MIRA
INFORM REPORT
|
Report Date : |
26.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
ASIAN ELECTRONICS LIMITED |
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Registered
Office : |
D-11, Road No.28, Wagle Industrial Estate, Thane – 400 604, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
21.01.1964 |
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Com. Reg. No.: |
11-012835 |
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Capital
Investment / Paid-up Capital : |
Rs.169.360
millions |
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CIN No.: [Company Identification
No.] |
L99999MH1964PLC012835 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
PNEA05229A |
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PAN No.: [Permanent Account No.] |
AABCA0832C |
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Legal Form : |
Public Limited Liability Company. The Company’s Share are Listed on Stock
Exchanges. |
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Line of Business
: |
Design and
Manufacturing of Energy Conservation products – specializing in energy
efficient lighting solutions. |
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No. of Employees
: |
250 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
B (29) |
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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 6504000 |
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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 old
and established company having moderate track. There appears huge accumulated
losses recorded by the company. However, trade relations are reported as
fair. Business is active. Payments are reported to be slow. The company can
be considered for business dealings with some cautions. |
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
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 |
LOCATIONS
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Registered Office : |
D-11, Road No.28, Wagle Industrial Estate, Thane – 400 604, |
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Tel. No.: |
91-22-25835504 - 09 |
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Fax No.: |
91-22-25827636 |
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E-Mail : |
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Website : |
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Corporate Office : |
1219, Maker Chambers V, Nariman Point, Mumbai – 400 021, |
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Lighting
Group HQ : |
50 Community Center, 2nd Floor, Naraina
Industrial Area, Phase - I, |
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Tel. No.: |
91-11-25894910/ 25894912 |
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Fax No.: |
91-11-25894911 |
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E-Mail : |
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Factory 1 : |
Plot No. 68, MIDC Industrial Area, Satpur, Nashik – 422 007, |
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Tel. No.: |
91-253-2365000-02 |
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Fax No.: |
91-253-2365010 |
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E-Mail : |
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Factory 2 : |
DTA Unit: Plot No.2, Survey No.1B/2C, Near Octroi Naka, Vilholi, Nashik – 422
010, |
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Factory 3 : |
EOU: Survey No.15, Plot No.1, |
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Tel. No.: |
91-253-2401971/72 |
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Factory 4 : |
HP Unit : Hadbast No.932, Khasra No.228, Village Jakhroda, P.O. Partha, Panchayat
– Narayani, Tehsil Kasauli, District Solan, Himachal Pradesh, India |
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Factory 5 : |
Silvassa Unit: Survey No.113/2/6, Tirupati Industrial Estate, Near |
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Factory 6 : |
Chennai Unit : Plot No.131/134, Krishna Industrial Estate, Vinagaram, Mettukuppam,
Chennai – 600 095, |
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Branch Office : |
Located at: v Ahmedabad v
v Kolkata v Chennai v
v
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Zonal Office : |
Located at: v v v Zirakpur v v Jaipur v v Gurgaon v Dehradun v v v Kolkata v Guwahati v v Bhubaneshwar v v Mumbai v Ahmedabad v Chennai v v v
Ernakulam ( |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Arun B. Shah |
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Designation : |
Executive Chairman |
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Name : |
Mr. Haresh G. Desai |
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Designation : |
Director |
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Name : |
Dr. Deepak Divan |
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Designation : |
Director |
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Name : |
Mr. Suresh Sharma |
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Designation : |
Alternate Director to Dr. Deepak Divan |
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Name : |
Mr. Dipankar De |
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Designation : |
Nominee Director of IDBI Bank Limited (upto 18.6.2010) |
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Name : |
Mr. D.G. Prasad |
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Designation : |
Director |
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Name : |
Mr. Hemendra Srivastava |
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Designation : |
Nominee Director of IDBI Bank Limited (upto 31.10.2010) |
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Name : |
Mr. S. Ananthakrishnan |
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Designation : |
Nominee Director of IDBI Bank Limited (upto 28.6.2011) |
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Name : |
Mr. S. Neelakanta Iyer |
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Designation : |
Executive
Director and Joint Chief Executive Officer (Manufacturing Operations) [w.e.f.
1.06.2011] |
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Name : |
Mr. Rajesh Mehta |
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Designation : |
Executive
Director and Joint Chief Executive Officer (Technology and Finance) [w.e.f
1.06.2011] |
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Name : |
Mr. Rasik D Goradia |
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Designation : |
Executive
Director (Non Board Member) (Ceased to be Company Secretary and Compliance
Officer w.e.f. 31.3.2011) |
KEY EXECUTIVES
|
Name : |
Mr. Charudatta A. Kulkarni |
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Designation : |
AGM (Finance and Legal) and Company Secretary (w.e.f. 01.04.2011) |
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Name : |
Mr. Atul Raj Yadav |
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Designation : |
Senior Area Manager, Jaipur |
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Name : |
Mr. Jinendra Shah |
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Designation : |
Co-Executive Director-Operations |
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Name : |
Mr. Snehal J. Shah |
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Designation : |
Joint Chief Financial Officer (Ceased to be Joint Chief Financial
Officer w.e.f. 31.7.2011) |
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Name : |
Mr. Suresh H. Shah |
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Designation : |
Chairman and
Managing Director |
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Name : |
Mr. Ashok Sharrna |
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Designation : |
Co-Executive
Director-Operations |
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Name : |
S. Neelakanta Iyer |
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Designation : |
Joint Chief Executive Officer -
Manufacturing Operations, Executive Director |
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Name : |
Mr. Rajesh Mehta |
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Designation : |
Joint Chief
Executive Officer - Technology and Finance, Executive Director |
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Name : |
P.S. Ahuja |
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Designation : |
Senior General
Manager-Chandigarh |
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Name : |
S. Bardhan |
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Designation : |
Assistant General
Manager, Kolkatta |
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Name : |
Anjan Chatterjee |
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Designation : |
Assistant
General Manager, Kolkatta |
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Name : |
R.K. Kaushik |
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Designation : |
Assistant
General Manager, |
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Name : |
M.K Nair |
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Designation : |
Senior General
Manager, Mumbai |
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Name : |
Mr. Santosh Singh |
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Designation : |
Assistant
General Manager, Gurgaon |
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Name : |
V.M. Sundaram |
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Designation : |
Senior General
Manager, Chennai |
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Name : |
Mr. Amit Kumar Sen |
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Designation : |
Assistant
Regional Manager, Guwahati |
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Name : |
Mr. Subash Soni |
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Designation : |
Vice President, |
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Name : |
Mr. D. R. Shetty |
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Designation : |
Senior General Manager - Silvassa |
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Name : |
Mr. Deepak Marriya |
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Designation : |
Chief Operation
Officer - Solan |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
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(A) Shareholding of Promoter and Promoter Group |
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3,320,549 |
9.37 |
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3,320,549 |
9.37 |
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Total shareholding of Promoter and Promoter Group (A) |
3,320,549 |
9.37 |
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(B) Public Shareholding |
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3,200 |
0.01 |
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2,420 |
0.01 |
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9,000 |
0.03 |
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14,620 |
0.04 |
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5,080,122 |
14.33 |
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22,580,316 |
63.69 |
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2,555,966 |
7.21 |
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1,900,586 |
5.36 |
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652,136 |
1.84 |
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1,248,450 |
3.52 |
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32,116,990 |
90.59 |
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Total Public shareholding (B) |
32,131,610 |
90.63 |
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Total (A)+(B) |
35,452,159 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
35,452,159 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Design and
Manufacturing of Energy Conservation products – specializing in energy
efficient lighting solutions. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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CFL |
Nos. |
46,80,000 |
6,91,210 |
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Ballast |
Nos. |
24,96,000 |
2,25,639 |
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Streetlight and Highbay |
Nos. |
1,56,000 |
29,933 |
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Retrofit and Conventation |
Nos. |
15,60,000 |
9,27,124 |
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Retrofit Systems and Parts thereof (Export) |
Nos. |
3,12,000 |
1,48,205 |
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Notes:
1. The quantity of actual production is inclusive of goods produced by
processors.
2. Installed capacity and quantitative information regarding product wise
Sales, Opening and Closing Stocks and Production is as certified by Directors
and accepted by the Auditors as correct.
GENERAL INFORMATION
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No. of Employees : |
250 (Approximately) |
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Bankers : |
v
Bank of v HDFC Bank Limited v UCO Bank v The Hongkong and Shanghai Banking Corporation Limited v IDBI Bank Limited v
State Bank of |
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Facilities : |
Notes: 1. Rupee term
loan of Rs.0.985 million (Previous year Rs.18.464 millions) from IREDA is secured
by [1] First charge
by way of hypothecation of assets acquired out of IREDA’s loan and Company’s
own funds under the scheme, both existing and future. [2] Second
charge on the immovable properties of the Company at [3] Personal
guarantee of the then Chairman. [4] Corporate
guarantee of a group Company [5] Pledge of
fixed deposit receipt of Rs. NIL (Previous Year Rs.18.166 millions) [6]
Hypothecation of receivables from state electricity boards of amount not
exceeding Rs.180.000 millions 2. Term Loan of
Rs.30.000 millions (Previous year Rs.60.867 millions) from UCO Bank is
secured by : [1] Assignment
of Letter of Credit of MSEDCL and hypothecation of receivables arising out of
MSEDCL lease rentals. [2] Exclusive
charge on ESCO receivables subject to first prior charge of IREDA to the
extent Rs 180.000 millions. [3] Exclusive
first mortgage charge on immovable properties and hypothecation charge on
movable fixed assets of the company excluding charge created in favour of
IREDA. [4] Pari-Passu
second charge on company’s current assets excluding ESCO receivables and
MSEDCL receivables. 3. Short term
loan of Rs.54.955 millions (Previous Year Rs.54.957 millions) from Bank of
India is secured by first charge by way of Equitable Mortgage on the
immovable properties of the Company at Thane. 4. Working
Capital Facilities of Rs.1528.185 millions (Previous year Rs.1145.418
millions) are secured by : [1]
Hypothecation of current assets except Esco receivables. [2] Second charge on immovable properties at 68, MIDC, Satpur,
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Sorab S. Engineer and Company Chartered Accountants |
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Solicitors : |
Legasis Partners |
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Subsidiary : |
v
AEL Projects Private Limited (w.e.f. 22.7.2010) v
AEL ESCO Private Limited (w.e.f. 21.7.2010) |
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Joint Venture : |
v
Midcom Magnetics Management Private Limited v
Asian Retail Lighting Limited (upto 23rd
March, 2011) |
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Associate : |
v
Unique Waste Plastic Management and Research
Company Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
80000000 |
Equity Shares |
Rs.5/- each |
Rs.400.000 millions |
|
|
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Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
35453259 |
Equity Shares |
Rs.5/- each |
Rs.177.266
millions |
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|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
35452159 |
Equity Shares |
Rs.5/- each |
Rs.177.261
millions |
|
|
Less: Amount Recoverable from ESOP Trust |
|
Rs.7.901
millions |
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Total |
|
Rs.169.360 millions |
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Note:
Subscribed and
Paid up capital includes:
i) 90,25,606 equity
shares of Rs.5 each allotted as fully paid bonus shares by capitalisation of
Securities Premium Account Rs.37.331 millions and general reserve Rs.7.797
millions
ii) During the
year 2005-06, the Company has approved a Scheme of Arrangement (‘the Scheme’)
between Asian Raymold Lighting Private Limited (‘ARLPL’) and the Company vide
Board Resolution dated June 29, 2005 and shareholders approval dated September
26, 2005. The said Scheme has been approved during the year 2006-07 by the
Honourable High Court, Mumbai and Honourable High Court, Chennai respectively
and the scheme has become effective and consequently the Company has issued
8,00,000 Equity Shares of Rs.5/- each to the shareholders of ARLPL, i.e. Asian
Raymold Lighting Private Limited other than the Company
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
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|
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|
1] Share Capital |
169.360 |
149.503 |
145.337 |
|
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2] Stock Options Outstanding |
0.000 |
44.303 |
0.000 |
|
|
3] Equity Share Warrants |
0.000 |
23.117 |
0.000 |
|
|
4] Reserves & Surplus |
2227.714 |
2088.818 |
2030.255 |
|
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5] (Accumulated Losses) |
(771.106) |
0.000 |
0.000 |
|
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NETWORTH |
1625.968 |
2305.741 |
2175.592 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1632.597 |
1279.956 |
1840.639 |
|
|
2] Unsecured Loans |
53.441 |
56.602 |
547.889 |
|
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TOTAL BORROWING |
1686.038 |
1336.558 |
2388.528 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3312.006 |
3642.299 |
4564.120 |
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
334.587 |
378.387 |
423.589 |
|
|
Capital work in progress including capital advances |
77.916 |
113.665 |
110.002 |
|
|
|
|
|
|
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|
INVESTMENT |
1108.896 |
1108.696 |
478.347 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
836.469
|
950.597
|
834.695 |
|
|
Sundry Debtors |
1316.787
|
1815.814
|
3047.295 |
|
|
Cash & Bank Balances |
37.531
|
96.870
|
56.719 |
|
|
Other Current Assets |
1.347
|
0.822
|
0.719 |
|
|
Loans & Advances |
662.893
|
713.355
|
729.477 |
|
|
MSEDCL Receivables |
0.000
|
0.000
|
411.409 |
|
Total
Current Assets |
2855.027
|
3577.458
|
5080.314 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
819.659
|
1341.421
|
1243.754 |
|
|
Other Current Liabilities |
230.381
|
183.842
|
275.720 |
|
|
Provisions |
14.884
|
11.138
|
8.658 |
|
Total
Current Liabilities |
1064.924
|
1536.401
|
1528.132 |
|
|
Net Current Assets |
1790.103
|
2041.057
|
3552.182 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.504 |
0.494 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3312.006 |
3642.299 |
4564.120 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
|
1454.902 |
2244.057 |
2117.929 |
|
|
|
Other Income |
18.269 |
34.137 |
22.378 |
|
|
|
TOTAL (A) |
1473.171 |
2278.194 |
2140.307 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials Consumed |
1636.760 |
1706.391 |
1270.698 |
|
|
|
(Increase)/ Decrease in Inventories |
(26.298) |
(145.159) |
70.380 |
|
|
|
Personnel Expenses |
78.253 |
105.733 |
134.118 |
|
|
|
Manufacturing, Administrative and Other Expenses |
205.449 |
233.724 |
422.265 |
|
|
|
Exceptional Items |
80.463 |
44.303 |
(69.829) |
|
|
|
TOTAL (B) |
1974.627 |
1944.992 |
1827.632 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(501.456) |
333.202 |
312.675 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
247.197 |
281.180 |
213.012 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(748.653) |
52.022 |
99.663 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
43.985 |
43.916 |
46.082 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(792.638) |
8.106 |
53.581 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.005 |
3.304 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(792.638) |
8.101 |
50.277 |
|
|
|
|
|
|
|
|
|
Add |
EXCESS PROVISION
OF INCOME TAX OF EARLIER YEARS W/BACK |
-- |
21.295 |
-- |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER PRIOR PERIOD ITEMS AND TAX |
(792.638) |
29.396 |
50.277 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
21.532 |
(7.864) |
(58.141) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed dividend |
-- |
-- |
-- |
|
|
|
Tax on dividend |
-- |
-- |
-- |
|
|
|
Transfer to General Reserve |
-- |
-- |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
(771.106) |
21.532 |
(7.864) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports at FOB value |
83.995 |
207.146 |
85.267 |
|
|
TOTAL EARNINGS |
83.995 |
207.146 |
85.267 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
43.964 |
46.896 |
270.618 |
|
|
|
Capital Goods |
0.000 |
0.000 |
38.571 |
|
|
TOTAL IMPORTS |
43.964 |
46.896 |
309.189 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(24.48) |
0.97 |
1.68 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
150.900 |
|
Total Expenditure |
|
|
209.700 |
|
PBIDT (Excl OI) |
|
|
(58.800) |
|
Other Income |
|
|
0.000 |
|
Operating Profit |
|
|
(58.800) |
|
Interest |
|
|
62.700 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
(121.500) |
|
Depreciation |
|
|
10.800 |
|
Profit Before Tax |
|
|
(132.300) |
|
Tax |
|
|
0.000 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
(132.300) |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
(132.300) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(53.80)
|
0.35
|
2.50 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(54.48)
|
0.36
|
2.46 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(24.85)
|
0.20
|
0.97 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.49)
|
0.00
|
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.69
|
1.24
|
1.80 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.68
|
2.33
|
3.32 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
During the year, the Company has achieved gross revenue of Rs.1473.200
millions as against Rs.2278.200 millions in the previous year.
Sales of lighting products comprises of domestic sales and export sales.
DOMESTIC SALES
The Company’s sales suffered significantly for want of working capital
and delayed recoveries from markets. The trading activities have yielded
marginal returns but in the process have used some of the inventories.
EXPORT SALES
The Export Sales was to the tune of Rs.84.000 millions for the year as
compared to Rs.207.100 millions in the previous year. The Company has
consciously focused on this segment and taken steps to grow exponentially
during the coming years. New products like the Power Products and the LED
Products were introduced to new customers in this year. During the year, a
patented Product ‘E2T5’ was exclusively developed complying to European
specifications. The Power Products and LED related special designs are likely
to cater to both the Export and Domestic markets and will play a major role in
the business prospects of the Company in the coming years.
FINANCE
As advised during the last report, the Company had approached its
lenders for rescheduling the debt over a longer period. The Company’s finances
further deteriorated due to lower capacity utilization, higher interest and
reduced margins. Faced with defaults, the Company approached CDR through its largest
creditor, IDBI Bank in Jan 2011. The proposal is pending approval of the
requisite number of creditors. The Board of Directors is of the opinion that
the Company’s survival solely depends on the approval of such a package. The
management is still in negotiation for such approval. In the meantime, the
Company is facing law suits from LIC Mutual Fund and from HSBC for recoveries
of their dues.
The enclosed statement forming part of the report gives details such as
Financial Position at a glance, Distribution of Income etc.
SUBSIDIARY
COMPANIES
In furtherance of the various objectives as mentioned in the last year’s
Report, the Company has effective from 1st October, 2009 transferred the
following Divisions to two 100% subsidiaries (SPVs) as under:
a. Business of ESCO Division, i.e. financing of Projects / Products to
customers on energy saving basis, and all activities related thereto together
with all related assets, liabilities and entitlements at book values as at the
time of transfer, on a going concern basis. The name of this 100% subsidiary is
AEL ESCO PRIVATE LIMITED.
b. Business of Projects Division, i.e. State Electricity Board Projects
and all activities related thereto together with all related assets,
liabilities and entitlements at book values as at the time of transfer on a
going concern basis. The name of this 100% subsidiary is AEL PROJECTS PRIVATE
LIMITED.
The Accounts for the year ended 31st March, 2010 and 31st
March, 2011 have incorporated all such transactions at the book value at the
time of transfer and the difference between the book values of identified
assets and liabilities of ESCO Division amounting to Rs.517.434 millions and of
Project Division amounting to Rs.112.915 millions are shown as investment in
the proposed subsidiaries.
The Company is looking out for strategic partners in these activities
once the fate of CDR is known.
RIGHT ISSUE
The Company has received the Observation Letter from SEBI bearing No.
CFD/DIL/ISSUES/SP/VB/17386/2010 dated 25th August, 2010. The validity
of the said SEBI Observation Letter was for one year from the date of issuance
ie. upto 24th August, 2011.
SEBI has directed Lead Manager M/s. Vertex Securities Limited, to update
the Draft Letter of Offer as per the observations enumerated by it in the said
Observation letter.
In the meanwhile, in order to get the approval of the Bankers to the
Company for the Company’s proposal for Corporate Debt Restructuring (CDR), the
issue size is proposed to be increased to Rs.689.000 millions. No sooner the
approval for proposed CDR is received, the updation of the Draft Letter of
Offer will be undertaken by the Company to ensure that the Rights Issue is
completed at the earliest.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
Business Review
Asian Electronics has not only been the pioneer in the energy efficient
lighting industry but has also emerged as a premium quality brand with strong
brand leadership and a robust distribution channel. The business prospects of
the Company appeal even more when viewed in the backdrop of the new age Indian
consumer who demands quality products from a respected brand even if he has to
pay a premium for it. We, at Asian, strive to ensure that the trust shown by
their customers in them is not only maintained but further strengthened at any
cost. Quality wise, they are proud to proclaim that they are at par with the
products of the global leaders in the power saving lighting industry.
Opportunities
In Indian Market:
Their vast
marketing network, which has presence across the length and breadth of the
country, has taken the brand of the Company right into the hearts of the
customers. They feel that the performance of their vast marketing network can
be augmented significantly if certain factors hindering its performance are addressed
satisfactorily. These factors have been discussed in detail later in this
Report. The Company is stressing on increasing its range of product offerings,
which it believes, has immense business potential going forward. With the huge
populace becoming aware of the benefits of energy efficient lighting, the
industry in which they operate assures a stable and sustainable growth over a
long term.
In International
Markets:
The products of
the Company have presence in the developed markets of US and
Threats:-
The business is subject to a set of hostilities arising out of the
following:
Debt burden of secured and unsecured lenders:
The Company has
been facing scarcity of working capital for quite some time. It has been
hindering the overall operations of the Company. After a long and protracted
spell of discussions, the Company’s financiers chose to explore Corporate Debt
Restructuring (CDR) mechanism to find an amicable solution. However, this is
yet to reach its conclusion. The Company sincerely hopes for the CDR proposal
to be approved without much delay failing which the Company would struggle to
survive the financial crunch it finds itself into.
Meeting Customer Expectations:
In the industry
that the Company operates in, prompt deliveries are the order of the day. The
customers do not have mercy for “delayed” deliveries in the competitive world.
The paucity of Working Capital cycle has impacted business of the Company
badly.
Recoveries of old Dues:
Huge receivables
of the Company have been locked into litigations. The Company is pursuing the
recoveries vigorously and is hopeful of recovering them. However, the response
to legal process of recovery has been very slow and not likely to yield results
quickly.
Government and Semi-Government Dues:
Huge funds had got
stuck with various Municipal Corporations under the ESCO model of business and
the Maharashtra State Electricity Board in respect of the Capacitor Panels
under
Global events:
Chances of a
slowdown of the World Economy, mainly European economy, is quite possible for
the short term due to current global developments. As the Company is having
substantial share of its exports business concentrated in
Cost of Raw material:
The volatility in
the prices of all the major raw materials may adversely affect profit margins
of the Company. The Company has adopted various measures to hedge itself from
impact of the price rise to minimize the effect of escalating prices of raw
materials.
Foreign Exchange:
With the ever
increasing focus of the Company on export markets, any adverse movement in the
foreign exchange rates shall affect the margins of the Company. The Company has
adopted various measures to hedge itself from any such adverse movements.
Entering into new markets or new products:
As discussed they
have been entering into new geographies which will have its own challenges.
They are also planning to launch new products which may need new policies. The
new initiatives will bring new challenges in near future. They believe that
they have sufficient management bandwidth to pass through these cycles with
past experiences. They are also putting in place various safeguards to ensure
that they do not encounter any unexpected surprises.
Amidst the
adversity as above, the management has kept a simple goal of building current
businesses as the first priority and has achieved the following:
a. Created an
island of customers to service with their own support of Working Capital in
overseas and local markets.
b. built
commercially viable business opportunities in new products.
c. took recovery
of stuck assets as a special project and survive the rot.
d. reduced
overheads to almost negligible in relation to size of the business.
The markets too
have seen violent fluctuations in material prices and hence availability.
However, the
menace of unorganized trade (cheaper imported products) seems to be on wane.
This development has been heartening for the Company. But the Company cannot
let its guard down.
Their aim is to
bring in stability in short run and be an established contract manufacturer in
due course of time.
CONTINGENT
LIABILITIES NOT PROVIDED FOR
|
PARTICULARS |
31.03.2011
(Rs. In millions) |
31.03.2010 (Rs.
In millions) |
|
Claims against the Company not acknowledged as debts – Note (a) |
107.720 |
99.059 |
|
Guarantees given by the bankers on behalf of the Company |
116.902 |
165.171 |
|
Corporate Guarantee given by the Company on behalf of a third party |
30.000 |
30.000 |
|
Bills/LC discounted with banks |
65.726 |
71.685 |
|
Disputed income tax demand – Note (b) |
297.357 |
151.525 |
|
Disputed Sales tax demand |
0.000 |
7.705 |
|
TOTAL |
617.705 |
525.145 |
Notes:
a. The above
claims include a dispute with a finance company relating to lease transactions entered
in the year 1997. These disputes were under arbitration. During the year
2005-2006, awards were given by the arbitrator directing the Company to
compensate the finance company for the losses suffered by them due to
disallowances of certain claims. The award also stipulated that the finance
company should refund the amount to the Company on succeeding in further
appeals. The Company’s Arbitration Petition in the High Court of Bombay for
setting aside the award passed by the Honourable Arbitrator on 23rd March 2006
has been dismissed. Aggrieved by the said order the Company has preferred an
appeal in the Second Bench of the Honourable High Court of Mumbai, which was
also dismissed.
Aggrieved by the
said order of the 2nd Bench of the High Court, the Company has filed Special
Leave Petitions (Civil) No. 14865/2007 and No. 15093/2007. The Honourable
Supreme Court granted an interim stay on the impugned orders on deposit of
Rs.20.000 millions with the Supreme Court Registry which the Company has
deposited. The matter is pending in the Supreme Court.
b. The Company has
not provided for disputed tax liability of Rs.297.357 millions (Previous year -
Rs.151.525 millions) arising from disallowances made in assessments which are
pending with Appellate Authorities for its decision.
UNAUDITED FINANCIAL RESUTLS FOR THE
QUARTER ENDED 30.06.2011
(Rs. in millions)
|
Particulars |
Quarter Ended 30.06.2011 (Unaudited) |
|
1. (a) Net Sales /Income from Operations |
149.100 |
|
(b) Other Operating Income |
1.800 |
|
Total Revenue |
150.900 |
|
2. Expenditure : |
|
|
a) (Increase)/decrease in Stock in Trade and Work in Progress |
28.600 |
|
b) Consumption of Raw Materials |
40.300 |
|
c) Purchase of traded goods |
69.500 |
|
c) Employees Cost |
20.100 |
|
d) Depreciation |
10.800 |
|
e) Other Expenditure |
51.200 |
|
f) Total |
220.500 |
|
3. Profit/ (Loss) from Operations before Other Income, Interest and Exceptional Items (1-2) |
(69.600) |
|
4. Other Income |
-- |
|
5. Profit/ (Loss) before Interest and Exceptional Items (3+4) |
(69.600) |
|
6. Interest (Net) |
62.700 |
|
7. Profit/ (Loss) after Interest but before Exceptional Items (5-6) |
(132.300) |
|
8. Exceptional Items |
-- |
|
9. Profit / (Loss) from Ordinary Activities before tax (7+8) |
(132.300) |
|
10.Tax expense |
-- |
|
11. Net Profit / (Loss) from Ordinary Activities after tax (9-10) |
(132.300) |
|
12. Excess Provision for Tax of Earlier Year Written Back |
-- |
|
13. Extraordinary Item |
-- |
|
14. Net Profit / (Loss) for the period (11-13) |
(132.300) |
|
15. Paid-up equity share capital (Face Value - Re.5/- per share) |
169.400 |
|
16. Reserves excluding Revaluation Reserve |
-- |
|
17. Earnings Per Share (EPS) Rs.5/- each |
|
|
(a) Basic EPS before Extraordinary items for the period, for the years to date and for the previous year (not to be annualized) |
(3.73) |
|
(b) Diluted EPS after Extraordinary items for the period, for the years to date and for the previous year (not to be annualized) |
(3.73) |
|
18. Public shareholding : |
|
|
- Number of shares |
32131610 |
|
- Percentage of Shareholding |
90.63% |
|
19. Promoters and promoter group Shareholding : |
|
|
a) Pledged/Encumbered |
|
|
- Number of shares |
-- |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
-- |
|
- Percentage of shares (as a % of the total share capital of the company) |
-- |
|
b) Non-encumbered |
|
|
- Number of Shares |
3320549 |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
100.00% |
|
- Percentage of shares (as a % of the total share capital of the company) |
9.37% |
Notes:
1. As per approval of the shareholders of the Company under Section 293 (1) (a) of the Companies Act, 1956, obtained through postal ballot on 22nd May, 2010, the Company has effective from 1st October, 2009 transferred the businesses of two divisions to two 100 % subsidiaries, subject to requisite approvals being obtained from the concerned Statutory Authorities and the Company’s lenders and creditors. The company had applied for approvals of secured/unsecured lenders. However one of the lenders has informed the Company that they are not agreeable to the transfer of the businesses of the two divisions to the two 100% subsidiaries and has declined to give its approval. Besides, the Lead bank of the Consortium for Working Capital has informed the Company not to proceed with hiving-off of assets without the written consent of the Consortium Banks. Consequently, the Company continues to be liable to the lenders for the Term Loans and Unsecured Redeemable Non-Corivert4ble Debentures transferred to the subsidiary companies. The Company has not provided interest on the above for the quarter. Therefore, the company will continue to be liable to the lenders for the Loans/Unsecured Debentures transferred to the two 100% subsidiaries together with interest thereon.
2. The reference for Corporate Debt Restructuring (CDR) has
been made recently under the CDR mechanism, instituted by Reserve Bank of
3. Due to current mismatch of inflows and outflows, compounded by delayed recoveries of certain stressed assets, as enumerated in Note No. 4 below, the debt servicing by the Company has been adversely affected. As a result, action has been initiated by some of the lenders of the Company. LIC Mutual Fund has filed a petition in the Bombay High Court for winding up of the Company for non-payment of its dues. The matter is being heard and the Company is representing its case. Bank of India has served upon the Company a Notice under Section 13(2) of The Securitization and Reconstruction of Financial Assets and Enforcement of Security Act, 2002 for repayment of dues. Also other banks have sent Demand Notices to the Company for repayment of their dues.
4. Consequent to a review made by the Management of the various Assets of the Company, the Management is of the opinion that special efforts over a period of time would be needed for recovery of the following stressed assets which would have an impact on the results of the Company for the quarter:
a. Diminution in the value of Investments in Foreign Companies Rs.0.777 million, where the local Managements have deserted the Companies and the businesses have been closed down.
b. Diminution of value if any in the Investments in Unique Waste Plastic Management and Research Company Private Limited of Rs.436.020 millions where the pending disputes with minority shareholders need to be resolved to recover the value of the Investments held by the Company.
c. Inventories of Rs.836.469 millions includes Rs.300.000 millions of old/ unusable stocks, where the Product Lines are discontinued.
d. Sundry Debtors considered good includes Rs.421.623 millions of old Outstandings where the recovery may happen only after due legal actions and settlements of counter claims, if any, which cannot be determined.
e. Loans and Advances considered good includes Rs.292.651 millions of old debit balances where the same may be recovered in the form of assets or will be settled subject to counter claims, if any, which cannot be determined.
f. Cash and Bank balances include Rs.26.100 millions on account of unreconciled bank balances which may not be recoverable /realizable.
Non or delayed recoverability of the above Stressed Assets and inadequacy of accruals have adversely affected the debt servicing by the Company and also led to operating losses and erosion of liquidity. The management is of the view that the above stressed assets of various classes may need provision in due course the extent of which cannot be determined at present. Consequently they have been shown as considered good and no provision has been made for the same.
The management is of the view that the future viability of the company and its ‘going concern’ assumption would depend on the timely approval of the CDR to the company’s restructuring proposal.
5. As recommended by the Board of Directors and approved by the Shareholders at the Extraordinary General Meeting held on 6th July, 2009, the Company is proposing to make a Rights Issue in the ratio of 1:2 to its existing Shareholders in the near future, subject to market conditions and other considerations and the Company has filed Draft Letter of Offer with the Securities and Exchange Board of India (SEBI), Bombay Stock Exchange Limited and National Stock Exchange of India Limited pursuant to which SEBI has issued Observation Letter. The Company is now required to update the Draft Letter of Offer and take the necessary approval of SEBI to proceed with the Rights issue in due course of time. The SEBI Observation Letter is valid upto 24th August, 2011.
6. Segment reporting as required under AS — 17 is not applicable for the year, as more than 90% of the revenue comes from a single business segment of Lighting Products / Systems. There is only one geographical segment.
7. The above Unaudited Financial Results for the quarter, were reviewed by the Audit Committee and taken on record by the Board of Directors of the Company at their respective Meetings held on 18th August, 2011.
8. There were no investor complaints pending at the beginning of the quarter. 13 Complaints/Requests received during the quarter were duly attended. There were no complaints pending at the end of the quarter.
9. Previous quarter’s figures have been regrouped / rearranged wherever necessary to make them comparable to those of current quarter.
FIXED ASSETS
Tangible Assets
v
Free
v Lease Hold
v
v Flat
v Plant and Machinery
v Furniture and Fixtures
v Vehicle / Cycle
Intangible Assets
v Goodwill
v Patents and Trademarks
v Product Development Cost
v Software
WEBSITE DETAILS:
HISTORY
- Established in 1964
- Management change in 1980
- Diversification into Lighting Industry in 1998
PROFILE
Subject is involved in Design and Manufacturing of Energy Conservation Products, specialising in energy efficient lighting solutions.
With its world-class Manufacturing
Facility at Nashik (
Subject was awarded the AICPA award for being the most
investor rewarding company in 1996.
Subject’s financial model of "Pay from savings" has been recognized as
one of the best by US Agency for International Development (USAID) in
conjunction with other official agencies. It is documented in their report on
"Strategies of Financing Energy Efficiency".
Subject with its global presence is propagating the use of energy efficient and
intelligently controlled lighting systems across the world.
MANUFACTURING
FACILITY
NASHIK UNIT:
Subject has a state of the art world class manufacturing
facility at Nashik, 160 kms (100 miles) from
The facility also houses the R and D unit carrying out intensive work to find better ways to save energy at lesser costs. Their strong focus on R and D has been a driving force to be a leading player in energy efficient lighting systems and solutions.
BUSINESS DESCRIPTION
Subject is an India-based company. The Company is engaged in
designing and manufacturing of energy conservation products, specializing in
energy efficient lighting solutions. It operates in a single segment, which
includes the Lighting Products / Systems. The Company's businesses include
domestic lighting, exports lighting and power products, ESCO funding, projects,
and research and development. Its domestic lighting business has a retail
network of over 800 counters and also operates through a joint venture with
Future group. During the fiscal year ended March 31, 2010 (fiscal 2010), the
light emitting device (LED) segment was added to the domestic lighting
portfolio. As of March 31, 2010, the Company had tied up major contracts with
Innovolt Inc,
Manufacture and distribution of MFD capacitors, LT power capacitors, LT switched capacitors, HT capacitors and sub station load management systems, multilayer metallised polypropylene film, polyester film and static energy meters.
BOARD OF DIRECTORS
Arun Babulal Shah
Executive Independent
Chairman of the Board
Mr. Arun Babulal Shah is Executive Independent Chairman of the Board of subject He is director of Indage Vintners Limited., Indage Restaurants and Leisure Limited., Sirus Capital Services Limited, Indage Hotels Limited, Himachal Indage Limited., Prime Securities Limited, Prime Broking Company (India) Limited, Cybertech Systems and Software Limited, Seabuckthorn Indage Limited, Prime Commodities Broking Company (India) Limited, Asian Retail Lighting Limited and Home Lighting India Limited.
Haresh Gunvarntrai
Desai
Non-Executive
Independent Director
Mr. Haresh Gunvarntrai Desai is Non-Executive Independent Director of subject Mr. Desai is a Chartered Accountant by profession and partner of A.V. Rajwade and co., noted Forex and Risk Management Consultants. His other Directorships are Indage Vintners Limited., Indage Restaurants and Leisure Limited., Arsh Owners and Advisors Limited
Deepak Divan
Non-Executive
Independent Director
Dr. Deepak Divan, Ph.D., is Non-Executive Independent
Director of subject. Dr. Divan is Founder and Chairman of Innovolt Inc., an
D.G. Prasad
Non-Executive
Independent Director
Mr. D. G. Prasad is Non-Executive Independent Director of
subject since August 29, 2009. Mr. Prasad is a Chartered Accountant and had
been a career banker for over 33 years. After being with Canara Bank for over 8
years, Mr. Prasad served Exim Bank for over 25 years having joined in 1983, in
its formative phase. In Exim Bank, he held various positions including as the
Chief General Manager heading Corporate Banking, Agri Business and SME Business
Groups of the Bank. He holds considerable in trade finance, international
finance, merchant banking, corporate strategies, mergers and acquisitions, loan
syndications, fbrfaiting, international negotiations and co-financing with
multilateral agencies. He was trained in 'Treasury Management' at Credit
Suisse,
NEWS:
ASIAN
ELECTRONICS TO GRANT STOCK OPTION UNDER ESOP
22 June 2011
India, June 22 -- Asian Electronics has informed about the pursuant to the stock options granted under the Employee Stock Option Scheme, 2005 (ESOS 2005) to eligible employees of the company, four employees have exercised 1,01,550 stock options, in aggregate, into equal number of equity shares, on June 20, 2011.Further, since the ESOS 2005 scheme is administered through the Trust route, the said 1,01,550 shares shall be transferred from the Trust settled for the purpose to the concerned exercisee(s) and consequently, there shall not be any increase in the paid up capital of the Company pursuant to the aforesaid exercise.
GRANT
OF OPTIONS
17 June 2011
India, June 17 -- Asian Electronics Limited has informed BSE that the Compensation Committee of the Board of Directors of the Company has, vide its Circular Resolutions dated April 01, 2011, granted Options to the eligible Directors / Employees of the Company as per the details given below:1. 4,98,450 Stock Options have been granted to certain eligible Executives of the Company, which shall be exercisable into equal number of fully paid-up Equity Shares of the Company of the face value of Rs. 5/- each, in one or more tranches, on payment of exercise price of Rs. 10.75/- per share, to the Company, on the terms and conditions determined by the Compensation, Committee under the Employees Stock Option Scheme - 2005.2. 41,80,057 Stock Options have been granted to certain eligible Directors and Executives of the Company, which shall be exercisable into equal number of fully paid up Equity Shares of the Company of the face value of Rs. 5/- each in one or more trenches on payment of exercise price of Rs. 10.75/- per Share, to the Company, on the terms and conditions determined by the Compensation Committee, under Employees Stock Option Scheme - 2009.
ASIAN
ELECTRONICS CHANGES ITS DIRECTORATE
09 June 2011
India, June 09 -- Asian Electronics has informed that S. Neelakanta Iyer, President - Manufacturing Operations has been promoted to the position of executive director and Jt. Chief Executive Officer (Manufacturing Operations) with effect from June 01, 2011.Similarly, Rajesh Mehta, President - Research and Development, has been promoted to the position of Executive Director and Jt. Chief Executive Officer (Technology and Finance) with effect from June 01, 2011..
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.49.67 |
|
|
1 |
Rs.76.50 |
|
Euro |
1 |
Rs.66.98 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
|
29 |
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.