MIRA
INFORM REPORT
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Report Date : 29.12.2008 |
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IDENTIFICATION
DETAILS
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Name : |
EDAC ENGINEERING LIMITED |
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Registered Office : |
97, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
26.06.1987 |
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Com. Reg. No.: |
18-14584 |
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CIN No.: [Company
Identification No.] |
U45201TN1987PTC014584 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHES01941C |
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PAN No.: [Permanent
Account No.] |
AABCS0321G |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Construction Activity |
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 881000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory track.
Trade relations are fair. Business is active. No complaints have been heard. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
97, |
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E-Mail : |
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Website : |
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Head Office/ Factory : |
SPIC House, No: 88, |
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Tel. No.: |
91-44-22301941 |
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Fax No.: |
91-44-22301946 |
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Corporate Office : |
156, |
DIRECTORS
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Name : |
Mr. Ramaswamy Varadharajan |
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Designation : |
Managing Director |
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Address : |
22, Third Main Road, Raja Annamalai Puram, Chennai – 600 028, |
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Date of Birth/Age : |
03.03.1956 |
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Date of Appointment : |
01.07.2008 |
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DIN No.: |
01196442 |
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Name : |
Mr. Natrajan Suryanarayanan |
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Designation : |
Director |
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Address : |
101, |
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Date of Birth/Age : |
07.11.1957 |
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Date of Appointment : |
26.09.2008 |
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DIN No.: |
02282919 |
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Name : |
Mr. Kumar Kooniyoor Subramanian |
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Designation : |
Director |
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Address : |
Blk. – 552, Bedok North, Avenue – I, |
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Date of Birth/Age : |
04.05.1953 |
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Date of Appointment : |
12.06.2007 |
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DIN No.: |
01571267 |
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Name : |
Mr. Shanker Karimpet |
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Designation : |
Director |
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Address : |
Plot No.238/ 12, |
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Date of Birth/Age : |
04.12.1948 |
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Date of Appointment : |
27.12.2001 |
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Date of Ceasing : |
16.07.2007 |
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DIN No.: |
00101773 |
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Name : |
Mr. Sivathanu Pillai Radhakrishnan |
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Designation : |
Director |
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Address : |
A-21, Arcot Terrace, 160, NSK Salai, Vadappalani, Chennai – 600 026, |
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Date of Birth/Age : |
06.01.1951 |
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Date of Appointment : |
01.04.2002 |
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Date of Ceasing : |
14.07.2008 |
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DIN No.: |
00061723 |
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Name : |
Mr. Ashwin Chidambaram Muthiah |
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Designation : |
Director |
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Address : |
Adyar House, 26-B, |
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Date of Birth/Age : |
01.01.1966 |
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Date of Appointment : |
22.03.1993 |
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Date of Ceasing : |
14.07.2008 |
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DIN No.: |
00255679 |
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Name : |
Mr. T. Suthomu Yoshida |
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Designation : |
Alternate Director |
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Address : |
43 – Chome Gantasaka, Hodogaya-Ku Kanagawa, |
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Date of Birth/Age : |
03.06.1955 |
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Date of Appointment : |
26.06.2006 |
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DIN No.: |
00604636 |
KEY EXECUTIVES
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Name : |
Mr. Gopalan Sundaresan |
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Designation : |
Company Secretary |
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Address : |
Plot No.816, 9th |
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Date of Birth/Age : |
26.06.1939 |
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Date of Appointment : |
01.12.2006 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 26.09.2008
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Names of Shareholders |
No. of Shares |
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Southern Petrochemical Industries |
1427138 |
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EDAC Universe Pte. Limited |
2772857 |
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R. Varadharajan and SPIC |
1 |
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R. Sivagurunathan and SPIC |
1 |
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RM Chuckalingam and SPIC |
1 |
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S. Radhakrishnan and SPIC |
1 |
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SP Sathappan and SPIC |
1 |
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Total |
4200000 |
As on 26.09.2008
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Equity Share Breakup |
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Percentage of Holding |
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Category |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
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66.00 |
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Bodies
corporate |
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34.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Construction Activity |
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Products : |
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PRODUCTION STATUS As on 31.03.2008
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Particulars |
Unit |
Licensed and
Installed Capacity |
Actual
Production |
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Structural |
Metric Tonnes |
1800 |
230.859 |
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Tanks and Vessels |
Metric Tonnes |
900 |
0 |
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Piping |
Metric Tonnes |
360 |
0 |
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Ducting |
Metric Tonnes |
540 |
421.627 |
GENERAL
INFORMATION
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Customers : |
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Bankers : |
Bank of India, Chennai Corporation Banking Branch, |
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Facilities : |
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Banking
Relations : |
-- |
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Financial Institution : |
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Auditors : |
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Name : |
P.B. Vijayraghavan Chartered Accountants |
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Address : |
14, (Old No.27), |
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Associates/Subsidiaries : |
CAPITAL STRUCTURE
As on 26.09.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4200000 |
Equity Shares |
Rs.10/- each |
Rs.42.000
millions |
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As on 31.03.2008
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3000000 |
Equity Shares |
Rs.10/- each |
Rs.30.000
millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
30.000 |
30.000 |
30.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
146.267 |
96.475 |
69.495 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
176.267 |
126.475 |
99.495 |
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LOAN FUNDS |
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1] Secured Loans |
43.596 |
99.330 |
101.324 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
43.596 |
99.330 |
101.324 |
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DEFERRED TAX LIABILITIES |
10.930 |
5.937 |
7.364 |
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TOTAL |
230.793 |
231.742 |
208.183 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
117.541 |
79.478 |
78.210 |
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Capital work-in-progress |
0.000 |
3.579 |
4.083 |
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INVESTMENT |
1.798 |
1.798 |
1.799 |
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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 |
27.449
|
19.046 |
22.033 |
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Sundry Debtors |
532.655
|
509.019 |
162.194 |
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Cash & Bank Balances |
312.703
|
123.403 |
85.096 |
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Other Current Assets |
153.025
|
66.493 |
0.000 |
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Loans & Advances |
205.142
|
235.715 |
163.394 |
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Total
Current Assets |
1230.974
|
953.676 |
432.717 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1004.153
|
410.099 |
268.459 |
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Provisions |
115.367
|
396.690 |
40.167 |
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Total
Current Liabilities |
1119.520
|
806.789 |
308.626 |
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Net Current Assets |
111.454
|
146.887 |
124.091 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
230.793 |
231.742 |
208.183 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
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Sales Turnover |
2061.708 |
885.359 |
817.133 |
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Other Income |
25.828 |
12.239 |
15.096 |
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Total Income |
2087.536 |
897.598 |
832.229 |
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Profit/(Loss) Before Tax |
84.713 |
28.786 |
15.265 |
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Provision for Taxation |
34.921 |
1.806 |
7.863 |
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Profit/(Loss) After Tax |
49.792 |
26.980 |
7.402 |
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Earnings in Foreign Currency : |
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Export Earnings |
22.439 |
334.279 |
NA |
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Total Earnings |
22.439 |
334.279 |
NA |
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Expenditures : |
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Raw Material Consumed |
40.526 |
33.849 |
24.202 |
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Salaries, Wages, Bonus, etc. |
25.336 |
6.909 |
4.831 |
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Managerial Remuneration |
0.000 |
0.248 |
0.103 |
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Payment to Auditors |
0.288 |
0.167 |
0.160 |
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Interest |
10.829 |
12.292 |
11.925 |
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Insurance Expenses |
0.195 |
0.141 |
0.107 |
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Power & Fuel |
1.188 |
0.792 |
3.579 |
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Depreciation & Amortization |
9.114 |
6.732 |
6.091 |
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Other Expenditure |
1915.347 |
807.682 |
765.966 |
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Total Expenditure |
2002.823 |
868.812 |
816.964 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
2.39
|
3.01 |
0.89 |
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Net Profit Margin (PBT/Sales) |
(%) |
4.11
|
3.25 |
1.87 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
6.27
|
2.77 |
2.95 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.48
|
0.23 |
0.15 |
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Debt Equity Ratio (Total Liability/Networth) |
|
6.60
|
7.16 |
4.12 |
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Current Ratio (Current Asset/Current Liability) |
|
1.10
|
1.18 |
1.40 |
LOCAL AGENCY
FURTHER INFORMATION
|
This form is for |
Creation of
charge |
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Corporate
identity number of the company |
U45201TN1987PTC014584 |
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Name of the
company |
EDAC ENGINEERING LIMITED |
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Address of the
registered office or of the principal place of business in |
97, |
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Type of charge |
Movable Property |
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Particular of
charge holder |
CIN No.:
L29219WB1985PLC055352 Srei
Infrastructure Finance Limited, Vishwakarma, 86C, E-Mail: secretarial@srei.com |
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Nature of
description of the instrument creating or modifying the charge |
Loan cum
Hypothecation Agreement No.LAH871. (HL0023176) |
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Date of
instrument Creating the charge |
08.09.2008 |
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Amount secured by
the charge |
Rs.1.868 millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest:
15.02% p.a. Terms of
Repayment: Starting from 8th October, 2008 and ending on 8th
August, 2011. Margin: Rs.0.209
million Extent and
Operation of the charge: In consideration of the grant of the loan by Srei
Infrastructure Finance Limited to the customer, and as security for the
payment, repayment, reimbursements, as the case may be, of the secured
obligation, the customer hereby hypothecates and charge the assets in a form
satisfactory to Srei Infrastructure Finance Limited up on the terms and
conditions in the loan cum hypothecation agreement. |
|
Short particulars
of the property charged |
2 Nos. Ace |
FINANCIAL
PERFORMANCE:
During the year the company has performed remarkably well when compared to
the previous year. The turnover has increased from Rs.885.400 millions to
Rs.2061.700 millions. The profit before tax has increased from Rs.28.800
millions to Rs.84.700 millions.
PERFORMANCE:
The company has been growing very well. The ongoing jobs are progressing
well as expected. The company had another major breakthrough in getting BOP
contract from the same client JSW (Ratnagiri) for Rs.10410 millions for 4X 300
MW Power Plant. Also the company has secured EPC contract from SICAL Iron
FUTURE OUTLOOK:
The company is in discussion with Nigerian company for relocation of
fertilizer plant at an estimated contract value of Rs.6000 millions. Apart from
this, many construction jobs are being discussed. The company is bound to cross
the order booking of Rs.23000 millions in the coming and will take quantum leap
in turnover and bottom-line.
FIXED ASSETS:
- Land
- Buildings –
Factory
- Plant and
Machinery
- Vehicles
- Computers
- Office
Appliances
- Furniture and
Fittings
WEBSITE DETAILS:
PROFILE:
Subject is a joint venture construction company promoted by Southern
Petrochemical Industries Corporation (SPIC) Chennai and EDAC Universe Pte
Limited (EDAC),
EDAC has established a local company, GULF SPIC Engineering L.L.C under
the U.A.E. regulation in
Subject since inception in 1987, with JV between Jurong Engineering
Limited,
POWER SECTOR
Conventional Energy
- Construction
of Thermal, Nuclear, Combined Cycle and Diesel Power Plants
- BOP on EPC
basis.
- Fabrication
of Power Plant Equipments
Non- Conventional Energy
1. Wind Mill
- Fabrication
of Wind Mill Parts
- Erection of
Wind Mill
2. Bio- Mass
- EPC Basis
PETRO CHEMICAL AND OIL AND GAS SECTOR
- Fabrication
of Equipments
- Mechanical
Erection Works
- Installation
of Electrical and Control Instrumentation works
STEEL AND CEMENT SECTOR
- Fabrication
of Equipments
- Mechanical
Erection Works
- Installation
of Electrical and Control Instrumentation works
PROJECTS
FACILITIES
GULF SPIC Engineering L.L.C Dubai, UAE
GULF SPIC Engineering L.L.C, UAE is a subsidiary of Subject and
established under U.A.E regulation in
The principal operations are Mechanical Erection and Electrical and
Instrumentation Installation works pertaining to Oil and Gas, Refineries,
Petrochemical, Power Plants, Steel, Fertilizer, Chemical, and other
Manufacturing Plants.
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.47.89 |
|
|
1 |
Rs.70.84 |
|
Euro |
1 |
Rs.67.37 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
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 |
|
53 |
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 |
|