MIRA
INFORM REPORT
|
Report Date : |
27.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
CENTUM ELECTRONICS LIMITED |
|
|
|
|
Registered
Office : |
44, KHB Industrial Area, Yelahanka, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
08.01.1993 |
|
|
|
|
Com. Reg. No.: |
08-013869 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.123.652
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L85110KA1993PLC013869 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRC00813B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACC7369P |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on the Stock
Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer and Exporter of Electronic Products. |
|
|
|
|
No. of Employees
: |
700 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 3200000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of the Centum Group. It is a well established
company having satisfactory track. Trade relations are reported as trustworthy. Business is active. Payments
are reported to be usually correct and as per commitments. The company can be considered 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
BBB+ (Cash Credit) |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk |
|
Date |
20.06.2011 |
|
Rating Agency Name |
CRISIL |
|
Rating |
P2 (Bank Guarantee) |
|
Rating Explanation |
Strong degree of safety and low credit risk |
|
Date |
20.06.2011 |
|
Rating Agency Name |
CRISIL |
|
Rating |
P2 (Letter of Credit) |
|
Rating Explanation |
Strong degree of safety and low credit risk |
|
Date |
20.06.2011 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Factory : |
44, KHB Industrial Area, Yelahanka, Bangalore-560064, Karnataka,
India |
|
Tel. No.: |
91-80-28462062 |
|
Fax No.: |
91-80-28462861 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Apparao V Mallavarapu |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. S. Krishnan |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. P. Rama Rao |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Manoj Nagrath |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rajiv C Mody |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Manny Marimuthu |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. K S Desikan |
|
Designation : |
Chief Financial Officer (CFO) |
|
|
|
|
Name : |
Mr. Ramu Akkili |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2012
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
|
|
|
|
(1) Indian |
|
|
|
|
6,973,948 |
56.40 |
|
|
6,973,948 |
56.40 |
|
(2) Foreign |
|
|
|
Individuals (Non-Residents Individuals / Foreign Individuals) |
581,314 |
4.70 |
|
Sub Total |
581,314 |
4.70 |
|
Total shareholding of Promoter and Promoter Group (A) |
7,555,262 |
61.10 |
|
|
|
|
|
(1) Institutions |
|
|
|
Mutual Funds / UTI |
83 |
- |
|
Financial Institutions / Banks |
166 |
- |
|
Foreign Institutional Investors |
6,772 |
0.05 |
|
|
7,021 |
0.06 |
|
(2) Non-Institutions |
|
|
|
|
1,116,813 |
9.03 |
|
|
|
|
|
Individual shareholders holding nominal share capital up to Rs. 0.100
Million |
1,858,972 |
15.03 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 Million |
1,800,810 |
14.56 |
|
Any Others (Specify) |
26,305 |
0.21 |
|
Non Resident Indians |
21,962 |
0.18 |
|
|
4,343 |
0.04 |
|
Sub Total |
4,802,900 |
38.84 |
|
Total Public shareholding (B) |
4,809,921 |
38.90 |
|
Total (A)+(B) |
12,365,183 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
(2) Public |
- |
- |
|
Sub Total |
- |
- |
|
Total (A)+(B)+(C) |
12,365,183 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Electronic Products. |
||||||
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|
||||||
|
Products : |
|
PRODUCTION STATUS (AS ON : 31.03.2011)
|
Particulars |
Unit |
Actual Production |
|
Modules |
In Numbers |
213977 |
|
Electronic Manufacturing Services – Printed |
In Numbers |
-- |
|
Circuit Board Assembly |
In Numbers |
596351 |
GENERAL INFORMATION
|
No. of Employees : |
700 [Approximately] |
||||||||||||||||||||||||||||||
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|
||||||||||||||||||||||||||||||
|
Bankers : |
·
State Bank of India - Specialised Mid-Corporate
Branch, Kumarapark West, Bangalore ·
Citibank N.A., M.G. Road, Bangalore, Karnataka,
India |
||||||||||||||||||||||||||||||
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|
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|
Facilities : |
|
||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
BSR
and Company Chartered Accountants |
|
|
|
|
Internal Auditors: |
|
|
Name : |
Ernst and Young Private Limited |
|
|
|
|
Subsidiaries : |
Centum Rakon
India Private Limited |
|
|
|
|
Other related parties where transactions have
taken place during the year Parties under common control : |
Centum
Industries Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15500000 |
Equity Shares |
Rs.10/- each |
Rs. 155.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12365183 |
Equity Shares |
Rs.10/- each |
Rs. 123.652
Millions |
|
|
|
|
|
NOTES:
Out of the above,
4,933,333 equity shares of Rs 10 each, have been issued for consideration other
than cash pursuant to amalgamation of Solectron EMS India Limited with the
company effective 1 April 2009.
Reconciliation of equity shares outstanding at the
beginning and at the end of the reporting period
|
PARTICULARS |
31.03.2012 |
|
|
|
NUMBER |
RS. IN MILLIONS |
|
Number and value
of shares at the beginning of the year |
12,348,233 |
123.482 |
|
Number of shares
issued during the year |
16,950 |
0.170 |
|
Number and value of shares outstanding at the end
of the year |
12,365,183 |
123.652 |
Details of shareholders holding more than 5% shares
in the company
|
NAME OF THE SHAREHOLDER |
31.03.2012 |
|
|
|
NUMBER |
% OF HOLDINGS |
|
Apparao V
Mallavarapu |
6,604,715 |
53.41% |
The company has
only one class of share referred to as equity share having par value of Rs 10. Each
holder of the equity share, as reflected in the of the Company, is entitled to
one vote in respect of each share held for all matters submitted to vote in the
shareholders' meeting.
The Company
declares and pays dividends in Indian rupees. The dividend proposed by the
Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting.
During the year
ended 31 March 2012, the amount of per share dividend recognised as
distributions to equity shareholders was Re 1 (previous year: Re 1). The total
dividend appropriation for the year ended 31 March 2012 amounted to Rs 14.371
Millions (previous year: Rs 14.399 Millions) including corporate dividend tax
of Rs 2.006 Millions (previous year: Rs 2.051 Millions).
In the event of
liquidation of the Company, the holders of equity shares will be entitled to
receive any of the remaining assets of the Company after distribution of all
preferential amounts. The distribution will be in proportion to the number of
equity shares held by the shareholders.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
123.652 |
123.482 |
74.000 |
|
|
2] Share Capital to be Issued
Pursuant to Amalgamation |
0.000 |
0.000 |
49.333 |
|
|
3] Reserves & Surplus |
698.943 |
660.682 |
640.890 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
822.595 |
784.164 |
764.223 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
357.167 |
379.174 |
265.012 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
357.167 |
379.174 |
265.012 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
1.777 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1179.762 |
1165.115 |
1029.235 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
292.991 |
332.764 |
372.046 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
16.488 |
|
|
|
|
|
|
|
|
INVESTMENT |
28.560 |
28.560 |
28.560 |
|
|
DEFERREX TAX ASSETS |
10.119 |
0.000 |
0.524 |
|
|
OTHER NON CURRENT ASSETS |
48.634 |
18.273 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
357.749
|
481.398
|
411.227 |
|
|
Sundry Debtors |
591.947
|
460.614
|
290.031 |
|
|
Cash & Bank Balances |
7.997
|
14.578
|
43.888 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
231.014
|
269.550
|
229.878 |
|
Total
Current Assets |
1188.707
|
1226.140 |
975.024 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
191.170
|
258.934
|
287.647 |
|
|
Other Current Liabilities |
135.565
|
128.583
|
34.841 |
|
|
Provisions |
62.514
|
53.105
|
40.919 |
|
Total
Current Liabilities |
389.249
|
440.622 |
363.407 |
|
|
Net Current Assets |
799.458
|
785.518
|
611.617 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1179.762 |
1165.115 |
1029.235 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
1811.030 |
1869.291 |
980.528 |
|
|
|
Service Income |
0.000 |
0.000 |
89.725 |
|
|
|
Other Income |
14.970 |
23.167 |
38.748 |
|
|
|
TOTAL (A) |
1826.000 |
1892.458 |
1109.001 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of
materials consumed |
1182.428 |
1371.395 |
726.083 |
|
|
|
Personnel Costs |
0.000 |
0.000 |
131.554 |
|
|
|
Employee benefits
expense |
244.629 |
204.434 |
0.000 |
|
|
|
Other expenses |
173.501 |
178.777 |
135.132 |
|
|
|
Provision for
stamp duty on merger |
0.000 |
7.379 |
11.174 |
|
|
|
Changes in
inventories of work-in-progress |
40.154 |
(42.982) |
0.000 |
|
|
|
TOTAL (B) |
1640.712 |
1719.003 |
1003.943 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
185.288 |
173.455 |
105.058 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
33.842 |
33.741 |
26.628 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
151.446 |
139.714 |
78.430 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
74.657 |
74.043 |
75.280 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
76.789 |
65.671 |
3.150 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
24.523 |
31.801 |
6.282 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
52.266 |
33.870 |
(3.132) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
231.120 |
248.682 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Final Dividend |
NA |
12.348 |
12.333 |
|
|
|
Corporate Dividend Tax |
NA |
2.051 |
2.097 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
250.591 |
231.120 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Sale of Manufactured Goods |
1422.317 |
1146.195 |
561.696 |
|
|
|
Service Income |
0.000 |
0.996 |
1.465 |
|
|
TOTAL EARNINGS |
1422.317 |
1147.191 |
563.161 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1093.622 |
1173.200 |
638.056 |
|
|
|
Stores & Spares |
0.028 |
0.029 |
0.409 |
|
|
|
Capital Goods |
4.929 |
18.743 |
11.375 |
|
|
TOTAL IMPORTS |
1098.579 |
1191.972 |
649.840 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.23 |
2.74 |
(0.25) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
|
|
1st
Quarter |
|
Net Sales |
361.580 |
|
Total Expenditure |
365.210 |
|
PBIDT (Excl OI) |
(3.630) |
|
Other Income |
4.110 |
|
Operating Profit |
0.480 |
|
Interest |
6.460 |
|
Exceptional Items |
0.000 |
|
PBDT |
(5.980) |
|
Depreciation |
18.990 |
|
Profit Before Tax |
(24.970) |
|
Tax |
(2.060) |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
(22.910) |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
(22.910) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
2.86
|
1.79 |
(0.28) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.24
|
3.51 |
0.32 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.15
|
4.21 |
0.23 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.08 |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.91
|
1.05 |
0.82 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.05
|
2.78 |
2.68 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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 |
No |
|
8] |
No. of employees |
Yes |
|
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) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
BACKGROUND
Subject was incorporated
as a public limited company on 8 January 1993 and commenced commercial
production in 1994.
The Company is
primarily involved in
• Manufacture of
Advanced Microelectronics Modules and Resistor Networks catering to the
communications, military, aerospace and industrial electronics markets; and
• Manufacture of
printed circuit board assembly (PCBA) and Repair and Return business catering
to the automobile, communications and industrial electronics markets.
PERFORMANCE
During the current
year of operations, the company has registered revenue of Rs. 1826.00 million
and posted Profit before Taxes of Rs. 76.79 million.
During the year,
the company received recognition for In-house R and D from the Department of
Scientific and Industrial Research, Government of India. Also the company’s
subsidiary, Centum Rakon India Private Limited received the same recognition
for In-house R and D in the month of April 2012 from the above said authority.
SUBSIDIARY
During the Fourth
full year of operations, Centum Rakon India Private Limited has registered
revenue of Rs. 841.88 million and posted Profit before Taxes of Rs. 56.34
million.
FINANCIALS OF SUBSIDIARY COMPANY
The Board of
Directors of the company, pursuant to Circular No: 51/12/2007-CL-III date
February 8, 2011 issued by Ministry of Corporate Affairs, has opted by passing
a resolution at its meeting held on 25 May 2012, for not attaching the balance
sheet and other documents of the subsidiary, Centum Rakon India Private
Limited.
However, the said
documents shall be made available to shareholders of the Company and the
subsidiary company seeking such information at any point of time. The annual
accounts of the subsidiary company shall also be kept for inspection by any
shareholders at the registered office of the Company at #44, KHB Industrial
Area, Yelahanka New Town, Bangalore-560106. The Company shall furnish a hard
copy of details of accounts of subsidiary to any shareholder on demand.
MANAGEMENT DISCUSSION AND ANALYSIS
COMPANY BACKGROUND
Centum Electronics
Limited (Centum) designs, manufactures and also exports electronic products.
These include
subsystems,
modules, box builds, besides complex electronic components.
Centum serves
customers engaged in mission critical and enterprise solutions with advanced
tailor-made technologies. These range from Strategic Electronics (Space,
Defense and Aerospace) to Industrial, Communications, and Medical and Wellness
applications.
Centum has been steadily
increasing its product and service range, geographical reach and catering to
increased
industry segments
in its goal to expand its offerings and become the sophisticated one stop shop
OEMs are seeking.
With extensive
design and development expertise and leading edge enabling technologies, Centum
is now the industry leader in India in electronics products and solutions.
The strategy over
the years has been consistent and is based on high customer focus with
competent people, state of the art technology and high quality products.
Centum’s vision is
“To Create Value by contributing to the Success of its Customers, by providing
best-in-class Electronics Design and Manufacturing Solutions in high technology
areas”.
INDUSTRY STRUCTURE AND DEVELOPMENT
Broadly, the
electronics industry is categorized under Consumer, Medical, Strategic
electronics, Communications, Automotive and Industrial segments.
As a company we
operate in Strategic Electronics, Communication, Industrial, Medical and
industry segments.
STRATEGIC ELECTRONICS
a.
DEFENSE
The Indian Defense
Budget is increasing year on year both in terms of the total value and also as
a percentage of the budget allocation itself. Of the total defense budget, the
percentage of expenditure towards Capital head is increasing every year
creating an even bigger opportunity for the defense market. Also studies show
that Indian defense market is one of the most attractive defense markets in the
world.
The Armed forces,
till recently, procured their requirements either from direct imports or
products developed by DRDO labs and productionized by defense PSUs or the
Ordnance factories. Due to Government of India’s focus on self reliance, new
opportunities are emerging.
To accelerate the
process of self reliance, DRDO labs are partnering with private industries in
designing new products and also willing to transfer technologies of complex
products which hitherto they were partnering only with PSUs or Ordnance
Factories.
Till recently, the
indigenous defence manufacturing was restricted to Defense Public Sector Units
and Ordnance Factories only. However, in the recent past, the Government is
encouraging the private industry participation. Due to increasing requirements,
the Defense PSUs and the Ordnance Factories are also actively working with the
private industry to create new capacities and capabilities.
The Defense
Procurement Policy (DPP) of Government of India has created a huge opportunity
for Indian industries. Due to this policy the international suppliers of
defense products to India are actively looking to procure from high quality
companies in the defense segment to meet their offset obligations. Also in some
cases, the DPP
calls for Buy and
Make requirements, due to which many multinational companies are planning to
manufacture the products in India either thro’ licensing agreement or joint
ventures. Also, the latest DPP provides for offset credits for the technologies
transferred (TOT) to Indian companies, which will encourage the foreign
companies to transfer know how, thereby creating more opportunities to Indian
companies.
b.
SPACE
India has a space
program which is very vibrant and successful. The Government of India has given
the Indian Space Programme a special status and the budget allocation in the
11th Plan period is 300% higher than the 10th
Plan period.
The number of
satellite launches by the Indian Space Agency has been increasing steadily in
the last few years and ISRO plans to launch eight satellites per year in the near
future. Until recently ISRO manufactured the systems and subsystems in-house or
imported them. However, due to the increased requirements coupled with
Government’s focus on self reliance ISRO, is actively involved in developing
the private industry in meeting their increasing requirements.
COMMUNICATIONS
This market
comprises of Terminal equipments such as the mobile phones, PDA, etc., and the
infrastructure equipments such as Base Station, Transmission equipments, etc.,
Centum Rakon manufactures Frequency Control Products (FCP) to primarily cater
to the infrastructure equipment companies. After consolidation in the past few
years, this market is dominated by companies like Ericsson, Nokia Siemens,
Alcatel – Lucent, Huawei, etc., Although the Telecom market worldwide is
increasing, the market is highly competitive and companies are looking for high
quality suppliers from the emerging countries to make their products
competitive in the market place. They see this as a growing market for their
FCP products.
INDUSTRIAL
This sector
comprises of segments like Power, Process Automation, Instrumentation, Energy,
etc., Industrial sector is one of the late entrants to the concept of
outsourcing their electronic hardware compared to Telecom and IT sectors. This was
due to the stringent quality requirements and long product lifecycles. The
large multinationals in this industry segment are focusing on low cost
countries like India for their outsourcing requirements due to the design,
engineering and testing skills required to manufacture these products. This is
growing market for our products and services.
They also see a
trend of multinational companies starting green field projects or acquiring
companies in India. To make their products competitive these Indian Units, are
creating a supply chain eco system in the country.
BUSINESS OUTLOOK
STRATEGIC ELECTRONICS
The company has
established itself as a major player in the Strategic Electronics arena. The strategy
will be to continue to consolidate and grow this business thro’ innovation,
design, technology, quality and overall competitiveness. Over the years, the
company has designed and manufactured systems and modules for the Strategic
Electronic industry by delivering advanced and complex products many of which
are, for the first time by an Indian company.
·
Their strategy for this business has been and will
continue to co-develop new products with ISRO and DRDO Labs. The advantage of
this approach is your company’s product will get designed in and will have good
potential when the final product goes into production phase. In this
initiative, they are already working with ISRO and DRDO labs on a few products.
The risk of this strategy is, in case the project / program does not fructify
for any reason, then the R and D effort may go waste.
·
The other approach for this business is to
indigenize products that are currently being imported and the advantage with
this is that once the product is developed it immediately goes into production
quantities. Here again, they are developing and have seen some excellent
results. The risk of this strategy is, the incumbent overseas supplier may
slash the price just to keep the competition out since the Government, of India
procurement rules favour only the lowest bidder.
·
The other opportunity in the strategic electronics
is that of “off-set” and they see significant potential in this. They have
already received a few orders for off-set and we hope to see this grow in the coming
years.
INDUSTRIAL ELECTRONICS
The Company’s
strategy for this market is to focus on high mix medium-to-low volume
opportunities which need very high quality products and also have long product
life cycles. This segment has very unique and demanding requirements. The
company over the past many years has developed special processes, created
specialized infrastructure and human resources and has strong domain knowledge
to meet these requirements and make it as a very attractive supplier to the
global OEMs. The Company is already well entrenched into this sector and seeing
good growth rates from existing customers and also adding new customers both
from within India and outside.
COMMUNICATIONS
The company’s
subsidiary, Centum Rakon manufactures Frequency Control Products (FCP) a
critical component in the Telecom Infrastrucutre business segment. The
subsidiary has been delivering high quality products at competitive prices,
because of which they are seeing a significant increase in the market share. Last
year they started to manufacture the key component, “Crystal”, which was
imported from Rakon till then. This development made the subsidiary even more
competitive, thereby able to increase the market share significantly. The
company is already one of the largest OCXO manufacturers in the world and they
hope to further increase their position.
FINANCIAL CONDITION
RESULTS OF OPERATIONS
The business
operation for 2011-12 resulted in the Company, achieving sales of Rs.1811.03 million
as against Rs. 1869.29 million for 2010-11.
The Profit before
tax for the year 2011-12 is Rs. 76.79 million as against Rs. 65.67 million for
the year 2010-11.
The accompanying
financial statements of Centum Electronics Limited are the responsibility of
management and are approved by the Board of Directors of the company.
These financial
statements have been prepared by management in conformity with Indian generally
accepted accounting principles and includes amounts that are based on best estimates
and judgments.
Management of the
company in furtherance of the integrity and objectivity of data in the
financial statements has developed and maintains systems of internal accounting
controls. Management believes that the systems of internal accounting controls
provide reasonable assurance that financial records are reliable and form a
proper basis for the preparation of the financial statements and that assets
are properly accounted for and safeguarded.
The Board of
Directors carries out its responsibility for the financial statements
principally through its Audit Committee. The Audit Committee reviews the
Company’s annual financial statements and formulates the appropriate
recommendations to the Board of Directors. The Audit Committee has full access
to the auditors appointed by the shareholders, with or without the management
being present.
FIXED ASSETS
·
Freehold Land
·
Leasehold Improvements
·
Building
·
Plant and Machinery
·
Electrical Installation
·
Computer
·
Office Equipments
·
Furniture and Fixtures
·
Vehicles
·
Computer Software
UNAUDITED
STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE 2012
(Rs. In millions)
|
Particulars |
Quarter Ended 30.06.2012 (Unaudited) |
|
(a) Net Sales/ Income from
operation |
361.581 |
|
(b) Other Operating Income |
0.000 |
|
Total Income |
361.581 |
|
2. Expenditure |
|
|
Cost of Material Consumed |
317.789 |
|
Changes in Inventories of Work in progress |
(73.101) |
|
Employees Cost |
64.937 |
|
Depreciation |
18.987 |
|
Other Expenditure |
55.579 |
|
Total |
384.191 |
|
3. Profit(+)/
Loss(-) from Operations before other Income Interest and Exceptional
Item(1-2) |
(22.610) |
|
4. Other Income-Foreign Exchange Fluctuation-Gain/(Loss) |
4.110 |
|
5. Profit(+)/ Loss(-) before Interest and Exceptional Item |
(18.500) |
|
6. Interest |
6.455 |
|
7. Profit(+)/ Loss(-) after Interest but before Exceptional Item (5-6) |
(24.955) |
|
8. Exceptional Items |
-- |
|
9. Profit(+)/
Loss (-) from ordinary activities
before Tax (7-8) |
(24.955) |
|
10. Tax Expenses |
(2.046) |
|
11. Net Profit(+)/ Loss (-) from ordinary activities after Tax (9-10) |
(22.909) |
|
12. Extraordinary Items (Net of Tax Expense Rs.________) |
-- |
|
13. Net Profit (+)/ Loss(-) for the period (11-12) |
(22.909) |
|
14. Paid Up Equity Share Capital (Face Value of Rs.10 Per Share) |
123.652 |
|
15. Reserves excluding Revaluation Reserves as per Balance Sheet of
Previous Accounting Year |
-- |
|
16. Earning per
Share (EPS) |
|
|
a) Basic and diluted EPS before extraordinary items for the period,
for the year to date and for the previous year (not annualised) |
(1.85) |
|
b) Basic and diluted EPS after extraordinary items for the period, for
the year to date and for the previous year (not annualised) |
(1.85) |
|
17. Public
Shareholding |
|
|
Number of Shares |
4809921 |
|
% of Share holding |
38.90% |
|
18. Promoters
and promoter group Shareholding |
|
|
a)
Pledged/Encumbered |
|
|
- Number of shares |
Nil |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter
group) |
Nil |
|
- Percentage of shares (as a %
of the total share capital of the
company) |
Nil |
|
b)
Non-encumbered |
|
|
- Number of shares |
7555262 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and
promoter group) |
100% |
|
- Percentage of shares (as a %
of the total share capital of the
company) |
61.10% |
NOTES
1. The above results
were on record by the Board of Directors at their meeting held on 3 August
2012.
2. Figures for the quarter ended 31st March 2012 is the balancing
figure between audited figures in respect of full financial year and the
published year to date figures up to 31 December 2011. Also the figures up to
the period ended 31st December 2011 were only reviewed and not
subjected to audit.
3. The Company has an undisputed outstanding receivable of USD 2.5 million
from a customer from a customer which is outstanding for more than 365 days at
30th June 2012, The customer has executed a senior term promissory
note to pay the outstanding receivable along with interest in monthly
installments commencing June 2012. However, the customer had not paid the
second installment falling due an 9th July amounting to USd 100.000.
The Company has filed a law-suit on 26 July 2012 in US District Court against
the customer for breach of the promissory note and recovery of the principal
outstanding along with interest and attorney fees. Management is confident of
eventual collection of the debts due from the customer and accordingly believes
that the current provision of Rs. 5.500 Millions created in accordance with the
Company’s provision policy is sufficient as at 30 June 2012.
4. The Company has entered into forward contracts in respect of highly
probable forecasted sales during the current quarter. Effective 1st
April 2012, the Company has applied the principals of AS 30, as per
announcement by ICAI except to the extent such principles of AS30 does not
conflict with existing accounting standards prescribed by Companies (Accounting
Standards) Rules, 2006.
In accordance with
the provisions of AS 30, the above derivative qualify for cash flow hedge
accounting. Such derivatives have been measured at fair value as at 30 June
2012 and the resultant exchange loss of Rs. 20.154 millions has been debited to
hedge reserve account in the balance sheet.
5. The company operated through two segments, Products and Electronic
Manufacturing Services.
6. The number of investor complaints received and pending during the quarter
are as follows:
|
Number of complaints pending at the
beginning of the |
Nil |
|
Number of complaints received during the
quarter |
9 |
|
Number of complaints resolved during the
quarter |
9 |
|
Number of complaints pending at the end of
the quarter |
Nil |
7. Previous periods figures have been regrouped and reclassified where ever
necessary to confirm to current period’s presentation.
|
Sl. No. |
|
Particulars |
Quarter Ended |
|
|
30.06.2012 |
||
|
|
(Unaudited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
|
|
|
|
|
Products |
45.694 |
|
|
|
Electronics Manufacturing Services |
306.894 |
|
|
|
Unallocable |
8.993 |
|
|
|
|
|
|
|
|
Total |
361.581 |
|
|
|
|
|
|
|
|
Less : Inter Segment Revenue (Net of Excise) |
-- |
|
|
|
|
|
|
|
|
Net Sales / Income
from Operation |
361.581 |
|
|
|
|
|
|
2 |
|
Segment Results |
|
|
|
|
|
|
|
|
|
Products |
(16.927) |
|
|
|
Electronics Manufacturing Services |
(9.450) |
|
|
|
|
|
|
|
|
Total |
(26.377) |
|
|
|
|
|
|
|
|
Less :Interest |
6.455 |
|
|
|
Less : Other Unallocable Expenses and Extra Ordinary Items |
(7.877) |
|
|
|
|
|
|
|
|
Total Profit Before
Tax |
(24.955) |
|
|
|
|
|
|
3 |
|
Capital Employed |
|
|
|
|
|
|
|
|
|
Products |
162.256 |
|
|
|
Electronics Manufacturing Services |
425.261 |
|
|
|
Unallocable |
192.015 |
|
|
|
|
|
|
|
|
Total |
779.532 |
WEBSITE DETAILS:
BUSINESS DESCRIPTION:
Subject is engaged in the manufacturing of advanced microelectronics
modules, frequency control products and resistor networks catering to the
communications, military, aerospace and industrial electronics markets and also
manufactures printed circuit board assembly (PCBA) and repair and return
business catering to the automobile, communications and industrial electronics
markets. The Company operates through two segments: Products segment and
Services segment. Products segment comprises component business of modules.
Services segment comprises electronic manufacturing services. Subject also
designs and manufactures advanced electronics
systems, subsystems and components. It designs and manufactures, including
signal conditioners, multiplexers, relay drivers, power processing units,
control electronics modules, sensor electronics modules and onboard computer
hardware, including 1553 interfaces and data acquisition units. Subject also
exports electronic products. For the nine months ended 31 December 2010, Subject
revenues increased 76% to RS1.89B. Net income increased from RS87K to RS.
45.300 Millions. Total revenue reflects increase of net sales of the company
and higher increase of other operating income. Net income benefited from higher
increase of stock in trade and lower expenses. The company provides customers
with product design, development and manufacturing solutions.
BOARD OF DIRECTORS:
Mr. S. Krishnan
Non-Executive and
Independent Director
Mr. S. Krishnan is Non-Executive and Independent Director of Subject on
September 11, 2007. Mr. S Krishnan is willing to act as a Director of the
company, if so appointed and has consented for being appointed as a director of
the company. Mr. Krishnan received his B. Tech from IIT, Madras and M.E. from
IISC, Bangalore. He has experience of 33 years in the field of Microelectronics
in Design, Engineering and Quality Assurance. Mr. S Krishnan holds 50 shares of
the company.
Mr. Apparao V.
Mallavarapu
Managing Director,
Executive and Non Independent Director
Mr. Apparao V. Mallavarapu is Managing Director, Executive and Non
Independent Director of Subject.Mr. Mallavarapu promoted the Company in 1993 to
manufacture Hybrid Micro Circuits. In 1997, he was instrumental in bringing the
strategic alliance with C-Mac Industries of Canada. In 1999, he played the lead
role in C-Mac Industries moving part of the Frequency Control Products (FCP)
manufacturing to Centum. During the dot com / technology bust, when many companies
folded and most of them incurred heavy losses, he quickly devised strategies to
ensure the company stayed profitable even during the bad years.
Mr. Manny
Marimuthu
Non-Executive and
Non-Independent Director
Mr. Manny Marimuthu is Non-Executive and Non-Independent Director of
Subject. Mr. Manny Marimuthu is willing to act as a Director of the company, if
so appointed and has consented for being appointed as a director of the
company. Mr. Manny Marimuthu is having experience around 15 years of experience
in the field of Finance and in the areas of audit & reviews, corporate
finance, mergers and acquisitions, financial restructuring. Presently he is
Senior Vice President of Finance for Flextronics Asia. Mr. Manny Marimuthu does
not hold any shares of the company. No Director other than Mr. Manny Marimuthu
is in any way concerned or interested in the said resolution.
Mr. Rajiv C. Mody
Non-Executive and
Independent Director
Mr. Rajiv C. Mody is Non-Executive and Independent Director of Subject.
Mr. Rajiv C Mody is willing to act as a Director of the company, if so
appointed and has consented for being appointed as a director of the company.
Mr. Rajiv C Mody, is the Chairman and Managing Director and founder of Sasken
Communication Technologies Ltd. (Sasken). The company was set up in the
classical tradition of Silicon Valley startups, in a garage in Fremont,
California. He qualified in electrical engineering degree from M.S. University,
Baroda and Masters Degree in Computer Science from Polytechnic Institute of New
York. He worked for Advanced Micro Devices, Seattle Tech Inc., and VLSI
Technology Inc. in USA. At VLSI, Mr. Rajiv Mody was responsible for the design,
development and integration of physical design tools for Gate-Array and
Standard Cell Design Styles. He has co-authored a patent in the area of
physical design and published a paper at the ICCAD conference. He has been with
Sasken since inception. He has over 22 years of experience in the technology
business. Mr. Rajiv Mody does not hold any shares of the company. No Director
other than Mr. Rajiv Mody is in any way concerned or interested in the said
resolution.
Mr. Manoj Nagrath
Non-Executive and
Independent Director
Mr. Manoj Nagrath is Non-Executive and Independent Director of Subject.
Mr. Manoj Nagrath is willing to act as a Director of the company, if so
appointed and has consented for being appointed as a director of the company.
Mr. Manoj Nagrath is the Senior Partner of the firm S. P. Nagrath and Company,
Chartered Accountants having its offices in New Delhi and Bangalore, and was
enrolled as a member of the Institute of Chartered Accountants of India in
1983. He has an experience of 25 years in almost every facet of the profession.
He has to his credit experience in various fields such as Direct and Indirect
taxation, audit, accounting, Company law matters and financial services. He
carries wide experience in representing matters at the tax office and other
Government authorities. Mr. Manoj Nagrath does not hold any shares of the company.
No Director other than Mr. Manoj Nagrath is in any way concerned or interested
in the said resolution.
Mr. P. Rama Rao
Non-Executive and
Independent Director
Dr. Prof. P. Rama Rao is Non-Executive and Independent Director of
Subject. He is presently Chairman, Governing Council, ARCI, Hyderabad, obtained
his Ph.D. degree in Physics- Metallurgy from Banaras Hindu University (BHU),
Varanasi, India in 1964.He was a post-doctoral research associate during
1966-67 at the University of Pennsylvania. In 1991 Professor Rao was appointed
Secretary to Government of India, Department of Science and Technology, a
position he held till 1995. Additionally, he held charge as Secretary,
Department of Ocean Development. Subsequently, during 1996-99, he served as
Chairman, Atomic Energy Regulatory Board, Government of India and as
Vice-Chancellor, University of Hyderabad during 1999- 2002. He was appointed a
Member of the Atomic Energy Commission, Government of India in 2004. He was
awarded a distinguished Professorship by the Indian Space Research Organisation
which he held during 2002-07 He has received the Presidential honours Padma
Shri in the year 1989, Padma Bhushan in the year 2001 and Padma Vibhushan in
the year 2010.
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. 53.57 |
|
|
1 |
Rs. 86.60 |
|
Euro |
1 |
Rs. 68.93 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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.