MIRA
INFORM REPORT
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Report Date : |
18.10.2008 |
IDENTIFICATION DETAILS
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Name : |
INSTRUMENTATION
LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
21-03-1964 |
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Com. Reg. No.: |
001174 |
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CIN No.: [Company
Identification No.] |
U29299RJ1964GOI001174 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JDHI01148A |
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PAN No.: [Permanent
Account No.] |
AAACL4212G |
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ECC
NO : |
AAACL 4212GXM001 |
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TIN
NO : |
32090201425 |
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CST
No : |
0902C123539 |
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Legal Form : |
A Government of India Company |
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Line of Business : |
Subject is engaged in
Hi-Tech Electronics For Control And Instrumentations Systems For Core Sector
Process Industry, Digital Telephone Exchanges In Telecommunication Sector,
Advanced Signalling Systems For Railways and Defence Electronics
Equipment. |
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 : |
--- |
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Status : |
Moderate |
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Payment Behaviour : |
Slow and delayed |
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Litigation : |
Clear |
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Comments : |
Subject is a Government of India Company and not faring well. It has
been incurring huge losses. The company has large accumulated losses due to which it faces
liquidity problems. Its payments are slow. As such, company is owned by Government of India, lenders and
creditors can feel its exposure. However, some caution is suggested in view of growing losses. |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-744-2424591-98
/ 2423381-85 / 2427394-97 / 2428036-39 |
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Fax No.: |
91-744-2424322 / 2422505 / 2425510 |
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E-Mail : |
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Website : |
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Telex : |
0305-203 and 227 |
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Guest Houses : |
v
IL Guest House, IL Township, Contact Person : Mr. D. C. Gupta (Senior Manager) v
IL Guest House, IL Township, Kanjikode West,
Palakkad – 578 623, Kerala Contact Person : Mr. C. Damodaran (Deputy Manager – P and A) |
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Resident
Representative : |
7th Floor, Core 6, SCOPE Complex, |
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Tel. No.: |
91-11-24360882 |
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Fax No.: |
91-11-24360905 |
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Contact Person : |
Mr. Anil Sharma – Branch Manager |
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Factory : |
Located at : ˜
˜ Jaipur, Rajasthan ˜
Kanjikode West ( Tel : 91-491-2566127-130 Fax: 91-491-2566135/2566240 |
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Regional Offices : |
Located at : v Kolkatwa, v Secunderabad,
Andhra Pradesh v |
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Branches : |
Located at : v
v
Kolkata, v
Mumbai, v Chennai, Tamilnadu v Jaipur, Rajasthan |
DIRECTORS
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Name : |
Mr. Niranjan Sinha |
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Designation : |
Director |
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Name : |
Mr. Naresh Vij |
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Designation : |
Chairman and Managing
Director |
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Name : |
Mr. D C Samant |
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Designation : |
Director |
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Name : |
Mr. A R Kale |
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Designation : |
Director |
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Name : |
Mr. Raghu Dayal |
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Designation : |
Director |
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Name : |
Mr. R G Verma |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. A.K. Shringi |
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Designation : |
Company Secretary |
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Name : |
Mr. V S Ranka |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
The company’s entire share capital is held by the Government of India.
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in
Hi-Tech Electronics For Control And Instrumentations Systems For Core Sector Process
Industry, Digital Telephone Exchanges In Telecommunication Sector, Advanced
Signalling Systems For Railways and Defence Electronics Equipment. |
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Products : |
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Exports : |
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Countries : |
USSR, Romania, Hungary, Saudi Arabia, Cyprus, Doha,
Russia, Zambia, Malta, Egypt, Bangladesh, Singapore, Oman, Sudan and
Malaysia. |
GENERAL INFORMATION
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Customers : |
˜
Bharat Heavy
Electricals Limited ˜
Engineers India
Limited ˜
Tata Consulting
Engineers ˜
Toyo Engineering ˜
National Thermal
Power Corporation ˜
Chemtax
Engineering ˜
Tata Honeywell ˜
State Electricity
Boards of all States ˜
DVC ˜
ABB ˜
Gas Authority of
India Limited ˜
Reliance
Industries Limited ˜
Steel Authority of
India Limited ˜
Larsen and Toubro
Limited ˜
Thermax Limited ˜
ICI Limited ˜
FACT ˜
FEDO ˜
HPCL ˜
UHDE |
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No. of Employees : |
2168 |
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Bankers : |
˜
State Bank of ˜
State Bank of
Travancore, Kerala |
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Banking
Relations : |
--- |
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Auditors : |
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Name : |
C. M. Birla and Company Chartered Accountants |
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Collaborators : |
˜
˜
H and B, ˜
˜
˜
Technical Collaboration with : ˜
Yamatake Corporation,
˜
Nuove – ˜
Segault SA, France
– Bellows Sealed Valves ˜
L. |
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Associates : |
All Government of India Undertaking Companies |
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Subsidiaries |
Rajasthan Electronics and Instruments Limited, Jaipur, Rajasthan |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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25000000 |
Equity Shares |
Rs.10/- Each |
Rs.250.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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24045300 |
Equity Shares |
Rs.10/- Each |
Rs.240.500 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 |
240.500 |
240.500 |
240.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
(2927.800) |
(2649.800) |
(2404.700) |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
(2687.300) |
(2409.300) |
(2164.200) |
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LOAN FUNDS |
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1] Secured Loans |
887.200 |
894.200 |
607.600 |
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2] Unsecured Loans |
3243.200 |
2837.700 |
2245.900 |
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TOTAL BORROWING |
4130.400 |
3731.900 |
2853.500 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1443.100 |
1322.600 |
689.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
123.900 |
131.200 |
144.600 |
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Capital work-in-progress |
0.800 |
0.800 |
0.000 |
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INVESTMENT |
17.500 |
17.500 |
12.300 |
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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 |
652.500
|
661.900 |
630.900 |
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Sundry Debtors |
1314.700
|
1060.400 |
934.800 |
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Cash & Bank Balances |
426.400
|
425.300 |
175.400 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
602.200
|
530.200 |
536.400 |
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Total
Current Assets |
2995.800
|
2677.800 |
2277.500 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1842.100
|
1682.600 |
1939.300 |
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Provisions |
26.000
|
25.900 |
30.500 |
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Total
Current Liabilities |
1868.100
|
1708.500 |
1969.800 |
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Net Current Assets |
1127.700
|
969.300 |
307.700 |
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MISCELLANEOUS EXPENSES |
173.200 |
203.800 |
224.700 |
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TOTAL |
1443.100 |
1322.600 |
689.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
2280.900 |
2188.000 |
1763.800 |
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Other Income |
210.600 |
162.500 |
160.300 |
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Total Income |
2491.500 |
2350.500 |
1924.100 |
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Profit/(Loss) Before Tax |
(273.700) |
(239.600) |
(169.800) |
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Provision for Taxation |
4.300 |
5.500 |
0.000 |
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Profit/(Loss) After Tax |
(278.000) |
(245.100) |
(169.800) |
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Expenditures : |
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Raw Material Consumed |
1279.700 |
1290.000 |
653.300 |
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Excise Duty |
111.600 |
135.300 |
129.600 |
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Increase/(Decrease) in Finished Goods |
(1.300) |
18.300 |
(230.700) |
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Power & Fuel |
29.400 |
30.200 |
25.300 |
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Other Manufacturing Expenses |
419.100 |
261.500 |
771.200 |
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Employees cost |
387.600 |
373.900 |
356.200 |
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Selling and Administration Expenses |
79.400 |
89.400 |
45.100 |
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Miscellaneous Expenditure Capitalized |
80.900 |
64.000 |
102.500 |
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Interest and Financial Charges |
365.000 |
312.200 |
223.300 |
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Depreciation & Amortization |
13.800 |
15.300 |
18.100 |
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Total Expenditure |
2765.200 |
2590.100 |
2093.900 |
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KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Current Ratio |
1.15 |
1.12 |
1.05 |
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TURNOVER RATIOS |
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Fixed Assets |
3.37 |
3.25 |
2.64 |
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Inventory |
3.47 |
3.38 |
3.41 |
|
Debtors |
1.92 |
2.19 |
1.99 |
|
Interest Cover Ratio |
0.25 |
0.23 |
0.24 |
|
Operating Profit Margin(%) |
4.61 |
4.02 |
4.06 |
|
Profit Before Interest And Tax Margin(%) |
4.00 |
3.32 |
3.03 |
|
Cash Profit Margin(%) |
(11.58) |
(10.50) |
(8.60) |
|
Adjusted Net Profit Margin(%) |
(12.19) |
(11.20) |
(9.63) |
|
Return On Capital Employed(%) |
0.00 |
0.00 |
10.67 |
|
Return On Net Worth(%) |
0.00 |
0.00 |
8.17 |
LOCAL AGENCY FURTHER INFORMATION
WEBSITE DETAILS
PROFILE
Self reliance in
Control and Instrumentation and the growing need for an indigenous source of supply
of C and I systems for core industries like Power, Steel, Oil, Gas, Refineries,
Petrochemicals And Chemicals – it was to achieve this prime objectives that Subject was established at Kota,
Rajasthan in 1964. This unit started manufacturing a wide range of electronic
and pneumatic instruments in collaboration with world renowned leaders like
The second unit was established exactly a decade later at Palakkad dedicated to
the manufacture of control valves, butterfly valves, pressure reducing valves
and allied equipments required for the C and I packages being supplied by IL on
a turnkey basis.
LEADERSHIP IN PROCESS CONTROL INSTRUMENTATION
Pioneer of C and I
in
In
Not only thus subject conserve and earn precious
foreign exchange, it has also played a dominant role in making
Subject, Palakkad started its operations in collaboration with M/s Yamatake Honeywell Co. Limited, Japan
(YH) the world renowned leader in process control instrumentation
including final control elements like control valves etc.
Today, subject plays a vital support role for
a very wide spectrum of industrial enterprises in
Further to being market leader in India, have
contributed significantly to the export market, with supplies to erstwhile USSR, Rumania, Hungary, Saudi
Arabia, Zambia, Malta, Egypt, Bangladesh, Singapore, Malaysia, etc.
Since 1974, Flow Products Division of subject has been assimilating and
harnessing technology from around the world, for dedicated application across
wide ranging needs related to fluid-flow and control.
Subject's manufacturing range spans Control Valves, Butterfly Valves, Safety
Relief Valves, Flow Elements, Power Cylinders, Pneumatic Actuators, Electrical
Actuators, Pressure Reducing and Desuperheating stations and allied
accessories.
Capacity 10000 numbers/Year
The manufacturing facility is rated as one of
the best in
Subject has bagged major orders against stiff
global competition. SUBJECT has entered into rate contract agreements with
major customers to supply valves as original equipment.
Subject has been approved by PDO,
ISO-9001
CERTIFICATION
Subject, Palakkad, is the first
control valve manufacturer in
DELIVERY
The excellent sub-vendor base developed by
Palakkad Unit caters short term delivery requirements of fast track projects.
They have also substantially added to their manufacturing capacity to
facilitate faster delivery to their customers.
Valve size less than 6" can be delivered
in 6 to 8 weeks from the date of receipt of firm order and in 8 to 10 weeks for
valves of sizes above 6" and high pressure valves.
TECHNICAL
EXPERTISE/ AFTER SALES SERVICE
Being in the field of Control Valves for the
last 30+ years, they have got the best manpower trained in the fields of
research, design, application engineering, manufacturing, testing, field claim
abatement techniques and these personnel invariably get together to suggest
optimum design features for solving problems faced during commissioning or
normal operation of plants.
They have also a full fledged after- sales
service department which is adequately stocked with inventory of spare parts
and are in a position to respond to all sorts of problems with regard to
various types of valves within shortest possible time.
Besides, an extensive network of Branch
Offices and Regional offices is available to cater to sales and timely
after-sales support.
CUSTOMER EDUCATION
PROGRAMME
Regular customer education programmes for the
benefit of both Executive and supervisory levels are conducted at Palakkad. In these
programmes, theoretical and practical knowledge is imparted to the participants
in order to carry out preventive maintenance as well as minor modifications/
renovations that might be required at a later stage.
Recently, Indian Oil Corporation Limited has
selected their training team to impart training to customers at
MANUFACTURING
FACILITIES
The facilities for
manufacture and testing of valves - Control valves, Butterfly valves, Rotary
Plug valves, Safety Relief Valves, Pressure Reducing valves, Bellows sealed
valves, Electrical actuators etc. - established at Palakkad plant are one of
the best in this part of the world. Subject is the only company in
A team of
Engineers and Technicians trained for the past so many years are available to
bring out the best quality product. The plant is also equipped with
sophisticated CNC lathes, CNC drilling, machining centre and vertical turret
lathe with a swing of 4.3 Meter, roller burnishing machine, vertical turret
lathes and productivity is of a very high order ensuring quality and
reliability.
A Clean room
facility is created for manufacturing of Bellows sealed Valves. They have with
them special NC machines which not only ensure very high degree of accuracy but
also repeatability and higher productivity. It is a fact that many leading
valve manufacturers in the world have started buying castings from
R
& D CENTRE
R&D Centre is
equipped with the state-of-the-art CAD/CAM facilities. This centres' work
stations are supplied by Hewlett Packard loaded on which are the SDRC Ideas
Software for Design, modeling and FEM analysis along with 'Solid Works' for Solid modeling. A
photo of the valve undergoing FEM analysis is seen in the picture. This
workstation is connected to PCs with Autocad 2005 on Windows 2000 network. This
workstation is directly connected to a CNC machine supplied by HEYLIGENSTAEDT,
Bellows sealed valves developed through inhouse R&D was awarded the Import
Substitution Award by the Government of India for 1990-91.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.48.68 |
|
|
1 |
Rs.84.37 |
|
Euro |
1 |
Rs.65.70 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
-- |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
-- |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
26 |
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 |
|