MIRA
INFORM REPORT
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Report Date : |
31.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
SUNIL HITECH ENGINEERS LIMITED |
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Registered Office : |
Ratnadeep, Jayanagar Parly, Vaijnath, Beed – 431520, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
29.05.1998 |
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Com. Reg. No.: |
115155 |
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CIN No.: [Company
Identification No.] |
L28920MH1998PLC115155 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NGPS03119E |
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PAN No.: [Permanent
Account No.] |
AAFCS7498N |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed of
the Stock Exchange. |
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Line of Business : |
Manufacturer of Fabrication, Erection, Testing and Commissioning of Thermal
Power Plants |
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 2282784 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established and reputed company meeting its normal
commitments timeously. Trade relations are fair. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
Ratnadeep, Jayanagar Parly, Vaijnath, Beed – 431520, Maharashtra,
India |
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E-Mail : |
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Website : |
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Corporate Office/ Factory : |
97, East High Court Road, Ramdaspeth, Nagpur – 440010, Maharashtra,
India |
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Tel No.: |
91- 712-2562087/88/ 3259214/3257434 |
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Fax No.: |
91- 712-2562091 |
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Email : |
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Website : |
DIRECTORS
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Name : |
Mr. Ratnakar Manikrao Gutte |
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Designation : |
Chairman and Managing Director |
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Profile : |
Mr. Gutte brings in twenty years of rich experience in
project-execution i.e. fabrication, erection testing and commissioning of
power plants. He started his career in the power sector, working as a helper
to a contractor engaged in rendering contractor-ship services to the State
Electricity Board and he grew to the present rank by virtue of his sheer hard
work and great insight. Being a first-generation starter, with his working
knowledge of engineering, finance, banking, taxation, general management and
commercial matters, he empowered the company with the necessary direction for
growth and vision. He has skillfully nurtured the company since its inception
and has established it as one of the leading companies specialized to
undertake work on thermal power plants. His key strength is delivering
qualitative and timeiy services. His forte is strong liaisoning in the
industry. Recently, he was honoured with the "Lifetime Udyog Achievement
Award 2004" and "Great Achiever in Industrial Excellence Award 2004" by EGSI and IOCI respectively. |
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Name : |
Mrs. Sudhamati Ratnakar Gutte |
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Designation : |
Director |
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Profile : |
Mrs. Gutte has more than fourteen years of working experience
looking after the overall management and administration of the company since
its inception. She has been assisting the Managing Director since the
inception of the company and has immensely contributed in the growth ;of the
business via her key strengths like team-building, motivation and managing
administration and back-office functions. She is equally responsible for
nurturing the organization to its present status. |
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Name : |
Mr. Vijay R. Gutte |
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Designation : |
Director |
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Profile : |
Mr. Gutte 23 Years, a post graduate in MBA, specialization is marketing and Finance. He is a fresher having the best of knowledge in the specialized field, has worked on many important projects in the field of Banking, financial, institution, airline industry, taxes in India and many more. His strengths are team building leadership qualities, dedication towards work and getting new working style in the company. |
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Name : |
Mr. Sunil Ratnakar Gutte |
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Designation : |
Director |
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Profile : |
Mr. Gutte joined the company as a management trainee,
armed with a degree in Mechanical Engineering from Pune, Maharashtra, To hone
his skills; he underwent rigorous training at BHEL's Welding Research
Institute in TiruchirapaUi on Welding Technology. He also completed an
intensive training programme in project management from KM, Ahmedabad, to
have a broader perspective of the functioning of the company. By virtue of
his zeal and creativity, sound inter-personal relations and effective ability
to motivate members of the Board on one hand and the work-force on the other,
he has helped to synergise the human resource assets in the company. He rose through the ranks to the post of General Manager, and
in the month of 2005, he was promoted as the Executive Director reporting to
the Board of Directors of the company. He revamped the technological
capabilities of the company. He has pioneered change in the management
structure, reporting standards, structured decision-making and HR policy. |
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Name : |
Mr. Mattathil Narayanan Mohanan |
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Designation : |
Director |
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Profile : |
Mr. Mohanan has twenty-nine years of rich experience and is the "Execution Man' in the company. His wide experience in power sector projects and his ability to handle a targe number of projects at a time have made him an invaluable asset to the company. He has experience in the field of fabrication and construction of heavy steel structures, boilers, auxiliaries and electrostatic precipitators among other equipment such as power cycle piping and IP piping, he has headed many key projects with various reputed customers of the company and under his able administration; these have been completed well ahead of schedule. |
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Name : |
Mr. S. K. Kodandaramaih |
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Designation : |
Director |
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Profile : |
Mr.
Kodandaramaiah, is a postgraduate in Mechanical Engineering with more than thirty-two
years of experience in the power sector. His twenty-one years in Bharat Heavy
Electricals Limited (BHEL) have helped him gain wide exposure in various
areas such as project management, construction, management, commerce,
contracting and overseas marketing to name a few. He was also part of the
export market- Ing team that helped BHEL Western Region to implement the 120
MW turn-key export job in Malaysia. He was involved in the execution of
installing power plants of more than 4000 MW capacity. In
addition to this, he was appointed as Executive Director (Commerce) in
General Electric Power (GE) Services Ltd. Hew Delhi for five years. He has
also worked
as Advisor for one year to Dharnwari Sunda Hydro-Electric Company in the
development of the 70 MW Hydro-Power Project in Himachal Pradesh, He also has
to his credit a training programme at Oslo University, Norway in 'Energy
Planning and Environment'. |
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Name : |
Mr. Sajid Ali |
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Designation : |
Independent Director |
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Profile : |
Mr. Ali
is a graduate engineer with 40 years of experience in the erection and
commissioning of equipment in coke oven plants, piping, boiler erection,
turnkey projects. He has vast knowledge about the planning and execution of
various projects and has handled large-volume projects. His forte is able
administration. He was in charge of total construction management of the
power sector for BHEL, Western region, in 1994. |
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Name : |
Mr. Dilip Ghanekar |
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Designation : |
Independent Director |
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Profile : |
After his graduation from V.R.C.E., Nagpur, Mr. Ghanekar worked for thirty six years in Maharashtra State Electricity Board. He has experience in operation, maintenance, construction and planning ofpower stations with a capacity of 500 MW units. He has also been in charge of global procurement of equipment and encouragement of non-conventional energy development of contracts for power purchase. He retired as Technical Director, MSEB. He has also undergone a four-week customer training programme at M/s. Combustion Engineering U.S.A. as weft as another four-week training programme on Coal Technology and Environment. Conducted by the United Nations in Australia. |
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Name : |
Mrs. Sarita Rathi |
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Designation : |
Independent Director |
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Profile : |
Ms. Rathi a diploma-holder in Business Management has completed an intensive programme on Self-Managing Leadership for entrepreneurs and managers conducted by experts from Paris and Australia, at Mount Abu. She has also undergone a training programme on value-based education held at Oxford Retreat, London. She also provides training in human resource development to many companies such as Thermax Limited and KSB Pumps Limited to name a few |
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Name : |
Mr. Kamlakar G. Holkar |
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Designation : |
Independent Director |
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Profile : |
Mr.
Holkar, an engineer from Ujjain University, served BHEL, an esteemed
organization in the power sector for over four decades. He retired from BHEL
as General Manager (Western Region). During his tenure, he had also undergone
a specialized training programme in General Electric, UK. He
has a sound experience in manufacturing, construction, testing,
commissioning, repair and services in the power sector. He has to his credit
the construction, testing and commissioning of a 500 MW thermal power plant
at Chandrapur for the MSEB, a task that was accomplished in record time. His
key strength is powerful leadership through efficient and effective
administration resulting in fast-track completion of important projects. |
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Name : |
Mr.
Parag A. Sakalokar |
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Designation : |
Additional
Director |
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|
Name : |
Mr.
Swill R. Gutte |
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Designation : |
Joint
Managing Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter Group |
6530990 |
65.15 |
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FLs/Banks |
2500 |
0.02 |
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Foreign Institutional Investors |
89353 |
0.90 |
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Bodies Corporate Public and Others |
652703 |
6.51 |
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NRIs |
2696623 |
26.90 |
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52991 |
0.52 |
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Total |
10025160 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Fabrication, Erection, Testing and Commissioning of Thermal
Power Plants |
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Products : |
·
Fabrication ·
Erection · Thermal Power Plants |
GENERAL
INFORMATION
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Suppliers : |
· Maruti Weld · Shree Pavitra Industries · Fuision Engineering Products Limited · Vikrants Ropes Private Limited · Panchsheel Fasteners ·
Orion Ropes Private Limited |
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Bankers : |
· UCO
Bank · State
Bank of India · Union
Bank of India · HSBC
Bank · ABN Amro Bank · HDFC Bank
Limited · ICICI Bank
Limited |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Associates/Subsidiaries : |
· Essar
Engineering Works · Trimurti
Engineers · Vijay
Construction Company · Sunil Hi-Tech
Engineering and Manufacturing Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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12000000 |
Equity Shares |
Rs.10/- each |
Rs.120.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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10025160 |
Equity Shares |
Rs.10/- each |
Rs.100.251
Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
100.252 |
100.252 |
65.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
470.444 |
408.970 |
50.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
570.696 |
509.222 |
116.200 |
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LOAN FUNDS |
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1] Secured Loans |
350.699 |
110.749 |
99.300 |
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2] Unsecured Loans |
92.969 |
27.283 |
52.800 |
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TOTAL BORROWING |
443.668 |
138.032 |
152.100 |
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DEFERRED TAX LIABILITIES |
1.629 |
2.029 |
0.000 |
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TOTAL |
1015.993 |
649.283 |
268.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
378.988 |
188.375 |
130.800 |
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Capital work-in-progress |
5.228 |
1.000 |
7.800 |
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INVESTMENT |
39.000 |
52.000 |
5.100 |
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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 |
117.026
|
63.067 |
43.200 |
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Sundry Debtors |
497.123
|
281.763 |
162.700 |
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Cash & Bank Balances |
12.125
|
6.774 |
42.800 |
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Other Current Assets |
152.199
|
193.581 |
0.000 |
|
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Loans & Advances |
241.866
|
148.543 |
74.200 |
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Total
Current Assets |
1020.339
|
693.728 |
322.900 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
435.759
|
295.629 |
183.500 |
|
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Provisions |
0.000
|
0.000 |
14.800 |
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Total
Current Liabilities |
435.759
|
295.629 |
198.300 |
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Net Current Assets |
584.580
|
398.099 |
124.600 |
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MISCELLANEOUS EXPENSES |
8.197 |
9.809 |
0.000 |
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TOTAL |
1015.993 |
649.283 |
268.300 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
1448.046 |
1327.426 |
679.400 |
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Other Income |
25.948 |
7.836 |
11.400 |
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Total Income |
1473.994 |
1335.262 |
690.800 |
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Profit/(Loss) Before Tax |
119.556 |
82.535 |
41.000 |
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Provision for Taxation |
43.881 |
26.643 |
18.000 |
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Profit/(Loss) After Tax |
75.675 |
55.892 |
23.000 |
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Expenditures : |
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Manufacturing Expenses |
633.583 |
490.613 |
428.300 |
|
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Administrative Expenses |
51.892 |
37.474 |
33.900 |
|
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Raw Material Consumed |
0.000 |
0.000 |
101.700 |
|
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Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
|
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Consumption of stores and spares parts |
552.333 |
629.524 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
0.000 |
|
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Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
0.000 |
|
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Personal Cost |
69.537 |
42.749 |
41.400 |
|
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Payment to Auditors |
0.000 |
0.000 |
0.000 |
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Interest |
32.989 |
23.495 |
13.315 |
|
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Insurance Expenses |
0.000 |
0.000 |
0.900 |
|
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Power & Fuel |
0.000 |
0.000 |
8.500 |
|
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Depreciation & Amortization |
44.103 |
28.871 |
20.500 |
|
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Other Expenditure |
0.000 |
0.000 |
1.285 |
|
Total Expenditure |
1384.437 |
1252.726 |
649.800 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
31.03.2008 4th
Quarter |
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|
|
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Sales turnover |
453.700 |
694.700 |
791.000 |
1123.800 |
|
Other income |
3.600 |
2.600 |
4.700 |
5.500 |
|
Total income |
457.300 |
697.300 |
795.700 |
1129.300 |
|
Total expenditure |
377.700 |
581.400 |
669.800 |
952.600 |
|
Operating profit |
79.600 |
115.900 |
125.900 |
176.700 |
|
Interest |
12.400 |
17.900 |
25.200 |
35.800 |
|
Gross profit |
67.200 |
98.000 |
100.700 |
140.900 |
|
Depreciation |
15.700 |
18.000 |
23.100 |
29.200 |
|
Tax |
17.900 |
28.000 |
28.200 |
39.500 |
|
Reported PAT |
34.400 |
52.400 |
50.500 |
72.200 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
0.54 |
0.47 |
1.56 |
|
Long Term Debt Equity Ratio |
0.27 |
0.31 |
1.12 |
|
Current Ratio |
1.67 |
1.70 |
1.25 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.64 |
5.54 |
4.20 |
|
Inventory |
16.10 |
24.97 |
22.65 |
|
Debtors |
3.72 |
5.97 |
5.29 |
|
Interest Cover Ratio |
4.57 |
4.51 |
3.81 |
|
Operating Profit Margin (%) |
13.43 |
10.17 |
11.20 |
|
Profit Before Interest and Tax Margin (%) |
10.39 |
7.99 |
8.18 |
|
Cash Profit Margin (%) |
8.26 |
6.39 |
6.40 |
|
Adjusted Net Profit Margin (%) |
5.22 |
4.21 |
3.39 |
|
Return on Capital Employed (%) |
18.48 |
23.77 |
29.00 |
|
Return on Net Worth (%) |
14.19 |
18.25 |
30.75 |
LOCAL AGENCY
FURTHER INFORMATION
INDUSTRY
OVERVIEW
India needs US $150 billion over a period of five years to
meet power requirements.
The total installed capacity in India as on January 1, 2007 in
the country is 127,925 MW, of which 84,192 MW is thermal, 33,541 MW is
hydro/wind, 3,900 MW is nuclear and 6,190 MW is in the form of renewable energy
sources.
Currently, there are seventeen State Electricity Boards
(SEE) in operation and these generate over 70 percent of the electricity that
is supplied in the country.
The annual peak demand-supply gap (peak shortage) has risen
to about 11 percent in 2006 from 7 percent in 2005.
The sector requires an integrated growth in generation,
transmission and distribution.
Power has gained importance due to the increasing
demand-supply gap. The Government has set an ambitious target of providing
Power for All' during Eleventh Plan. Based on the 16th Electricity Power Survey
prepared by the CEA, India would require an additional capacity creation of
nearly 100,000 MW by 2012 to achieve this goal.
The T&D system in India is a three-tier structure
comprising regional grids, state grids and distribution networks. The
distribution network and the state grids are owned and operated by SEBs or
State Governments through SEBs. Most of the inter-state transmission links are
owned and operated by Power grid. In order to facilitate the transfer of power
between neighbouring states, state grids are inter-connected to form regional
grids. More orders are expected to flow in the transmission segment as a result
of growth in the generation area.
Of late, there has been an increase in the setting up of
captive power plants in various industries. There are approximately 1,627
factories in India with captive power plants at an installed capacity exceeding
20,000 MW in aggregate. It is estimated that the demand for power from captive
power plants will reach an additional 1,500 MW to 2,000 MW per year.
The Government has continued with its policy of boosting the
power sector with the announcement of two more Ultra Mega Power Projects (UMPP)
and five other power projects in the 2007- 2008 Budget. In addition, there is a
provision to set up merchant power plants through the participation of private
developers in transmission projects. This provision will increase the pace of
power distribution projects due to easy availability of funds.
The Government has made an increase in the budgetary
allocation of the Accelerated Power Development and Reforms Project (ARDP) with
a jump from Rs.6.5 billion in FY 2007 to Rs.8 billion in FY 2008. The fund
provision for the Rajiv Gandhi Grameen Vidyutikaran Yojna has also been
increased from Rs. 30 billion to Rs.39.8 billion.
MARKET
DYNAMICS AND THE GREAT PARADIGM SHIFT IN THE POWER SECTOR:
1) An addition of 100,000 MW has been planned in the tenth
and Eleventh Plans up to 2012.
2) The GDI and Power Finance Corporation are planning
massive investments in rehab to upgrade old units.
3) The NTPC intends to have a capacity of 46,000 MW by 2012,
which amounts to a hike of nearly 50% in its expansion schemes, as per the
Eleventh Plan.
4) Reliance Energy is planning 20,000 MW of power generation
capacity in the next five to seven years.
5) Reliance Energy has achieved a breakthroughby undertaking
the EPC jobs with a Rs.20000.000 Millions order for the 2x300 MW Yamuna Nagar
Project.
6) The new Electricity Act, 2003 can fuel both captive and
IPP sectors for additional power
COMPANY
OVERVIEW
An ISO 9001:2000 company, Subject was incorporated in 1998.
The Company was established with an objective to engage in the business of
fabrication, construction and commissioning-related works required for power
plants. It has executed projects to set up bunkers, ESPs, boilers, TG sets in
power plants, both in the public and private sectors. Subject is amongst the
very few companies which are firmly focussed in the ever-growing power sector
over the past two decades.
Subject has executed many projects ranging from the 30 MW
Parli TPS to the 500 MW Korba STPS (Super Thermal Power Station), the
Chandrapur STPS, the Vindhachal STPS, the Talcher STPP (Super Thermal Power
Plant), the Rihandh STPP and also the 250 MW Suratgarh and the 210 MW
Khaperkheda project to name a few.
The major features of the Company's business growth over the
last two decades are stated below:
·
Transformation from a mere labour contractor in 1984 into
the principal contractor for NTPC, BHEL, Jindal, Sterlite and major State Electricity
Boards
·
Undertaking installation of boilers for major players in EPC
for the power sector.
·
Consolidating its position with approximately forty four
under-execution sites spread across the country.
·
Forging new relationships with major players like Punj Lloyd
Limited Micon (Mysore Constructon Company) and SNC (Shankar Narayana
Construction)
·
Entering agreements with foreign EPC contractors like SEPCO
to undertake power plant construction work.
·
Undertaking wide-ranging jobs with material supply for boiler
rehab work.
OPERATIONS
The Company recorded a revenue growth of 9.08 percent to
Rs.1448.050 million. PBTgrew by 44.85 percent to Rs.119.56 million and PAT
increased by 40.18 percent to Rs.78.51 million.
In 2006-07, The Company is commissioning about 20,000 MW
through current projects with a total order book of about Rs.8000.000 million
as of May 2007. In December 2006, The Company set up a manufacturing plant for
high pressure boiler parts to carry out projects not only for the parent
company but also for external clients. The unit earned Rs.50 million in four
months and has orders worth Rs.160 million in this segment. The Company also
earned an income of about Rs.800 million from its power distribution segment.
A detailed analysis of the Company's operations,
segment-wise performance, project review, risk management, strategic
initiatives and financial review a analysis has been given in the Management
Discussion 6t Analysis Report which forms a part of the Annual Report as a
separate section
OUTLOOK
FOR 2007- 08
Growth
The company offers a diversified assortment of products and
services, catering to the Power, Steel and process industries. Such a diverse
portfolio has enabled the company to spread its wings over different areas
across the nation and make a name for itself as an able organization.
2006-07 the company established its operations in various
sectors and the division of orders is as mentioned in the pie chart below: -
Strategic planning for new generation technologies in power
sector:
1. UMPP - Ultra Mega Power Plants
The Government has continued with its policy of boosting the
power sector with the announcement of two more Ultra Mega Power Plant Projects
and five other power projects in the 2007-2008 Budget. In addition, there is a
provision to setup merchant power plants through the participant of private
developers in transmission projects. This provision will increase the pace of
power distribution projects due to easy availability of funds.
The company is systematically acquiring capital assets,
operational skills and required certification so as to enable itself to be
technically qualified for working in UMPP. Various equipments are being
acquired by the company required for execution of UMPP. The company is also
undergoing 18001 OHSAS (Occupational Health and Safety) certification from DNV,
Netherland (Det Norske Veritas) to match the unparallel operational skills with
highest safety standards.
2. CIS Substation (Gas Insulated Substation):
The CIS Substation is a very advance and upgraded
technology. Already this is being used by NTPC and few state electricity
boards. Here there are no manufacturers in India having this technology.
As the company has already forayed into substation jobs in
transmission sector and is executing jobs ranging in the capacity of 132 kv to
220 kv. So looking at the future growth and planning for this sector company
has identified suppliers in Japan for the CIS substation technology and is
bidding for the same.
3. Steel Sector:
Steel sector is one of the high potential sectors identified
by the company for its growth operations. There is going to be tremendous
growth happening in the steel sector via expansions of the existing capacity
and new steel plants to the tune of more than 100 million tons.
The company has already forayed into the steel sector via
two prestigious orders from RINL (Rashtriya Ispat Nigam Limited), Vizag and
Jindal Steel, Vijay Nagar, Bellary for various works like fabrication and
erection of technological structures for castor shop, steel melt shop and
complete execution of sinter plant.
The Company's unexecuted order book stands at Rs.8,000
million as of May 2007 to be executed over 2-2.5 years and hence to maintain
the timelines of the projects the company needs Growth of nearly 50 percent
(Y-oY).
NOTES
ON ACCOUNTS
Term Loan from UCO Bank is secured by way of first
pari-passu charge on specific movable and immovable fixed assets of the Company
procured out of Term Loan.
Working Capital facilities from Consortium Bankers i.e. UCO
Bank, SBI, Union Bank of India and HSBC Bank are secured by way of
hypothecation of stock and book-debts both present and future of the Company,
first pari-passu charge (hypothecation) on the fixed assets, Personal
Guarantees of Chairman, and their relatives.
SEGMENT
INFORMATION
Primary
Segment Reporting: Business Segment
The Company's business segments were classified into
Project, O and M and Supply.
Project
Segment: This segment is engaged in the business of fabrication,
erection and commissioning of Boilers (Power Plants), erecction.Testing,
Commissioning of ESP. O and M Segment: This segment is engaged in the business
of Repair and Maintenance, Overhauling, and Renovations of Boilers and
auxiliaries, Ash Handling Systems etc.
Supply
Segment: This segment is engaged in the business of Supply of
Economizer Coils, Reheater Coils, Raiser Tubes and J Bends at various Thermal
Power Plants.
Inter Segment
Transfer: Segment revenues, segment expenses and segment results
include transfer between business segments that are made based on negotiation
between segments with reference to the costs, market prices and business risks,
within the overall optimization objective for the Company and are comparable
with competitive market prices charged to external customers. Inter-segment
transfer are eliminated on consolidation.
Fixed Assets:
· Land
· Building
· Plant and Machinery
· Computer and Printer
· Furniture and Fixture
· Vehicles
· Computer Software
Website Details:
An ISO
9001:2000 company, Subject has established itself as one of the best in human
resources, firmly focused in the ever-growing Power Sector.
The
company specializes in Fabrication, Erection, Testing and Commissioning of
Thermal Power Plants with high precision quality and timeliness. They have come
a long way by stabilizing their operations with an annual turnover of around
Rs.3063 million. They have also acquired sufficient assets by way of heavy
construction equipment and best of the human resources with adequate
experience, enough to compete with large Corporate.
Bring in high level of project execution skills, meeting customer benchmarks, Serve customers and satisfy them for timely completion of projects with quality. Introduce and implement quality systems in its operations. Achieve greater productivity and safety standards. Develop human resources and improve employee attitudes. Maintain good growth of net worth and build on the assets of the company.
Milestone:
Subject has undergone a constant process of learning. And
that too learns through the most effective means of education-Experience. It is
the company's experience of over 23 years that has enabled it to successfully
complete projects of high magnitudes. Some of the company's major achievements
include:
·
Involved in the fast track construction of 500 MW, 7th unit
at Chandrapur, Completed 8500 MT
of Power House Structures in 18 months against 24 months schedule.
·
Completion of major rehabs involving 7000 field joints of
pressure parts work of repairing and reversing of economizer coils in less then
40 days at NTPC Korba
·
At Suratgarh
250MW (RRVUNL) Structural Work, Fabrication and Erection, in a single month of
2340 MT and 1800 MT respectively. Fabrication and Erection in a single year of
9400 MT and 9100 MT respectively. Work completed to suit fast track completion
of 28 months from financial closure.
·
At U-2 Chandrapur
STPS Completed Reheater replacement within the scheduled time of 25 days
and complete total replacement of Condenser Tubes in a record time of 35 days
·
At Chandrapur
(500 MW) and Suratgarh (250MW)
Boiler Aux. Work completed to suit fast track commissioning program.
·
Completed 210 MW Boiler erection work to suit the fast track
program at MSEB Khaparkheda 3rd
Unit.
·
At NTPC Talcher
(2x500 MW) Structural Work Fabrication and Erection in a single month 1947 MT
and 1879 MT respectively. Fabrication and Erection in a single year of 15478 MT
and 13447 MT respectively.
·
Completed total replacement of LTSH, Economiser Coils, HRH
including Hangers, terminal and supply tubes replacement was done in a span of
25 days involving 5400 HP Joint at Tuticorin
TNEB.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.59 |
|
UK Pound |
1 |
Rs.84.16 |
|
Euro |
1 |
Rs.65.99 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|