MIRA
INFORM REPORT
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Report Date : |
20.06.2007 |
IDENTIFICATION DETAILS
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Name : |
TITANIUM TANTALUM PRODUCTS LIMITED |
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Registered Office : |
No. 86/1, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
04.09.1980 |
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Com. Reg. No.: |
18-8398 |
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CIN No.: [Company
Identification No.] |
U31900TN1980ULL008398 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHET00533B |
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PAN No.: [Permanent
Account No.] |
AAACT1272A |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Design, Manufacture and Exporter of Chemical Process Equipments such
as Reactors, Pressure Vessels, Heat Exchangers Pumps and Blowers, Cathodic
Protection Anodes, Electro chlorinators, Valves, Pipe and Pipe Fittings,
Coils, Columns and Towers made of Noble metals such as Titanium, Tantalum,
Zirconium, Nickel Based Alloys, Ferrous and Non-Ferrous metals. |
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 730000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office / Factory : |
No. 86/1, |
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Tel. No.: |
91-44-22275210 / 22275211 / 2278 0212 |
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Fax No.: |
91-44-22275209 / 22781120 |
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E-Mail : |
sales@titanindia.com |
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Website : |
DIRECTORS
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Name : |
Er. Jeyananth Thangappan |
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Designation : |
Director |
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Address : |
161, |
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Date of Birth/Age : |
16.04.1969 |
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Date of Appointment : |
01.07.2004 |
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Name : |
Dr. Ramaswamy Thangappan |
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Designation : |
Director |
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Address : |
161, |
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Date of Birth/Age : |
31.08.1933 |
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Date of Appointment : |
24.08.2005 |
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Other Directorship : |
Techno-Futura International Limited Electro Protection Services India Private Limited Titanics India Limited R. T. Globvest Private Limited |
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Name : |
Dr. Jayamohan Thangappan |
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Designation : |
Director |
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Address : |
161, |
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Date of Birth/Age : |
14.09.1967 |
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Date of Appointment : |
24.08.2005 |
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Name : |
Mrs. Kamala Thangappan |
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Designation : |
Director |
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Address : |
161, |
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Date of Birth/Age : |
07.08.1944 |
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Date of Appointment : |
29.09.2004 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of
Shareholders |
|
No.
of Shares |
|
R. Thangappan |
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1873087 |
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Kamala Thangappan |
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294300 |
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B. Rajendran |
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450 |
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Jayamohan Thangappan |
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271500 |
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Jeyananth Thangappan |
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608200 |
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Jeyashree Amarnath |
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22500 |
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R. Thangappan – HUF |
|
103500 |
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Lalitha Jeyananth |
|
900 |
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T. Jeyavelan |
|
72225 |
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Priya Mohan |
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225 |
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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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2.56 |
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Directors of relatives of directors |
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81.77 |
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Other top fifty shareholders |
|
15.67 |
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Total
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|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Design, Manufacture and Exporter of Chemical Process Equipments such
as Reactors, Pressure Vessels, Heat Exchangers Pumps and Blowers, Cathodic
Protection Anodes, Electro chlorinators, Valves, Pipe and Pipe Fittings,
Coils, Columns and Towers made of Noble metals such as Titanium, Tantalum,
Zirconium, Nickel Based Alloys, Ferrous and Non-Ferrous metals. |
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Products : |
- Equipment - Rotodynamic - Electrodes - Standard
Products -
Electroplating - Cathodic
Protection - Special
Service -
Electrochlorination - Anode Repair &
Refurbishment |
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Brand Names : |
TITAN |
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Exports : |
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Countries : |
Middle East and |
GENERAL INFORMATION
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No. of Employees : |
150 |
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Bankers : |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
K. Subramaniam Chartered Accountants |
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Address : |
113, Kamraj Bhavan, 498, Anna Salai, Chennai – 600006, |
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Associates : |
Techno-Futura International Limited U40106TN1995PLC031394 Electro Protection Services India Private Limited U27204TN1997PTC037715 Titanics India Limited L72300TN1998PLC039834 R. T. Globvest Private Limited U65993TN1999PTC043713 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9000000 |
Equity Shares |
Rs. 10/- each |
RS. 90.000 Millions |
|
3000000 |
Preference Shares |
Rs. 10/- each |
RS. 30.000 Millions |
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Total |
|
Rs. 120.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10818800 |
Equity Shares |
Rs. 10/- each |
Rs. 108.188
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
108.188 |
62.469 |
62.469 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
75.440 |
45.892 |
42.877 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
183.628 |
108.361 |
105.346 |
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LOAN FUNDS |
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1] Secured Loans |
45.733 |
41.878 |
37.241 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
45.733 |
41.878 |
37.241 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
229.361 |
150.239 |
142.587 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
34.940 |
28.446 |
30.989 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
129.266
|
77.111 |
54.747 |
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Sundry Debtors |
73.502
|
40.709 |
33.208 |
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Cash & Bank Balances |
0.933
|
0.083 |
19.030 |
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Other Current Assets |
12.066
|
8.438 |
0.000 |
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Loans & Advances |
60.494
|
36.715 |
32.908 |
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Total
Current Assets |
276.261
|
163.056 |
139.893 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
64.731
|
37.862 |
22.152 |
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Provisions |
17.282
|
3.401 |
6.143 |
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Total
Current Liabilities |
82.013
|
41.263 |
28.295 |
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Net Current Assets |
194.248
|
121.793 |
111.598 |
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MISCELLANEOUS EXPENSES |
0.173 |
0.000 |
0.000 |
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TOTAL |
229.361 |
150.239 |
142.587 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
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Sales Turnover |
195.951 |
126.669 |
218.092 |
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Other Income |
0.402 |
0.595 |
4.702 |
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Total Income |
196.353 |
127.264 |
222.794 |
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Profit/(Loss) Before Tax |
22.642 |
4.338 |
18.294 |
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Provision for Taxation |
8.075 |
1.000 |
4.850 |
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Profit/(Loss) After Tax |
14.567 |
3.338 |
13.444 |
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Earnings in Foreign Currency : |
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Export Earnings |
NA |
NA |
167.302 |
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Total Earnings |
NA |
NA |
167.302 |
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Imports : |
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Raw Materials |
NA |
NA |
132.849 |
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Stores & Spares |
NA |
NA |
16.613 |
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Total Imports |
NA |
NA |
149.462 |
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Expenditures : |
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Manufacturing Expenses |
0.000 |
0.000 |
21.517 |
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Administrative Expenses |
0.000 |
0.000 |
28.146 |
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Raw Material Consumed |
70.440 |
79.180 |
143.881 |
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Consumption of stores and spares parts |
13.810 |
8.059 |
0.000 |
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Increase/(Decrease) in Finished Goods |
[1.651] |
0.145 |
0.000 |
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Salaries, Wages, Bonus, etc. |
18.499 |
14.592 |
0.000 |
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Managerial Remuneration |
2.720 |
2.190 |
0.000 |
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Payment to Auditors |
0.021 |
0.021 |
0.000 |
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Interest |
9.498 |
6.567 |
0.000 |
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Insurance Expenses |
0.962 |
0.526 |
0.000 |
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Power & Fuel |
1.930 |
1.955 |
0.000 |
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Depreciation & Amortization |
3.092 |
3.453 |
4.066 |
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Other Expenditure |
54.390 |
6.238 |
6.890 |
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Total Expenditure |
173.711 |
122.926h |
204.500 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
7.42
|
2.62 |
6.03 |
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Net Profit Margin (PBT/Sales) |
(%) |
11.55
|
3.42 |
8.39 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
7.28
|
2.27 |
10.71 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.04 |
0.17 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.70
|
0.77 |
0.62 |
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Current Ratio (Current Asset/Current Liability) |
|
3.37
|
3.95 |
4.94 |
LOCAL AGENCY FURTHER INFORMATION
FIXED ASSETS
- Land and
Building
- Plant and
Machinery
- Vehicles
- Office
Equipments
- Furniture and
Fittings
- Pager
- Air
Conditioner
- Refrigerator
- Computers
- Xerox
Machine
Bankers Charges
Report as per Registry
|
Name of the company |
TITANIUM
TANTALUM PRODUCTS LIMITED |
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Presented By |
TITANIUM
TANTALUM PRODUCTS LIMITED AND CANARA
BANK, OVERSEAS BRANCH, CHENNAI |
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1) Date and description of instrument creating the change |
02.05.2005 Common
Hypothecation Agreement |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 42.000
Millions comprising :
Together with interest,
costs, charges and other expenses which may be debited to the said accounts
from time to time. |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
All the goods,
commodities, machineries and other items purchased, acquitted, received under
the said credit facilities / imported under letter of credit now lying or
hereafter stored at the godowns, yards and premises, factories o the borrower or lying at any other place wheresoever,
whether the goods are in the course of transit from one place to another in
transit by land or sea from or power of the borrower or of the bank and also
all the book debts, outstanding money receivables, claims and bills arising
out of the sale, disposal of the received under the said credit facilities
which are now due and owing and which may at any time during the continuance
of the security becomes due and owing to the borrower in the course of its
business by any persons, firm, company or by the governments or any local
body or authority by way of Exclusive first charge and also Pari passu 1st
charge on the whole of the Fixed assets including the machines of the
company. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest
for FDB / LC – 8 % Margin an other terms and conditions as stipulated in the
agreement cited above and pari passu 1st charge on the entire
fixed assets of the company including equitable mortgage of all that piece
and parcel of land with factory premises situated at No. 176, Vengaivasai
Village, Saidapet Taluk, Chengalpet district on Paripassu basis with State
Bank of India 86, Rajaji Salai, Chennai – 1, dated 03.05.2005. |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank, Overseas Branch, |
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6) Date and brief description of instrument modifying the charge |
-- |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
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This form is for |
Modification of
charge |
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Charge identification
number of the charge to be modified |
90306667 |
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Corporate
identity number of the company |
U31900TN1980ULL008398 |
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Name of the
company |
TITANIUM TANTALUM PRODUCTS LIMITED |
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Address of the registered
office or of the principal place of
business in |
No. 86/1, |
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Type of charge |
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Particular of
charge holder |
State Bank of Overseas Branch No. 86, Rajaji
Salai, Chennai – 600001, |
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Nature of description
of the instrument creating or modifying the charge |
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Date of
instrument Creating the charge |
19.02.2007 |
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Amount secured by
the charge |
Rs. 800.000
Millions |
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Date of latest modification
prior to the present modification |
17.04.2004 |
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Particulars of
the present modification |
By the present
modification the overall limit has been enhanced to Rs. 800.000 Millions and
the existing charge on the current assets and the immovable properties
belonging to the company have been extended to cover the enhanced limit. |
AS PER WEBSITE
History
Titanium
Tantalum Products Limited (TiTaN), was launched during 1981 by their Chairman
& Managing Director Dr. R Thangappan, BSc. (Tech) Chem. Engg. Ph.D., MIE.,
MIIChE, FSAEST.
Over a
short span of years, it has grown to be a well diversified multi product
company with an undisputed leadership in the field of Exotic Metal Chemical
Equipment Design, Fabrication, Erection / Commissioning and Services. Now,
TiTaN holds an esteemed position in the field of Exotic Metal Products in
: : GLIMPSES OF TiTaN HISTORY : :
: : In 1980 the company commenced its commercial activities
with more emphasis on activated Titanium Metal Anodes for chlorate and caustic
Chlorine production
: : In early 80's TiTaN Involved in manufacturing and supply of precision
machined / custom built components for specific corrosive applications for various
industries.
: : In mid 80's the activities spread into the area of
supplying accessories to Electroplating industries.
In
early 90's started fabricating more specialsed Exotic Metal Chemical Equipments
as per the needs of the clients.
: : By mid 90's TiTaN graduted from part equipment manufacturer to complete
plant design, engineering and fabricator.
: : It
also commenced its on sight shut down and maintenance services for reactors and
chlorate plants.
: : In late 90's TiTaN starts to execute turnkey projects. Also they have
started Research & Development activities mainly focused on noble metal
coatings on electrodes and electrochlorinators.
Today
TiTaN are having more than 250 products for diversified industrial applications
globally.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.82 |
|
|
1 |
Rs.81.18 |
|
Euro |
1 |
Rs.54.79 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
|
54 |
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 |
|