MIRA INFORM REPORT
|
Report
Date : |
12th
June, 2006 |
IDENTIFICATION
DETAILS
|
Name : |
GR
ENGINEERING WORKS LIMITED |
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Registered
Office : |
Poonam
Chambers, Dr. Annie Besant Road, Worli, Mumbai -
400 018, Maharashtra, India |
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Country: |
India |
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Financials
(As on): |
31.03.2005 |
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Date of
Incorporation : |
22.09.1966 |
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Com.
Reg. No.: |
11-13582 |
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CIN
No.: |
L28920MH1966PLC013582 |
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TAN
No.: |
PNEG04869E |
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PAN
No.: |
AAACG05829M |
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Legal
Form : |
It is a closely held Public Limited Liability Company. |
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Line
of Business : |
Engaged
in Fabrication and sale of Machinery of Pharmaceutical, Chemical, Food
Processing, Dairy, Fertiliser, Atomic Power, Refinery and Distillation
Plants, Sugar Mills and Industrial Centrifuge Machines. The company is also engaged in manufacture
of iron/steel materials i.e. rounds, flats, angles, etc. |
RATING & COMMENTS
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MIRA’s
Rating : |
Ba |
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum
Credit Limit : |
USD
2250000 |
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Status
: |
Satisfactory
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Payment
Behaviour : |
Slow but
correct |
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Litigation
: |
Clear |
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Comments
: |
Subject is a well-established and reputed engineering
company having satisfactory track records. The concern is controlled,
financed and managed by Hariani family whose means are of important
sums. Their trade relations are
reported as fair. Payments are reported as slow but correct. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered
Office : |
Poonam
Chambers, Dr. Annie Besant Road, Worli, Mumbai - 400
018, Maharashtra, India |
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Tel.
No.: |
91-22-24928720/24930404/24930622/24931678/
24931700/2493 8999 |
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Fax
No.: |
91-22-24964532/24925712 |
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E-Mail
: |
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Website
: |
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Head
Office : |
Poonam
Chambers, Dr. Annie Besant Road, Worli, Mumbai -
400 018, Maharashtra, India |
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Tel.
No.: |
91-22-24928720/24930404/24930622/24931678/
24931700/2493 8999 |
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Fax
No.: |
91-22-24964532/24925712 |
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E-Mail
: |
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Website
: |
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Factory
: |
Ø
Whitefield
Road, Bangalore - 562 136, Karnataka, India Ø
Quellosim,
Rassain, Co’talim, Goa, India Ø
Plot
G-14, MIDC Industrial Area, Tarapur - 401 506, District - Thane, Maharashtra,
India |
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Branches
: |
Ø
Whitefield
Road, Bangalore - 562 136, Karnataka, India Ø
5A\5B,
Sapana Terraces, 1st Floor, Swatantra Path, Vasco-Da-Gama, Goa -
403 802, India Ø
Plot
G-14, MIDC Industrial Area, Tarapur - 401 506, District - Thane, Maharashtra,
India |
DIRECTORS
|
Name : |
Mr. D. P.
Hariani |
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Designation
: |
Chairman
& Managing Director |
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Address: |
401,
Prabhu Kutir, Alta Mount Road, Mumbai-400026, Maharashtra |
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Date
of Birth/Age : |
27.10.1926 |
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Experience
: |
46 years
in Engineering Industry |
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Date
of Appointment : |
22.09.1966 |
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Previous
Employment: |
Industries
Engineering & Const. Company in Charge |
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Name : |
Mrs.
Parmeshwari Hariani |
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Designation
: |
Director |
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Address: |
401,
Prabhu Kutir, Alta Mount Road, Mumbai-400026, Maharashtra |
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Date
of Birth/Age : |
21.08.1929 |
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Date
of Appointment : |
22.09.1966 |
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Name : |
Mr.
Ramesh D. Hariani |
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Designation
: |
Director |
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Address: |
401,
Prabhu Kutir, Alta Mount Road, Mumbai-400026, Maharashtra |
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Date
of Birth/Age : |
11.10.1949 |
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Date
of Appointment : |
01.06.1977 |
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Name : |
Mr. Ashok
Wadhera |
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Designation
: |
Director |
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Address: |
No.
3633/A, Service Road, Hal II Stage Layout, Bangalore-560008, Karnataka |
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Date
of Birth/Age : |
23.01.1947 |
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Date
of Appointment : |
01.11.1997 |
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Executive
Director: |
Mr. A.H.
Wadhera |
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Executive
Director |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No.
of Shares |
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|
Daulatram. P. Hariani |
1272000 |
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Parmeshwar .D. Hariani |
1327200 |
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Mr. Ramesh D. Hariani |
13539200 |
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Daulatram. P. Hariani |
480000 |
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Group Consulting |
2752000 |
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Neil. F. Hariani |
1227200 |
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Jay. F.
Hariani |
1329920 |
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Chander. P. Hariani |
24000 |
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Ziegelbaur Gita |
2450880 |
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Ziegelbaur Shaun |
800000 |
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Ziegelbaur Shaun |
800000 |
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BUSINESS DETAILS
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Line of
Business : |
Engaged
in Fabrication and sale of Machinery of Pharmaceutical, Chemical, Food
Processing, Dairy, Fertiliser, Atomic Power, Refinery and Distillation
Plants, Sugar Mills and Industrial Centrifuge Machines. The company is also engaged in manufacture
of iron/steel materials i.e. rounds, flats, angles, etc. |
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Products
: |
Fabrication of Machineries of Pharmaceuticals, Chemicals,
Fertilizers, Automatic Power, Refinery, Distillation Plant Industries |
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Exports
to : |
Far East, Europe and USA |
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Imports
from : |
Europe |
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Terms
: |
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Purchasing : |
L/C, D/A or D/P terms |
GENERAL INFORMATION
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No. of
Employees : |
800 |
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Bankers
: |
Ø
Bank
of Maharashtra Ø
Bank
of Nova Scoita |
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Facilities: |
Secured
loans: |
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From Bank Cash
credit |
33.580 |
3.845 |
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Total
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33.580 |
3.844 |
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Unsecured
loans: |
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Advance
from customers Total |
67.914 67.914 |
123.761 123.761 |
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Banking Relations : |
Satisfactory |
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Auditors
: |
Jitendra
Sanghvi & Company Chartered Accountants |
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Address
: |
405, Churchgate Chambers, 5, New Marine Lines, Mumbai - 400 020, Maharashtra, India |
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Tel
No: |
91-22-22624578 |
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Associates
: |
Ø
Taj
Madurai Limited Ø
G.
R. Shipping Limited Ø
G.
R. Mittal Enterprises Ø G. R. Investments |
CAPITAL STRUCTURE
Authorised
Capital :
|
|
|
Value |
Amount |
|
30,000,000 |
Equity Shares |
Rs. 10/- each |
300.000 |
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Millions |
Issued,
Subscribed & Paid-up Capital :
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No. of
Shares |
Type |
Value |
Amount |
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|
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|
27,200,000 |
Equity
Shares |
Rs. 10/- each |
Rs. 272.000 million |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
SHAREHOLDERS FUNDS |
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1] Share Capital |
272.000 |
272.000 |
272.000 |
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2] Reserves & Surplus |
313.202 |
281.473 |
242.665 |
NETWORTH
|
585.202 |
553.473 |
514.665 |
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LOAN FUNDS |
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1] Secured Loans |
33.580 |
3.844 |
5.474 |
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2] Unsecured Loans |
67.914 |
123.761 |
82.273 |
TOTAL
BORROWING
|
101.494 |
127.605 |
87.747 |
DEFERRED TAX LIABILITIES
|
177.118 |
38.393 |
40.531 |
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TOTAL
|
736.348 |
719.471 |
642.943 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
147.452 |
80.598 |
90.193 |
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Capital work-in-progress |
45.863 |
38.830 |
0.000 |
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INVESTMENTS |
95.572 |
89.300 |
82.647 |
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DEFERRED TAX ASSETS |
- |
1.877 |
3.216 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
609.464 |
Inventories
|
311.043 |
370.970 |
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Sundry Debtors
|
247.994 |
114.595 |
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Cash & Bank Balances
|
3.512 |
13.911 |
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Loans & Advances
|
226.979 |
203.108 |
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Total Current Assets |
789.528 |
702.584 |
609.464 |
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Less: CURRENT LIABILITIES & PROVISIONS |
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Current
Liabilities |
262.499 |
125.022 |
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|
Provisions |
78.987 |
68.550 |
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Total Current Liabilities
|
341.486 |
193.751 |
142.627 |
Net
Current Assets
|
448.042 |
508.833 |
466.837 |
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MISCELLANEOUS EXPENSES |
0.581 |
0.033 |
0.050 |
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TOTAL
|
736.948 |
719.471 |
642.943 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Sales Turnover [including other income] |
840.774 |
725.876 |
421.325 |
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Profit/(Loss) Before Tax |
87.929 |
89.980 |
81.646 |
|
Provision for Taxation |
24.416 |
16.939 |
14.454 |
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Profit/(Loss) After Tax |
63.513 |
73.041 |
67.192 |
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|
|
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Total Expenditures
|
752.844 |
635.896 |
NA |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
PAT / Total Income
|
(%)
|
7.55
|
0.100
|
15.94
|
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Net Profit Margin
(PBT/Sales) |
(%) |
10.41
|
1.239
|
19.38
|
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Return on Total Assets
(PBT/Total
Assets} |
(%) |
13.91
|
1.280
|
10.39
|
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.15
|
1.625
|
0.16
|
|
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|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
0.75
|
0.350
|
1.52
|
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|
|
Current Ratio
(Current
Asset/Current Liability) |
|
2.31
|
3.626
|
4.27
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company was incorporated on 22nd September,
1966 at Mumbai in Maharashtra having Company Registration No. 13582. It was a incorporated as a Private Limited
Company and converted into a Public Limited Company on 9th
September, 1988.
The
important raw material consumed by the company includes stainless steel plates,
sheets, rounds, M.S. plates, sheets, angles, joints, etc.
The company’s fixed assets of important value include land
(freehold and leasehold), buildings, furniture & fixture, barges &
vessels, plant and machinery, office equipments, vehicles.
As Per Web Details
Profile
G.R.ENGINEERING
WORKS LIMITED started its manufacturing in the year 1967. Since then we have
expanded to two manufacturing units, conveniently located at Bangalore in south
India and Tarapur in Western India. Both the units are fabricating custom made
equipment for Process Industries like Petrochemical, Fertilizer, Chemical and
Nuclear Industries.
Within the
group also is shipyard at Goa, manufacturing flat bottom self -propelled barges
for transportation of Iron Ore. We also own a fleet of barges, which are
available for hire to Iron Ore exporters.
The covered
factory areas of individual factories are as follows:
1.
Bangalore 18580 Sq. Mtr. [Plot area 60,000 Sq.mtr]
2. Tarapur
5000 Sq. Mtr. [Plot area 20,000 Sq.mtr]
Above 2
workshops have been approved by EIL, CCOE, IBR,PDIL.. In above two workshops,
we have fabricated equipments with various inspection agencies such as
Lloyd's,Bureau Veritas,Det Norske Veritas,Engineers India Limited.,Kvaerner
Power gas, H and G , Projects and Development India Limited and Bectel.
GR
specializes in fabricating equipments in all grades of Stainless Steel
including low ferrite stainless steel in 316L and 304L grade. Besides,we have also
fabricated equipments in materials such as Pure Nickel, Cupro Nickel, Hastalloy
'C' and Aluminium. Besides this, we have fabricated equipments of all types of
clad steel and material overlaid with monel,inconel and stainless steel.
Besides fabricating equipments under ASME Sec. VIII Div. I & II, we have
also supplied all critical equipments under Section III nuclear code. We have
successfully supplied equipments, such as Calandria, Moderator Heat Exchangers
Bleed Condenser, Bleed Cooler,Airlock Door for 235 MW Nuclear Power Stations.
Besides
this, we are fabricating similar equipments for 500 MW plants as well.
Improvement in Design and Engineering technology is our ongoing process at GR,
which has enabled us to assimilate advance fabrication technology.
Over a
decade ago, we diversified into the field of design and fabrication of LPG
Storage facilities, such as Horton Sphere and mounded Bullets for various LPG
installations. In this span of time, we have fabricated more than 150 Nos.of Horton
Sphere for Oil and Gas Industry and bottling plants installed all over the
country.
We have
acquired expertise to handle the large volume of business and management skill
to manage bigger sites, equipments and personnel. We have large inventory of
our own tools and tackles, fabrication equipments, such as Plate Bending
Machines, Welding Generators, Rectifiers, Derricks, Mobile Cranes & various
equipments such as Grinding Machines, Pneumatic Compressors, DG sets, stress
relieving feicilities,Radiography Sources including Cobalt-60 etc.which can be
mobilized at very short notice. We have got 4 nos of 1000 tons hydraulic
presses & 3 nos 700 tons presses to fabricate the Horton Sphere petal and
they are capable of producing 20 petals/day on 2 shift working basis. We have
also developed expertise for stress relieving of Horton Spheres in citu
conditions with our own equipment at field. DESIGN CAPABILITES We have in-house
facility for Design & Drawing of complete civil work for Mounded Storage
Bullets and foundation for Horton Spheres.
We have
in-house design capability for all type of Pressure Vessels. We have designed
vessels with ASME, BS, Ad-MERCK BLATTER.We have fully trained staff to work
under CAD/CAM environment. Data can be electronically transmitted thru NET.
TRANSPORTATION
FEASIBILITY
All the
equipments that are being manufactured in our 2 workshops shall be transported
by road or by sea . We can transport the equipments of single piece having the
following dimensions. Diameter : Upto 5000 mm Length: Upto 40000 mm ( in single
piece) Weight: Upto 125 MT. We can also transport by sea from our Tarapur
Factory. The jetty is located at 10 kms from Tarapur Works.
Constant
upgradation of technology for achieving quality and perfection,after sales and
services are integral part of our company philosophy.
Our
assets are dedicated and highly motivated team of Managers, Engineers, Workmen
contributing all levels.
Achievements
Ø We have manufactured pure aluminum
horizontal cylindrical tanks having both the sides dished ends for storage of
concentrated nitric acid for Hindustan Organic Chemicals Limited, Rasayani. The
size of the equipment was 3 meter diameter 12.5 meter long and aluminum
conforming to purity 99.9%.
Ø
We
have supplied Carbonate Solution Vessel and other Pressure Vessels, We have
also supplied Ammonia Receiver with SS 304 Clad material and H² S Absorber in
C-Mo material-SA 204 Gr.B.
Ø
We
have supplied for Indian Petrochemicals Ltd., for their Maharashtra Gas Cracker
Complex at Nagothane, various Reactors, Pressure Vessels and Heat Exchangers to
the tune of US$ 1 Million. This order was executed under Technip, France.
Ø
We
have completed an order from M/s. Daelim Engineering Company, Korea for ONGC,
Phase - III project 24 Nos. Heat Exchangers, 6 Nos. Columns and Storage Tanks,
Oxidizer at site. The order value is IRS. 70 Million on Deemed Export basis.
Material of Construction for these is Carbon Steel with NACE specification for
RPL Jamnagar.
Ø
We
have supplied 104 Nos. of Heat Exchangers for Reliance Petroleum-Jamnagar in a
record time. These equipments were supplied under project management of BECHTEL
and DNV inspection.
Ø
Low
Alloy Heat Exchangers for GNFC- Bharuch.
Ø
Column,Vessels,Heat
Exchangers in SS Clad Steel,NACE+HIC CS & CS Material for CPCL Chennai.
Ø
Large
Dia Vessels & Long Vessels by Barge Transportation to RPL & MRPL
Ø
Large
size SS 316L & 317L columns for Mitsuvishi Ind.-Japan fpr their PTA Plant
at Haldia..
Contacts
HEAD OFFICE
:
202, 'A' Wing,
Poonam Chmabers, Dr. Annie Bessant Road, Worli, Mumbai-400 018 (INDIA)
Telephones
: (91)(022)249605 51 to 55
FAX :
(91)(22)24964532
E-Mail:- grew@vsnl.com
WEB : www.grengg.com
BRANCHES
& REGIONAL OFFICES :
BANGALORE:-
Whitefield
Road, Bangalore-560 066 (Karnataka).
Tel.-(080)28454215
/16
Fax
(080)28454219
E-Mail-grblr@vsnl.net
Delhi
Office :-
529,Som
Dutt Chambers II, 9,Bhikaji Cama Place, New Delhi-110 066 29.
Tel:-
(011)26186779
Fax:- (011)
26196779
E-Mail:-grdelhi@del2.vsnl.net.in
GOA
SHIPPING DIV.:-
5A/5B,
Sapana Terraces, 1st floor,Swatantra Path, Vasco-Da-Gama,Goa-403802
Tel:-
(0834) 2512972 2512973
Fax:-
(0834) 2510415
E-Mail:- grgoa@goatelecom.com
TARAPUR
WORKS:-
G-14,
M.I.D.C.,Industrial Area,Tarapur-401 506.Maharashtra.
Tel.:- (02525)
272870,272970,270570
Fax:-
(02525) 273287
E-Mail :- grewl_tpr@vsnl.net
DIRECTOR’S REPORT
The company
has reasonably good order backed
position and with the order’s in the pipeline expect to maintain the
performance level in the year.
In
it’s pursuit to diversify it’s
activities, the company has joined hands with a reforward construction
Co. to develop Bangalore properly into Technology parts and the first phase is
expected to be completed by end the year 2004
The company
has also undertaken expansion at Tarapur works involving substantial capital
outlay from it’s own funds. On completion, the unit will be fully equipped with
all modern machinery and besides increase in the plant capacity the plant will
be able to manufacture high precision and heavier equipments.
Fixed
Assets:
¶
Land
(Freehold)
¶
Land
(Leasehold)
¶
Buildings
¶
Buildings
(On Freehold & Leasehold)
¶
Barges
% Vessels
¶
Plant
& Machinery
¶
Office
Equipments
¶
Vehicles
Operations:
During the
year the company has recorded a Sales turnover of Rs. 844.878 millions compared
to Rs. 490.662 millions in the previous year. Profit before depreciation was
Rs. 104.999 millions compared to Rs. 101.885 millions in the previous year. The
Net Profit After Tax stood at Rs. 63.514 millions after providing for higher
amount of depreciation at Rs. 16.269 compared to 11.905 previous year on the
expanded assets at Tarapur Works and provision for tax at Rs. 24.416 millions
inclusive of deffered tax provison of Rs. 14.316 millions. The profit margin
was lower due to increased competition and also higher cost of Steel which is
the main input
Expansion
& Diversification:
The third
expansion program at Tarapur works which was reffered ti in the last report has
been completed. The entire capital outlay was financed from its own funds.
Your
company has also successfully developed the first phase of technology park at
Whitefield, Bangalore in June 2005 and the same has been leased. The company
would now take up the development of II phase
The company
also continued its Trading Division operation on selective basis.
With a view
to explore growing international market the company has to set up a full
fledged export division
CMT REPORT
[Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
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] 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. 46.04 |
|
UK Pound |
1 |
Rs. 84.73 |
|
Euro |
1 |
Rs. 57.92 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
6 |
|
OPERATING
SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT
LINES |
1~10 |
6 |
|
--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 |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
44 |
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 |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |