, the Company has started the
commercial production of 30 MW there by making the total operational capacity
as 60 MW at year end.
11. The Company has also placed orders of machineries for
ramping up the capacity to 90 MW.
12. The quantitative details for the Quarter and Period
are given below:
|
|
QUARTER
ENDED (Rs. In Millions) |
PERIOD
ENDED (Rs. In Millions) |
||
|
|
31.03.2011 |
31.03.2010 |
31.03.2011 |
30.06.2010 |
|
Quantity Sold |
964.518 |
242.019 |
2492.438 |
1609.380 |
|
13. STATEMENT OF ASSETS AND LIABILITIES |
31.03.2011
UNAUDITED |
|
SHAREHOLDERS FUNDS |
|
|
1] Share Capital |
219.731 |
|
2] Reserves & Surplus |
1600.173 |
|
LOAN FUNDS |
3130.936 |
|
DEFERRED TAX LIABILITIES |
126.086 |
|
|
|
|
TOTAL |
5076.926 |
|
|
|
|
FIXED ASSETS [Net Block] |
3517.647 |
|
INVESTMENT |
145.869 |
|
DEFERREX TAX ASSETS |
-- |
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
Inventories |
1188.867 |
|
Sundry Debtors |
167.996 |
|
Cash & Bank Balances |
126.317 |
|
Loans & Advances |
1039.193 |
|
Total Current
Assets |
2522.373 |
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
Current Liabilities |
(1087.110) |
|
Provisions |
(45.588) |
|
Total Current
Liabilities |
(1132.698) |
|
Net Current
Assets |
23.735 |
|
|
|
|
TOTAL |
5076.926 |
WEBSITE DETAILS:
HISTORY:
Subject (formerly
Webel SL Energy Systems Limited) was born with a vision to address global energy
needs by providing cost effective renewable energy. The company was
incorporated in 1990 by Mr. S.L. Agarwal and began production in 1994.
The initial days
were difficult since the technology to produce photovoltaic cells was not
available locally and the output of the cells was low. Helios technology of
The initial team of
16 people fought a hard battle to implement the processes thereby transforming
a Rs. 1 crore company to a Rs. 100 crore enterprise with a team of 160 people.
Another key member
of the team at Websol is Mrs. Vasanthi who joined as technical head. In 1994
she received training in
With the growing
need for renewable energy in the domestic and international market, Mr S. L.
Agarwal has put the foundation stone for a new 120 MW Solar PV cells and
modules facility at Falta,
PROFILE:
Subject is a
manufacturer of photovoltaic monocrystalline solar cells and modules in
Websol has picked
up many awards and accolades in addition to international certifications making
it one of the few technologically independent manufacturers of solar cells and
modules in
Websol modules are
designed for grid and standalone Solar PV power plants, remote communication
and rural electrification for the best performance under diffused Sun light .
Number of PV power plants performing excellently from last 15 years built with
Webel Solar Modules in domestic and international market.
To enhance its
competitive edge, the company has undertaken 120 MW expansion program in 2006 .
Present Capacity of the company is 42MW and this will ramp up to 60 MW by May
2011 and to 120MW by 2012 . Company has technical capability to handle up to
160 Micron thin wafers and process multiple size wafers . This expansion in
capacity has increased the company’s ability to service more customers and make
a wider range of products to reach out to different market segments.
MANAGEMENT TEAM:
Mr S L Agarwal is
the founder and Managing Director of Subject He is a commerce graduate
from
Mr. Agarwal has participated in various national and international conferences
and seminars on photovoltaic. Under his leadership and guidance number of solar
power projects has been completed in West Bengal viz Bidyut Bhawan - 26 KWp and
WBRIDA - 20 KWp grid connected systems and stand alone systems in Science City
- 20 KWp (Kolkata) and Kamalpur - 26 KWp (Sagardeep).
His passion for product development, process improvement and team building has
created number of milestones in Indian Solar PV Industry like solar
photovoltaic cells efficiency improvement from 11% to 17% and expansion of
production facility from 1MW to 120 MW at Webel SL Energy Systems.
Mr. Agarwal is a recipient of the prestigious Udyog Ratna Award from the
President of
Ms S Vasanthi is Director
– Technical and Marketing at Subject and has been has been associated with
the company since 1994. She is a multidisciplinary professional in the field of
solar photovoltaic production looking into process improvement, product
development and customer relationship management.
Ms. Vasanthi is an M.Tech (Energy Studies) from IIT Delhi and M.Sc (Physics)
IIT Mumbai. She was invited as sponsored candidate for the Solar Energy
Conference held in
She is the head of the technical team that implemented ISO 9001:2000 at Subject
and got certification of modules as per IEC 61215, IEC 61730 and UL 1703
standard from leading institutes like TUV Rheinland, Euro Test and Underwriters
Laboratories Inc.
Ravinder Kumar
Tanwar is Vice President, Operations at Subject and is responsible for
planning, coordination and controlling the resources need to produce Solar
Cells and Modules. He is a postgraduate in Chemistry from IIT Delhi and a
Master in Business Administration from IGNOU,
Mr Uma Maheswara Rao
is the Head, Project and Plant Engineering and is responsible for
project management for the new manufacturing facility at Falta,
Before joining Websol he worked with MRF Limited and other leading
manufacturing plants. During his tenure with MRF Limited, Medak, a renowned
tyre manufacturing plant in Andhra Pradesh, he was an active member of the
plant engineering team and was responsible for smooth operations of the
manufacturing plant to deliver the highest output. He has visited number of
international solar manufacturing plants and attended number of solar
conferences.
MILESTONES:
1994-1997
Technical
collaboration with Helios Technology, Italy
Started with 1 MW installed capacity and Processed 4 inch and 5 inch
wafers
1998-1999
International certification
from JRC for IEC 61215 standards for 90Wp Module
2000-2001
Processed 8 inch
wafers and converted it 154x154 mm solar cells Installed Capacity increased to
3MW
2002 -2004
International
certification for W1000 as per IEC 61215 standards UL 1703 listing for all W
900 type modulesCapacity expansion from 3MW to 5MW
2005 -2006
Capacity increased
from 5MWp to 10 MWp Commenced commercial production of W1600 and W2000R
International certification from TUV safety class II for W2000 and W1600 type
modules Industrial site finalized in SEZ
Falta, West Bengal for 120 MW expansion
2007-2008
International
certification as IEC 61215 and IEC 61730 for 180 W/220Wp UL and CSA listing for
180/220Wp modules Installed PECVD
technology for Silicon nitride antireflective coating at Salt Lake plant
Engineering, Procurement and Construction Management Consultant appointed for
Falta plant Cell efficiency reached 16.5% plus
2009
30 MW cell and
module line installed and commissioned Solar PV cells and modules trial
production started in May 2009 Received IEC 61215 and IEC 61730 certification
for 180 Wp and 225 Wp module Established representative offices in USA and
Germany.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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. 44.93 |
|
|
1 |
Rs. 72.42 |
|
Euro |
1 |
Rs. 63.62 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.