MIRA
INFORM REPORT
|
Report Date : |
25.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
HINDUSTAN DORR- OLIVER LIMITED |
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Registered Office : |
Dorr-Oliver House, Link Road, Chakala, Andheri (East), Mumbai
– 400099, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
26.07.1974 |
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Com. Reg. No.: |
017644 |
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CIN No.: [Company
Identification No.] |
U74210MH1974PLC017644 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMH04336D CHEH00162B |
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PAN No.: [Permanent
Account No.] |
AAACH0964P |
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Legal Form : |
Public limited liability company. Company’s shares are listed on the
Stock Exchange. |
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Line of Business : |
Manufacturers
and Sellers of machinery for making Pulp
of Fibrous Cellulosic Material, Waste Water Treatment Plant and Mixing
and Homogenizing Equipments for Chemical Industries. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 6500000 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is well – established and reputed company having fine track. Trade relations are fair. General financial position is good. Business is active. Payments are reported as usually correct and as per commitments. The company can be considered good for normal business dealings. It can be regarded as a promising business partner in a
medium to long – run. |
INFORMATION CLINED
BY
|
Name : |
Mr. N. C. Pathak |
|
Date : |
10.07.2008 |
LOCATIONS
|
Registered Office : |
Dorr-Oliver House, Link Road, Chakala, Andheri (East), Mumbai
– 400099, Maharashtra, India |
|
Tel. No.: |
91-22-28325541/28326416/28326417/28326418/ 28359400 |
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Fax No.: |
91-22-28365659 |
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E-Mail : |
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Website : |
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Factory : |
5/1/2,
GIDC, Vatwa, Ahmedabad – 382 445, Gujarat, India |
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Branch Office
: |
Located
at: ·
Delhi
·
Kolkata,
West Bengal ·
Chennai,
Tamilnadu |
DIRECTORS
|
Name : |
Mr.
Prabhakar Ram Tripathi |
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Designation : |
Chairman |
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Name : |
Mr. E.
Sudhir Reddy |
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Designation : |
Vice –
Chairman |
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Name : |
Mr. E/
Sunil Reddy |
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Designation : |
Managing
Director |
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Name : |
Mr. S. C. Sekaran |
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Designation : |
Executive Director |
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Name : |
Mr. R.
Balarami Reddy |
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Designation : |
Director |
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Name : |
Mr. K. H.
KL. Prasad |
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Designation : |
Director |
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Name : |
Mr. T. N.
Chaturvedi |
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Designation : |
Director |
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Address : |
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Name : |
Mr. H. N.
Nanani |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. K.
Krishnamoorthy |
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Designation : |
Company
Secretary |
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Date of Birth/Age : |
52 Years |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of
Shareholders |
No. of Shares |
Percentage of Holding |
|
Shareholding of Promoter and Promoter Group |
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India |
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Bodies
Corporate |
19000998 |
52.78 |
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Public Shareholding |
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Institutions |
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Mutual
Funds/ Axis |
720012 |
2.00 |
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Foreign
Institution Investors |
1396471 |
3.87 |
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Non-Institutions |
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Bodies
Corporate |
7738287 |
21.49 |
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Individuals
Shareholders Holding Nominal Share Capital up to Rs.0.100 Million |
4308790 |
11.97 |
|
Individuals Shareholders Holding
Nominal Share Capital in excess Rs.0.100 Million |
2674500 |
7.43 |
|
Non
Resident Indians |
123146 |
0.34 |
|
Trust |
2160 |
0.01 |
|
Clearing
Members |
38040 |
0.11 |
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Foreign
Nationals |
500 |
- |
|
|
|
|
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Total |
36002904 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers
and Sellers of machinery for making Pulp
of Fibrous Cellulosic Material, Waste Water Treatment Plant and Mixing
and Homogenizing Equipments for Chemical Industries. |
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Products : |
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GENERAL
INFORMATION
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No. of Employees : |
1200 |
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Bankers : |
·
The
United Western Bank Limited ·
Indian
Overseas Bank ·
Bank
of Baroda ·
Bank
of India |
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Facilities : |
- |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Chaturvedi and Partners Chartered
Accountants Internal
Auditors Aneja and Associates Chartered Accountants |
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Subsidiaries : |
·
Harshit
Finlease and Investment Limited ·
SMN
Engineers Limited ·
HDO
Technologies Limited ·
IVR
Prime Urban Developers Limited ·
IVRCL
PSC Pipes Private Limited ·
IVRCL
Water Infrastructure Limited ·
Geo
IVRCL Engineering Limited ·
Indus
Palms Hotels and Restores Limited ·
Salem
Tollways Limited Chennai Water Desalination Limited |
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Associates |
·
Central
Distillery and Breweries Limited ·
Charminar
Breweries Limited ·
Dandavati
Investments and Trading Company Private Limited ·
East
Coast Breweries and Distilleries Limited ·
Falcon
Tyres Limited ·
Gordon
Woodroffe Limited ·
Gordon
Woodroffe Logistic Limited ·
Jerom
Trading and Investments Limited ·
Jumbo
Trading and Investments Limited ·
Jumbo
world Holding (India) Limited ·
Kerala
Distilleries and Allied Products Limited ·
Maharashtra
Distilleries Limited ·
Malabar
Breweries Limited ·
Mather
and Platt Fire Systems Limited ·
New
Video Limited ·
Pampasar
Distillery Limited ·
Shaw
Wallace and Company Limited ·
Shaw
Wallace Distilleries Limited ·
Shaw
Wallace Executives Welfare and Benefit Company ·
SKOL
Breweries Limited |
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|
|
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Holding Company : |
IVRCL Infrastructure and Projects Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000000 |
Equity
Shares |
Rs.2/- each |
Rs.100.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
36002904 |
Equity
Shares |
Rs.2/- each |
Rs.72.006 millions |
Note:
19000998 Equity Shares are held by the holding company, IVRCL
Infrastructure and Projects Limited
26460484 Equity Shares were issued as fully paid bonus shares by
capitalization of general reserve
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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1] Share Capital |
72.006 |
58.005 |
42.300 |
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2] Share Application Money |
0.000 |
6.400 |
0.000 |
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3] Reserves & Surplus |
1225.066 |
1057.876 |
534.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1297.072 |
1122.281 |
576.800 |
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|
LOAN FUNDS |
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1] Secured Loans |
0.000 |
341.540 |
76.500 |
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2] Unsecured Loans |
0.000 |
0.000 |
57.200 |
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TOTAL BORROWING |
0.000 |
341.540 |
133.700 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
1297.072 |
1463.821 |
710.500 |
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APPLICATION OF FUNDS |
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|
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|
|
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FIXED ASSETS [Net Block] |
338.360 |
314.472 |
259.600 |
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Capital work-in-progress |
14.940 |
4.400 |
0.000 |
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INVESTMENT |
17.178 |
16.520 |
20.100 |
|
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DEFERREX TAX ASSETS |
6.053 |
8.581 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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Inventories |
122.108 |
86.376 |
90.500 |
|
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Sundry Debtors |
1025.373 |
308.871 |
378.800 |
|
|
Cash & Bank Balances |
410.176 |
759.639 |
96.900 |
|
|
Other Current Assets |
688.034 |
5.07.776 |
0.000 |
|
|
Loans & Advances |
262.379 |
71.506 |
520.500 |
|
Total
Current Assets |
2508.070
|
1232.238 |
1086.700 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
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Current Liabilities |
1551.481
|
590.622 |
631.200 |
|
|
Provisions |
36.048
|
23.698 |
24.700 |
|
Total
Current Liabilities |
1587.529
|
614.320 |
655.900 |
|
|
Net Current Assets |
920.541
|
1119.848 |
430.800 |
|
|
|
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|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
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|
|
|
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TOTAL |
1297.072 |
1463.821 |
710.500 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
2085.099 |
1414.080 |
862.700 |
|
|
Other Income |
50.865 |
24.690 |
49.500 |
|
|
Total Income |
2135.964 |
1438.770 |
912.200 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
213.689 |
73.828 |
20.500 |
|
|
Provision for Taxation |
60.157 |
9.088 |
9.300 |
|
|
Profit/(Loss) After Tax |
153.532 |
64.740 |
11.200 |
|
|
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
1640.492 |
1129.564 |
|
|
|
Administrative Expenses |
259.628 |
200.749 |
|
|
|
Increase/(Decrease) in Finished Goods |
(1.137) |
21.174 |
|
|
|
Interest |
7.536 |
6.014 |
891.700 |
|
|
Depreciation & Amortization |
15.756 |
7.441 |
|
|
|
Other Expenditure |
0.000 |
0.000 |
|
|
Total
Expenditure |
1922.275 |
1364.942 |
891.700 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
31.03.2008 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
|
|
|
|
|
|
Sales Turnover |
545.400 |
695.200 |
754.600 |
1055.500 |
|
Other Income |
14.400 |
16.600 |
13.700 |
15.100 |
|
Total Income |
559.800 |
711.800 |
768.300 |
1070.600 |
|
Total Expenditure |
500.500 |
625.600 |
679.500 |
903.800 |
|
Operating Profile |
59.300 |
86.200 |
88.800 |
166.800 |
|
Interests |
3.900 |
6.200 |
9.400 |
18.700 |
|
Gross Profit |
55.400 |
80.000 |
79.400 |
148.100 |
|
Depreciation |
4.900 |
6.300 |
6.000 |
6.800 |
|
Tax |
16.300 |
23.800 |
22.000 |
45.700 |
|
Reported PAT |
35.200 |
46.100 |
50.200 |
94.800 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
|
|
|
|
Debt-Equity Ratio |
0.17
|
0.38 |
0.44
|
|
Long Term Debt-Equity Shares |
0.17
|
0.32 |
0.18
|
|
Current Ratio |
1.92
|
2.09 |
1.55
|
|
TURNOVER
RATIOS |
|
|
|
|
Fixed Assets |
7.16
|
5.71 |
3.69
|
|
Inventory |
20.58
|
16.47 |
10.25
|
|
Debtors |
3.22
|
4.24 |
2.14
|
|
Interests Cover Ratio |
10.80
|
4.05 |
1.82
|
|
Operating Profit Margin (%) |
11.71
|
7.24 |
5.84
|
|
Profit Before Interests and Tax Margin (%) |
10.97
|
6.73 |
5.29
|
|
Cash Profit Margin (%) |
7.89
|
4.95 |
1.85
|
|
Adjusted Net Profit Margin (%) |
7.15
|
4.44 |
1.30
|
|
Return On Capital Employed (%) |
20.33
|
11.44 |
9.17
|
|
Return On Net Worth (%) |
15.55
|
10.46 |
3.25
|
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
A engineering company, Hindustan Dorr-Oliver is engaged in turnkey projects to serve a diverse range of industries like environmental engineering, pulp and paper, chemicals and fertilisers. The company has executed some outstanding phosphatic fertiliser plants, systems for water management in steel mills, and the petrochemical and oil and gas industries.
It has entered into agreement with Buss, Switzerland, covering specialised
equipment and technologies of their process technology division.
It has introduced pipe cross reactor technology from a French company. It has
signed a MoU with the same company to supply engineered retro packages to
expand its production capacity and is also introducing more modern technology
for industrial and municipal waste treatment plants with technical support from
Mass Transfer Technologies, UK. In 1995-96, it has secured export orders for
Dorr-Oliver Clarifiers and Filters from Ethiopia and Egypt.
During 1996-97, it has concluded major contracts for capacity expansion and
modernisation of Phosphatic fertilizer plants of IFFCO and Zuari Agro valued at
Rs.350.000 Millions each.
The company has announced agreement with the Belgium-based Seghers N V for
technical colloboration. Under this agreement Seghers will transfer the
technology of its patented process of Unitank technology for water and sewage
water treatment for municipal and industrial application to the company. During
2001-02 the company seucred an order worth of above Euro 44 million for setting
up a waste water treatment plants in Iraq. It has also acquired 100% stake in
Chennai based company viz SMN Engineers Ltd in 2001-02.
TRADE REFERENCES :
·
Avadh Industries
·
Dura Heatex
·
Indofab Industries
·
Mechanical Engineering and Contractors
·
Marvel Industries
·
Oriental Mechanical works
·
Thakur Industries
·
Vishu Engineering Private Limited
·
Mahakali Engineering Works
·
Krishna Industries
·
Gaurang Metal Engineering company
·
Nirav Engineers
·
Gujarat Fabricators
·
Ardike Engineering Enterprises
PERFORMANCE
The Company continued to see strong and profitable growth in the
financial year 2006-07 across core areas driven by good performance.
The Company achieved net sales of Rs.2085.099 Millions for the year ended March
31, 2007 as against the net sales of Rs.1414.080 Millions achieved in the
previous year recording a growth rate of 47%. With close monitoring on costs
and expenses, the year ended with a gross profit of Rs.236.981 Millions
(previous year Rs.87.283 Millions) and a pre-tax profit of Rs.213.689 Millions
(previous year Rs.73.828 Millions).
The various measures initiated during last two years to improve operational
efficiencies like cost reduction and control coupled with enhanced
productivity, focus on products and businesses and better utilisation of
in-house engineering skill sets have started yielding results which is
reflected in the improved profitability.
The Company has provided effective total engineering solutions to Global and
Indian Companies by leveraging its knowledge across industry verticals,
excellence in technology and robust processes. It has implemented the renewed
corporate philosophy of long-term business relationship with all esteemed
customers, win-win situation and transparency in business to enhance
stakeholder value. These higher-value businesses, in the opinion of the
Company, have significant potential to scale up in the next few years.
The Company for the first time has secured export order from USA, worth more
than Rs.140.000 Millions for manufacturing of evaporators.
TRANSFER TO
RESERVES
The Company proposes to transfer Rs.70.000 Millions to the General Reserve out
of the amount available for appropriations.
FUTURE
PROSPECTS
The Company continues to address a broad spectrum of Industries where its
technological competence is of relevance and offers tremendous opportunity for
growth. The Company views the year ahead with optimism.
The Company has consolidated its position and strength as a provider of
total engineering solution in its chosen fields. This has been the result of
concerted and systematic efforts and initiatives in several areas such as
restructuring and reorganisation, upgradation of technology, strategic business
alliances, and enhancement of operational efficiencies through IT, bench
marking of quality processes, cost reduction measures, quality product
development, aggressive marketing efforts and brand building.
With recent boom in Indian manufacturing sector, most of the Industries, where
Company has strong presence like Mineral Beneficiation, Pulp and Paper and
Phosphate fertiliser are going in for new projects or major expansions. In
Aluminium and Steel Industries, projects with huge investments are in advanced
stage of finalisation.
Environmental Engineering sector is witnessing phenomenal growth due to
increased spending in Water and Waste Water Treatment by Central and State
Governments and funding by external agencies like World Bank and Asian Development
Bank. The Company is in final stages of bagging mega orders for a Grass root
ETP Plant at IOCL - Haldia and other similar orders are in the pipeline. The
Company has secured order for 25 MILD Sewage Treatment Plant at CIDCO, Navi
Mumbai and in association with GE Water Infrastructure Limited, is executing a
sea water desalination project in Gujarat.
The Company is strengthening its leadership position in Mineral beneficiation
market. Alumina refinery and Steel Industry are experiencing an exponential
growth. Projects with huge capital expenditure are on the anvil. The Company
with its core inhouse expertise and technology tie ups with various global
multinationals is offering complete EPC solutions. The Company has secured new
order from Vedanta Alumina Limited worth more than Rs.2000.000 Millions for
Fume Extraction Plant and Water Treatment in association with Chalieco
GAMI.
The global manufacturing shift to Asia, China and India in particular heralds a
new opportunity for the Company. They Company is in the process of signing
Collaboration Agreements with Global manufacturers for meeting their
requirements of equipments and design and engineering services.
With the Manufacturing facility at Ahmedabad factory refurbished with state of
art engineering machineries and more focus on quality management prospects of
conversion to a global manufacturing base are brighter.
SUBSIDIARIES
As reported in the last year Annual Report, HDO Technologies Limited, a wholly owned
subsidiary of the Company has been formed to carry on the Knowledge Process
Outsourcing business. An engineering centre to support the Engineering
activities has been set up at Chennai and is running successfully. The
Company's operations for a period of four months after commencement of business
have resulted in a turnover of Rs.6.000 Millions and Profit after Tax of
Rs.0.472 Millions and are poised to improve during the current year
substantially.
CHANGES IN CAPITAL STRUCTURE
During the year, the following changes have occurred in the share capital of
the company.
ALLOTMENT OF SHARES PURSUANT TO CONVERSION OF WARRANTS
During the year under review, 1000000 equity shares of Rs.2/- each were
allotted to IVRCL Infrastructures and Projects Limited, consequent upon their
exercise of option in the Equity warrants allotted to them in October
2005.
BONUS SHARES
6000484 Equity Shares of Rs.2/- each, fully paid up, were issued as Bonus
Shares in the ratio of 1 Bonus Share for every 5 Equity shares of Rs.2/-
each.
Consequently, the paid-up Share Capital of the Company as on March 31, 2007
stands increased to Rs.72005808/- divided into 36002904 equity shares of Rs.2/-
each.
The new equity shares, allotted during the year, rank pari-passu with the
equity shares of the Company.
OVERVIEW
India has undergone a paradigm shift owing to its competitive stand in the
world. The Indian economy is on a robust growth trajectory and boasts of a
whooping 9.2% growth rate. The Government is committed in its efforts to
maintain the growth rate and to provide a conducive policy environment to the
enterprises both public and private to invest and grow their business in the
country.
Following the similar trend, 2006-07 continued to be a year of quantum growth
for their Company. Manufacturing, Mineral Beneficiation and Environment
business were the major contributing areas for the overall growth of the
company. The robust economic performance of past three years in the global
manufacturing sector is leading to rebound in investment that will further
sustain the growth of the company.
The outlook of the company continues to be bright. It is expected that growth
in Mining, Mineral Processing, Pulp and Paper, and Environmental Infrastructure
Projects will continue to contribute towards growth of the company in terms of
volume and profitability.
The company's 'Knowledge Process Outsourcing' Centre's in Mumbai and Chennai,
were fully operational during the year, KPO business focuses on Design and
Engineering Outsourcing work from various global companies. The company is
looking forward to tie up with leading international consultants for this
purpose and is expected to generate revenues in the next financial
year.
MINERALS & METALS
Mineral and metal sector continues to do better and more activities are
expected in the coming years. Many Green Field projects are underway and many
more are expected in the coming years.
The Company being pioneer in this field, expects substantial business in this
sector. With its EPC capability, technology used in these fields and own
manufacturing facility, the Company is well positioned to seize the
opportunities offered by Indian and Global market.
The Company provides project management, engineering, procurement and
construction services for each step in the mineral and metal recovery process
including mineral processing, smelting and refining. The uniqueness of the
Company which makes it different in comparison to all its competitors is that it
has capability to offer EPC solution for projects in Mineral and Metal sector
starting from basic engineering, detail engineering, complete civil works,
procurement of bought outs, site fabrication and erection, piping, electricals
and instrumentation. theCompany also has state of art workshop at Ahmedabad
where it can fabricate its proprietary equipment and also other items and
pressure vessels etc to suit customers requirement. They have carried out all
major projects in India in the Fields of Alumina, Aluminium, Iron and Steel,
Copper, Zinc, Coal washing etc. Theirportfolio of clients include leading
companies many of whom are long-time or repeat clients.
The Company has a strong hold on Alumina Refinery field and has served almost
all Alumina refineries in India. The Company can provide various packages like
Crushing and Grinding, Sand separation, Settler and Washer Package, Milk of
Lime package, Security Filtration, Evaporation, Hydrate Filtration and Hydrate
Seed Thickener Packages on EPC basis and has technical capability to offer turn
key solution to the satisfaction of the customer.
The Vedanta Alumina Limited (VAL) has awarded us several contracts over the
years. We have completed various packages for Vedanta's Greenfield Alumina
Refinery project of 1.4 MTPA capacity which is the largest in India. The said
project is already completed and your Company has one more satisfied customer
in its portfolio. The other major projects which are in the pipeline and
expected in the coming years are - Utkal Alumina Refinery with 1.5 MTPA
capacities, Ashapura Minechem Alumina Refinery of 1.0 MTPA capacity, JSW
Limited, Alumina Refinery of 1.4 MTPA capacity and NALCO IVth phase Expansion.
The Company is expecting substantial share of its business from these companies.
In the Alumina Smelter sector, the Company has tied up with Chinese Company
called CHALIECO / GAMI to execute various packages on EPC Basis. Currently the
Company with its Chinese Partner is executing Fume Treatment Plant alongwith
complete water and air recirculation system and Alumina Handling system for
Vedanta's Smelter Project.
Their in-house training specialist will be training the local people how to
operate the plant, once the commissioning is over.
The Company has made a major contribution in the field of Uranium Ore
Processing and Extraction Plants in India and has supplied equipments and
systems to Uranium Corporation of India Limited for their Jaduguda Project and
also for their upcoming 3000 TPD Greenfield project at Turamdih, Jharkhand. The
same customer is coming up with three identical green field projects - two in
Andhra Pradesh and one in Meghalaya. Out of these, site activities have already
started for one project coming up in Andhra Pradesh and the Company expects
good business in the current year as well as in the years to come. The Company
is fully equipped to offer Turn Key packages.
The Company has been supplying equipment and systems for various Iron Ore
Beneficiation Plants such as NMDC, TISCO, Sesa Goa, KIOCL, Essar etc to name a
few in India. All the above customers are going for expansion as well as Green
Field Projects and the Company expects to generate substantial business in this
sector also in the years to come.
For Steel Plants also, the Company has been supplying Water Recovery System,
Water Treatment Plants and Waste water Treatment Plants and Scrubbing systems
etc.
The Company has also executed complete chrome ore beneficiation plant on
turnkey basis for Orissa Mining Corporation for their Greenfield project. The
said project was successfully completed on schedule with a good safety record
despite its remote location and limitation of workforce.
The Company has also supplied equipments and systems related with Sand Washing
to various Sand Processing Plants like BILT, Mangalore Minerals, Asahi Float
Glass, etc. With the boom in Indian economy, these companies are also going for
expansion and offer good opportunity to the Company.
ENVIRONMENTAL
MANAGEMENT
The company is a pioneer in Water and Wastewater Treatment plant market in
India and has executed Waste Water Treatment plant projects for most of the
core sector industries like Refineries, Process Chemical, Steel, Fertilizer,
Sugar, Pulp & paper etc. In recent past the Company has further strengthened
its presence in this sector by securing contracts from refineries and
Government and semi Government organizations.
Water infrastructure market in India has been consistently growing in last few
years. Even today large section of population in India does not have access to
safe drinking water and safe treatment and disposal of sewage is still a
distant reality for most' of the semi urban and rural population in India.
Government of India has identified these needs and is taking steps to address
this problem by increased funding through central government grants, NRCD etc.
Many Municipal corporations and State Governments are planning projects with
funding from international agencies like World Bank, Asian Development Bank,
JBIC etc.
Growing water demand is forcing many Industries to look for effluent recycling
option involving membrane separation technology In States like Tamilnadu, and
Gujarat, sea water desalination projects are coming up in a big way. The
Company is actively involved in providing pretreatment solutions to seawater
desalination projects. The Company has tied up with a multinational Company to
provide pretreatment technologies for seawater. The Company is already
executing one such project at M/s. Tata Chemicals Limited at Mithapur. The
Company is also associated with India's largest seawater desalination project
of 100 MLD capacity being put up at Minjur in Tamilnadu for which we shall
provide crucial filtration systems. Many such projects are in advance planning
stage and the company expects to get its potential share.
The Company has recently completed refinery Wastewater Treatment plant projects
for IOCL and BPCL. The Company has bagged orders worth Rs.500.000 Millions for
Municipal sewage treatment plants and Industrial effluent treatment plants from
various customers like Tata Chemicals, CIDCO and IISCO.
The Company has established itself as a favoured EPC partner for various
multinational companies like GE Water - USA, Cairn Energy - UK and Befesa -
Spain for their projects in India and has secured orders for supply of Filters,
Clarifiers and other pre-treatment systems and also for Design and Engineering
services. The Company has submitted bids for Refinery Waste water Treatment and
recycling plant packages worth more than Rs.2000.000 Million and is a lowest
bidder in against various Indian and Foreign companies. These contracts are in
advanced stage of finalization and orders are expected in first quarter of next
financial year (2007-08)
PULP AND PAPER
Strong economic growth, increased consumer spending and improvements in
conversion technology are expected to drive Indian per capita consumption of
Paper from 6 kg / annum to world average of over 50 kg / annum. The global pulp
and paper industry is increasingly viewing Asia as the growth engine. The
Indian industry is expected to witness heightened competitive activity in the
coming years. Rise in input costs, technology upgradation, zero discharge plant
and quality consistency are major challenges facing Indian Paper
Industry.
With the growing demand of Paper globally, the Company is poised to make
headway in the Fibreline area.
In the past while small Paper Mills were successful in making paper out of Agro
based pulp, the Company promoted Special washers for such pulp handling and had
the expertise to make it a grand success. Similarly, in the area of cooking
Continuous digesters are introduced which is gaining ground and will be an
addition to the existing product line. Continous Digester enjoys tremendous advantages
over conventional Batch Digesters in terms of savings and uniformity in power,
steam, caustic, manpower, ease of handling besides imparting better pulp
strength properties. Most of the Mills have started switching over to Continous
type of Digesters with the help of the Company's technology and systems.
The Company with state of art manufacturing facility at Vatva factory coupled
with latest technology on agro-pulping and proven track record of service among
all major pulp and paper companies in India is uniquely positioned to tap the
full growth potential of pulp and paper Industry.
Agricultural by products such as Baggase, Wheatstraw, and Ricestraw are some of
the raw-materials used for the manufacture of Paper. These are gaining ground
as a substitute to Hardwood which is a fast depleting resource. To handle these
raw materials the company has the technology and a complete range of equipments
from Wet cleaning Plants, Continous Digesters, Brown Stock Washers, Bleaching
System and Recaustisizing Plant.
With environmental norms getting stringent by the day, the company's capability
in design, supply and setting up Recausticizing plant helps in reuse of spent
black liquor generated during the cooking process by converting it into useful
white liquor thereby curbing pollution. The company is well equipped with the
technology of the future in India, namely the TCF & ECF bleaching system
wherein the hazardous pollutant such as Chlorine is eliminated thereby bringing
down tremendous pollution load on the environment besides improving properties
of the end product.
HDO MANUFACTURING FACILITY
Business analysts and economic pundits around the globe acknowledge that the
age ahead could well be Asia's and an ascendant India has imminent potential
for global greatness. As an Indian Company, HDO is proud of the growing
recognition of India's technological skills, its prowess in manufacturing and
its capability in design.
The dismantling of trade barriers and growing integration of the global economy
has widened HDO business horizons, affording opportunities in manufacturing
sector.
The company is looking at making this manufacturing facility state-of-art and
hence, the same is being refurbished completely in order to make it an
independent operating facility which will cater to outsourced manufacturing
requirements of global multinationals apart from Indian customers. The company
is already in discussion with such global multinationals for shifting their
manufacturing base at HDO Works in India. The Company is also contemplating on
putting up second manufacturing base in India.
OPERATIONAL
EXCELLENCE
Operational excellence was our key focus during the year. This involves
institutionalizing standard operating procedures, strengthening project
management capabilities, sharpening cost and delivery competitiveness, lean
manufacturing, value engineering and reducing cycle time.
INTERNATIONAL BUSINESS
The company has dedicated International Business Group, which caters to global
markets by providing electro-mechanical packages and EPC installations for its
core business. Through its network of local business agents the company keeps
close coordination with its overseas customers and provides sales and service.
Your Company has for the first time received and executed export orders for one
of its esteemed customer for manufacture of Heat Exchangers and Pressure
Vessels at Ahmedabad valued Rs.140.000 Millions during the year. The company is
in advanced stage of signing MOU with global players for marketing and
manufacturing. This is expected to open up new export opportunities for your
company.
FIXED ASSETS
- Freehold land
- Leasehold land
- Building (including company
owned flats
- Plant and machinery
- Office equipment
- Electrical fittings
- Jigs, Fixtures and templates
- Furniture and fixtures
- Vehicles
Website Details:
Profile:
Subject is an Indian EPC company having its core business activities in providing Engineered Solutions, technologies and EPC installations in Liquid-Solid Separation applications.
Subject has a new face. company is now a wholly owned subsidiary of M/s. IVRCL Infrastructures and Projects Limited, who are one of the leaders in Indian infrastructure industry, having core business focus on total Water Management including pumping, conveyance, treatment and distribution, national highways, roads, buildings, hydro-electric projects, power distribution, desalination, etc. IVRCL is also executing many projects on BOOT basis for various Government Departments of India.
Company has over decades established a unique track record and position as an extremely dynamic, totally reliable and component-engineering company, having a cutting edge of superior technologies to emerge among leading process equipment and plant engineering companies in India.
Today, with every conceivable engineering skill at its disposal, Company is engaged in an endless endeavor to upgrade, modify, adapt and invent products, processes and technologies to design, construct, install, erect and commission systems on complete EPC basis.
Company Works at Vatva started in the year 1977. Their spacious factory is located at GIDC Vatva near Ahmedabad, off- National Highway No.8. The gigantic Plot of 40906 Sq. Meter and the factory area under EOT Cranes is 8656 sq. meters. The installed capacity is 2000 MT and the licensed capacity is 4000 MT per annum.
Company Manufacturing Works is having U Stamp Certification from ASME, United States of America, apart from its own ISO 9001:2000 Accreditation.
Company works is complete with its own power generating sets. The material preparation equipment consists of our own make? Plate Shearing Machines, Air Plasma Cutting Machine, and Gas Cutting Machine. We have fabrication equipment Flange Turning Lathe, Drum Lathe, Three-Roll Plate Bending Machines and Vertical Turning Lathe.
They have welding equipment like submerged Arc Welding Machinery, Welding Transformers Rectifiers, MIG Welding Machines, Plasma cum Tag Welding Machines etc.
For handling material equipment we have E.O.T Cranes of different capacity and one Escort make Mobile Crane of 3 MT capacity. Their Machine-Shop also have Cooper CBH make Horizontal Boring Machines, TOS( Czechoslovakia) make Gear Hobbing Machine, Portable Boring Machines, Radial Drilling Machines and Vertical Turning Lathe. They also have quality Control Dept. and testing equipments which is always on guard to ensure better quality standards
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.41.96 |
|
UK Pound |
1 |
Rs.83.78 |
|
Euro |
1 |
Rs.65.82 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
76 |
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 |
|