MIRA
INFORM REPORT
|
Report Date : |
03.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
CRYOQUIP INDIA UNIT OF RHINE ENGINEERING PRIVATE LIMITED |
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Registered Office : |
Plot No. 454, GIDC, National Highway No. 8, Por Ramangamdi, Vadodara –
391243, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
01.10.2003 |
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Com. Reg. No.: |
04-42998 |
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CIN No.: [Company
Identification No.] |
U31200GJ2003PTC042998 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer and Exporter of Cryogenic Vaporizers. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Maximum Credit Limit : |
USD 117428 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track records.
Company’s profitability is under severe pressure. It has huge accumulated loses.
Payments are reported as slow but correct. The company can be considered for small to mediocre business dealings
at usual trade terms and conditions with slight caution initially. |
LOCATIONS
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Registered Office/ Factory : |
Plot No. 454, GIDC, National Highway No. 8, Por Ramangamdi, Vadodara –
391243, Gujarat, India |
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Tel. No.: |
91-265-2830114 – 117 / 113 |
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Mobile No.: |
91-9879112874 |
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Fax No.: |
91-265-2830112 |
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E-Mail : |
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Website : |
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Area : |
17 Acres |
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Location: |
Owned |
DIRECTORS
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Name : |
Mr. Arun Kumar |
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Designation : |
Director |
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Address : |
Dayal 13, Kunj Society, Vadodara, Gujarat, India |
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Date of Birth/Age : |
16.07.1940 |
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Date of Appointment : |
01.10.2003 |
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Name : |
Mr. Michael B. Steffora, Foreigner |
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Designation : |
Director |
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Address : |
A – 22, Rajesh Tower, Gotri Road, Vadodara – 390021, Gujarat, India |
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Date of Birth/Age : |
15.11.1942 |
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Date of Appointment : |
09.02.2004 |
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Name : |
Mr. Hallinan J. William |
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Designation : |
Director |
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Address : |
25720, Jefferson Avenue, Munieta CA 92562, USA |
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Date of Birth/Age : |
09.02.1943 |
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Date of Appointment : |
09.02.2004 |
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Name : |
Mr. Prewez Syed |
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Designation : |
Director |
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Date of Birth/Age : |
32 Years |
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Qualification : |
Graduate |
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Name : |
Mr. Bill Hallinan |
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Designation : |
Director |
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Date of Birth/Age : |
60 Years |
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Qualification : |
Graduate |
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Name : |
Mr. Patrick Billman |
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Designation : |
Director |
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Date of Birth/Age : |
45 Years |
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Name : |
Mr. H. P. Shashishekher |
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Designation : |
Managing Director |
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Date of Birth/Age : |
47 Years |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
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No. of Shares |
|
Arun Kumar |
|
250000 |
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Michael Steffora |
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1 |
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Cryogenic Industries AG |
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8055997 |
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Total |
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8305998 |
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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] |
|
95.00 |
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Directors or relatives of directors |
|
5.00 |
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Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Cryogenic Vaporizers. |
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Products : |
·
Rotary Kilns ·
Reactors ·
Direct and Indirect Fired
Furnaces ·
Silos ·
Waste Incineration System ·
Reactors ·
Finned Tube Heaters and
Coolers ·
Industrial Centrifugal
Plants ·
Pressure Vessels ·
Heat Exchangers ·
Evaporators ·
Cryogenic Vaporizers and
Pumps ·
CO2 Production and Recovery
Plants ·
Packaged Air Separation
Plants ·
Liquid Nitrogen/Oxygen
Plants ·
Miscellaneous Tanks |
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Exports : |
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Countries : |
·
Oman ·
Nigeria ·
Dubai ·
all Gulf Countries |
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Terms : |
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Selling : |
L/C and Credit (15-30 days) |
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Purchasing : |
Cash and Credit (30 days) |
GENERAL
INFORMATION
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Customers : |
·
The Wittemann Company, LLC ·
United Breweries Limited ·
Va Tech Hydro India Private Limited ·
Mohsin Haider Darwish LLC ·
Jubilant Organosys Limited ·
BOC India Limited ·
Nurpur Gases Private Limited ·
Larsen and Toubro Limited |
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Suppliers: |
Cryoquip Inc., USA |
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No. of Employees : |
55 |
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Bankers : |
·
ABN Amro Bank ·
Bank of Baroda, Main Branch |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Amar Doshi Chartered Accountants |
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Address : |
302, Professional Plaza, 17, Punit Nagar, old Padra Road, Vadodara –
390015, Gujarat, India |
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Name: |
Mahajan Doshi and Associates Chartered Accountants |
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Address: |
302, Professional Plaza, 17, Punit Nagar, old Padra Road, Vadodara –
390015, Gujarat, India |
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Tel No.: |
91-265-2340159/2320857 |
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Fax No.: |
91-265-2320858 |
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Email: |
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Associates/Subsidiaries : |
Cryoquip
Vaporizers India Private Limited CIN No.: U29290GJ1998PTC051061 Registration No.: 51061 Date of Incorporation : 29.09.1998 Registered Office : Plot No. 454, GIDC, National Highway No. 08, Por,
Ramangamdi, Vadodara – 391243, Gujarat, India Activities Manufacturer and Exporter of Cryogenic Vaporizers. Authorised Capital : Rs. 20.000 Millions Paid up Capital : Rs. 20.000 Millions ACD, Inc Address : USA Activities : Manufacturers of Turbe Expanders and Cryogenic pumps for
ASU COSMODYNE Address : USA Manufacturers of Air suppression plant WITTEMAN USA Manufacturers of Co2 generation plants, purification and recovery
units. |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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15000000 |
Equity Shares |
Rs. 10/- each |
Rs. 150.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
8305998 |
Equity Shares |
Rs. 10/- each |
Rs. 83.059 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
83.060 |
52.500 |
52.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
(53.703) |
(64.264) |
(24.296) |
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NETWORTH |
29.357 |
(11.764) |
28.204 |
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LOAN FUNDS |
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1] Secured Loans |
87.149 |
85.178 |
80.926 |
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2] Unsecured Loans |
21.210 |
66.747 |
39.462 |
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TOTAL BORROWING |
108.359 |
151.925 |
120.388 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
137.716 |
140.161 |
148.592 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
116.534 |
120.670 |
111.583 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
11.368 |
9.048 |
6.090 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
44.944 |
11.801 |
29.775 |
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Sundry Debtors |
35.409 |
16.823 |
3.987 |
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Cash & Bank Balances |
16.420 |
2.375 |
2.152 |
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Other Current Assets |
1.189 |
4.380 |
3.478 |
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Loans & Advances |
11.994 |
4.230 |
7.068 |
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Total
Current Assets |
109.956 |
39.609 |
46.460 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
87.977 |
31.830 |
18.932 |
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Provisions |
14.124 |
0.275 |
0.527 |
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Total
Current Liabilities |
102.101 |
32.105 |
19.459 |
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Net Current Assets |
7.855 |
7.504 |
27.001 |
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MISCELLANEOUS EXPENSES |
1.959 |
2.939 |
3.918 |
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TOTAL |
137.716 |
140.161 |
148.592 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Sales Turnover |
152.635 |
143.891 |
49.807 |
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Other Income |
0.000 |
0.000 |
0.000 |
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Total Income |
152.635 |
143.891 |
49.807 |
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|
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Profit/(Loss) Before Tax |
(52.171) |
(42.519) |
(30.420) |
|
Provision for Taxation |
1.612 |
2.551 |
6.090 |
|
Profit/(Loss) After Tax |
(50.559) |
(39.968) |
(24.330) |
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|
|
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Export Value |
35.134 |
84.529 |
N.A. |
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Import Value |
32.778 |
25.744 |
N.A. |
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Expenditures : |
N.A. |
N.A. |
N.A. |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
(33.12)
|
(27.77) |
(48.85) |
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Net Profit Margin (PBT/Sales) |
(%) |
(34.18)
|
(29.55) |
(61.07) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(23.03)
|
(26.53) |
(19.25) |
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Return on Investment (ROI) (PBT/Networth) |
|
(1.77)
|
3.61 |
(1.08) |
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Debt Equity Ratio (Total Liability/Networth) |
|
7.17 |
(15.64) |
4.96 |
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Current Ratio (Current Asset/Current Liability) |
|
1.08 |
1.23 |
2.39 |
LOCAL AGENCY
FURTHER INFORMATION
Subject was established in the February 2004. It was taken over by Rhine
Engineering Private Limited [established in 2003].
The Registered office of the company has been shifted from 205,
Yashkamal Building, Sayajigunj, Vadodara – 390005, Gujarat, India to the
present address w.e.f. 21.02.2005
Trade Reference
- AIR LIQUIDE
- PRAXAIR
- BOC
As Per Website
Subject has been a supplier to the industrial Gases industry
in India since 1996 distributing high pressure vaporizers through their sister
company Cryogenic Industries. Subject established a sales office in 1998 and a
new manufacturing plant has just been opened in 2005. Its primary product is
Cryogenic Vaporizers.
Subject has been very successfully in the relatively short time it has be
operating from its Baroda based sales office. It has secured a number of supply
contracts and has supplied all the major Indian gas companies with equipment
initially imported from the United States. In order to cope with the continued
growth of the Indian Industrial gas market a new facility has been established,
which provides over 2700m2 (30,000ft2) of covered manufacturing area and
office, as well as 1800m2 (20,000ft2) of outside manufacturing and testing
area.
Aluminium Finned Natural Ambient
Subject manufactures a range of vaporizers that are designed
specifically for the climatic and economic conditions in India.
- Vaporizers are natural draft hybrid
design ambient operation
- All Aluminium construction or Stainless
Steel* or Monel* lined for HP applications
- Suitable for flows from 100 Nm3/hr to
over 5000 Nm3/hr single units and modular system of up 60,000 Nm3/hr for
ASU Back-Up applications.
- Pressures from 19 barg to over 500
barg.
Currently supplied
by Cryoquip Inc.
For effective continuous usage, Subject has a range of automatic switching systems
specially designed to alternate the use of the vaporizers, optimizing their
performance and reducing ice build up.
Shell and Tube and Hot Water Bath Vaporizers
Cryoquip India distributes steam and direct gas fired water
bath vaporizers in sizes ranging from 25 Nm3/hr to over 10,000 Nm3/hr and
electric powered vaporizers and super heaters for all the atmospheric gases and
CO2 manufactured by its parent company Cryoquip Inc. designed specifically to
meet customer specifications. Carbon steel tanks and ancillary equipment are
manufactured locally to reduce cost and units are fully assembled and tested in
the local facility.
Heat Exchangers and Heat Exchange Packages
The heat exchange technology developed for the industrial
gases industry has application in many other industries. Subject offers heat
exchanger packages and design services for heat transfer applications in food,
pharmaceutical, wine, oil and gas and petrochemical applications.
Cryoquip’s expertise in specialist qualified welding techniques combined with
their heat exchange technology and know how enables them to design and
manufacture cost effective and efficient process packages.
Quality Standards and Design
Subject is a wholly owned subsidiary of Cryoquip Inc and
operates similar controlled quality control systems monitored directly from the
US. Cryoquip Inc is a fully accredited manufacturer for all types of pressure
vessels in accordance with the PED using TüV as its notified body. All
equipment and process systems can be designed and built to either ASME, TüV or
other relevant European codes and supplied to India for inclusion in locally
manufactured skids and ancillary systems.
Subject currently has the following manufacturing repair and test capabilities
- 30,000-ft2 (2700m2) facility
- 20,000ft2 (1800m2) Outside secure area
- Liquid bulk storage Nitrogen
- Clean room facility
- Pressure test facilities
- High pressure air compressor
- TIG Welders (2)
- MIG Welders (1)
- Drills, cut off and Hack saws
- Power washing
Their workshop is used specifically for Aluminium and
Stainless Steel fabrication ensuring their work is not contaminated by mild
steel and is of an extremely high level of cleanliness. No hydrocarbon products
are used in the manufacturing process. All equipment manufactured is cleaned
and certified for use in Oxygen service in accordance with internationally
recognized standards. All vaporizers are designed in the USA in accordance with
ASME pressure vessel design code.
Subject also has access to Cryoquip Inc’s strong competencies in
instrumentation, process control and inter connecting pipe work packages. They
can build complete analyzer and process control packages, with fabricated
systems in Stainless Steel, Copper, Monel and mild steel, using welded, brazed
and compression fitting assemblies.
Set up in 1963, Subject
stands tall in the industry, benchmarking standards of quality
and reliability. They are a pioneering manufacturer of Rotary Kilns, Evaporators, Reactors, Direct and Indirect Fired
Furnaces, Silos, etc. Their company is also a leading service provider as they offer installation
of turnkey equipment and systems for various process plants.
They are a member of the U.S. based CRYOGENIC INDUSTRIES GROUP OF COMPANIES
that design and manufacture equipment for producing and handling liquefied and
gaseous industrial gases as well as hydrocarbons.
The philosophy of their company is to provide the best quality product and back
it up with top notch sales, sound technical and marketing support, timely
delivery, competitive price and efficient after sales service which would
give their customers maximum value for money. With customization and innovation
as their assets, they are successfully catering to their clients all over the
country.
They also provide services for installation of turnkey equipment and systems for various process
plants.
Quality Assurance
Subject is a quality concerned company with the sole
aim to succeed in their field by delivering the best machinery and equipment in
the industry. They are equipped with a highly sophisticated quality testing
facility where their technocrats perform all the requisite operations to ensure
thorough quality checking of the products at every step of the manufacturing
process. Further, in order to make sure the premium quality of the products,
they import Aluminum Extrusion, S.S. Tube, Filter Wire, Welding Machinery, etc.
from all over the world. All their equipments meet the technical standard
specification of various international quality organizations and also that
of their government specifications.
Infrastructure
Subject constantly invests in the upgradation and modernization of the
manufacturing facilities. Their sophisticated manufacturing facility comprises
of highly advanced technology and experienced workforce. An experienced staff
of engineers and technicians proves to be the cornerstone of their
company. Each of their machines is a true representation of engineering
excellence in manufacturing. Their manufacturing unit is empowered by the
following machines:-
- EOT Crane
- Air Compressor
- Power Generator
- Heavy Duty Lathe
- Plate Bending Machine
- CNC Press Brake
- NC Shearing Machine
- Horizontal Boring and Milling Machine
- Center Lathe
- Double Column Plano Miller
They are strategically located 20 km. south of the city of
Baroda on the Bombay-Ahmedabad National Highway No.8, just 15 km. away from the
Baroda airport. Their well-integrated system has enabled them to respond
to the dynamic requirements of their customers in the most proficient manner
possible.
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 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.39.43 |
|
UK Pound |
1 |
Rs.78.34 |
|
Euro |
1 |
Rs.57.76 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
|
29 |
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 |
|