MIRA INFORM REPORT

 

 

Report Date :

15.04.2008

 

IDENTIFICATION DETAILS

 

Name :

VEECON-IPA GASTECHNIK LIMITED

 

 

Registered Office :

39-40 Ajit Arcade, Kailash Colony, New Delhi – 110048

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

11.01.1996

 

 

Com. Reg. No.:

075063

 

 

CIN No.:

[Company Identification No.]

U02001DL1996PLC075063

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELV05047A

 

 

PAN No.:

[Permanent Account No.]

AAACV3246N

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturing and Industrial gas generation plants, gas purification systems and pollution control equipments

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

 

Maximum Credit Limit :

USD 194364

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established Indo – German joint venture. Available information indicates high financial reported by of the company and its management. Trade relations are fair. Payments are usually correct and as per commitments.

 

The company is doing well.

It can be considered good for any normal business dealings at usual trade terms and conditions.

 

LOCATIONS

 

Registered Office :

39-40 Ajit Arcade, Kailash Colony, New Delhi – 110048, India

Tel. No.:

91-11-6221675

Fax No.:

91-11-6221675

E-Mail :

aksharma@veecon-ipa.com

amit7garg@gmail.com

vipa@bol.net.in

Website :

http://www.veecon-ipa.com

Area :

22680 sq. ft.

Locations :

Owned

 

 

Corporate Office/ Factory :

6/4, Ward No. 1, Mehrauli Road, Near Qutab Minar, Mehrauli, New Delhi – 110 030, India.

Tel. No.:

91-11-26642388 / 26643713 / 26964713 / 26932388

Mobile:

91-9810129025

Fax No.:

91-11-26513547/ 26643547 / 26686431

E-Mail :

vipa@bol.net.in

Website :

http://www.veecon-ipa.com

Area :

27340 sq. ft.

Locations :

Owned

 

 

Branch Office :
  • Flat No. 301, Building No. D-2, Gomati,

Lokgram, Kalyan (East), Thane – 421 306, Maharashtra, India

 

  • S/o. Sh. C. Narsing Rao, House NO.16-10-194,

Old Malakpet, Hyderabad – 500 036, Andhra Pradesh, India

 

  • A 112, Nav Durga Society, Near Sahyog Hospital,

Gorwa, Vadodara – 390 005, Gujarat, India

 

  • 36, Sriram Colony, (Behind Abhiramapuram Police Station) Alwarpet,

Chennai – 600 018, Tamilnadu, India

 

  • No. 6, Gandhi Bazar Main Road, (Above Corporation Bank),

Basavanagudi, Bangalore – 560 004, Karnataka, India

 

  • Flat No. B-7/100, Kendriya Vihar, Central Goivet. Avason,

Koikhalli, Mondal Ganthi, VIP Road, Near Haldiram Pure Food,

Kolkata – 700 052, West Bengal, India

 

 

DIRECTORS

 

Name :

Mr. Karl Reith

Designation :

Director

Address :

Roth, Leipziger Street 8, 63571,Gelnhausen, Germany

Date of Appointment :

01.01.1996

 

 

Name :

Dr. Horst Markhof

Designation :

Director

Address :

Sodetenstr. 1064386 Bruch Koebel, Germany

Date of Appointment :

01.01.1996

 

 

Name :

Mr. Herbert Nickle

Designation :

Director

Address :

Ahornstrabe 51, D-63505, Langenselbold, Germany

Date of Appointment :

01.07.1996

 

 

Name :

Mr. Jaswant Kumar Srivastava

Designation :

Director

Address :

60 A, Sainik Farm, Khanpur, New Delhi – 110 062, India

Date of Appointment :

11.01.1996

 

 

Name :

Mr. B. N. Pal

Designation :

Director

Address :

21, Old Court House Street, Calcutta – 70 001,West Bengal, India

Date of Appointment :

01.01.1996

 

 

Name :

Mr. Vijay Kumar Srivastava

Designation :

Director

Address :

60 A, Sainik Farm, Khanpur, New Delhi – 110 062, India

Date of Appointment :

25.01.2003

 

 

Name :

Mr. Lalit Kumar Srivastava

Designation :

Director

Address :

60 A, Sainik Farm, Khanpur, New Delhi – 110 062, India

Date of Birth/Age :

25.05.1968

Date of Appointment :

25.01.2003

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(As on 30.09.2005)

Names of Shareholders

 

No. of Shares

 

 

 

Veecon Trading India Private Limited

 

391000

Mr. Vijay Kumar Srivastava

 

3000

Mr. Lalit Kumar Srivastava

 

2999

Mrs. Sangeeta Srivastava

 

1000

Mrs. Seema Srivastava

 

1000

Mrs. Richa Srivastava

 

1000

Mr. Jaswant Kumar Srivastava

 

1

 

 

 

Total

 

400000

 

 

 

(As on 31.03.2007)

Category

 

Percentage

 

 

 

Directors or relatives of directors

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Industrial gas generation plants, gas purification systems and pollution control equipments

 

 

Products :
  • PSA Nitrogen Plant
  • Membrane Nitrogen Plant
  • Oxygen Generation Plant, (PSA and VPSA Plants)
  • Carbondioxide Recycling, Generation Purification and Bottling Plant
  • Hydrogen Plant

 

 

GENERAL INFORMATION

 

Customers :

·         Allied Consulting Engineer Private Limited

  • Kerala State Drug and Pharmaceuticals Limited
  • Mount Shivalik
  • Welmech Engineering Company
  • Godrej Appliances
  • Larson and Toubro Limited
  • Ruchi Soya Industries
  • ONGC
  • BILT Chemicals Limited
  • Dorr Oliver
  • Bihar Caustic and Chemicals
  • Swil Limited
  • GE Motors
  • Jindal Iron
  • Centrex India
  • BASF India
  • Dr. Reddys Lab
  • Hygeinic Palm Oil
  • Meta Strips
  • Liberty Oil Mills
  • Indian Oil Corporation
  • Pioneer Industries
  • Sethia Oil
  • Swastic Agro
  • IPICOL
  • Sudha Agro and Chemicals

 

 

No. of Employees :

150

 

 

Bankers :
  • Canara Bank

7/48, Malcha Marg, Diplomatic Enclave, 5, Chanakya Puri, New Delhi – 110017, India

 

 

Facilities :

Cash Credit Limit:  Rs.1.000 millions

Bank Guarantee Limit:    Rs.1.500 millions

Foreign Credit Letter: Rs.2.500 millions

Hoc Limit Facility up to Rs.20.000 millions (on project  basis)

 

 

 

Banking Relations :

Good

 

 

Auditors :

 

Name :

Mathur and Company

Chartered Accountants

Address :

3/13-B, Asaf Ali Road, New Delhi – 110 002, India

 

 

 

 

Name :

Mittal and Mittal Associates

Chartered Accountant

Address :

307, ITL Tower, Netaji Subhash Place, Pitampura, New Delhi – 110034, India

 

 

Joint Venture :
  • Fastechnik GmbH, Germany
  • J. K. Srivastava and Associates

 

 

Collaborators :
  • MG Generon – Houston, USA

For Membrane Based Nitrogen Plant

 

  • Kuraray Chemicals Company limited – Osaka, Japan

For PSA Based Nitrogen Plant

 

  • Mahler AGS – Stuttgart, Germany

For VPSA Oxygen Generation Plant

 

  • HBT – California, USA

For Hydrogen Plants Based on UOB Technology

 

  • BCCK Engineering Inc. – Midland, USA

For Coal Bed Methane Plants Based on NITECH Technology

 

  • ENERFEX – Williston, VT, USA

For Carbon Dioxide Recovery and Purification Plants Based on Membrane Seperation

 

  • Toromont Process Systems – Houston, USA

For Carbon Dioxide Recovery and Purification Plants

 

  • Merichem Chemicals and Refinery Services LLC. – Houston, USA

For Membrane Based Hydrogen Recovery Plants

 

 

Associates/Subsidiaries :

Veecon Trading India Private Limited, New Delhi

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

400000

Equity Shares

Rs.10/- each

Rs.4.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

400000

Equity Shares

Rs.10/- each

Rs.4.000 Millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

4.000

4.000

4.000

2] Share Application Money

16.800

0.000

0.000

3] Reserves & Surplus

27.791

31.655

12.792

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

48.591

35.655

16.792

LOAN FUNDS

 

 

 

1] Secured Loans

6.891

102.291

25.885

2] Unsecured Loans

85.203

92.592

92.592

TOTAL BORROWING

92.094

194.883

118.477

DEFERRED TAX LIABILITIES

0.094

0.048

0.046

 

 

 

 

TOTAL

140.779

230.586

135.314

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

9.066

9.758

10.868

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

1.664

101.166

101.505

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
0.409

3.946

7.396

 

Sundry Debtors
202.466

52.804

13.476

 

Cash & Bank Balances
0.649

0.450

1.265

 

Other Current Assets
7.825

32.317

19.721

 

Loans & Advances
13.428

88.162

11.161

Total Current Assets
224.777

177.679

53.019

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
88.999

53.473

29.673

 

Provisions
5.729

4.560

1.531

Total Current Liabilities
94.728

58.033

31.204

Net Current Assets
130.049

119.646

21.815

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.016

1.126

 

 

 

 

TOTAL

140.779

230.586

135.314

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

19.050

75.848

28.552

Other Income

55.888

55.284

81.374

Total Income

74.938

131.132

109.926

 

 

 

 

Profit/(Loss) Before Tax

12.640

23.425

9.698

Provision for Taxation

5.732

0.000

0.000

Profit/(Loss) After Tax

6.908

23.425

9.698

 

 

 

 

Expenditures :

 

 

 

 

Purchases made for re-sale

14.587

50.935

46.641

 

Salaries, Wages, Bonus, etc.

10.547

6.174

8.401

 

Managerial Remuneration

0.783

6.900

4.800

 

Payment to Auditors

0.000

0.257

0.019

 

Interest

0.952

6.264

2.326

 

Insurance Expenses

0.133

0.391

0.114

 

Power & Fuel

0.737

0.226

0.118

 

Depreciation & Amortization

2.082

2.176

2.466

 

Other Expenditure

32.477

34.384

35.343

Total Expenditure

62.298

107.707

100.228

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2007

31.03.2006

31.03.2005

PAT / Total Income

(%)
9.22

17.86

8.82

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
66.35

30.88

33.97

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
5.40

12.50

15.18

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.26

0.67

0.58

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
3.84

7.09

8.91

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.37

3.06

1.70

 

 

 

 

 

 

 

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Form 8:

 

Corporate identity number (CIN) Foreign company registration number

U02001DL1996PLC075063

Name of the Company

VEECON-IPA GASTECHNIK LIMITED

Address

6/4, Ward No. 1, Mehrauli Road, Near Qutab Minar, Mehrauli, New Delhi – 110 030, India

This form is for

Modification of Charge

Type of Charge

Hypothecation

Particulars of the charge holder 

Canara Bank

7/48, Malcha Marg, Diplomatic Enclave, 5, Chanakya Puri, New Delhi – 110017, India

Nature or description of the instrument(s) creating or modifying the charge

Agreement Regarding Collateral Security Stock and Book Debts and Agreement regarding Collateral Security Plant and Machinery.

Date of the instrument creating or modifying the charge

12.12.1997

And Registered on 33.02.1998

Amount secured by the charge

Rs.2.500 Millions

Brief particulars of the principal terms and conditions and extent and operation of the charge

The above is to secure Bank Guarantee Limit of Rs.2.500 Millions with Interests at such rate (s) as may be specified by the Bank from time to time.

Short particulars of the property charged (including location of the property)

The Whole of the Borrower present and future stock of raw materials, goods-in-process of manufacturer and all finished and manufacturer goods and articles such as members, compressor, electric motor, analyzer, fabricated vessel. Pressure Switch etc. together with all stores. Components and spares which now belong to or may hereafter from time to time .during the continuance of this security belong to the borrower of the company other premises at 6/4 Ward No.1 Mehrauli Road, New Delhi or wherever else the same may be situated, stored or lying or being including any such raw materials, articles or goods, stores and components or other similar movable property in course of transit or delivery. All the present and future book debts, outstanding, moneys, receivables, claims, bills, right, to or in movable properties and movable assets and which are now due, owing or payable or belonging to the company or which ma at any time hereafter become due, owing, payable or belonging to the company in the course of its business by any person, fire  company Collateral security of all plant machinery, tools, accessories and motor vehicles tools and accessories already purchases/ to be purchases and more particularly described in schedule A and stored at premises at 6/4 Ward No.1 Mehrauli Road, New Delhi or at any other place where over including those in transit.

Particular of the present modification 

Extent of operation of charge over all the goods and commodities such as compressors, electric motor, analyzer dexo etc. now lying or hereafter  stored at the godowns, yards and premises at 6/4 Ward No.1 Mehrauli Road, New Delhi or lying at any other place where over and book debts, outstanding, moneys, receivables, claims, bills, right, to or in movable properties and movable assets and owing or which may at any time hereafter during the continuance of this security become due and owing to the borrower in the course of its business by may person, firm, company or by the government or any local public body or authority of the company stands enhanced to Rs.6.000 Millions for BG limit Interests @16.25% p.a. or at such other rates as may be specified by the bank from time to time. Margin 15% other terms and conditions remaining unchanged.

 

Profile:

 

Subject, an Indo-German joint venture with IPA Gastechnik KG and Company, Germany. Specialising in design, engineering, manufacturing, installation and commissioning of industrial gas generation plants, gas purification systems and pollution control equipments. Over the past two decades, we have established ourselves in the global market, thanks to our stage-of-the-art technologies and use of high quality components. Covering the entire range from the single module to the package unit and further up to complex industrial plants and systems.

 

 

Fixed Assets:

 

 

 

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 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.39.94

UK Pound

1

Rs.78.81

Euro

1

Rs.63.05

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

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.

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions