MIRA
INFORM REPORT
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Report Date : |
28.05.2007 |
IDENTIFICATION DETAILS
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Name : |
DIFFUSION ENGINEERS LIMITED |
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Registered Office : |
T 5 & 6, MIDC,
Hingna Industrial Area, |
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Country : |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
10.02.2000 |
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Com. Reg. No.: |
124154 |
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CIN No.: [Company
Identification No.] |
U99999MH2000PTC124154 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NGPD02549B |
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Legal Form : |
It is a closely held public limited liability company. |
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Line of Business : |
Manufacturing, Importing and Exporting of Welding Electrodes, Alloys, SOP, Corodur Flex, Wires for Reconditioning, all Other Engineering and Allied Products. |
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 398000 |
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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 / Head Office / Factory 1: |
T 5 & 6, MIDC,
Hingna Industrial Area, |
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Tel. No.: |
91-7104-36046 / 32084 / 34727 |
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Fax No.: |
91-7104-32085 |
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E-Mail : |
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Website : |
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Factory 2 : |
N-78 and 79, MIDC, Hingna Industrial Area, |
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Tel. No.: |
91-7104-236036 |
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E-Mail : |
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Branch 1: |
Chennai: 12, 3rd Floor, D-Block, |
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Tel. No.: |
91-44-2365437 |
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E-Mail : |
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Branch 2: |
No. 765, Sector 16, |
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Tel. No.: |
91-129-224682 |
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E-Mail : |
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Branch 3: |
Flat No. 205, Pushpanjali Apartment, Contractors Area, Bistu, |
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Tel. No.: |
91-657-2238593 |
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E-Mail : |
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Branch 4: |
Pune: 320, The pantagone, |
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Tel. No.: |
91-20-5602037 |
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E-Mail : |
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Branch 5: |
No. 16, 2nd Floor, |
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Tel. No.: |
91-771-5035830 |
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E-Mail : |
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Branch 6: |
Secunderabad: No. 501, Chenoy Trade Centre, |
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Tel. No.: |
91-40-5532653 |
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E-Mail : |
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Branch 7: |
Vadodara: 203, Sakar, opposite |
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Tel. No.: |
91-265-23333541 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. N. S Gopalakrishnan |
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Designation : |
Chairman & Managing Director |
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Address : |
286 C, 10th
Main, V Block, Jayanagar, |
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Name : |
Mr. N K Garg |
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Designation : |
Joint Managing Director |
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Address : |
803, Jai Kalpana,
Ramdass Peth, |
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Name : |
Mr. A. T. Harinath |
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Designation : |
Director |
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Address : |
Deena Villa, 12-5-149/20, Vijayapuri, |
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Name : |
Mr. S Venkataraman |
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Designation : |
Director |
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Name : |
Mr. Mydur Anand |
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Designation : |
Director |
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Name : |
Mr. P D Gupta |
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Designation : |
Director |
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Name : |
Mr. A V Rama Rao |
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Designation : |
Technical Director |
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Name : |
Mr. H R Katti |
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Designation : |
Nominee Director – IIBI Limited |
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Name : |
Mr. Mantred Kluge |
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Designation : |
Nominee Director – Corodur |
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Name : |
Mr. Subba Rao T |
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Designation : |
Nominee Director – Nandi Investments Limited |
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Name : |
Mr. Prashant Garg |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Jayanta Bose |
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Designation : |
Vice President - Marketing |
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Name : |
Mr. A S Bumrah |
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Designation : |
Vice President - Works |
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Name : |
Mr. Sushil Punyani |
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Designation : |
Assistant Marketing Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. N. S. Gopalakrishnan |
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444 |
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Mr. N. K. Garg |
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442 |
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Mr. Raju H. Mirchandani |
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250 |
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Mr. G. G. Trasi |
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442 |
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Mr. A. T. Harinath |
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442 |
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Mrs. Vijayalaxmi S. Nathan |
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250 |
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Mr. C. V. S. Sundaresan |
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250 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing, Importing and Exporting of Welding Electrodes, Alloys, SOP, Corodur Flex, Wires for Reconditioning, all Other Engineering and Allied Products. |
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Products : |
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Agencies Held : |
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Exports : |
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Products : |
Welding Electrodes, SOP & Corodur Wires |
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Imports : |
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Products : |
Raw materials, finished goods and capital goods. |
GENERAL INFORMATION
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No. of Employees : |
250 (Factory: 200; Office: 50) |
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Bankers : |
Ř
Syndicate Bank, III Block, Jayanagar, Ř
IDBI Bank Limited, Ř
Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Nataraj Associates Chartered Accountants |
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Address : |
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Associates/Subsidiaries : |
Ř Diffusion Super Conditioning Services Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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25,00,000 |
Equity Shares of |
Rs. 10.00 each |
Rs. 25.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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20,70,000 |
Equity Shares of |
Rs. 10.00 each |
Rs. 20.700 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
20.000 |
20.000 |
16.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
79.500 |
70.600 |
59.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
99.500 |
90.600 |
75.400 |
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LOAN FUNDS |
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1] Secured Loans |
80.600 |
66.800 |
68.700 |
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2] Unsecured Loans |
0.000 |
2.500 |
15.500 |
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TOTAL BORROWING |
80.600 |
69.300 |
84.200 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
180.100 |
159.900 |
159.600 |
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APPLICATION OF FUNDS |
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77.000 |
69.300 |
67.800 |
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FIXED ASSETS [Net Block] |
0.000 |
0.000 |
0.000 |
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Capital work-in-progress |
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INVESTMENT |
7.600 |
4.100 |
3.600 |
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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 |
43.400
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44.100 |
35.500 |
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Sundry Debtors |
52.500
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41.500 |
48.000 |
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Cash & Bank Balances |
30.300
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25.800 |
28.900 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
34.400
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33.400 |
27.200 |
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Total
Current Assets |
160.600
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144.800 |
139.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
36.800
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33.400 |
27.200 |
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Provisions |
28.300
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24.900 |
23.300 |
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Total
Current Liabilities |
65.100
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58.300 |
50.500 |
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Net Current Assets |
95.500
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86.500 |
88.200 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
180.100 |
159.900 |
159.600 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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Sales Turnover |
314.000 |
260.200 |
227.900 |
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Other Income |
1.400 |
0.300 |
0.400 |
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Stock Adjustments |
0.900 |
4.900 |
1.600 |
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Total Income |
316.300 |
265.400 |
229.900 |
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Profit/(Loss) Before Tax |
33.600 |
28.800 |
27.500 |
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Provision for Taxation |
12.000 |
11.500 |
8.000 |
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Profit/(Loss) After Tax |
21.600 |
17.300 |
19.500 |
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Expenditures : |
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Raw Materials |
123.100 |
92.200 |
75.500 |
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Excise Duty |
37.900 |
34.900 |
29.100 |
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Power and Fuel Cost |
4.100 |
3.600 |
2.800 |
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Other Manufacturing Expenses |
9.000 |
6.000 |
4.800 |
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Employee Cost |
38.800 |
34.000 |
29.000 |
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Selling and Administration Expenses |
34.000 |
31.300 |
27.900 |
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Miscellaneous Expenses |
18.900 |
17.400 |
16.600 |
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Interest and Financial Charges |
4.700 |
6.000 |
5.800 |
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Depreciation |
12.200 |
11.200 |
10.900 |
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Total Expenditure |
282.700 |
236.600 |
202.400 |
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KEY RATIOS
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PARTICULARS |
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31.03.2005 |
31.03.2004 |
31.03.2003 |
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Debt Equity Ratio |
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0.79
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0.92 |
1.09 |
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Long Term Debt-Equity Ratio |
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0.79
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0.92 |
1.09 |
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Current Ratio |
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2.47
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2.61 |
2.92 |
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TURNOVER RATIOS |
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Fixed Assets |
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2.45
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2.32 |
2.38 |
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Inventory |
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7.18
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6.54 |
7.01 |
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Debtors |
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6.68
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5.81 |
5.30 |
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Interest Cover Ratio |
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8.15
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5.80 |
5.74 |
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Operating Profit Margin |
(%) |
16.08
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17.68 |
19.39 |
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Profit Before Interest and Tax Margin |
(%) |
12.20
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13.37 |
14.61 |
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Cash Profit Margin |
(%) |
10.76
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10.95 |
13.34 |
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Adjusted Net Profit Margin |
(%) |
6.88
|
6.65 |
8.56 |
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Return on Capital Employed |
(%) |
22.53
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21.78 |
22.19 |
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Return on Net Worth |
(%) |
22.72
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20.84 |
27.20 |
LOCAL AGENCY FURTHER INFORMATION
Industry
The year 1997-98 was a year of great difficulty for the electrodes industry. Industrial growth was lower during 1997-98, compared to that of the previous year. An analysis of this industrial growth shows that several sectors, especially the core sectors, witnessed a very low growth – some of which were even negative. Steel consumption registered a decline – consequently for the welding industry it was another year of stagnation. The policies of the government and the subsequent credit policy of the Reserve Bank die not seem to have any positive impact of the industrial front.
History
Subject was incorporated as a Private Limited company in the
State of
Again the registered office of the company has been shifted
to the State of
Website details
attached:
They have never looked back from the word go, always seeking new
horizons. Incorporated in the year 1982,
Subject attained the status of a public limited company in
1995.
This ISO 9001-2000 certified young organization is effervescent
with the zest of a young and has introduced the revolutionary concept of super
conditioning through a series of maintenance products that provide a new lease
of life to engineering components and minimize scrap heaps of metal
parts."
Superconditioning:
SUPER-CONDITIONING is not mere reclamation and
reconditioning. Superconditioning is an environment friendly concept
which enhances part life, reduces life cycle costs and the demand for spares,
ensures longer and continued availability of production equipment and conserves
non-renewable natural resources.
The concept of ‘SUPER-CONDITIONING’ was introduced by
DIFFUSION ENGINEERS LIMITED to the Indian Core Sector industries to ensure longer
availability of production equipment used in continuous process operations.
With the new generation materials and newer techniques employed,
it has now become possible to obtain greater service life from parts and
equipment at highly economical costs.
Having pioneered the introduction of the “New Generation” range of
“Lo-Temp and Antiwear” welding alloys, DIFFUSION is waging a relentless war
against unnecessary replacement of spare parts in Indian Industry by using
specialised products and equipment.
Diffusion offers to industries a spectacular range of
maintenance products for Superconditioning. The product range includes
LoTemp-Antiwear Welding Electrodes, gas welding alloy, silver brazing alloys,
solders and fluxes, Colmonoy Powders and coated electrodes, cobalt and tungsten
carbide alloys, Super Spray System for thermal spraying, SOP – containing the
unique Ultrahard Chromium Borides: Flux Cored Wires and Tubular Products;
No-heat products for cold repair, TIG, MIG filler wires. Our weld overlay Wear
Plates are manufactured under stringent conditions in our plant, using flux
cored wire welding process
Some of the most important and successful components
superconditioned by Diffusion are:
- Roller Press Rollers of Cement
Industries
- Pump Sleeves and Plungers
- Rotary & Discharge Chutes
- Mill Pinions
- ID Fans
- Jaw Crushers
- FK Pump Screws
- Guide Vanes
- Liners VRM
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 |
|
US Dollar |
1 |
Rs. 40.45 |
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1 |
Rs. 80.30 |
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Euro |
1 |
Rs. 54.37 |
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 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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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 |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
45 |
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 |
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