MIRA
INFORM REPORT
|
Report Date : |
11.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
SUZLON ENERGY LIMITED |
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Registered
Office : |
Suzlon 5, Shrimali Society, Near Shri Krishna Complex, Navrangpura,
Ahmedabad-380009, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
10.04.1995 |
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Com. Reg. No.: |
04-25447 |
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Capital
Investment / Paid-up Capital : |
Rs.3554.700
Millions |
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CIN No.: [Company Identification
No.] |
L40100GJ1995PLC025447 |
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IEC No.: |
2495002021 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
AHMS03088B |
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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, Importer and Exporter of Wind Turbines and Generators
and Its Parts. |
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No. of Employees
: |
13000 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 270000000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Profitability
of the company is under severe pressure. However, trade relations are reported
as fair. Business is active. Payments to their various suppliers in The company can be considered for business dealings on a secured trade
terms and conditions, initially. |
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 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Ms. Ruchita |
|
Designation : |
Finance Executive |
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Contact No.: |
91-20-61356135 |
|
Date : |
07.10.2011 |
LOCATIONS
|
Registered Office : |
Suzlon 5, Shrimali Society, Near Shri Krishna Complex, Navrangpura,
Ahmedabad-380009, |
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Tel. No.: |
91-79-26471100 |
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Fax No.: |
91-79-26565540 |
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E-Mail : |
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Website : |
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Corporate / Branch Office : |
One Earth, |
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Tel. No.: |
91-20-61356135 / 67022000 |
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Fax No.: |
91-20-67022100 / 4012 2200 |
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E-Mail : |
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Branch Office : |
Also Located At:
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Overseas Branch Office: |
Located At:
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DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Tulsi R.
Tanti |
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Designation : |
Chairman and
Managing Director |
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Name : |
Mr. Vinod R. Tanti |
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Designation : |
Executive Director |
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Name : |
Mr. Girish Tanti |
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Designation : |
Non-Executive Directpr |
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Name : |
Mr. Ashish Dhawan |
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Designation : |
Independent Director |
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Name : |
Mr. Ajay Relan |
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Designation : |
Independent Director |
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Name : |
Mr. V. Raghuraman |
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Designation : |
Independent Director |
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Name : |
Ms. Mythili Balsubramanian |
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Designation : |
Independent Director |
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Name : |
Mr. Rajiv Ranjan Jha |
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Designation : |
Independent Director |
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Name : |
Mr. Pradip Kumar Khaitan |
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Designation : |
Non-Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Hemal A. Kanuga |
|
Designation : |
Company Secretary |
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|
|
|
Name : |
Ms. Ruchita |
|
Designation : |
Finance Executive |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholder |
Total No. of
Shares |
Percentage of
Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
658839000 |
37.16 |
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|
315902588 |
17.82 |
|
|
974741588 |
54.98 |
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|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
974741588 |
54.98 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
70182287 |
3.96 |
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|
13046603 |
0.74 |
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|
10903194 |
0.62 |
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|
230837623 |
13.02 |
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|
324969707 |
18.33 |
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|
|
|
|
|
98495589 |
5.56 |
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|
|
|
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|
288216815 |
16.26 |
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|
62170124 |
3.51 |
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|
24222232 |
1.37 |
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|
21752245 |
1.23 |
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|
57200 |
-- |
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|
2277502 |
0.13 |
|
|
135285 |
0.01 |
|
|
473104760 |
26.69 |
|
Total
Public shareholding (B) |
798074467 |
45.02 |
|
Total
(A)+(B) |
1772816055 |
100.00 |
|
(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
|
|
|
|
-- |
-- |
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|
4549592 |
-- |
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|
4549592 |
-- |
|
Total
(A)+(B)+(C) |
177365647 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer, Importer and Exporter of Wind Turbines and Generators
and Its Parts. |
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Products : |
·
Wind Energy,
Solar Energy System and Assembling ·
Operation
and Maintenance Contract ·
Electricity
Generators
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Terms : |
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Selling : |
Depend |
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Purchasing : |
Depend |
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit
Produced |
|
|
|
(in Nos.) |
(in MW’s) |
|
Wind Turbine
Generators Upto 1 MW |
89 |
53.40 |
|
Wind Turbine
Generators Above 1MW and Upto 2 MW |
435 |
625.75 |
|
Wind Turbine
Generators Above 2 MW |
228 |
478.80 |
|
Total |
752 |
1157.95 |
GENERAL INFORMATION
|
Customer: |
Others |
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No. of Employees : |
13000 [Approximately] |
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Bankers : |
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Facilities : |
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Financial Institutions : |
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Banking
Relations : |
-- |
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Auditor 1 : |
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Name : |
SNK and Company Chartered Accountant |
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Address : |
E-2-B, The |
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Auditor 2 : |
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Name : |
S.R. Batliboi and Company Chartered Accountants |
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Address : |
C-401, 4th Floor, |
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Associates : |
Hansen Transmission International NV |
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Subsidiaries : |
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CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3500000000 |
Equity Shares |
Rs.2/- each |
Rs.7000.000 Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1796297624 |
Equity Shares |
Rs.2/- each |
Rs.3592.600
Millions |
Subscribed & Paid-up Capital
|
1777365647 |
Equity Shares |
Rs.2/- each |
Rs.3554.731
Millions |
Notes:
- Of the above equity shares, 1,259,276,500
shares of Rs.2/- each were allotted as fully paid onus shares by utilization of
Rs.1740.400 Millions from general reserve, Rs10.3 Millions from capital
redemption reserve and Rs768.000 Millions from securities premium account
- Of the above equity shares 58,400,000
equity shares of Rs.2 each were issued by way of Global Depository
Receipts (GDR)
- Of the above equity shares 31,992,582
equity shares of Rs.2 each are allotted as fully paid up for consideration
other than cash
- Outstanding Employee stock options
exercisable into 5,679,945 equity shares of Rs.2/- each fully paid
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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|
SHAREHOLDERS FUNDS |
|
|
|
||
|
1] Share Capital |
3554.700 |
3113.500 |
2996.600 |
||
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2] Shares Application Moneys |
0.000 |
0.400 |
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||
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3]Employee stock options outstanding |
204.300 |
156.800 |
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||
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4] Reserves & Surplus |
64185.800 |
52772.400 |
61774.100 |
||
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5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
||
NETWORTH
|
67944.800 |
56043.100 |
65803.200 |
||
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LOAN FUNDS |
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||
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1] Secured Loans |
43957.400 |
38911.600 |
40062.300 |
||
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2] Unsecured Loans |
22815.900 |
37100.600 |
33232.500 |
||
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TOTAL
BORROWING |
66773.300 |
76012.200 |
73294.800 |
||
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Deferred Tax Liabilities |
0.000 |
0.000 |
0.000 |
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TOTAL
|
134718.100 |
132055.300 |
139098.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
8631.700 |
9171.600 |
5515.000 |
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Capital work-in-progress |
381.500 |
103.800 |
2869.700 |
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INVESTMENTS |
78450.700 |
75926.000 |
71278.000 |
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DEFERREX TAX ASSETS |
556.400 |
0.000 |
1754.000 |
||
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Foreign Currency Monetary item transaction
difference account |
0.000 |
0.000 |
3992.600 |
||
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|
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||
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
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||
|
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Inventories |
10149.500 |
7978.000 |
13836.200 |
|
|
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Sundry Debtors |
22839.000 |
29868.100 |
47451.400 |
|
|
|
Cash & Bank Balances |
4310.600 |
5992.200 |
2124.000 |
|
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
|
Loans & Advances |
49383.900 |
41877.900 |
26987.500 |
|
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Total Current Assets |
86683.000 |
85716.200 |
90399.100 |
||
|
Less : Current Liabilities & Provisions |
|
|
|
||
|
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Sundry Creditors
|
12870.000
|
12525.400
|
|
|
|
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Other Liability
|
23198.300
|
23893.300
|
|
|
|
|
Provisions
|
3916.900
|
2443.600
|
3692.700
|
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Total Current Liabilities
|
39985.200
|
38862.300
|
36710.400
|
||
|
Net Current Assets |
46697.800 |
46853.900 |
53688.700 |
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|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
||
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|
|
|
|
||
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TOTAL |
134718.100 |
132055.300 |
139098.000 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
43575.500 |
34886.800 |
72355.800 |
|
|
|
Other Income |
3405.100 |
2431.400 |
1773.000 |
|
|
|
TOTAL (A) |
46980.600 |
37318.200 |
74128.800 |
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of goods sold |
27467.500 |
25174.900 |
|
|
|
|
Operating and other expenses |
11735.000 |
9748.200 |
|
|
|
|
Employees remuneration and benefits |
2152.300 |
1810.100 |
|
|
|
|
Exceptional Items |
372.800 |
4390.200 |
|
|
|
|
TOTAL (B) |
41727.600 |
41123.400 |
74197.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT / LOSS
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5253.000 |
(3805.200) |
(68.300) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
6289.000 |
7319.000 |
4339.700 |
|
|
|
|
|
|
|
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|
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PROFIT / LOSS
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(1036.000) |
(11124.200) |
(4408.000) |
|
|
|
|
|
|
|
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|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
1568.900 |
1262.700 |
991.600 |
|
|
|
|
|
|
|
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|
|
PROFIT
/ LOSS BEFORE TAX (E-F) (G) |
(2604.900) |
(12386.900) |
(5399.600) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(748.300) |
(1754.000) |
(706.900) |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ LOSS AFTER TAX (G-H) (I) |
(1856.600) |
(14140.900) |
(4692.700) |
|
|
|
|
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|
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|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
3860.000 |
18000.900 |
22684.400 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
(9.200) |
|
|
BALANCE
CARRIED TO THE B/S |
2003.400 |
3860.000 |
18000.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
|
Export Earnings |
327.800 |
9903.300 |
|
|
|
|
Other Earnings |
1822.900 |
1136.000 |
|
|
|
|
TOTAL
EARNINGS |
2150.700 |
11039.300 |
NA |
|
|
|
|
|
|
|
|
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IMPORTS |
|
|
|
|
|
|
Raw Materials |
17448.100 |
10326.200 |
|
|
|
|
Stores & Spares |
9.600 |
4.900 |
NA |
|
|
|
Capital Goods |
606.600 |
968.100 |
|
|
|
|
TOTAL
IMPORTS |
18064.300 |
11299.200 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings
/ Loss Per Share (Rs.) |
(1.09) |
(9.19) |
-- |
|
Expected Sales (2011-12) : Rs.75000.000 Millions.
The above information has been parted by Ms. Ruchita.
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 (1st
Quarter) |
|
|
|
|
Net Sales |
11569.100 |
|
Total Expenditure |
9353.800 |
|
PBIDT (Excl OI) |
2215.300 |
|
Other Income |
799.100 |
|
Operating Profit |
3014.400 |
|
Interest |
1572.300 |
|
Exceptional Items |
0.000 |
|
PBDT |
1442.100 |
|
Depreciation |
341.400 |
|
Profit Before Tax |
1100.700 |
|
Tax |
0.000 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
1100.700 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
1100.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(3.95)
|
(37.89) |
(6.33) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.06)
|
(35.50) |
(7.46) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.73)
|
(13.05) |
(5.63) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(3.83)
|
(22.10) |
(8.21) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.57
|
2.05 |
1.67 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.17
|
2.21 |
2.46 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
Yes |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
-- |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
Yes |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
Yes |
|
20) Export / Import details (if applicable) |
Yes |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
-- |
|
29) Last accounts filed at ROC |
-- |
|
30) Major Shareholders, if available |
-- |
OPERATIONS REVIEW
On a standalone basis, the Company achieved sale of Rs.43575.500
Millions as against Rs.34886.800 Millions in the previous year. Net loss after
tax is lower at Rs.1856.600 Millions as compared to net loss after tax of
Rs.14140.900 Millions in the previous year. Though the volumes and performance
improved compared to previous year, the costs could not be recovered fully as
recessionary trends continue to persist in Europe and the
Changes in Paid-up
Share Capital
The Company allotted 8,000 equity shares of Rs.2/- each at a premium of
Rs.49/- per equity share i.e. at an issue price of Rs.51/- per share pursuant
to exercise of stock options by the eligible employees under the Employee Stock
Option Plan-2005. Further, the Company allotted 18,86,33,322 equity shares of
Rs.2/- each at a premium of Rs.61/- per equity share i.e. at an issue price of
Rs.63/- per equity share on rights basis to the existing equity shareholders of
the Company in the ratio of 2 equity shares for every 15 fully paid-up equity
shares held by the existing equity shareholders on the record date i.e. June
10, 2010 in terms of Letter of Offer dated May 31, 2010.
Further, in terms of the Shareholders’ Agreement and Share Subscription
Agreement inter alia entered into between the Company and IDFC Private Equity
Fund III (“IDFCPE”), the Company allotted 3,19,92,582 equity shares of Rs.2/-
each to IDFCPE on November 16, 2010 at a premium of Rs.58/- per equity share
i.e. at an issue price of Rs.60/- per share for a consideration other than cash
i.e. as purchase consideration for purchase of 4,12,54,125 equity shares of
Rs.10/- each held by the said IDFCPE in SE Forge Limited, a subsidiary of the
Company. As on date, the Authorised Share Capital of the Company is Rs.7000.000
Millions divided into 350,00,00,000 equity shares of Rs.2/- each and the
paid-up capital of the Company is Rs.3554.731 Millions divided into
177,73,65,647 equity shares of Rs.2/- each.
CHANGES DURING THE YEAR
The name of
Einundzwanzigste Vittorio Verwaltungs GmbH was changed to REpower Systems GmbH.
Updates on REpower
The Company
through
Updates on Hansen
The Company
presently holds 26.06% in Hansen Transmissions International NV (‘Hansen’).
Post March 31, 2011, AERH has signed an irrevocable undertaking in favour of ZF
Friedrichshafen AG (‘ZF’) to sell its entire equity interest in Hansen i.e.
26.06% pursuant to cash offer to be made by ZF International BV (“ZF Bidco”), a
wholly owned subsidiary of ZF, for the entire issued and to be issued share
capital of Hansen at 66 pence per ordinary share which will aggregate to 115
million GBP (USD 187 million). AERH’s obligation to accept the Offer under the
Irrevocable Undertaking will lapse in certain circumstances, including if a
firm intention to make an offer for Hansen’s shares is made by a third party
for a consideration that is at least 12.5 per cent higher than consideration
offered under the Offer or if the Offer lapses or is withdrawn.
Updates on Amalgamation and Demerger
During the year, a
Petition under Section 391 to 394 read with Section 78 and 100 to 103 of the
Companies Act, 1956 has been filed by the Company, Suzlon Towers and Structures
Limited (STSL) and Suzlon Gujarat Wind Park Limited (SGWPL) with the Honourable
High Court of Gujarat at Ahmedabad and by Suzlon Infrastructure Services
Limited (SISL) and Suzlon Engitech Limited (SENL) with the Honourable High
Court of Judicature at Bombay for sanctioning the Composite Scheme of
Arrangement and Restructuring (De-merger and Amalgamation) between STSL, SISL,
SGWPL, SENL, the wholly owned subsidiaries of the Company and the Company (SEL)
for De-merger and Transfer of Power Generation Division of STSL to SENL,
De-merger of Project Execution Division of SISL to SGWPL, Amalgamation of STSL
(after the above referred demerger) with the Company and Amalgamation of SISL
(after the above referred de-merger) with the Company. The Appointed Date fixed
for the purpose is April 1, 2010.
THE BENEFITS THAT WOULD BE DERIVED FROM
AMALGAMATION AND DEMERGER ARE AS UNDER:
a. Benefits of Demerger to the Resulting Companies
i.e. SENL and SGWPL
i. Power
Generation business requires separate and different skills altogether and hence
demerging it into SENL
will help to run
it more efficiently.
ii. Project
Execution is part of infrastructure building in which SGWPL is currently
engaged into. The business of erection and commissioning presently undertaken
by SISL, primarily in nature of infrastructure development, requires different
skills and approach to the business for which the company has to select and
train its employees to achieve high performance standards so as to meet the
standards of its large and reputed competitors in the infrastructure space.
With the proposed demerger and transfer of the said division, SGWPL would be
better placed to scale up its skills in the infrastructure business and able to
hire best talent available in the industry.
iii. De-merger
would help in better evaluation of performance of this business.
b. Benefits of Amalgamation to the Transferee
Company i.e. SEL
i. Tower Business:
- The Tower
business requires scaling up in view of the increased domestic market and needs
focused efforts to bring the cost down on a continuous basis with equal
emphasis on the quality side as well. Synergies of Supply Chain Management can
be derived by bringing the Tower business into SEL.
- Better and
efficient material management along with stores management can be achieved,
ensuring on time
delivery in full.
- Quick and more
responsive product improvement and R and D on tower can be made possible
through well established and more resourceful set up of SEL. Better
compatibility of tower with each version of nacelle and better use of design
and technical core competence of SEL would be the key benefits accruing as a
result of this merger;
- Better
negotiating powers resulting into competitive sourcing of materials and
services through more active support of well established Supply Chain
Management Team of SEL.
ii. Operation and
Maintenance Business
- Customers will get
more comfort and surety of after sales services for 20 years post
commissioning, which is becoming a key factor to get more business.
- Existing
customers would feel more convinced from the fact that the equipment supplier
itself is taking care of the OMS part. Long term visibility will be provided to
large customers by providing OMS services through equipment supplier (SEL) only
and thereby improving chances of availing more business from Utilities, Multi
National Companies and other big corporate customers.
- Availability of
critical components from third party gets guaranteed for OMS.
- With Indian
business profile picking up and with the changing scenario, customers expect
OMS Service provider to have a stronger Balance Sheet. SEL is better placed
than SISL.
- Regular and
online feedback from OMS Team provides enormous help in improving and upgrading
the overall quality of its equipments, which would be possible with this
amalgamation.
- Better working
capital management through maintenance of common stock of spares for OMS as
well as for regular production and also better Machine Availability of WTGs
resulting into higher customer satisfaction.
iii. The proposed
amalgamation will enhance the bargaining power resulting in cost optimization
through economical procurements from common vendors and suppliers.
iv. The proposed
arrangement will consolidate the business activity of all the companies,
thereby resulting into time, transactions and cost optimization and
improvisation of overall operational efficiency and quality.
v. The proposed
arrangement shall improve the efficiency in cash management, organizational
capability from pooling of human capital having skill, talents and vast
experience and thereby increase in competitiveness in the industry.
vi. The proposed
arrangement will create enhanced value for shareholders and allow a focused
strategy in operations, which would be in the best interest of all its
shareholders, creditors and all persons connected with the companies.
MANAGEMENT DISCUSSION
AND ANALYSIS
WIND ENERGY – A
MAJOR CONTRIBUTOR TO ENERGY SUPPLY
With new
installation of 38 GW during the calendar year 2010, worldwide installations of
wind energy generation crossed 197 GW which covers almost 4% of the global electricity
supply. Traditional energy sources such as coal, oil or gas are not only facing
limitation of resources, but they are also causing greenhouse gas emissions and
hence cannot be seen as sustainable energy sources. At the same time, recent
incidents have indicated very clearly that nuclear power, also due to its big
risks and high capex costs, is not a very viable option economically, socially
and environmentally either. Instead, the world has to look for wind energy, in
combination with other renewable energy sources. It is important to underline
that wind energy offers a very broad range of applications. It is versatile,
can serve the needs of rural areas in unserved areas in developing countries,
and cater to energy intensive industries in industrialized regions and
countries. By 2015, total worldwide installation of wind energy is expected to
cross over 442 GW which is almost 2.3 times of the current installation. This
will cover about 7.5% of the global electricity supply by then.
SECTOR OUTLOOK
The sector outlook
is progressively looking bright for the wind industry as it is exploiting an
inexhaustible resource (i.e. wind) and is amongst the cheapest sources of
renewable energy. Improvement in wind power’s technical effectiveness,
development of larger wind turbines, and improved knowledge of siting,
servicing and maintenance has made wind power a economically viable and
competitive source of energy. The other key drivers include climate change, the
Kyoto Protocol, the industry’s job creation potential and a desire for greater
“security of supply” for energy. Policy support models like Fixed Tariffs for
the “feed –in” of wind powered electricity, Renewable Portfolio Standards,
price premium, energy taxes and other tax related benefits, Investment grants
and Green Certificates, continue to boost development of wind market across the
globe. Wind energy has been accepted as a mainstream renewable technology by
utilities across the world, to meet their enewable portfolio targets as
mandated international and country based targets. During the period 2011-2015,
wind power is expected to grow at an annual growth rate of about 17%. In Asia
strong growth is expected, especially in
SUZLON POSITIONING
This year was an
important one for the Company, marking 15 years of existence and 17 GW
installations worldwide. Subject has achieved over 6 GW of cumulative
installations in
BUSINESS STRATEGY
Subject’s
strategic intent for its business is enumerated as follows:
INCREASED CUSTOMER OUTREACH
Subject operations
are now spread across Asia,
IMPROVING PRODUCT PORTFOLIO
Subject and
REpower have R and D and technology centers in
INTERNAL OPERATIONAL EXCELLENCE PROGRAM
Subject transformation program christened ACE
(Achieving Collective Excellence) started in June 2009, has brought significant
improvements in the areas of manufacturing, technology, product design, market
strategy, leadership and the like. Turbine availability (uptime) has been
consistently exceeding 97 per cent for its global operating fleet. New products
under S9X and 3XM series were timely launched with strong cross functional
collaborations. Margin improvements were achieved through effective capacity
utilisation and value engineering. Efforts are in place to reduce the
deployment of working capital through improvement in operational efficiencies.
TECHNOLOGY,
RESEARCH AND DEVELOPMENT: GLOBAL LEADER IN WIND TURBINE GENERATORS
The company
continues to expand its technological capability since technology is central to
wind market leadership. The focus is on overall life cycle costs and customers’
return on investment mean continued improvements in reliability, product,
operation and maintenance cost and energy cost reductions. Subject’s Technology
Organisation is a global leader in wind turbine generator research and
development.
TECHNOLOGY
TEAMS
Subject continues to expand its intellectual property
rights (IPR) developing a substantial amount of new IP and increasing the
number of patent families. The Technology Organisation continued to build
capacity during the year at Technical Centers in
SUZLON
GLOBAL TECHNICAL CENTERS DRIVING INNOVATION AND COST LEADERSHIP
Technology-related
development is carried out in collaboration with the supply chain organisation,
third party suppliers, and with the business units which sell and operate wind
turbines across regions. The Technology Organisation is home to applied
research, product development and technical support. The full spectrum of
expertise is covered, including mechanical design, aerodynamics, material
science, electrical design and software development. In the past year, extra
emphasis has been placed on project management, systems engineering, and
certification. As wind turbine generator development becomes more complex,
additional focus is required on the sub-projects which produce enhancements or
new products. The Department continues to raise the standard for the level of
coordination within and across these sub-teams. This requires increased
expertise in project management. In addition, the array of internal interfaces
and sub-system interactions grows in complexity. For this reason, more formal
systems and engineering practices are being used to ensure optimum WTG performance
and reliability. Third party WTG certification becomes increasingly important
for their customers and their financiers. The Technology Organisation has
expanded its capacity, strengthened internal processes and instituted formal
management reviews with the key certifying agencies. Safety guidelines that are
an integral part of the Technology Organisation curriculum are followed to the
letter. The health and safety record remains exemplary.
TIGHTER
COLLABORATION WITH RETC
Research work by
RETC (Renewable Energy Technical Centre) – a Subject / REpower joint venture, is being integrated
with WTG product development teams. RETC is active in basic research, training,
innovation, and development of superior technical processes.
S9X PRODUCT
DEVELOPMENT
The S9X
development during 2010-11 has been an excellent example of fully integrated,
cross-functional collaboration across all parts of Subject. The various
technical centers, supply chain and the regional offices have worked together.
The S95 and S97 models have been built on the proven S88 platform which has a
fleet-wide availability (up-time) of better than 97 per cent worldwide – in all
weather conditions, voltage and grid requirements. The S95 2.1 MW turbine has
been optimized for Wind Class IIa and introduces DFIG (Doubly Fed Induction
Generation), third generation rotor blade design and an array of other advances
over the S88 2.1 MW turbine. The S97 2.1 MW turbine is similar to the S95 2.1
MWturbine and has been optimized for Wind Class IIIa. These products deliver 14 - 19 per cent
additional energy yield and offer improved ease of operation, transport,
installation and commissioning, and improved serviceability. Customers benefit
from improved cost of energy and return on investment. During 2010-11, REpower
commenced two new series 3.XM variants. The series includes two different
turbine types. The turbines can also be deployed optimally in lower wind speed
areas and in hilly or forested terrains. A new MM series wind turbine was
introduced by REpower. The turbines, the REpower MM100, are specially adapted
for the North American market. The product is suitable for low wind speeds, and
will enhance output. 5M and 6M onshore / offshore wind turbines were also added
to the turbine portfolio in the large turbine segment. With rated output of
5,075 kilowatts and rotor diameter of 126.5 meters, the 5M is one of the
largest and best performing wind turbines. With rated output of 6.15 MW, the 6M
turbines are the technological successor to the5Maswell as being suited for use
in deep waters.
MANUFACTURING AND
SUPPLY CHAIN MANAGEMENT (SCM): WORLD CLASS MANUFACTURING IN THE
Supply Chain
Management (SCM) is the largest business vertical in Subject and supports the
manufacturing of parts for wind turbine generators (WTG). It operates
world-class manufacturing plants in
UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER
ENDED 30.06.2011
(Rs. In Million)
|
Particulars |
30.06.2011 Quarter Ended (Unaudited) |
|
1. Income from operation |
11560.800 |
|
2. Other Operating Income |
8.300 |
|
Total Income
(1+2) |
11569.100 |
|
Expenditure |
|
|
1. (Increase)/decrease in Stock in Trade |
1090.000 |
|
2. Consumption of Raw Materials(Including project bought outs) |
5488.900 |
|
3. Purchase of traded goods |
7.300 |
|
4. Employees Cost |
547.100 |
|
5. Depreciation |
341.400 |
|
6. Foreign exchange loss / gain |
8.400 |
|
7. Other Expenditure |
2212.100 |
|
Total Expenditure |
9695.200 |
|
Profit / (Loss) From Operations before other Income Interest and Exceptional Items |
1873.900 |
|
Other Income |
799.100 |
|
Profit/(Loss) before Interest and Exceptional items |
2673.300 |
|
Interest |
1572.300 |
|
Profit / (Loss) after interest before Exceptional items |
1100.700 |
|
Exceptional Items |
0.000 |
|
Profit / (Loss) From
Ordinary activities before Tax |
1100.700 |
|
Tax Expenses |
0.000 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
1100.700 |
|
Extraordinary Items |
0.000 |
|
Net Profit/(Loss) for the period |
1100.700 |
|
Paid Up Equity Share Capital ( Face Value of the share
Rs.10/- each ) |
3554.700 |
|
Reserves (Excluding Revaluation Reserves) |
0.000 |
|
Earning / loss per
share |
|
|
-Basic |
0.62 |
|
-Diluted |
0.56 |
|
Public Share
Holding |
|
|
- Number of Shares |
802624059 |
|
- Percentage of shareholding |
45.16% |
|
Promoters and Promoter group share holding |
|
|
a) Pledged / Encumbered |
|
|
- Number of Shares |
633401934 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
64.98% |
|
- Percentage of shares(as a % of the total share capital of the company) |
35.64% |
|
b) Non-encumbered |
|
|
- Number of Shares |
341339624 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
35.02% |
|
- Percentage of Share (as a % of the total share capital of the company) |
19.20% |
SEFMENTWISE REVENUE, RESULT
AND CAPITAL EMPLOYED FOR THE QUARTER ENDED JUNE 30, 2011
(Rs. In Million)
|
Particulars |
30.06.2011 Quarter Ended (Unaudited) |
|
Segment Revenue |
|
|
A ) Wind Turbine Generator |
42933.200 |
|
B ) Foundry and Forging |
1146.300 |
|
C ) Others |
113.900 |
|
Total |
44193.400 |
|
Less : Inter segment
revenue |
933.400 |
|
Income from
Operation |
43260.000 |
|
Segment Results |
|
|
Profit / (Loss)
before Depreciation, Interest, Exceptional Items and Tax |
|
|
A ) Wind Turbine Generator |
5340.200 |
|
B ) Foundry and Forging |
37.500 |
|
C ) Others |
85.000 |
|
Total |
5462.700 |
|
Less : Depreciation / Amortiasation (including impairment Losses) |
|
|
A ) Wind Turbine Generator |
1181.400 |
|
B ) Foundry and Forging |
185.300 |
|
C ) Others |
44.400 |
|
Profit / (Loss) before Interest, Exceptional Items and Tax |
|
|
A ) Wind Turbine Generator |
4158.800 |
|
B ) Foundry and Forging |
(147.800) |
|
C ) Others |
40.6000 |
|
Less : Interest |
2978.700 |
|
Less : Unallocable Expenditure / (Income) - Net |
237.600 |
|
Profit / (Loss) before Exceptional Items and Taxes |
835.300 |
|
Exceptional Items |
0.000 |
|
Profit / (Loss) before Taxes |
835.300 |
|
Capital Employed (Segment assets –
Segment Liabilities) |
|
|
A ) Wind Turbine Generator |
156089.900 |
|
B ) Foundry and Forging |
7700.300 |
|
C ) Others |
2279.400 |
|
Total |
166069.600 |
Notes
1. The above results nave been
reviewed by the Audit Committee and approved by the Board of Directors at its
meeting held on July 30, 2011. The Statutory Auditors of the Company have
carried out a limited review of the above results for the quarter and nine
months ended July 30, 2011
2
The Indian Wind Energy Association (‘tnWBAS of which the Company Is a
member has filed a civil appeal In the Supreme Court against an order of the
Appellate Tribunal for Electricity In regard to levy of infrastructure
Development Charges (1DC) by Tamilnadu State Electricity Board. The auditors
have given a Matter of Emphasis on non-provision of the IDC Charges aggregating
Rs.648.000 Millions an at June 30, 2011. Based on a legal opinion the company /
1oWEA has a strong case in favour.
3 The Company has not provided for
the proportionate premium on redemption of Convertible bonds, since the Company
believes that the same Is contingent In nature. The proportionate premium as at
June 30, 2011 Is approximately Rs6369.300 Millions. The auditors have given a
Matter of Emphasis on not-provision of the proportionate premium. The Company
has Securities Premium of Ra.52940.100 Millions as at June 30, 2011, which Is
adequate to cover the cost of premium
proportionate in case the contingency materializes
4. The Company is In the process of
seeking the required statutory and regulatory approvals, (or implementing the Scheme of Arrangement and Restructuring
(SOA). The following are the salient features of the SOA:
I. Dc-merger end consequent
transfer of a) the Power Generation Division and b) the Project Execution
Division from currently Wholly Own subsidiaries (tICS) of the Company to other two WOO of
the Company
II. Amalgamation of both the WOO
with the Company after giving effect to the above-mentioned dc-merger and
consequent transfer of their prospective division, The ‘Appointed Date’ hued
For this purpose Is April t, 2010. This SOAr is subject to sanctions IVs.3a1
and 39407 the-Companies Act, 1956 by the respective Honorable Nigh Court of
Judicature at fumble and Honorable High-Court of Gujarat, Since this is pending
approval of the Honorable High Courts , the above results do not contain any
effect on account of this scheme.
5. On April 4, 2011. AE Rotor
Holdings LV. (‘AEIcH’) has Informed the executive Board of REpes.er that directly
and Indirectly owns shares amounting to more than 95% of the registered share
capital of Repower. As the same time, AERH requested that the general meeting
of RBpov,er shall resolve upon en the transfer of the shares held by the
remaining shareholders 4rninority shareholders) to ArEAs against payment of an
appropriate cash compensation hr compliance with German Stock corporation Act.
Further, on July 21, 2051, AERH informed the Executive Board of Rspower that it
has determined the adequate cash compensation for the transfer of the shares
(rum the minority shareholders of REpower to AllEN at fUR 142.77 per no-par
value share and accordingly, the total cash compensation payable by AERH Is
expected to be around fUR 63 million. A resolution on the squeeze-out Is
proposed to be paused at Use annual general meeting at Repower, which i scheduled
to take place on September 21, 2011.
6 The deferred tax asset of
Rs.55440.000 Millions was recognized by the Company In 9Y2010-11 on which the
auditor gave c-qualified opinion. The auditors have continued the qualification
for showing higher deferred tax assets and reserves In balance sheet as at June
30.2011.
7 During the lest Quarter of the
FY 2010-11, the Company concluded that non-alignment of the revenue recognition
policy of REnewer to that of Suskin would result in more appropriate presentation of the financial statements arid
changed the process of consolidated from quarter .ended March 31, 20th.
Accordingly, the consolidated financial results for the quarter ended June 30,
2011 are to that extent not comparable, Had the-Company applied the same policy
in-the quarter ended June 30, 2010, the revenues and the net loss after tax for
the quarter ended June 30, 20W would have been higher by Rs.3030.500 Millions and
Rs.121.400 Millions respectively
8. On April 12, 2013. the-Company
made them issue of 5% Foreign Currency Convertible Bonds due 2016 for a total
amount of USD 175.00 million (Rs.776.B3-trores). The initial conversion price
Is set at Rs.54.01 per share and the satire Is subject to adjustment In-certain
– circumstances.
9 The status of investor
complaints received by the Company Is as (follows: Fending as on April 1, 2011
- Nil;. received during the quarter - as; Disposed during the quarter - 11;
Pending as on June 30,2011- Nil.
10. The figures state above, have
been reclassified whenever necessary to confirm with the classification in the
financial results for the quarter
FIXED ASSETS
·
·
·
Buildings
·
Plant
and Machinery
·
Wind
research and measuring equipments
·
Computers
and office equipments
·
Furniture
and Fixtures
·
Vehicles
·
Intangible
assets
o
Designs
and drawings
o
SAP
software
WEBSITE DETAILS
COMPANY PROFILE
Conceived in 1995 with
just 20 people, Suzlon is now a leading wind power company with:
- Over
13,000 people in 32 countries
- Operations
across the
- Fully
integrated supply chain with manufacturing facilities in three continents
- Sophisticated
Rand D capabilities in
- Market leader in
ORGANISATION STRUCTURE
Suzlon is a leading wind power
products and services company with a global footprint. The primary principle
shaping the organisation’s structure across global operations is to infuse
momentum and flexibility in decision-making and execution, with empowered
managers.
Global Presence
Suzlon has seen consistent and
undisputed growth and is now the world's fifth largest wind power group.
Their global team, spread
across five continents, focuses on adoption of the world’s best practices
to fuel continuous growth and propel expansion in high potential markets. At Suzlon,
we combine global experience with local expertise to maximize technology
for the economic value and benefit of their clients.
Suzlon heads its international
sales, marketing and service out of each operation-active country
with an emphasis on local expertise to drive high growth in each market. Suzlon
subsidiaries in
Clients and Projects
In a short span of 13
years, Suzlon has become the world’s fifth largest wind turbine
manufacturer in the world, Suzlon Market share (Combined with Repower) rose to
9.8% thereby making Suzlon one of the leading wind turbine manufacturing groups
in the world. Their wind turbine generators (WTGs) are customized to
local geographies, wind regimes and needs, for installation in a variety of
climates ranging from hot, dry deserts, to humid coasts and near-freezing
plains. With a range of WTGs, ranging in capacity from 600 kW to 2.1 MW, we
have successfully set up projects in some of the most essential wind sites in
the world.
Suzlon has set up of prestigious wind farm projects such as:
Hallet Wind Farms in Australia,
Exelon in the USA, Penamacor in Portugal, Weihai in China and many more in
different parts around the world. Some of thier major clients include AGL
Energy Limited ., TrustPower Limited ., Tecneira, Servtec, DLF Group, Reliance
Group, Aditya Birla Group, Tata Group, British Petroleum, MSPL, John Deere Wind
Energy and Distributed Wind Systems.
PRESS RELEASE
05 October, 2011
SUZLON RECEIVES 25.5 MW ORDER FROM GAIL (
- The
‘Navratna’ Public Sector Undertaking (PSU) looks forward to expand its
wind energy portfolio
- GAIL’s third
wind energy project with Suzlon
- Project
slated for commissioning in Karnataka
Pune: Suzlon Energy Limited, the world's fifth largest* wind turbine
supplier, has announced its third consecutive order from GAIL - Asia's number
one and the world's number two gas utility company, and one of the 'Navaratna'
public sector undertakings of the Government of India. The order comprises 17
units of Suzlon's S82 - 1.5 MW wind turbines, to be commissioned in Karnataka
in 2012.
This is GAIL's third wind energy project order placed with Suzlon.
GAIL's previous two projects are located in
Speaking on the order, Mr. Tulsi R. Tanti, Founder, Chairman and
Managing Director, Suzlon Group, said: "As one of
ABOUT GAIL (
GAIL (
About Suzlon Group:
The Suzlon Group is ranked as the world’s fifth largest* wind turbine
supplier, in terms of cumulative installed capacity, at the end of 2010. The
company’s global spread extends across Asia,
The Suzlon Group is headquartered at One Earth, a 10.13-acre campus in
15 September, 2011
SUZLON NAMED ‘NEW SUSTAINABILITY CHAMPION’
BY THE WORLD ECONOMIC FORUM
Pune – Suzlon Energy Limited (SEL), world’s fifth* largest wind
turbine manufacturer, was highlighted as one of the New Sustainability
Champions in the report entitled Redefining the Future of Growth: The New
Sustainability Champions launched today by the World Economic Forum. The
report, prepared with The Boston Consulting Group (BCG), takes into account
criteria covering sustainability, innovation, scalability, geography and size.
The World Economic Forum and BCG analysed over 1,000 businesses in the
preparation of this report and identified 16 fast-growth companies that share a
unique mindset and set of practices. The report shows how the businesses of the
16 New Sustainability Champions create unconventional and profitable solutions
that positively impact economic growth and enhance overall sustainability in their
regions. It highlights innovative business practices from companies originating
and operating in emerging markets.
Mr. Tulsi R.
Tanti – founder, Chairman and Managing Director, Suzlon Group
said: "The decision of the World Economic Forum to
name Suzlon as a 'New Sustainability Champion' is xtremely exciting for all us in the Suzlon
Family. Sustainability is thier core value and it is what we seek to progress,
every day, in the 32 countries worldwide where we have a presence - delivering
sustainable, ecological, economic development. We will continue that work and
are both flattered and delighted to be honored in this way." The New
Sustainability Champions is being showcased at the Annual Meeting of the
New hampions 2011 in
About Suzlon
Group:
The Suzlon Group is ranked as the world’s fifth largest*
wind turbine supplier, in terms of cumulative installed capacity, at the end of
2010. The company’s global spread extends across Suzlon Energy Limited One
Earth, Hadapsar, Pune – 411 028, India Registered Office "Suzlon", 5,
Shrimali Society, Navrangpura, Ahmedabad - 380 009, India Asia, Australia,
Europe, Africa and North and South America with over 17,000 MW of wind energy
capacity installed in 25 countries, operations across 32 countries, a workforce
of over 13,000 and revenues of approximately US$ 4 billion. The Group offers
one of the most comprehensive product portfolios – ranging from sub-megawatt
on-shore turbines at 600 Kilowatts (KW), to the world’s largest commercial 6.15
MW offshore turbine – built on a vertically integrated, low-cost, manufacturing
base. The Group – headquartered at Suzlon One Earth in
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.49.07 |
|
|
1 |
Rs.76.65 |
|
Euro |
1 |
Rs.66.17 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
YES |
|
--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.