MIRA
INFORM REPORT
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Report Date : |
04.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
VALECHA ENGINEERING LIMITED |
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Registered Office : |
Valecha Chambers Plot No B-6, 7th Floor, Andheri New Link Road, Mumbai - 400053, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
05.03.1977 |
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Com. Reg. No.: |
11-19535 |
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CIN No.: [Company
Identification No.] |
L74210MH1977PLC019535 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMV09361C |
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Legal Form : |
A Public Limited Company. The company shares are listed on
the Stock Exchanges. |
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Line of Business : |
Company is engaged in
Real Estate and Electrical Energy |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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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 4700000 |
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Status : |
Good |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established company having fine track. Directors are reported as experienced, respectable and resourceful businessmen. The company is doing very well. Payments are correct and as per commitments. The company can be considered good for any normal business
dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Valecha Chambers Plot No B-6, 7th Floor, Andheri New Link Road, Mumbai - 400053, Maharashtra |
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Tel. No.: |
91-22-26733625-29/26733238/3587 |
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Fax No.: |
91-22-26733945 |
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E-Mail : |
valeng@bom3.vsnl.net.in |
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Website : |
http://www.valechaeg.com |
DIRECTORS
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Name : |
Mr. V P Valecha |
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Designation : |
Chairman |
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Name : |
Mr. J K Valecha |
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Designation : |
Managing Director |
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Name : |
Mr. R H Valecha |
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Designation : |
Whole – time Director |
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Name : |
Mr. G Ramachandran |
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Designation : |
Director |
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Name : |
Mr. Anil Harish |
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Designation : |
Director |
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Name : |
Mr. I Syam Prasad Reedy |
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Designation : |
Director |
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Name : |
Mr. U H Valecha |
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Designation : |
Whole – time Director |
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Name : |
Mr. A B Gogate |
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Designation : |
Whole – time Director |
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Name : |
Mr. D H Valecha |
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Designation : |
Whole – time Director |
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Name : |
Mr. Arvind Thakkar |
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Designation : |
Director |
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Name : |
Mr. Shailesh Harbhakti |
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Designation : |
Alternate Director |
KEY EXECUTIVES
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Name : |
Ms. Kavita Valecha Sharma |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Company is engaged in
Real Estate and Electrical Energy. |
GENERAL
INFORMATION
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Customers : |
Maharashtra State Road Development Corporation Ltd, Mumbai Western Railway, Mumbai National Building Construction Corporation Limited, New Delhi Ashoka Buildcon Ltd, Pune NTPC Limited, Rihand, Uttar Pradesh Adani Port, Gujarat Toyo Engineering Limited, Dahej, Gujarat Oberoi Construction Private Limited, Andheri Conwood Construction Private Limited, Juhu, Vile parle Vinita Estate Private Limited, Borivali K.Raheja Developers, Prabhadevi Wadhva Builders, Bandra Swastik Builders, JVPD, Vile Parle J.K.Shah, JVPD, Vile Parle Empire Audio Private Limited, Andheri Richa Relators, JVPD, Vile Parle Bhojvani Developers, Pali Hill, Bandra Warehousing Corporation Limited, Pune |
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No. of Employees : |
287 |
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Bankers : |
-- |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
D M Jani & Company Chartered Accountants |
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Subsidiaries : |
Valecha Infrastructure Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6920000 |
Equity Shares |
Rs. 10/- each |
Rs. 69.200
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
69.200 |
45.000 |
45.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1110.200 |
285.600 |
242.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1179.400 |
330.600 |
287.700 |
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LOAN FUNDS |
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1] Secured Loans |
407.900 |
276.000 |
277.400 |
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2] Unsecured Loans |
20.500 |
33.000 |
47.900 |
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TOTAL BORROWING |
428.400 |
309.000 |
325.300 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1607.800 |
639.600 |
613.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
513.000 |
407.800 |
384.300 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
81.500 |
96.800 |
87.700 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
43.300
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79.800
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89.200 |
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Sundry Debtors |
463.100
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175.800
|
123.800 |
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Cash & Bank Balances |
499.900
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65.400
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89.700 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
557.900
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224.200
|
221.600 |
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Total
Current Assets |
1564.200
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545.200 |
524.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
527.200
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354.400
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345.000 |
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Provisions |
23.700
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55.800
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38.300 |
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Total
Current Liabilities |
550.900
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410.200 |
383.300 |
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Net Current Assets |
1013.300
|
135.000
|
141.000 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1607.800 |
639.600 |
613.000 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
1513.800 |
1505.600 |
1204.600 |
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Other Income |
242.700 |
0.000 |
0.000 |
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Total Income |
1756.500 |
1505.600 |
1204.600 |
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Profit/(Loss) Before Tax |
295.400 |
91.800 |
74.800 |
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Provision for Taxation |
27.300 |
29.400 |
23.700 |
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Profit/(Loss) After Tax |
268.100 |
62.400 |
51.100 |
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Expenditures : |
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Cost of Goods Sold |
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Manufacturing Expenses |
864.700 |
1020.300 |
771.800 |
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Selling and Administrative Expenses |
51.000 |
56.800 |
43.500 |
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Raw Material Consumed |
394.100 |
185.400 |
189.700 |
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Salaries, Wages, Bonus, etc. |
29.100 |
23.400 |
26.900 |
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Interest |
29.600 |
29.500 |
27.900 |
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Power & Fuel |
57.900 |
69.200 |
45.200 |
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Depreciation & Amortization |
28.800 |
24.000 |
20.600 |
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Other Expenditure |
5.900 |
5.200 |
4.200 |
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Total Expenditure |
1461.100 |
1413.800 |
1129.800 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2006 1st
Qtr. |
30.09.2006 2nd
Qtr. |
31.12.2006 3rd
Qtr. |
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Sales
Turnover |
521.500 |
458.800 |
688.600 |
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Other
Income |
8.200 |
11.700 |
189.300 |
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Total
Income |
529.700 |
470.500 |
877.900 |
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Total
Expenditure |
482.400 |
424.700 |
628.900 |
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Operating
Profit |
47.300 |
45.800 |
249.000 |
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Interest |
4.500 |
6.000 |
1.300 |
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Gross
Profit |
42.800 |
39.800 |
247.700 |
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Depreciation |
8.700 |
10.800 |
13.100 |
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Tax |
8.900 |
6.000 |
6.100 |
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Reported
PAT |
24.200 |
21.700 |
221.100 |
Notes:
200606 Quarter 1
EPS is Basic 1. The above results have been reviewed by the Audit
Committee and taken on record by the Board of Directors at their Meeting held
on 31st July, 2006. 2. Out of the GDR amount of USD 12.10 millions,
Company has utilized USD 8.39 millions towards working capital & Capex. 3.
Segment Reporting as defined in Accounting Standard-17 is not applicable. 4.
The Company received 17 complaints which were resolved for the quarter ended on
30th June, 2006. There are no complaints pending as on 30th
June, 2006. 5. Previous period's figures have been regrouped, rearranged
wherever necessary. 6. The Statutory Auditors of the Company have carried out
the Limited Review of the above results.
200609 Quarter 2
EPS is Basic 1.The above results have been reviewed by the
Audit Committee and taken on record by the Board of Directors at their Meeting
held on 31st October, 2006. 2.Out of the GDR amount of USD 12.10 millions
Company has utilized USD 9.10 millions towards working capital & Capital
Expenditure Requirements. 3. The Company considers its operations as one single
segment i.e. 'Construction Activity' and as such, AS-17 is not applicable. 4.
As at 31.03.2006 'Other Income' includes an Exceptional Income of Rs. 198.802
millions. 5. The Company with the present performance is in line with the
projections made at the time of the GDR issue of achieving atop line of Rs.
2500 millions for the whole year. 6.The Company hope to achieve the projected
profit mentioned in the GDR issue for the year ending 31.03.2007, barring
unforeseen circumstances. 7. The Company received 8 (eight) complaints which
were resolved for the quarter ended on 30th September, 2006. There
are no complaints pending as on 30th September, 2006. 8. Previous
period's figures have been regrouped, rearranged wherever necessary. 9. The
Statutory Auditors of the Company have carried out the Limited Review of the
above results. 10. The Shares of the Company are listed on National Stock
Exchange w.e.f. 11th September, 2006
200612 Quarter 3
EPS is Basic Status of Investor Complaints for the quarter ended
December 31, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 12 Complaints disposed off during the
quarter 12 Complaints unresolved at the end of the quarter Nil 1. The above
results have been reviewed by the Audit Committee and taken on record by the
Board of Directors at their meeting held on January 30, 2007. 2. Out of the GDR
amount of USD 12.10 millions, Company has utilized USD 11.96 million towards
working capital & Capital Expenditure Requirements. 3. The Company
considers its operations as one single Segment i.e. 'Construction Activity' and
as such, AS-17 is not applicable. 4. The Company with the present performance
is in line with the projections made at the time of the GDR issue of achieving
a top line of Rs 2500 million for the whole year. 5. The Company hope to
achieve the projected profit mentioned in the GDR issue for the year ending
March 31, 2007, barring unforeseen circumstances. 6. Previous period figures
have been regrouped, rearranged wherever necessary. 7. The Statutory Auditors
of the Company have carried out the Limited Review of the above results.
KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt Equity Ratio |
0.49 |
1.03 |
1.17 |
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Long Term Debt Equity Ratio |
0.39 |
0.78 |
0.98 |
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Current Ratio |
1.92 |
1.14 |
1.22 |
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TURNOVER RATIOS |
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Fixed Assets |
2.58 |
2.90 |
2.59 |
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Inventory |
24.59 |
17.22 |
11.60 |
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Debtors |
4.74 |
9.71 |
9.22 |
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Interest Cover Ratio |
4.26 |
3.59 |
3.68 |
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Operating Profit Margin (%) |
10.24 |
8.93 |
10.53 |
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Profit Before Interest and Tax Margin (%) |
8.34 |
7.28 |
8.77 |
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Cash Profit Margin (%) |
7.68 |
5.22 |
6.12 |
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Adjusted Net Profit Margin (%) |
5.77 |
3.57 |
4.36 |
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Return on Capital Employed (%) |
11.23 |
16.91 |
17.47 |
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Return on Net Worth (%) |
11.58 |
16.79 |
18.84 |
STOCK PRICES
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Face Value |
Rs.10/- each |
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High |
Rs. 203.00/- |
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Low |
Rs.196.05/- |
LOCAL AGENCY
FURTHER INFORMATION
History :
Valecha Engineering Limited (VEL) which is promoted by Valecha Brothers
under a partnership firm, was incorporated in 1977, as a private limited
company in the name of Valecha Bros. (E.C.) Private Limited. The company
changed its status from private to public limited under the name of Valecha
Bros. (E.C) and further on 23rd December 1993 changed its name to
Valecha Engineering Limited. Within a short span of 20-25 years recognition
came in the form of qualification of Highest Class of Contractors. The company
provides engineering services to its customers. It is also engaged in power
generation and real estate business.
VEL has commissioned two wind turbines of 220 MW for Bharat Heavy Electric
(BHEL). It has also obtained the letter of intent for construction of a second
bridge over the Narmada river. VEL has entered into a joint venture with
Costain, UK, for the above project.
The company has been a consistent performer over the years and made a good
beginning in 1998-99 by bagging the projects like the construction of flyover
at National Park Junction on Western Expressway in Bombay (Project Cost
Rs.172.000 Millions ) and Four lanning and strengthening of NH1 from Km. 74/200
to 92/200 from Smallkha to Panipat Contract II (Project Cost Rs.168.800 Millions).
The company came out with an offer for sale on 9th March 1994, of
7,87,500 equity shares of Rs. 10/- each at an offer price of Rs. 38/- per share
aggregating to Rs. 29.925 Millions. The main object of this issue was to part
finance the execution of existing contracts and an expansion in its
operations.
The company has been pre-qualified in Joint Venture with MTD Malaysia for Port
Connectivity Road Projects totaling to Rs. 4500 Millions . In 2001-02 the
company bagged a prestigious SATARA-KOLHAPUR ROAD project amounting to Rs.
855.000 Millions under MSRDC in JV with M Venkata Rao. The project is expected
to be completed as per schedule. The total order position of the company as on
March, 2003 is Rs. 2000.000 Millions.
Operations : During the year under report, the turnover has
increased to Rs. 1513.757 millions from Rs. 1454.880 millions in 2004-2005
representing an increase of 4.05%. The Profit Before Tax (PBT) has increased by
221.95% from Rs. 91.757 millions in the previous year to Rs. 295.416 millions
for the year 2005-2006 which includes a sizeable component of other income. The
Profit After Tax (PAT) is Rs. 268.075 millions for the year 2005-2006 as
compared to PAT of Rs. 62.391 millions for the previous year representing an
increase of 329.67%.
Outlook and Review :
The construction sector has become the most important driver of the Indian
economy and the Indian Industry is coming of age in terms of timely execution
of quality and engineering capabilities.
This calls for all the companies being adequately capitalized to carry out
large projects without facing liquidity problems and adhering to norms of net
worth criteria. The company has successfully raised resources in the global
markets by raising GDRs for US$ 12.10 million and is now geared to look at
projects of larger ticket size. The immediate benefit has been the bagging of
the Assam road project which is of Rs. 2260 millions and the largest order size
bagged till date by the company. The Indian construction sector has come a long
way in terms of technological advancement, improved efficiencies and better
working conditions as far as employees' welfare and protection is
concerned.
Given the Current opportunities for growth present in this sector, the Company
has chosen a robust growth strategy to leverage its distinctive competencies
and is adding allied areas of construction engineering to its growing
repertoire. The company is also looking in the area of hydel power and wind
power projects to help in giving healthier margins and reducing the product
dependency risk on a couple of areas of operation.
The Company, is initiating talks with potential clients in the Middle Eastern
region, with particular focus on Dubai, to bid for piling contracts in that
region. The company hopes that various joint ventures entered into with
international partners will allow it to gain a reputation in the international
field for the completion of high quality large construction projects.
The Company sees a great opportunity for increasing utilization of Build
Operate and Transfer ('BOT') projects, ports, airports and real estate project.
Diversification into these projects through strategic tie ups in the future is
hoped to help the company to increase its profitability.
The Company is also presently among the leading operators to own a large number
of hydraulically operated piling rigs which has allowed it to gain experience
on the ground engineering segment. The Company is therefore planning to
increase its market share in this sector.
The Company also aims to become a leader in the concrete paving field, having
recently successfully completed a contract to extend an expressway project of
four lanes for the NHAI. Many such projects are in the pipeline and the company
based on its expertise hopes to get more orders in the future in this field of
operation.
The company is also looking at the real estate sector with a view to develop
townships or malls and discussions have been initiated in this regard. The efforts
may bear results in the coming years as this sector is capital intensive and
will need to be backed by adequate resources if we are to make our presence
felt in this sector.
The company has a good order book of Rs. 8000 millions and expect to grow at a
healthy rate with enhanced margins in the coming year. Given the order
execution pattern this order book, barring unforeseen circumstances, has to be
executed in the next Twenty four to Thirty months thereby providing sufficient
fillip to the top line and bottom line in the coming years.
Capital :
The Company has raised 12.10 Million US$ through GDR issue by issuing 20,00,000
GDRs @ 6.05 US$ per GDR and the GDRs are listed on Luxembourg Stock Exchange.
The Company has also allotted 20,48,900 warrants on preferential basis, @ Rs.
199.55 per warrant out of which 4,23,900 warrants have been fully paid and
equity shares allotted. The monies raised have been utilised towards working
capital & capex.
Subsidiary :
Valecha Engineering Limited acquired 50,000 shares of
Valecha Infrastructure Limited at a Face Value of Rs. 10/- making Valecha
Infrastructure Limited as its wholly owned subsidiary in the month of March,
2006.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
(a) Industry Structure and Developments
During the last year the country has seen significant growth in the
infrastructure sector. Infrastructure Development constitutes 40% to 50% of
India's capital expenditure on projects in various sectors such as highways,
roads, railways, power, airports, etc. The boom in the real estate sector is
correctly reflected in the higher growth rate expected in construction
sector.
(b) Opportunities and Threats/Risks and concerns
Need for public-private partnership is crucial for infrastructure development.
More ports are being opened for the private sector and establishment of SPVs to
boost the core sector also throw up huge opportunities to capitalize upon.
Road-building initiatives are also being undertaken at the state and city
levels.
Valecha Engineering Limited having an experienced team comprising of
technocrats, commercial professionals and entrepreneurs backed by a deep
understanding of the infrastructure business, offering a combination of youth,
experience and good industry knowledge is geared up to take the opportunities
in the construction sector.
Valecha Engineering Limited has established collaborative arrangements with
international partners to boost its growth in overseas market. The Company has
sourced equipments which offer cutting edge technology resulting in cost
reduction and better profit margins for the company.
Stiff competition leading to price-cuts and low operating margins, high
volatility in prices of major inputs such as steel, cement, building materials
and petroleum products, adapting to technological changes and having suitable
manpower, disparities and any changes in indirect tax structure in respect of
VAT/Service tax etc., are the key issues/concerns to post major threats in the
growth of Construction Industry.
(c) Segment wise performance & outcome
The Company is in the business of construction and infrastructure development
of roads, dams, bridges, highways etc. & hence operates in a single
business segment.
(d) Outlook
The recent boom in the power and road sectors has contributed a lot towards
growth and is likely to continue for the next few years. Infrastructure has
received more attention than other sectors. Government plans to do a massive face-lift
of the road network over the next 10 years. The overall outlook of Construction
Industry seems positive in view of the present economic environment. However,
the sustained growth will mainly depend upon future policy measures and
commitment of financial outlays by the Government, the inflow of foreign
investment as well as private capital investment. The Construction sector is
poised to grow at the rate of 15 to 20 per cent annually for the next couple of
years.
ABOUT US
A nation is incomplete without infrastructure. It's part of growth and a
sign of progress. Valecha Engineering forte is into constructing infrastructure
for the nation. It all began in 1957 and today they have carved out a niche as
specialist in construction of infrastructure, civil engineering works such as
Highways, Airports, Flyovers, Bridges, Tunnels, Canals, Water supply schemes,
Sewerage projects, Irrigation Dams, Storage reservoirs, Buildings, and
foundation engineering with sophisticated pile drilling Hydraulic Rigs.
The company has made a humble beginning in 1957 as a Partnership in the name
and style of Gopaldas Vasudev & Company. Slowly the operations built up and
expanded. What started initially with a small road works from Bombay Municipal
Corporation has today grown to a company with a dedicated, experienced and
expert team of workforce achieving a remarkable feats in the field of
construction of civil engineering.
Directors having years of exposure and experience in business with Mr. Jagdish
K. Valecha as their dynamic Managing Director and Shri. Vasudev P. Valecha as
their Chairman, both at the helm of business affairs governing the VEL's
Corporate Management comprises of professionally qualified business very
successfully. The company has as staff strength of over 500 people including
over 100 people with technical and engineering skills and experience.
VEL has entered into a number of technical collaborations as well as joint
ventures with overseas companies, bringing the latest technical know-how into
the execution of its projects. They as Valecha believe in very strong quality
philosophy and timely performance which is their main concern to give
confidence and goodwill to their clients. This principle applies to their work
as well as to their people which has helped them to convert engineering
concepts into actual.
VEL is financially strong with profit making company and sound performance for
the last 5 decades.
Welcome to VEL i.e., the House of Infrastructure!!
PUBLIC ESSENCE
It all began in 1957 as a partnership in the name of Gopaldas Vasudev
& Company. What started initially with a small road works project from the
Bombay Municipal Corporation has today grown to a company with a dedicated,
experienced and expert workforce achieving remarkable feats. Valecha
Engineering has carved itself a niche as a specialist in the construction on
infrastructure and civil engineering works such as highways, airports,
flyovers, bridges, tunnels, canals, water supply schemes, sewerage projects,
irrigation dams, storage reservoirs, buildings and foundation engineering with
sophisticated pile drilling hydraulic rigs. Recently, it bagged a contract from
NHAI for the construction of the Chittogarh bypass in Rajasthan worth Rs.
1336.000 Millions. Currently, again for NHAI, VEL is executing the Guwahati
bypass project in Assam worth Rs. 500 million. VEL is also executing a road
project worth Rs. 250 million in Uttar Pradesh and Rs. 200 Million in Punjab.
Among its achievements is the Rs. 250 million Borivali National Park flyover in
Mumbai, built within 17 months without affecting the heavy traffic. In another
move, VEL had formed a JV with Ukrmetrotunnelbud, a Ukraine government
corporation, for construction of a tunnel in Jammu & Kashmir. The total
value of the package, on the Laole-Oazigund section of IRCON International's
Udhampur-Srinagar-Baramulla new BG railway line project, is Rs. 2.60 billion. "Consistent
growth with the intuition to avoid over-booking and steep price cuts; quality
and reliability; and customer-friendly policies have led to their success"
says JK Valecha, Managing Director, Valecha Engineering.
Chairman: Vasudev P. Valecha
Turnover: Rs. 1500 millions
Strengths: Enters into JVs with overseas companies faster;
brings latest technical know-how into execution of projects.
Highways
Highway construction has been Valecha's core business activity since its
incorporation in 1957. Over the years Valecha has built more than 500km road
projects totaling to Rs. 2500 millions. As a result of these projects the
company has gained a vast experience in this field . The Highway projects
carried out by VEL cover large stretches of the road map of India. The rugged
and rolling terrain provides a contrast to the smooth surface and curvilinear
beauty of the highway.
GUWAHATI PROJECT (ASSAM)
For NHAI, VEL has completed Guwahati Byepass project in
Assam which is one of the disturbed area in India. The value of the project is
Rs.500 Millions. Despite of many difficulties encountered during the execution,
the progress of the road was satisfactory.
Some of the ongoing projects are highlighted below:
CHITTORGARH BYPASS
Recently VEL has been awarded Chittorgarh Bypass concrete
road in joint venture with Ashoka Buildcon. The value of the project is Rs.
1350 Million.
MMRDA PROJECT
VEL is presently executing two concrete roads for MMRDA in
Mumbai city having value of each project more than Rs. 300 Million.
PUNE ROADS
The company is also executing the concrete roads in Pune
city for Pune Municipal Corporation having total value Rs. 650 Million.
Flyovers
In the heart of the busy metropolis of Mumbai Borivali National Park
flyover constructed by VEL is 700 m long consists of three lane wide 2
carriageway with 21 spans of 17.4 m and obligatory spans of 40 m & 48.5 m.
each with very sleek and architecturally pleasing constructional skills. The
value of the project was Rs. 250 Millions.
The work was carried out in the shortest possible manner within 17
months in very hazardous and heavy vehicular traffic conditions without
affecting the heavy traffic flowing round the clock. The traffic diversions was
a very difficult and skillful work which had to be constantly attended to, day
and night with lot of graphics, signages and lighting arrangements.
Site was full of underground utilities such as live water, pipelines,
drainage pipelines, line electric cables, and telephone cables, etc. Wherever
possible these utilities were diverted on war footing and where not possible,
the foundation locations were shifted by quickly changing the design to avoid
delays.
Dams
Valecha Engineering Limited have contributed their mite to quench the
thirst of the parched lands of Maharashtra by constructing major Irrigation
Dams - Karanjwan Dam in Upper Godavari Project, Nasik District, Central
Spillway of the Upper Wardha Project in Amravati District and Warna Masonry Dam
in Sangli District.
Upper Wardha Dam (Rs. 200 million)
This was an earthern dam on river Wardha with a Masonry Spillway in the
gorge of the river. The work consists of excavation in all kinds of strata
including hard starta to the extent of 4,94,000m3. The maximum height of the
dam section is 37.5 mtr. And length of overflow section is 240.50 mtrs. with 13
nos. of radial gates each 15m x 12m size. This is the largest size of gates
installed in Maharashtra. The construction is composite with masonry and
concrete of quantity 3,45,524m3. This project was financed and monitored by the
"World Bank".
Warna Manonry Dam (Rs. 250 million)
This project envisages construction of masonry and earthen dam of
approximately 1580 meters in Sangli District of Maharashtra. The height of the
dam is 56 mtrs. The spillway portion is about 57 mtrs. in length and
accommodates four radial gates of size 12m x 8 m. The work involved excavation
of 6,32,500m3. This project was also financed and monitored by "World
Bank."
Bridges
VEL has developed an In-house expertise and collected a wealth of
experience in carrying out bridge construction, strengthening old bridges and
modernizing them including widening of carriageways, etc.
Valecha have used various state of the art methods such as slipform
centering, casting and launching prestressed pre-tensioned and post-tensioned
concrete girders by means of either the Hydraulic cranes or the launching
strusses.
The above photograph shows RCC hollow piers ranging in height upto 45
mtr. for Konkan Railway Corporation Limited
Valecha has also executed the bridges across Bhima river and Ghod river of
length 255 mtr. and 240 mtr. respectively in Maharashtra.
Tunnels
Nothing tests the capacity of a contractor to face unpredictable subsoil
problems and to stand his ground against the treacherous strata as a tunnel
construction.
The Valechas have graduated in the art of tunnel construction with flying
colours and have to their credit such noteworthy achievements as the Kasheli
tunnel for Bombay's Water Supply, the Ghatkopar tunnel system for sewerage
disposal, the tailrace tunnel for the Pench Hydroelectric Power Project,
tunnels for the Konkan Railway Project and Kanher tunnel at Satara for MKVDC.
Tail Race Tunnel
This 8.10 metre diameter horse shoe shaped (area 63 sq.m.)
tunnel of approximately 6 kms. Length at Totladoh in Nagpur District of
Maharashtra was constructed under Pench Hydro Electric Project. The total rock
excavation executed was 3,64,000m3. The work involved construction of Access
Adit and sinking of Bus shaft. The geology was very difficult as rock was
"schist type" with weak zones leading to chimney formations. The Tail
Race Tunnel was completely lined with concrete. The work involved structural
steel work for permanent supports to the extent of 857 metric tones and
concreting to the extent of 83,300 m3.
Satara Tunnel
Valecha has completed a prominent tunnel contract under
Maharashtra Krishna Valley Development Corporation, having value of Rs.250
millions. The tunnel is situated at boundary of village Ambawadi at entry and
Sabalewadi at exit from Satara taulka. The length of tunnel is 5.050 km. The
water let out into tunnel at R.L. 661.257m. The size of the tunnel is 5.70 x
4.75 m. with 2.30 m. F.S.D. and 2.00 m. arch height. The work involves total
excavation of 1,67,413 m3 in soft and hard starta.
Udaipur Tunnel
Presently the company is executing the Tunnel at Udaipur for
RUIDP. The length of the Tunnel is 4.6 km
Canals
Valecha is also in the field of execution of canal works. In the past
they have executed several canal works in Maharashtra state. Till date the
total length covered is more than 25 kms.
One of the major project executed by Valecha is Arphal canal constructed
for Arphal Canal Division, Karawadi having value of Rs.50 millions during the
year 1997. The photograph is one of the canal work executed by Valecha which
shows the quality and workmanship.
Airports
VEL’S TRACK RECORD IN THE AIRPORT CONTRACTS
Mumbai based BSE listed, ISO 9001: 2000 certified Valecha Engineering
Limited established in 1957 and led by Mr. J.K. Valecha, is a significant
beneficiary of the infrastructure thrust prevalent in the country, mainly in
the road and airport development sectors. The company has created some
prominent landmarks in the region of airport construction, a few of which are
listed below.
DIMAPUR AIRPORT
In the year 2000, a new milestone was achieved in the history of Valecha
Engineering Limited by bagging Dimapur Airport in Nagaland costing about Rs.100
Million. The project has been completed 5 months ahead of schedule in spite of
challenging and threatened conditions, due to disturbance prevailing in
North-East region.
CHENNAI AIRPORT
Similarly, Valecha Engineering Limited has undertaken the challenge of
completing Runway work i.e., “Resurfacing of Main Runway 07/25 at Chennai
Airport”, costing about Rs.150.00 millions. The project has been completed
within the allotted time without affecting the traffic of aircrafts taking off
and landing along with other operational schedules.
MUMBAI AIRPORT
“RESURFACING OF MAIN RUNWAY 09/27 at CSI AIRPORT, MUMBAI’’, which is the
busiest International Airport in India, has been successfully completed. The
challenge faced by the company was to complete the 4 km. length and 60m width
runway within 1200 Hours, as per NOTAM issued by the airport Authorities. The
project has been accomplished within 900 working hours with close supervision
of AAI despite numerous operational restrictions.
VADODARA AIRPORT
At present, the company is executing the work of strengthening of
runway, provision of shoulders, construction of isolation bay and associated
civil works at Vadodara Airport. The value of the project is Rs.140 Million.
The company has mobilized all its resources and is confident that the project
is also be completed within the stipulated time.
With the combination of tremendous experience, best technical expertise
and best equipments, they have completed all our airport projects well ahead of
schedule. They now look forward to future growth in the aviation sector and
they would be proud to continue building assets for the nation
Water Supply
Two 2750 mm dia rising mains from the Bhandup Pumping Station feed
the metropolis through two outlet mains.
The Bhandup Master Balancing Reservoir constructed by the Valechas in 1980 was
the largest man made reservoir at one million litres of water. The artificial lake facing the Gyan Sagar
Training Centre of the Maritime Training Institute of the Shipping Corporation
of India, Powai, Mumbai. The Land development, infrastructure and
beautification works of this complex were carried out by the valechas matching
the asthetics of the structures with the natural beauty of the location with
great artistry and finesse.
Buildings
In 1996 as part of its long term diversification programme Valecha
entered the property development market. An elegant eight-storey structure,
Valecha Chambers comprises basement, ground and six upper floors with large,
column-free floor spaces. The state-of-the-art Belgiam glass structural glazing
with Japanese garden, make Valecha Chambers a unique environment for discerning
Corporates seeking "A" grade office accommodation in the western
suburbs.
In addition to infrastructure Civil Engineering work which form the
forte of Valecha Engineering Limited, they have also constructed some very fine
buildings over the years. The building in this picture show the artistic façade
of the Kamla Raheja College for Architecture at Juhu Vile Parle Scheme for the
Upanagar Shikshan Mandal, JVPD, Mumbai.
Presently, they are constructing Ground + 7 storeyed Commercial and
Residential complex at Wadala, Mumbai.
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] 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.42.86 |
|
UK Pound |
1 |
Rs.84.40 |
|
Euro |
1 |
Rs.57.53 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
55 |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|