MIRA
INFORM REPORT
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Report Date : |
29.12.2008 |
IDENTIFICATION DETAILS
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Name : |
TEAMCO HITECH ENGINEERING LIMITED |
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Registered Office : |
Team House, GST Salai, Vandalur, Chennai – 600 048, Tamilnadu |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
09.07.2007 |
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Com. Reg. No.: |
18-64201 |
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CIN No.: [Company
Identification No.] |
U24100TN2007PLC064201 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHET10373G |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturer of Chemical Machinery. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 910000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is the result of demerger of the Equipment and Anode manufacturing
Division of Titanium Equipment and Anode Manufacturing Company Limited and
the takeover of that Division by this company. Trade relations are fair. Payments are usually correct and as per
commitment. The company is doing well. It can be considered good for any normal business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Team House, GST Salai, Vandalur, Chennai – 600 048, |
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Tel. No.: |
91-44-22750323 / 24 / For Sales 91-44-22751512 |
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Fax No.: |
91-44-22750860 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Dr. C H Krishnamurthi Rao |
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Designation : |
Chairman |
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Address : |
Unit No. 155, |
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Date of Birth/Age : |
07.11.1940 |
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Date of Appointment : |
09.07.2007 |
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Name : |
Mr. C S Ramesh |
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Designation : |
Director |
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Address : |
41, |
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Date of Birth/Age : |
02.05.1945 |
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Date of Appointment : |
09.07.2007 |
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Name : |
Mr. Suresh Rao |
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Designation : |
Director |
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Address : |
33, |
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Date of Birth/Age : |
26.09.1971 |
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Date of Appointment : |
09.07.2007 |
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Name : |
Mr. S Jayakumar |
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Designation : |
Director |
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Address : |
Plot No. 6, IOB Colony, Selaiyur, Chennai – 600 073, |
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Date of Birth/Age : |
28.08.1947 |
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Date of Appointment : |
28.09.2007 |
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Name : |
Mr. Venkataraman Janakiraman |
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Designation : |
Director |
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Address : |
14, |
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Date of Birth/Age : |
11.04.1942 |
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Date of Appointment : |
28.09.2007 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(As on 30.04.2008)
|
Names of Shareholders |
No. of Shares |
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Dr. Rao Holdings Pte. Limited |
721667 |
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K M Padma |
593985 |
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Suresh Rao |
71226 |
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P L Thirunavukkarsu |
35000 |
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K Suganthi |
7505 |
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Prema Paulraj |
30000 |
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Dr. C H Krishnamurthi Rao |
64490 |
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Titanium Equipment and Anode Manufacturing Company Limited |
71943 |
List of Allotment (As on 27.02.2008)
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Names of Allottees |
No. of Shares |
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Dr. Rao Holdings Pte. Limited |
721667 |
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K M Padma |
593885 |
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Suresh Rao |
71126 |
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P L Thirunavukkarsu |
35000 |
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K Suganthi |
7505 |
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Prema Paulraj |
30000 |
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Dr. C H Krishnamurthi Rao |
14390 |
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Titanium Equipment and Anode Manufacturing Company Limited |
71943 |
Equity Share breakup (Percentage of Total Equity)
(As On 30.09.2008)
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Category |
Percentage |
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Foreign Holdings
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44.63 |
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Bodies corporate
(not mentioned above) |
4.45 |
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Directors or
relatives of directors |
45.84 |
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Others |
5.08 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Chemical Machinery. |
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Products : |
·
Heat Exchangers ·
Pressure Vessels ·
Storage Tanks ·
Lined and Cladded Vessels ·
Columns ·
Reactors ·
Evaporator ·
Pumps ·
Blower ·
ASM CODE Stamped SS 316L Clad Vessel for Oil
& Gas Service to UAE ·
ASME CODE Stamp Pressure Vessel ·
Electrolyte Tank ·
Column ·
Depleted Brine tank ·
Scrubber ·
Fabricated Pipes and Fittings (Ti & Ni) ·
Ti, Ni, Duplex and Hastalloy Piping ·
Cell Rack Assembly ·
Titanium Surface Condensers ·
ClO2 Generator ·
Heating Coils ·
Custom Made Ti Anodes with Platinum Coating ·
Anodes - (Platinisers, Metallic Coated and plated
on substrates like Titanium, Titanium Alloys, Niobium & Tantalum) ·
Cathodes - (Stainless Steel, Nickel, Nickel
Coated) ·
Copper Busbars and Copper Flexibles |
GENERAL INFORMATION
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Customers : |
·
Indian Oil Corporation Limited, Haldia and
Barauni ·
Kothari Petrochemicals Limited, Chennai ·
UB Petroproducts Limited, ·
NRC Limited, Mohone, Dist. Thane ·
Gujarat Narmada Valley Fertilizers Company
Limited, Dist. Baruch, ·
National Fertilizers Limited, Bhatinda, ·
Fertilisers and Chemicals Travancore Limited,
Udyogamandal ·
Tata Iron and Steel Company Limited, ·
Orient Paper Mills Limited, M.P. and Orissa ·
Atul Products Limited, ·
Grasim Industries Limited, Nagda, M.P. ·
ICI Ltd., Chennai and Kolkatta ·
Hindustan Organic Chemicals Limited, ·
Kinetics Technology India Limited, ·
Punj Lloyd ( ·
Malay ·
Sterlite Industries Limited ·
Andhra Sugars Limited, Andhra Pradesh |
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No. of Employees : |
About 110 |
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Bankers : |
Not Available |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
R Janakiraman and Company Chartered Accountant |
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Address : |
43, |
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Holding Company : |
Titanium Equipment and Anode Manufacturing Company Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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3250000 |
Equity Shares |
Rs.10/- each |
Rs.32.500 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1616901 |
Equity Shares |
Rs.10/- each |
Rs.16.169
millions |
Note
Includes the Issue and Allotment of 1566201
Equity Shares of Rs.10/- each, credited as fully paid up, made to the Shareholders
of Team and Team UPD Limited during the year, pursuant to the Scheme of
Arrangement and Amalgamation Sanctioned by the High Court of Madras Vide Order
Dated 29-Jan-2008.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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16.169 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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165.147 |
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4] (Accumulated Losses) |
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0.000 |
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NETWORTH |
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181.316 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
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2] Unsecured Loans |
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0.000 |
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TOTAL BORROWING |
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0.000 |
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DEFERRED TAX LIABILITIES |
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12.376 |
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TOTAL |
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193.692 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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58.217 |
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Capital work-in-progress |
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0.000 |
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INVESTMENT |
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28.466 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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112.481 |
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Sundry Debtors |
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38.993 |
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Cash & Bank Balances |
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19.220 |
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Other Current Assets |
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0.000 |
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Loans & Advances |
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21.365 |
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Total
Current Assets |
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192.059 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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72.050 |
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Provisions |
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13.000 |
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Total
Current Liabilities |
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85.050 |
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Net Current Assets |
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107.009 |
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MISCELLANEOUS EXPENSES |
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0.000 |
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TOTAL |
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193.692 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2008 |
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Sales Turnover |
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246.650 |
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Other Income |
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35.653 |
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Total Income |
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282.303 |
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Profit/(Loss) Before Tax |
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54.214 |
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Provision for Taxation |
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13.453 |
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Profit/(Loss) After Tax |
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40.761 |
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Earnings in Foreign Currency : |
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21.110 |
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Imports : |
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Raw Materials |
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107.489 |
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Capital Goods |
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4.830 |
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Total Imports |
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112.319 |
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Expenditures : |
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Raw Material Consumed |
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107.624 |
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Salaries, Wages, Bonus, etc. |
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27.422 |
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Payment to Auditors |
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0.105 |
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Insurance Expenses |
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0.810 |
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Power & Fuel |
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3.823 |
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Depreciation & Amortization |
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2.826 |
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Other Expenditure |
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85.479 |
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Total Expenditure |
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228.089 |
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KEY RATIOS
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PARTICULARS |
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31.03.2008 |
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PAT / Total Income |
(%) |
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14.44 |
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Net Profit Margin (PBT/Sales) |
(%) |
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21.98 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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21.66 |
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Return on Investment (ROI) (PBT/Networth) |
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0.30 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.47 |
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Current Ratio (Current Asset/Current Liability) |
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2.26 |
LOCAL AGENCY FURTHER INFORMATION
Demerger of the
Equipment and Anode Manufacturing Division of Titanium Equipment and Anode Manufacturing
Company Limited (Team) and the takeover of that Division by this company
During the year, pursuant to a Scheme of Arrangement (Scheme) entered
into by Titanium Equipment and Anode Manufacturing Company Limited (Team) with
its shareholders and sanctioned by the High Court of Madras on the 29th
January, 2008, the Equipment and Anode Manufacturing Division of Team, engaged
in the manufacture and trading of machinery, equipments, anodes, pumps and
mineral / packaged drinking water, shall stand transferred to, and vested in
this Company with effect from the 1st April, 2007. As provided in
the Scheme, until the Scheme was sanctioned by the High Court of Madras, the
entire operations relating to the demerged Division were being carried on by
Team on behalf of this Company and once the Scheme was sanctioned, the take
over of that Division dated back to the Appointed Date mentioned in the Scheme,
namely, 1st April, 2007.
Accordingly, the entire operations of the aforesaid, Equipment and Anode
Manufacturing Division of Team, together with the related Assets, Liabilities,
Income and expenditure had been taken over by this Company and the Books of
Accounts of this Company duly reflect this state of affairs. The details of the
accounting treatment, towards implementing the Scheme and the nature of
consideration paid to the Shareholders of Team, appear in the Notes on
Accounts, forming part of the Balance Sheet as at 31st March,
2008.
Operations
During the year, the Company recorded a Turnover of just under
Rs.250.000 millions. The Order Book for the current year shows an encouraging
trend and the Directors expect that the company would record at least a 20%
increase in the Turnover during the current year.
Fixed Assets
·
Plant and Machinery
·
Vehicle
·
Furniture
Web Details
History
Subject (Demerged from Titanium Equipment and Anode
Manufacturing Company Limited) was established in the year 1975, with the
objective:
Over the years TEAM has built an impeccable
reputation in handling exotic and special metals like Titanium,
Tantalum, Zirconium, Nickel, Nickel Alloy, Copper and Copper Alloy And Special
Stainless Steel Of All Grades Ss 304, Ss 304 L, 316, 316 L , 321, 347,
Carpenter Alloy 20, Alloy Steels Etc.
TEAM specializes in the design and
fabrication of Heat Exchangers, Pressure Vessels, Condensers, Reactor Columns
and Custom built equipments catering to various industries in the Chemical, Petrochemical,
Refineries, Fertilizer, and Nuclear Power. The competence in handling Titanium,
Tantalum and other Exotic Metals has been proven for over two decades and
creditably acknowledged by users from
Highlights
- TEAM is an
ASME U, U2 and ISO 9001:2000 Certified Company
- Sophisticated manufacturing facilities
include a 'CLEAN ROOM’ conforming to NASA 200 standards. The facilities also include
Forming, Titanium Welding, Tube to Tube Sheet expansion and welding,
Orbital Tig Welding. A 12 spindle CNC Drilling Machine capable of
precision drilling up to depth of 500 mm, (bed size:4 X 10.4M) is arguably
the biggest drilling machine in India
- They have developed the own Anode
Activation technology for Caustic Chlorine Industries.
- They have continuously developed the
activation technology and its latest generation anodes are providing
enormous power saving for the industry.
- Platinised anodes are manufactured for
various applications like sea water electrolysers
- They Value the 250+ strong highly
skilled manpower
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 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.47.89 |
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|
1 |
Rs.70.84 |
|
Euro |
1 |
Rs.67.37 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
7 |
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--LIQUIDITY |
1~10 |
7 |
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--LEVERAGE |
1~10 |
7 |
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--RESERVES |
1~10 |
7 |
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--CREDIT LINES |
1~10 |
7 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
60 |
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 |
|