MIRA
INFORM REPORT
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Report Date : |
19.06.2007 |
IDENTIFICATION DETAILS
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Name : |
PROEC ENERGY LIMITED |
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Formerly Known As : |
NIPPON VINK CHEMICAL INDUSTRIES INDIA LIMITED |
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Registered Office : |
F-4 & 5, Triveni Commercial Complex, Sheikh Sarai
Phase-I, New Delhi-110017 |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
05.01.1993 |
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Com. Reg. No.: |
55-51578 |
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CIN No.: [Company
Identification No.] |
U74899DL1993PLC051578 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELN02646A |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturer of Catalytic Convertors. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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Maximum Credit Limit : |
USD 5000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track.
Company’s profitability is under severe pressure. It has some accumulated
losses. Payments are reported as slow but correct. The company can be considered normal for small business dealings at
usual trade terms and conditions, with slight caution initially. |
LOCATIONS
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Registered Office : |
F-4 & 5, Triveni Commercial Complex, Sheikh Sarai
Phase-I, New Delhi-110017 |
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Tel. No.: |
91-11–2601 5959 / 5252 /1955 |
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Fax No.: |
91-11- 4162 7930 / 2601 4545 |
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E-Mail : |
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Website : |
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Corporate Office : |
18, Community Centre, New Friends Colony, New Delhi-110025
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Tel. No.: |
91-11-41672760, 41672761 |
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Fax No.: |
91-11- 4162 7930 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Sarabjit Singh |
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Designation : |
Director |
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Address : |
34/42, Punjabi Bagh, |
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Date of Birth/Age : |
03.08.1952 |
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Date of Appointment : |
05.01.1993 |
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Date of Ceasing : |
26.04.2005 |
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Name : |
Mr. Rajiv Savara |
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Designation : |
Director |
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Address : |
B-345, New Friends Colony, |
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Date of Birth/Age : |
29.06.1959 |
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Date of Appointment : |
05.01.1993 |
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Name : |
Mr. Rajendra Nath Gadi |
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Designation : |
Director |
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Address : |
C – 24, Greater Kailash, Part – I, |
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Date of Birth/Age : |
07.08.1945 |
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Date of Appointment : |
30.09.2003 |
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Name : |
Mr. Manav Modi |
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Designation : |
Director |
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Address : |
15, Friends Colony [West], |
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Date of Birth/Age : |
23.05.1980 |
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Date of Appointment : |
26.04.2005 |
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Name : |
Mr. Sanjay Gupta |
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Designation : |
Director |
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Address : |
I – 305, Neelpadm Kunj, Vaishali, |
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Date of Birth/Age : |
05.07.1967 |
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Date of Appointment : |
26.04.2005 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Sarabjit Singh |
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15760 |
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Rajiv Savara |
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18170 |
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Bhupinder Singh |
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1010 |
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Prahlad Rai Aggarwal |
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1010 |
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Anil Gujral |
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1009 |
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Ravinder Kaur |
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1010 |
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Aneeta Kaur |
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1010 |
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Roohi Savara |
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8010 |
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Meena Savara |
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3011 |
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Comshare Investments Private Limited |
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25000 |
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Anupam Securities Private Limited
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25000 |
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Total |
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100000 |
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Equity Share Breakup
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Category |
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Percentage of
Holding |
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Bodies corporate |
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50.00 |
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Directors of relatives of directors |
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30.20 |
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Other top fifty shareholders |
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19.80 |
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Total
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Catalytic Convertors. |
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Products : |
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Exports : |
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Countries : |
Middle East, U.S.A, Europe and |
GENERAL INFORMATION
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Bankers : |
Not Available |
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Facilities : |
-- |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S. Kochhor and Company Chartered Accountants |
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Address : |
84, Anand Lok, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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100000 |
Equity Shares |
Rs. 10/- each |
Rs. 1.000 Million |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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100000 |
Equity Shares |
Rs. 10/- each |
Rs. 1.000 Million |
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 |
1.000 |
0.500 |
0.500 |
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2] Share Application Money |
0.312 |
0.312 |
0.312 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
[0.164] |
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NETWORTH |
1.312 |
0.812 |
0.648 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
1.312 |
0.812 |
0.648 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
0.083 |
0.094 |
0.105 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Sundry Debtors |
0.027
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0.027 |
0.027 |
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Cash & Bank Balances |
0.049
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0.037 |
0.037 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
1.449
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0.478 |
0.486 |
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Total
Current Assets |
1.525
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0.542 |
0.550 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
0.456
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0.008 |
0.007 |
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Provisions |
0.005
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0.000 |
0.000 |
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Total
Current Liabilities |
0.461
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0.008 |
0.007 |
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Net Current Assets |
1.064
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0.534 |
0.543 |
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MISCELLANEOUS EXPENSES |
0.165 |
0.184 |
0.000 |
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TOTAL |
1.312 |
0.812 |
0.648 |
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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 |
0.227 |
0.000 |
0.000 |
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Other Income |
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Total Income |
0.227 |
0.000 |
0.000 |
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Profit/(Loss) Before Tax |
0.025 |
[0.021] |
[0.079] |
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Provision for Taxation |
0.005 |
-- |
-- |
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Profit/(Loss) After Tax |
0.020 |
[0.021] |
[0.079] |
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Expenditures : |
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Salaries, Wages, Bonus, etc. |
0.064 |
0.000 |
0.000 |
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Payment to Auditors |
0.006 |
0.003 |
0.060 |
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Interest |
0.004 |
0.005 |
0.000 |
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Depreciation & Amortization |
0.011 |
0.011 |
0.011 |
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Other Expenditure |
0.117 |
0.002 |
0.008 |
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Total Expenditure |
0.202 |
0.021 |
0.079 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
8.81
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-- |
-- |
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Net Profit Margin (PBT/Sales) |
(%) |
11.01
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-- |
-- |
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Return on Total Assets (PBT/Total Assets} |
(%) |
1.55
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3.30 |
12.06 |
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Return on Investment (ROI) (PBT/Networth) |
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0.02
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0.03 |
0.12 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.35
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0.01 |
0.01 |
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Current Ratio (Current Asset/Current Liability) |
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3.31
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67.75 |
78.57 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
Furniture and Fixture
AS PER WEBSITE
Profile
PROEC Energy is a joint venture between Modi Enterprises &
G&T Resources Limited G&T Resources, one of
Modi Enterprises (K. N. Modi Group) with its origins from
Modinagar (U.P.) is a prominent industrial house with interests ranging from
chemicals, industrial gases to distilleries and higher education. It has
established itself as one of
The two groups have come together to pool their resources and
leverage their capabilities to serve the oil and gas industry, the primary
focus being a Low Cost Country Sourcing Initiative. The venture is working with
some of the leading oil and gas companies based out of the U.S.A and mainland
They
are an Outsourcing/Contract Manufacturing company catering to their customers
Sourcing and Procurement needs. They outsource all their production,
manufacturing and assembly to their vast network of affiliated plants and
workshops as per their customer’s requirements. If you are interested in
outsourcing parts for reasons of cost, capacity, convenience or quality and are
a large or SME Oil & Gas Services Corporation, Automotive or Engineering
Equipment manufacturer, they can offer you excellent quality, timely deliveries
and excellent prices.
They
offer a one-stop-shop package and take care of all the needs from - product
development, through raw material sourcing, production planning and management,
quality assurance and control, packaging and palletizing, export documentation,
customs clearance and shipping.
They
have a rich database of suppliers/associated manufacturers; all of whom are ISO
9000, QS 9000 and TS 16949 certified. All of their suppliers have to pass
certain stringent Quality Audit prior to become an approved PROEC
supplier/associated manufacturer. Their team of technical, commercial, quality
control, logistics and packaging personnel ensures success with all the
projects they are involved in and re-assuring for their customers that they
would get the desired quality, delivery and prices.
Customer Value Creation Model:
They
add value to customers by-
- Cutting product costs
- Reducing lead times & ensuring an efficient
supply chain
- Giving R & D support for improving
product portfolio, product enhancements & cost alignment
- Adhering to the most stringent QA/QC
standards and HSE guidelines
To become an integral resource for the Sourcing, Procurement, Design and R
& D divisions of their customers by reducing costs, improving supply chain,
ensuring quality and improving efficiency through superior technology support.
Rajiv
Savara
Rajiv, 46, is a Director and a principal promoter of PROEC Energy. A Fellow
Chartered Accountant with Management Consultancy background, with over 14 years
of experience in the Oil & Gas Industry, Rajiv high-schooled at St.
Xavier's High School,
Manav
Modi
Manav Modi, is an Executive Director and a principle promoter of PROEC Energy
Limited A Masters Degree holder in Corporate Finance and Accounts from the
London School of Economics, U.K and a Management Science graduate from the
R.N.
(Ranju) Gadi
Ranju, 60, a Director on PROEC’s
board, superannuated recently as Director (Finance) of Alstom Transport
Limited,
Sanjay Gupta
Sanjay Gupta, 40, a Director on the Board of PROEC Energy
Limited, has been working with Modi Enterprises since the beginning of his
career. Sanjay is an MBA from the Centre of Management Development (CMD),
B.S
Talwar
Mr. B.S Talwar, 60, is responsible for supporting PROEC’s
Supply Chain and Specialty Chemicals Divisions towards procurement and
importantly cost-effective product development. A B.E in Mechanical (1971) Engineering
from the
Engineering Components
PROEC exports a large range of engineering items, which
includes high precision components, precision machined bulky components,
precision-machined castings, forgings, gears, aluminum parts, sheet metal
pressings, fabrication and assemblies. All these parts and aggregates are
developed strictly in conformance with the customer’s drawings and
specifications using modern cost-effective methods. They use their associated
facilities in order to manufacture and assemble parts/assemblies for various
industries such as Oil & Gas, Automotive and General Engineering.
Oil
and Gas
Presently they are handling various projects for their Oil & Gas clients.
They are catering to this sector with the following product lines.
Automotive and General Assembly
PROEC is catering to the global Automotive and General Assembly market by
providing general engineering items & their assemblies with end
applications in several industries.
Oil
Field Chemicals
They are exporting the following Oilfield Chemicals to a
large number of customers in the Middle East, U.S.A, Europe and
Drilling
Chemicals
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Commodity Chemicals |
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Specialty |
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Thinners |
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Viscosifiers and |
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Shale Stabiliser |
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Fluid Loss Control Agent |
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Lost Control Material |
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Clay |
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Weight Material |
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Corrosion Inhibitor |
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WORK OVER CHEMICALS |
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OTHERS |
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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.40.82 |
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1 |
Rs.81.18 |
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Euro |
1 |
Rs.54.79 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
3 |
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OPERATING SCALE |
1~10 |
2 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
3 |
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--PROFITABILIRY |
1~10 |
1 |
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--LIQUIDITY |
1~10 |
3 |
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--LEVERAGE |
1~10 |
3 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
3 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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26 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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