MIRA
INFORM REPORT
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Report Date : |
25.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
CLASSIC GAS TECHNOLOGIES |
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Registered Office : |
No. 412, IV Floor, Shivalaya ‘A’ Block, Ethiraj, Salai, Egmore,
Chennai 600008, Tamilnadu |
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Country : |
India |
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Date of Incorporation : |
2007 |
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Legal Form : |
Partnership concern with an unlimited liability of the Partners |
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Line of Business : |
Providing Turnkey solutions to all bulk users of LPG, CNG, PNG |
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 60000 |
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Status : |
New Concern |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a new concern and a part of a medium sized group in South
India. The concern has ambitious plans. Trade relations are fair. Payments are reported as slow but correct. The concern can be considered for small to mediocre business dealings
with slight caution, initially. |
LOCATIONS
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Registered Office : |
No. 412, IV Floor, Shivalaya ‘A’ Block, Ethiraj, Salai, Egmore,
Chennai 600008, Tamilnadu, India |
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Tel. No.: |
91-44-28234544 / 30262566 |
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Mobile No.: |
91-9444087597 / 9884066775 |
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Fax No.: |
91-44-43508080 |
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E-Mail : |
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Factory 1 : |
Located at Namakkal Pollachi |
PARTNERS
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Name : |
Mr. Duraiswami Padmanaban |
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Designation : |
Partner |
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Name : |
Mr. Lakshman Senkathir |
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Designation : |
Partner |
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Name : |
Mr. Kunhiraman Suresh Kumar |
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Designation : |
Partner |
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Name : |
Mr. K. T. Krishnamurthy |
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Designation : |
Partner |
BUSINESS DETAILS
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Line of Business : |
Providing Turnkey solutions to all bulk users of LPG, CNG, PNG |
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Imports : |
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Products : |
Machinery, LPG |
GENERAL
INFORMATION
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No. of Employees : |
46 [Engineers 3 + Technicians 5 + Skilled Man Power 15 + Semi Skilled
Manpower 23] |
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Bankers : |
State Bank of India Egmore, Chennai 600008, Tamilnadu, India |
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Banking
Relations : |
--- |
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Associates/Subsidiaries : |
Ø
Safe Test Enterprise Ø
Safe Tech Industries Ø
Sai Air Products Ø Aishwaryam
Bottling Company Private Limited Ø Asiatic
Engineering Services Ø Lakshman
Roadlines Ø Classic Services |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 15.000 Millions |
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Borrowed : |
-- |
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Total : |
Rs. 15.000 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
Expected Sales (2007-08) : US $ 25 Millions
LOCAL AGENCY
FURTHER INFORMATION
The Objective of
the firm:
To become within the next 4-5 Years one of the Country’s leading
Engineering Organisation that can render Turnkey Solutions to all Bulk Users of
LPG, CNG and PNG.
Profile:
Subject is the fruition of the endeavour of a
group of qualified and highly experienced people, who had formally joined
together to float this outfit in the year 2007. The key personnel knew each other before for decades and were
doing interrelated businesses. The key
strength of the group is the expertise they possess in the field of GASES,
ranging from industrial to medical to specialty gases to fuel gases.
Of all the gases, LPG has been the common
thread that had made these people to come onto a common platform to exploit the
huge potential that is waiting to be tapped in this country. The government, in no small measure has of
late been encouraging the use of LPG as an auto fuel, due to environmental and
economic reasons. The sky rocketing
price of Crude and the recent successes in the exploration of natural gas have
all emboldened the government to hasten this conversion process. Statutes, ably aided by an incentive based
approach, have rolled out an unprecedented opportunity to all those who are
doing business that is in someway related to AUTO LPG.
CGT, needless to state is one such company
that has jumped into the bandwagon to grab its share of this really BIG Pie.
CGT’s Core Tam consists of 4 people with
diverse but relevant experience in this line that is hard to match.
Ø
Mr. Duraiswami Padmanaban
Ø Mr. Lakshman
Senkathir
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Mr. Kunhiraman Suresh Kumar
Ø
Mr. KT Krishnamurthy
The brief profiles of their existing
operations would clearly explain their core strengths and their abilities.
About their existing business operations:
Their group has apart from classic gas technologists,
6 other companies that are carrying out various activities related to LPG and
other gases.
They are:
- Safe Test
Enterprise :
A Chief Controller of Explosives, Nagpur
approved III party Inspection Agency which has Mr. Sen Kathir and Mr. D. Padmanaban
as CCOE approved COMPETENT PERSONS vide Static and Mobile Pressure [Unfired]
Rules, 1981, the statutory Rules that are mandatorily required to be followed
in India by all users of Pressure Vessels, as defied in the said rules. These people are authorized to periodically
inspect, test and certify Pressure
Vessels and its accessories. The
Company has an enviable clientele which reads more like a who is who list of
the Oil and Gas Industry.
- Safe Tech
Industries :
This is a firm which is into de bulking of LPG
into small cylinders and also helping safe test enterprises by offering gas
purging and testing facilities for vehicle mounted pressure vessels that come
for periodical inspection. This is a
0.5 Million USD project and is running to almost 100% of its installed
capacity. A large capacity expansion is
in the anvil and the company has set itself a target date of December 2008 to
increase its capacity by ten folds. The
anticipated investment on this account would be in the region of 2-3 Million
USD. This unit is located at Namakkal,
which is at a distance of 350 Kms. South of Chennai from where the group’s
transport operations are based out.
- Sai Air
Products
This unit is located at the outskirts of the
metropolitan city Chennai and is into de-bulking of Industrial Gases into small
cylinders. The unit has the facilities
to fill Oxygen into cylinders. A
13.0 KL capacity Cryogenic Vessel capable of storing Liquid Oxygen at 183*C is
installed in this premises.
The total investments on this unit is in the
region of 0.8 Million USD, which includes the cost of investment on 4000
cylinders.
- Aishwaryam Bottling Company Private
Limited
This is an LPG de-bulking facility which is located at Pollachi, a town 500 km south west of Chennai. The facility is handling about 250-300 tons of LPG in a month. The facility was established with an initial investment of 0.6 Million USD. A key person of their organization is a stake holder in this organization.
- Asiatic Engineering Services:
An Engineering Fabrication facility which has many modern machineries such as Precision CNC lathes, milling machines, Orbital and other Welding Machines. The unit has a 27 member strong work force, comprising of Mechanical and Instrumentation Engineers, CADD draughtsman, skilled machinists, fitters and welders. This unit is primarily engaged in the turnkey installation of LPG and other gas Projects. The firm is also the authorized System Integrator for Air products Inc, USA, a Fortune 500 Company. Expertise ranges from handling all kinds of toxic, corrosive, reactive, oxidizing, flammable, inert and pyrophoric gases and systems in all sizes.
The unit is working with lead R & D organizations such as IIT Madras, ARAI – Pune, Bloom Energy Inc, US, SPIC R & D etc. in the successful commercialization of H2 based technology, both from the fuel cell route as well as direct. The company designs and supplies several critical Balance of Plant components to these people.
The total investment made until now is 0.25 Million USD.
6.
Lakshman Roadlines:
This company is in the filed of providing logistic services to many public sector Oil Marketing Companies [OMCs] such as Indian Oil Corporation and Bharat Petroleum Corporation that require LPG to be moved on roads. A 20 vehicle strong fleet, all with pressure vessels mounted on them, is totally contracted to these OMCs.
In fact, very soon, this company would become the first logistics company in the country to provide Bobtail vehicles to transport Auto LPG to and fro Auto LPG Dispensing Stations across the country. The company has so far invested close to 1 Million USD on its fleet.
7.
Classic Services:
This firm is engaged in consultancy and liaisonary services.
Classic services is one of the very few companies which extensively and effectively do CCOE related liaisonary work for clients who require to obtain licenses for their facilities/installations. Many reputed clients on a regular basis avail these kinds of services from them.
Summary
The Classic Group comprising of Classic Gas Technologies and the other companies mentioned above is destined to become a market leader in the field of Auto LPG as it already has the right mix of support services within itself.
In short, on a very conservative estimate, the group definitely sees itself growing to a size o 20-25 Million USD by 2011.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 39.43 |
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UK Pound |
1 |
Rs. 77.06 |
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Euro |
1 |
Rs. 57.65 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
3 |
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PAID-UP CAPITAL |
1~10 |
3 |
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OPERATING SCALE |
1~10 |
3 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
4 |
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--PROFITABILIRY |
1~10 |
2 |
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--LIQUIDITY |
1~10 |
3 |
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--LEVERAGE |
1~10 |
3 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
3 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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27 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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