1. Summary Information
|
|
|
Country |
|
|
Company Name |
EMCO LIMITED |
Principal Name 1 |
Mr. Rajesh S. Jain |
|
Status |
Satisfactory |
Principal Name 2 |
Mr. Shailesh S. Jain |
|
|
|
Registration # |
11-013011 |
|
Street Address |
N-104, MIDC
Area, Jalgaon – 425003, Maharashtra, India |
||
|
Established Date |
19.09.1964 |
SIC Code |
-- |
|
Telephone# |
91-257 - 2272 462 / 2272 572 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-257- 2272 598 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Transformers |
|
|
# of employees |
Not Available |
Product Name 2 |
Electronic Energy Meters |
|
Paid up capital |
Rs.130,274,000/- |
Product Name 3 |
-- |
|
Shareholders |
Shareholding of
Promoter and Promoter - 43.42 % Public
shareholding – 56.58% |
Banking |
Dena Bank |
|
Public Limited Corp. |
Yes |
Business Period |
48 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
Ba
(47) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Joint Ventures |
-- |
PT Vardhaman
Logistics |
-- |
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
9,867,376,000 |
Current Liabilities |
4,700,577,000 |
|
Inventories |
1,534,501,000 |
Long-term Liabilities |
3,617,857,000 |
|
Fixed Assets |
2,224,857,000 |
Other Liabilities |
71,852,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
8,390,286,000 |
|
Invest& other Assets |
329,149,000 |
Retained Earnings |
5,435,323,000 |
|
|
|
Net Worth |
5,565,597,000 |
|
Total Assets |
13,955,883,000 |
Total Liab. & Equity |
13,955,883,000 |
|
Total Assets (Previous Year) |
12,276,861,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
10,494,698,000 |
Net Profit/(Loss) |
(442,327,000) |
|
Sales(Previous yr) |
9,785,532,000 |
Net Profit(Prev.yr) |
1,337,966,000 |
MIRA
INFORM REPORT
|
Report Date : |
10.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
EMCO LIMITED (w.e.f. 22.01.1999) |
|
|
|
|
Formerly Known
As : |
EMCO TRANSFORMERS LIMITED |
|
|
|
|
Registered
Office : |
N-104, MIDC Area, Jalgaon – 425003, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
19.09.1964 |
|
|
|
|
Com. Reg. No.: |
11-013011 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.130.274 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L31102MH1964PLC013011 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
NSKE00379B |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Transformers and Electronic Energy Meters. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 22300000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track. The
company has some incurred losses in the current year. However, Nethworth
appears to be satisfactory. Trade relations are reported as fair. Business is
active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
N-104, MIDC Area, Jalgaon – 425003, Maharashtra, India |
|
Tel. No.: |
91-257 - 2272 462 / 2272 572 |
|
Fax No.: |
91-257- 2272 598 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
1st Floor, Piramal Tower, Peninsula Corporate Park, G. K. Kadam Marg, Lower Parel, Mumbai - 400 013, Maharashtra, India |
|
|
|
|
Factory 1 : |
Plot No. F-5, Road No. 28, Wagle Industrial Estate |
|
Tel. No.: |
91-22-40404500 |
|
Fax No.: |
91-22-25820571 / 25830527 |
|
|
|
|
Factory 2 : |
Gat No. - 113, 114, 115, Umala, Aurangabad Road, Jalgaon – 425003, Maharashtra, India |
|
Tel. No.: |
91-257-2350506 / 07 |
|
Fax No.: |
91-257-2350505 |
|
|
|
|
Factory 3 : |
519/521, Asoj, Vadodara - Halol Highway, Vadodara - 391 510, Gujarat, India |
|
Tel. No.: |
91-2668-281113 / 4 |
|
Fax No.: |
91-2668-281030 |
|
|
|
|
Factory 4 : |
Survey No. 57/2, Bldg. No. B-3, Sanjay Industrial Estate,
Gala No. 1-8 |
|
Tel. No.: |
91-260-2668 177 / 78 |
|
Fax No.: |
91-260-2668 176 |
|
|
|
|
Regional Offices : |
Located at : · New Delhi · Kolkata · Bengaluru · Chennai · Lucknow · Ahmedabad · Panchkula |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Rajesh S. Jain |
|
Designation : |
Chairman |
|
Qualification : |
B.E. (Electronics) |
|
|
|
|
Name : |
Mr. Shailesh S. Jain |
|
Designation : |
Vice Chairman |
|
Qualification : |
B.E. (Chemical) |
|
|
|
|
Name : |
Mr. Ajay Kumar Dhagat |
|
Designation : |
Managing Director |
|
Qualification : |
B. E (Electrical) |
|
|
|
|
Name : |
Mr. K. N. Shenoy |
|
Designation : |
Independent Director |
|
Qualification : |
B.E. (Electrical), PGDBA |
|
|
|
|
Name : |
Mr. S.V. Deo |
|
Designation : |
Independent Director |
|
Qualification : |
B.E. (Electrical), DBM, MIE |
|
|
|
|
Name : |
Mr. T.N.V. Ayyar |
|
Designation : |
Independent Director |
|
Qualification : |
B Com, FCA |
|
|
|
|
Name : |
Mr. Bheru Choudhary |
|
Designation : |
Independent Director |
|
Qualification : |
B.Com, LLM |
KEY EXECUTIVES
|
Name : |
Mr. Ajay Jain |
|
Designation : |
Chief Financial Officer |
|
Qualification : |
B Com. FCA |
|
|
|
|
Name : |
Mr. Praveen Kumar |
|
Designation : |
Company Secretary |
|
Qualification : |
B Com, LLB, ACS |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
22,365,140 |
34.34 |
|
|
5,916,833 |
9.08 |
|
|
28,281,973 |
43.42 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
28,281,973 |
43.42 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
3,560,900 |
5.47 |
|
|
574,320 |
0.88 |
|
|
347,869 |
0.53 |
|
|
4,483,089 |
6.88 |
|
|
|
|
|
|
16,255,639 |
24.96 |
|
|
|
|
|
|
11,155,754 |
17.13 |
|
|
3,888,696 |
5.97 |
|
|
1,071,709 |
1.65 |
|
|
261,774 |
0.40 |
|
|
62,975 |
0.10 |
|
|
67,800 |
0.10 |
|
|
678,310 |
1.04 |
|
|
850 |
- |
|
|
32,371,798 |
49.70 |
|
Total Public
shareholding (B) |
36,854,887 |
56.58 |
|
Total (A)+(B) |
65,136,860 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total
(A)+(B)+(C) |
65,136,860 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Transformers and Electronic Energy Meters. |
||||||
|
|
|
||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity* |
Installed
Capacity |
Actual
Production |
|
Transformers |
KVA |
NA |
20000000 |
9905557 |
|
Electronic Energy Meters |
Nos. |
NA |
1300000 |
174146 |
|
Towers & Structurals** |
MT. |
NA |
45000 |
40069 |
|
Wind Power Generation |
KWh |
NA |
92768400 |
18872044 |
Notes:
* - As certified by the Management but not verified by the Auditors,
being a technical matter.
** - The quantity includes 14,262 MT (1,027 MT) purchased / processed
from third parties.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
·
Dena Bank ·
State Bank of India ·
Union Bank of India ·
Bank of India ·
State Bank of Hyderabad ·
Canara Bank ·
Andhra Bank ·
The Federal Bank Limited ·
ING Vysya Bank Limited ·
Standard Chartered Bank |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
P. Raj and Company Chartered Accountants |
|
|
|
|
Entities where Key Management Personnel have Significant
Influence: |
·
Purna Properties and Investments Private Limited ·
EMCO Foundation ·
EMCO Power Quality Solutions Limited |
|
|
|
|
Joint Ventures : |
·
PT Vardhaman Logistics ·
PT Vardhaman Mining Services ·
Rabaan (s) Pte. Limited ·
Shyam EMCO Infrastructure Limited ·
Kalinga Energy and Power Limited ·
PT Bina Insan Sukses Mandiri (from 26th November
2010) |
|
|
·
|
|
Subsidiaries : |
·
EMCO Energy Limited (Upto 24th July 2009) ·
EMCO Power Limited ·
EMCO Renewable Energy Limited (Previously known
as EMCO Power Infrastructure Limited) ·
EMCO Overseas Pte Limited ·
EMCO Infrastructure Limited (Previously known as
Warora Power Company Limited) ·
East West Power Generation Company Limited ·
EMCO Edison Transformer Pty. Limited ·
PT Setenco Investa Niaga (from 26th November
2010) |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
75000000 |
Equity Shares |
Rs.2/- each |
Rs.150.000 Millions |
|
500000 |
Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.50.000 Millions |
|
|
TOTAL |
|
Rs.200.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
65136860 |
Equity Shares |
Rs.2/- each |
Rs.130.274 Millions |
|
|
|
|
|
Notes:
Equity Share Capital
includes:
a) 888100 Shares represent shares allotted as fully paid up pursuant to a contract for consideration other than cash.
b) 744000 Shares represent shares which were issued as fully paid bonus shares by Capitalisation of Reserves.
c) 193650 Shares represent shares which were issued as fully paid up to shareholders of the erstwhile EMCO Esta Capacitors Limited on its amalgamation with the Company, for consideration other than cash.
d) 6100000 Shares represent shares which were issued as fully paid up to shareholders of the erstwhile India Energy Investments Private Limited on its amalgamation with the Company for consideration other than cash.
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 |
|
|
|
|
|
1] Share Capital |
130.274 |
123.854 |
1 17.674 |
|
|
2] Share Warrants |
0.000 |
49.755 |
1 95.500 |
|
|
3] Reserves & Surplus |
5435.323 |
5699.856 |
4082.422 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5565.597 |
5873.465 |
4082.422 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3617.857 |
2599.016 |
3561.441 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
3617.857 |
2599.016 |
3561.441 |
|
|
DEFERRED TAX LIABILITIES |
36.591 |
248.048 |
199.579 |
|
|
|
|
|
|
|
|
TOTAL |
9220.045 |
8720.529 |
8156.616 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2224.857 |
1964.369 |
1825.563 |
|
|
Capital work-in-progress |
232.977 |
188.533 |
234.490 |
|
|
|
|
|
|
|
|
INVESTMENT |
96.172 |
103.306 |
121.756 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1534.501
|
1525.682 |
1756.252 |
|
|
Sundry Debtors |
5921.172
|
4774.692 |
4699.782 |
|
|
Cash & Bank Balances |
1553.937
|
1774.423 |
1286.463 |
|
|
Other Current Assets |
139.773
|
68.632 |
41.263 |
|
|
Loans & Advances |
2252.494
|
1877.224 |
2405.993 |
|
Total
Current Assets |
11401.877
|
10020.653 |
10189.753 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2.024
|
1.378 |
2.385 |
|
|
Other Current Liabilities |
4698.553
|
3439.043 |
4116.190 |
|
|
Provisions |
35.261
|
115.911 |
96.371 |
|
Total
Current Liabilities |
4735.838
|
3556.332 |
4214.946 |
|
|
Net Current Assets |
6666.039
|
6464.321 |
5974.807 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9220.045 |
8720.529 |
8156.616 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
10494.698 |
9785.532 |
9962.577 |
|
|
|
Other Income |
15.992 |
1280.133 |
0.578 |
|
|
|
TOTAL (A) |
10510.690 |
11065.665 |
9963.155 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials |
9002.714 |
7447.925 |
7385.773 |
|
|
|
Employee Cost |
567.337 |
534.265 |
410.881 |
|
|
|
Other Expenses |
968.059 |
702.412 |
782.649 |
|
|
|
Prior Period Items |
0.012 |
1.337 |
1.156 |
|
|
|
TOTAL (B) |
10538.122 |
8685.939 |
8580.459 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(27.432) |
2379.726 |
1382.696 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
441.185 |
367.965 |
415.220 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(468.617) |
2011.761 |
967.476 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
187.497 |
178.864 |
163.744 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(656.114) |
1832.897 |
803.732 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(213.787) |
494.931 |
272.724 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(442.327) |
1337.966 |
531.008 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2411.461 |
1356.660 |
1038.756 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
140.000 |
75.000 |
|
|
|
Debenture Redemption Reserve |
0.000 |
41.733 |
41.733 |
|
|
|
Proposed Dividend |
13.027 |
86.698 |
82.372 |
|
|
|
Tax on Dividend |
1.779 |
14.734 |
13.999 |
|
|
BALANCE CARRIED
TO THE B/S |
1954.328 |
2411.461 |
1356.660 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Direct Export |
507.510 |
541.589 |
1358.836 |
|
|
|
Other Recovery |
0.026 |
0.388 |
0.000 |
|
|
|
Deemed Exports (including Local Currency) |
511.857 |
451.345 |
248.988 |
|
|
TOTAL EARNINGS |
1019.393 |
993.322 |
1607.824 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials/ Stores & Spares |
652.562 |
677.612 |
879.886 |
|
|
|
Capital Goods |
138.490 |
53.231 |
123.230 |
|
|
TOTAL IMPORTS |
791.052 |
730.843 |
1003.116 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
|
|
|
|
|
|
Basic |
(7.05) |
22.72 |
9.03 |
|
|
|
Diluted |
(7.05) |
22.16 |
9.03 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 1st Quarter |
30.09.2011 2nd Quarter |
31.12.2011 3rd Quarter |
|
Type |
UnAudited |
UnAudited |
UnAudited |
|
Net Sales |
1879.960 |
1979.490 |
1948.690 |
|
Total Expenditure |
1693.530 |
1780.780 |
1783.240 |
|
PBIDT (Excl OI) |
186.430 |
198.710 |
165.450 |
|
Other Income |
0.000 |
3.920 |
0.000 |
|
Operating Profit |
186.430 |
202.630 |
165.450 |
|
Interest |
111.150 |
124.470 |
93.800 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
75.280 |
78.160 |
71.650 |
|
Depreciation |
49.420 |
50.710 |
50.870 |
|
Profit Before Tax |
25.860 |
27.450 |
20.780 |
|
Tax |
8.400 |
8.950 |
6.740 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
17.450 |
18.500 |
14.040 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
17.450 |
18.500 |
14.040 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
4.21
|
12.09 |
5.33 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.25
|
18.73 |
8.07 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.42
|
15.29 |
6.69 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.31 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.50
|
1.05 |
1.90 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.41
|
2.82 |
2.42 |
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 |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
No |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
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 |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
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 |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
No |
Review of Operations
During the year, Income from Sales and
Services was Rs.10494.700 Millions against Rs.9785.500 Millions in the previous
year registering growth of 7.24%.
The Company has incurred a net loss of
Rs.442.300 Millions in current financial year against the net profit of
Rs.1337.900 Millions in previous financial year. The profit of previous
financial year includes extra-ordinary item of Rs.1273.500 Millions which was
arising out of sale of investment in EMCO Energy Limited, a wholly owned
subsidiary of the Company.
The Company’s performance was adversely
affected due to Project - Sub-station business where we have experienced
execution challenges which include designs, drawings and estimations for lump
sum items and also had cost overrun due to delay and quantity variation coupled
with firm prices at the time of project closure. Further Transformers Industry
is passing through a tough time due to competition as a result of excess
capacity within the country which leads to pressure on margin.
The Company is focusing on commissioning of
the projects which will release the retention money and reduce the interest
cost. The Company has also taken necessary corrective actions and effective
measures to improve the performance of the Company.
MANAGEMENT'S DISCUSSION AND ANALYSIS
Overview
The demand for electricity will continue to
grow in their Country. It is safe to assume that with over 7.5 % growth in GDP,
the power sector will grow in excess of 15%.
The power generation capacity has grown by an
average to 6100 MW over the past three years and all indications are that in
the next two to three years it will grow between 12000 MW to 15000 MW annually.
With this increase of generation both from government utilities and IPP
segment, Transmission and Distribution (Tand D) segment will achieve
corresponding growth.
Growth through conventional sources of energy
will be augmented by non-conventional and renewable sources of energy. The
government has taken several initiatives in this direction and in the coming
years, solar energy is expected to be harnessed more intensively for power
generation. New challenges will have to be faced particularly in terms of
technology cost vis-a-vis the cost of generation of power.
Power Transmission and Distribution scenario in India
Keeping in mind the target for generation at
100,000 MW in the 12th Plan, T and D Segment will witness significant growth.
The estimated fund requirement for T and D segment alone is Rs.6.11 lakhs
crores during this period.
In the transmission sector, primary growth
will be witnessed in the 765kV and 800kV HVDC segments. Organizations
contributing to these segments will grow at a faster rate as compared to the
organizations not present in these areas. Grid stability and smart grids
solutions will be at the forefront of development.
In the distribution segment, the main theme
will continue to be reduction of losses. Automation and supervisory remote
control will lead the technology drive.
The business model for T and D segment will
also witness major changes. In the transmission sector, IPTC is rapidly gaining
popularity and this trend will only increase. In the distribution sector,
franchisee model, particularly for city distribution is evolving with modest
success.
Division Wise Review:
Transformer Division
Transformer remains their core strength with
20,000 MVA installed capacity. Division has reasonable order book for the year
2011-12 to support the capacity from several large utilities and industrial
customers.
The industry is suffering from excess
capacity, and one of the important reasons for this is strong competition from
overseas manufacturers, particularly from China and Korea in large transformer
space. Increase in demand is therefore not witnessed by local manufacturers.
This has put a margin under severe pressure for the industry
as a whole.
The company is addressing the challenges by
adopting several measures. They have strengthened their position in the high
technology segment and they are now one of the leading players in high range of
GT and ICT, in addition to the conventional range. This position was achieved
by persistent Design and Development efforts. Their leadership was validated
with the successful short circuit test of 400/220kV, 315 MVA transformers at
KEMA. With this, they are now amongst very select group of transformer
manufacturers having this credential. It is further significant that this
product has cleared the strenuous first attempt. They also achieved the distinction
of successfully commissioning 400kV, 500 MVA bank transformers at MSETCL.
They are continuing their efforts in
technology and they have plans to introduce products with aims of international
competence. Towards this, they have an empanelled design team with global
experience and repute. They also have plans for acquiring global technology in
defined range from various sources. They expect their transformer business will
grow and also be on the forefront of technology.
Project Division
The company has positioned itself very
strongly as a leading player in evacuation and transmission of power. The
synergy is achieved through two groups within their project division-
Sub-stations and Transmission lines. Both the groups are now ready with robust
engineering solutions, project management and quality processes.
Project Division: Sub- Station (SBU)
The company is executing number of 400/220/132
kV sub-stations for various utilities across the country. Performance of this
SBU was not satisfactory in the current year due to cost over runs in some of
the projects. Their focus remains on closure of these projects which will
release their resources and capital and improve the liquidity of the Company.
During the year, the Company has commissioned 16
large projects of 400 kV of PGCIL, MSETCL and few other projects of 220 kV and
132 kV sub-stations of KPTCL, CSPTCL, WBSETCL etc.
The company is now geared to operate in the
market of 765kV sub-stations and this is expected to provide reasonable contribution
in future. They are now moving into the global market as an EPC player and they
have started the execution of their overseas project.
They have carved their own space in the fast
growing GIS business after completing the 220 kV GIS Sub-station of MESTCL.
They have strategic tie-ups with international suppliers of GIS and this will
support them in meeting their growth objectives.
Transmission Lines (SBU)
The Transmission Line Division is presently
executing 765 kV lines of PGCIL and in the year , major progress has taken
place in all the lines.
The industry faces major challenges in terms
of availability of trained and skilled workers for execution of lines. The
company has been putting its best efforts for securing the manpower needs
through various ways including training at various levels.
The Company has been awarded orders for
construction of two nos. of 400 kV DC Quad Transmission Lines by RRVPNL during
the year. The overall prospect of the industry is encouraging and they are
ready to partner this.
There is growing opportunities in the IPTC
business. The Company has bagged it's first order under Public Private
Partnership (PPP) model to establish "Transmission System 220 KV S/C Sikar
- Nawalgarh Jhunjhunu Line with 220 / 132 KV GSS at Nawalgarh and associated
Schemes / work" through tariff based competitive bidding process. This is
an important milestone and will pave the way for similar success in future.
Their factory in Baroda, which manufactures
transmission tower component's has been upgraded and capacity increased to face
challenges.
The Company is exploring international
business opportunities in Transmission line and has received it's maiden order
for export of galvanized structure from the international market.
Meter Division
The meter market has evolved significantly in
the last few years in terms of accuracy, communication and control. They are
progressing with their plans to offer a wide range of products and solutions to
this market. Introduction of new range of meters will help them achieve
projected growth.
International Division
International Division offers single point
access to all its global customers for its products as well as solutions as an
EPC player. The Company is an established player in the international market
for transformers and exporting to more than 40 countries in America, Europe,
Middle-East, and Asia pacific. It has an impressive international Clientele
that ranges from power Utilities, Oil and gas sector, Mining, EPC contractors
and Industries.
The Company is the only Indian manufacturer to
be approved with SEC (Saudi Electric Company) for supply of transformers in
Saudi Arabia.
As discussed in the Project Business, the
Company has now started offering its service as an EPC player for Sub-stations
and Transmission Lines globally and bagged its first supply sub-station Order
for Vietnam.
Coal Mine-Indonesia
The Company has invested (37.35% stake) in a
Coal mine in Indonesia having an estimated thermal coal reserve of 105 million
metric tons through its wholly-owned Singapore based subsidiary. During the
year, the mining of coal has started, and with the infrastructure in place the
Company expects the production of coal to increase in the coming years.
UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE HALF YEAR ENDED 30TH SEPTEMBER 2011
(Rs. in Millions)
|
SR. NO. |
PARTICULARS |
QUARTER ENDED |
HALF YEAR ENDED |
|
|
|
30.09.2011 |
30.09.2011 |
|
|
|
Un-audited |
Un-audited |
|
1 |
(a) Net Sales/ Income from Operations |
1979.489 |
3859.444 |
|
|
(b) Other Operating Income |
- |
- |
|
|
Total Income from operations(a+b) |
1979.489 |
3859.444 |
|
2 |
Expenditure |
|
|
|
a |
(Increase)/ Decrease in Stock in trade and work in
progress |
(55.057) |
(196.404) |
|
b |
Consumption of raw materials |
1602.772 |
3125.124 |
|
c |
Purchase of traded goods |
- |
- |
|
d |
Employees Cost |
143.658 |
290.933 |
|
e |
Depreciation |
50.707 |
100.129 |
|
f |
Other Expenditure |
89.410 |
254.657 |
|
9 |
Total |
1831.490 |
3574.439 |
|
3 |
Profit from Operations before Other Income, Interest
and Exceptional |
147.999 |
285.005 |
|
|
Items (1-2) |
|
|
|
4 |
Other Income |
3.918 |
3.918 |
|
5 |
Profit before Interest and Exceptional Items (3+4) |
151.917 |
288.923 |
|
6 |
Interest (Net) |
124.470 |
235.622 |
|
7 |
Profit after Interest but before Exceptional Items
(5-6) |
27.447 |
53.301 |
|
8 |
Exceptional Items |
- |
- |
|
9 |
Profit(+)/Loss(-) from Ordinary activities before
Tax (7+8) |
27.447 |
53.301 |
|
10 |
Tax Expenses |
8.952 |
17.352 |
|
11 |
Net Profit(+)/Loss(-) from Ordinary activities after
tax (9-10) |
18.495 |
35.949 |
|
12 |
Extraordinary Items |
- |
- |
|
13 |
Net Profit (+)/Loss (-) for the period (11+12) |
18.495 |
35.949 |
|
14 |
Paid-up Equity Share Capital |
130.274 |
130.274 |
|
|
Face value of Rs. 2 each |
|
|
|
15 |
Paid up Debt Capital |
|
500.000 |
|
16 |
Reserves (excluding Revaluation Reserves) |
|
|
|
17 |
Earnings Per Share (EPS) |
|
|
|
a |
1. Basic EPS before
extraordinary items (not annualized) (Rs./share) |
0.28 |
0.55 |
|
|
2. Diluted EPS before
extraordinary items (not annualized) (Rs./share) |
0.28 |
0.55 |
|
b |
1. Basic EPS after
extraordinary items (not annualized) (Rs./share) |
0.28 |
0.55 |
|
|
2. Diluted EPS after extraordinary items (not annualized)
(Rs./share) |
0.28 |
0.55 |
|
18 |
Debt Service Coverage Ratio (DSCR) |
|
2.23 |
|
19 |
Interest Service Coverage Ratio (ISCR) |
|
1.65 |
|
20 |
Public Shareholding |
|
|
|
|
No. of shares |
37863768 |
37863768 |
|
|
Percentage of Shareholding |
58.13% |
58.13% |
|
21 |
Promoters and Promoter Group Shareholding |
|
|
|
a) |
Pledged / Encumbered |
|
|
|
|
- Number of shares |
10000000 |
10000000 |
|
|
- Percentage of shares to total shareholding of
Promoter and Promoter |
36.67% |
36.67% |
|
|
Group |
|
|
|
|
- Percentage of shares to total share capital of the
Company |
15.35% |
15.35% |
|
b) |
Non-encumbered |
|
|
|
|
- Number of shares |
17273092 |
17273092 |
|
|
- Percentage of shares to total shareholding of
Promoter and Promoter |
63.33% |
63.33% |
|
|
Group - Percentage of shares to total share capital of the
Company |
26.52% |
26.52% |
Notes:
1. Statement of Assets & Liabilities as
per clause 41 of the listing agreement
(Rs. in Millions)
|
|
6 Months Ended |
|
|
30.09.2011 |
|
SHAREHOLDERS' FUNDS: |
(Unaudited) |
|
(a) Share Capital |
130.274 |
|
(b) Share Warrants |
- |
|
(c) Reserves and Surplus |
5471.272 |
|
LOAN FUNDS |
4360.019 |
|
DEFFERED TAX LIABILITY (NET) |
53.943 |
|
TOTAL
SOURCES OF FUNDS |
10015.508 |
|
FIXED ASSETS (including CWIP and Capital
Advance) |
2471.521 |
|
INVESTMENTS |
96.172 |
|
CURRENT ASSETS, LOANS AND ADVANCES |
|
|
(a) Inventories |
1743.293 |
|
(b) Sundry Debtors |
6498.273 |
|
(c) Cash and Bank balances |
338.960 |
|
(d) Other current assets |
382.967 |
|
(e) Loans and Advances |
2894.399 |
|
Less:
Current Liabilities and Provisions |
|
|
(a) Liabilities |
4386.316 |
|
(b) Provisions |
23.761 |
|
DEFFERED TAX ASSET(NET) |
- |
|
TOTAL
APPLICATION OF FUNDS |
10015.508 |
2 The above financial results were reviewed
by the Audit Committee and taken on record by The Board of Directors at their
meeting held on 4th November 2011.
3 The Statutory Auditors of the Company have
conducted a Limited Review of the above Financial Results
4 The Company has only one reportable Segment
i.e. Transmission and Distribution Segment within Power Sector.
5 There was no investor complaint pending as
at the beginning of the quarter. The Company has received 8 investor complaints
during the quarter ended on 30th September 2011 which have been disposed off
during the said quarter. There was no complaint lying unresolved at the end of
the quarter.
6 Ratios have been computed as follows:
a) DSCR = Earning before interest on term
loan and debentures, depreciation and tax (before extraordinary item)/(interest
on term loans and debentures + principal repayment of term loans and
debentures).
b) ISCR = Earning before interest,
depreciation and tax (before extraordinary item) / Interest expenses
7 Paid up Debt Capital comprises listed
Debentures.
8 Previous period figures have been regrouped / reclassified, wherever necessary.
Contingent
Liabilities Not Provided For in Respect of (As on 31.03.2011):
a) Bank Guarantees
outstanding as at the yearend (Gross) –(Secured) 7006.251 Millions
b) Bank Guarantees
outstanding as at the yearend (Gross) –(Secured) Given for erstwhile
Subsidiary, EMCO Energy Limited (Subsidiary upto 24th July 2009) NIL
c) Letters of Credit
outstanding (net) as at the yearend (Secured) 928.484 Millions
d) Guarantee given
for Subsidiary Company 530.760 Millions
e) Disputed amount
of Sales Tax in respect of which appeals have been filed. 9.354 Millions
f) Claims made by workmen
for re-instatement. Matters Subjudice. - Amount not ascertainable
g) Disputed amount
of Income Tax in respect of which rectification has been filed 59.013 Millions
h) Disputed amount
of Excise duty and Service tax in respect of which the Company is in appeal.
233.680 Millions
i) Claim of about
Rs.2.836 Millions by suppliers against the Company. The matter is Subjudice.
j) Suit of
Rs.10.700 Millions filed by a Sub-Contractor against the company, proceeding is
pending before Sole Arbitrator.
k) Summary suit of
Rs.1.013 Millions filed by one supplier against the Company. The matter is
Subjudice.
l) Claim filed
against the company for compensation not acknowledged as debt Rs.0.752 Millions
FIXED ASSETS
·
Freehold Land
·
Leasehold Land
·
Buildings
·
Plant and Machinery
·
Air Craft
·
Wind Energy Generators
·
Air Conditioners and
Office Equipments
·
Furniture and Fixtures
·
Vehicles
·
Leasehold Improvements
·
Goodwill
·
Technical Know-how and
Licenses
WEBSITE DETAILS
PROFILE
Tomorrow’s world is an exciting space filled with opportunities for EMCO. The US$600 billion Indian Power story which is projecting an anticipated demand of over 315GW by 2017, is an opportunity that is spanning out as one of immense potential, a fact which world majors have already understood and have started making their strategic presence felt. It is in this arena that EMCO with its indigenous technology with demonstrated capabilities and strategic tie-ups with world renowned co's brings in an unbeatable combination of experience, youth and partnership.
EMCO fosters a culture that foresees the future and responds pro actively to its challenges, while delivering maximum value to our customers through technology, quality and service. A vital combination of vision, passion, ambition, adaptability, adoption of new generation technology, value centricity and people focus has fuelled the commendable growth exhibited by EMCO in the last decade.
EMCO, established in 1964, has evolved itself into a formidable force in the power sector in India. It is re-energized, re-engineered and raring to go, not only to live up to the dynamic changes and challenges in the domestic and global markets but also to carve a niche of its own in all segments of the power sector. By constructing a compelling technological foundation, backed by consistent in-house R and D support, EMCO is enhancing its product quality and developing new features, thus building new inroads for products and solutions in the global market.
EMCO has 5 state-of the-art manufacturing plants at Thane, Jalgaon, Dadra, Vadodara, and 15 offices across India. All products are manufactured under ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certified plants as per IEC, ANSI, BS and other international standards. EMCO has a strong technology framework, with in-house RandD and International Advisory Board on Technology (IABT), spearheading various initiatives to optimise power transmission and distribution through cutting-edge technology. EMCO provides solutions and products for power generation, transmission, distribution and industry in India and over 40 countries worldwide.
Having already expanded its operations in various countries, EMCO looks positively towards widening its presence globally. EMCO's international division offers single point access to all its global customers for its products and services. This focused attention has lead to EMCO's success in the Global market. EMCO has been ever persistent towards meeting international quality standards, ensuring highest level of compliance to quality, environment, health and safety which explains it‘s outstanding global reputation.
BOARD OF DIRECTORS
Mr. Rajesh Jain,
Chairman
B.E. (Electronics), joined the Company in 1988 as a
management trainee. In 1994, he became CMD of the Company. Under his
leadership, the Company has grown from Rs.250.000 Millions to Rs.11000.000
Millions. In 2000, elected as the youngest president of IEEMA. In the same year
became the Vice Chairman of Maharana Pratap Education Trust, which runs 4
schools for 2,400 children. Member of APDRP Task Force of Ministry of Power in
2002. Member of the CII State Council of Maharashtra, in 2005-06 and 2007-08.
Member of CII-Western Region Council in 2010-11. The Chairman of ELECRAMA in
2006, largest Exhibition in the world for Electrical Industry. Founder Chief
Patron (FCP) of JITO and a Trustee of EMCO Foundation.
Mr.
Shailesh Jain, Vice Chairman
B.E. (Chemical), joined as Executive
Director from October, 1993. He has been elevated to Joint Managing Director in
1996 and as "Vice-Chairman and Managing Director" in 2008. He has
personally contributed for the fast track growth that EMCO is experiencing
today. The establishment of Energy Meters and Projects Division of the Company
is his personal brainchild. Under his guidance, the Company had taken certain
major initiatives - like building up world-class manufacturing plant with state
of art equipment to manufacture upto 20,00 MVA transformers, one of the largest
capacity plant in Asia, expansion of the product reach globally, etc. He is an
active member of CII (Western Region) and IEEMA.
Mr.
K. Narsim Shenoy, Independent Director
B.E. Electrical is the ex-Chairman of
Asea Brown Boveri Limited (ABB). He has done his Business Management at IMD, Lausanne
and is a Fellow member of Institution of Engineers (India) and National Academy
of Engineers. He was associated with ABB for 40 years. He is on the Board of
several companies. He is also past President of CII, IEEMA and ERDA.
Mr.
S. V. Deo, Independent Director
B.E. Electrical, DBM, MIE, has vast
experience in the field of Transmission and Distribution of Power in
Maharashtra State Electricity Board. He joined MSEB in 1961, as "Junior
Engineer" and was elevated to the post of Technical Director -
Transmission and Distribution of entire state of Maharashtra. In the year, 1998
the Government of Maharashtra appointed him as Technical Member (Transmission
and Distribution). He then retired as a Member on 31st March, 2002. Presently
he is working as Technical Advisor for a reputed Indian Wind Turbine
manufacturer to set up large wind farms in India / USA.
Mr.
T.N.V. Ayyar, Independent Director
B.Com and FCA. He has vast experience in
the field of finance, banking, accounts, audit, taxation, project and general
management and commercial matters. He is on the Board of several reputed
companies.
Mr.
Bheru Choudhary, Independent Director
B.Com, LL. B and qualified as Solicitor
from Bombay Incorporated Law Society and Law Society of England and Wales, has
vast experience in the field of law for more than a decade. He is engaged in
practice of Law specializing in Media and Entertainment, Corporate and
Commercial laws, real estate and litigation and arbitration.
HISTORY
1964 Year of Incorporation.
1967 Listed on Bombay Stock Exchange.
1986 Change in Management comprising new team of Rajesh S. Jain and Shailesh S. Jain.
1994 Setup Industrial Transformers manufacturing facility at Jalgaon
1996 Increase in capacity of Transformer manufacturing capacity from 900MVA to 3,000MVA.
1997 Setup Project Division for construction of Sub-station projects on turnkey basis.
1997 Increase in Transformer manufacturing capacity to 7,500MVA.
1999 Started state-of-the-art facility at Thane for manufacturing of electronic energy meters.
2000 Setup state-of-the-art facility for manufacturing electronic energy meters in Dadra.
2001 Setup International Business Division.
2004 Setup Distribution Transformer manufacturing facility at Jalgaon.
2005 Ventured into Power Generation Business.
2006 Increased Transformer manufacturing capacity to 10,000MVA.
2006 Started manufacturing of Active Harmonic Filters.
2007 Formed an International Advisory Board on Technology and setup a Govt. recognised R and D centre.
2007 Setup EMCO Foundation.
2007 Ventured into Renewable Energy.
2007 Inauguration of 'Knowledge Centre'- a new training centre for staff.
2007 Acquired Transmission Line Company.
2008 Increased Transformer manufacturing capacity to 20,000 MVA.
2008 Acquired a coal mine in Indonesia.
2008 Formed a JV with Edison Group for Transformer business in South Africa.
2008 Honored with a coveted CII HR excellence Award for 'Commendation for strong Commitment to HR excellence'.
2008 Projects Division received ISO 9001:2000 Certification for its On-site and Off-site operations.
2009 Ranked 9th as per Total Income in the Power Equipment Sector by Dun and Bradstreet's India's Top 500 Companies.
2009 New Fabrication facility for manufacturing tanks at Jalgaon
2010 Successful Short Circuit testing of 315 MVA, 220kV class Generator Transformer at KEMA, The Netherlands.
2010 ISO/ IEC 27001:2005 Certification awarded for Information Security Management System (ISMS) by BVC to IT Department.
2011 Successful Short Circuit Testing of 315 MVA, 400/220/33 kV ICT at KEMA, The Netherlands
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.53.46 |
|
|
1 |
Rs.86.27 |
|
Euro |
1 |
Rs.69.40 |
INFORMATION DETAILS
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
47 |
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.