MIRA
INFORM REPORT
|
Report Date : |
30.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
HINDUSTAN DORR OLIVER LIMITED |
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Registered
Office : |
Dorr-Oliver House, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
26.07.1974 |
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Com. Reg. No.: |
11-017644 |
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Capital
Investment / Paid-up Capital : |
2160174 Euro |
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|
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CIN No.: [Company Identification
No.] |
L74210MH1974PLC017644 |
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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. |
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|
|
|
No. of Employees : |
1200 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
Euro 6797071 |
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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 company with good track. Financials of the company appears to be good. Fundamentals are strong and healthy. Payments are reported to be regular and as per commitments. The company can be considered good for normal business
dealings under usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DECLINED BY
MANAGEMENT NON- COOPERATIVE.
LOCATIONS
|
Registered Office : |
Dorr-Oliver House, |
|
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, G.I.D.C. Vatva, Near Railway Crossing, |
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Tel. No.: |
91-79-25830591/4 |
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Fax No.: |
91-79-25833286 |
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E-Mail : |
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Branch Office : |
Located at: v Mumbai v Ahmedabad v Kolkata v Chennai v Noida v Bengaluru |
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Overseas Office : |
Davy Mrakham Limited, Prince Of Wales Road,
Damall, Sheffield, South Yorkshire, United Kingdom, 59 4 EX |
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Tel. No.: |
44-114-2449971 |
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Fax No.: |
44-114-2449641 |
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E-Mail : |
DIRECTORS
AS ON 10.08.2010
|
Name : |
Mr. Prabhakar Ram Tripathi |
|
Designation : |
Chairman |
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|
|
|
Name : |
Mr. E. Sundhir Reddy |
|
Designation : |
Vice Chairman |
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Name : |
Mr. E. Sunil Reddy |
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Designation : |
Managing Director |
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Name : |
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Designation : |
Executive Director |
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Name : |
Mr. R. Balarami Reddy |
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Designation : |
Non-Executive Director |
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Name : |
Mr. T.N. Chaturvedi |
|
Designation : |
Non-Executive Director |
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|
Name : |
Mr. M.L. Majumdar |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Shiv Dayal Kapoor |
|
Designation : |
Non-Executive Director |
KEY EXECUTIVES
|
Name : |
Ms. Pragya Sahal Kaul |
|
Designation : |
Company
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2011
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
39,804,430 |
55.28 |
|
|
39,804,430 |
55.28 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
39,804,430 |
55.28 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
9,229,401 |
12.82 |
|
|
395,950 |
0.55 |
|
|
4,824,042 |
6.70 |
|
|
14,449,393 |
20.07 |
|
|
|
|
|
|
3,909,584 |
5.43 |
|
|
|
|
|
|
11,763,321 |
16.34 |
|
|
1,217,585 |
16.34 |
|
|
861,495 |
1.20 |
|
|
630,573 |
0.80 |
|
|
3,720 |
0.01 |
|
|
94,502 |
0.13 |
|
|
132,700 |
0.18 |
|
|
17,751,985 |
24.65 |
|
Total Public
shareholding (B) |
32,201,378 |
44.72 |
|
Total (A)+(B) |
72,005,808 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
Total
(A)+(B)+(C) |
72,005,808 |
100.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Euro 1515BUSINESS 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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PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
|
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Filteration |
|
(See Note below) |
(See Note below) |
(See Note below) |
|
Sedimentation |
|
|||
|
Classification |
|
NA |
5782* |
5521 |
|
Centrifugation |
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Pollution Control |
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Fluidisation |
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Miscellaneous |
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* As certified by the Management and relied upon by the Auditors, being a technical matter.
NA – Not Applicable
Note:
By virtue of endorsements made on its Industrial License, the Company within its overall capacity is also permitted to manufacture (i) Pressure Vessels, Reactors, Columns, Horton Spheres and Storage tanks, including glass lined equipments, (ii) Heat transfer equipment and systems, (iii) Solid Liquid Gas Separation Plants including Filteration Systems (iv) Mixing Homogenizing Equipments (v) Natural Gas Crackers including primary reformers (vi) Concentrating and Drying Systems Consisting of Evaporator Systems (vii) Dryers and Drying Systems.
i) Mixers Agitators and Aerators up to 750 Metric Tons p.a.
GENERAL INFORMATION
|
Customers : |
v
Indian
Petrochemicals Corporation Limited v
Indian
Oil Corporation Limited v
National
Fertilizers Limited v
Rashtriya
Chemicals and Fertilizers Limited v
Mangalore
Chemicals and Fertilizers Limited v
Haldia
Petrochemicals Limited v
Indian
Farmers Fertilizers Co-Operative Limited v
Punj
Lloyds Limited v
Samsung
Heavy Industries v
GAIL
India Limited v
Gujarat
Narmada Valley Fertilizers Company Limited v
Gujarat
State Fertilizers Company Limited v
Kinetics
Technology India Limited v
Tecnimont
S. P. A. - v
HPCL
Mittal Energy Limited v
Numaligarh
Refinery Limited v Vedanta Resources PLC. v
Alaqua
Inc., v
G.E.
Infrastructure v
Best
Wide, v
Pan
African Paper v
v
HumBoldt
Wedag, v
TCI
v
L
and T, v
Sky
v
Yaslik
Projects, v
Enmass
Projects, v
v
Aquatech
Asia Limited, |
|
|
|
|
No. of Employees : |
1200 (Approximately) |
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|
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Bankers : |
·
The United Western Bank Limited ·
Indian Overseas Bank ·
Bank of ·
Bank of ·
Andhra Bank |
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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 |
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Address : |
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Internal Auditor : |
V.C.G. and Company |
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Holding Company : |
IVRCL Infrastructures and Projects Limited |
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|
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Subsidiary [The ownership,
directly or indirectly through subsidiary (ies) |
v
HDO Technologies Limited v
IMCO (22010) Limited, ( v
DavyMarkham Holdings Limited, ( v
DavyMarkham Limited, ( v
(with effect from February 28, 2010) |
|
|
|
|
Fellow
Subsidiaries : |
v
IVRCL PSC Pipes Private Limited v
IVR Enviro Projects Private Limited v
IVRCL Assets and Holdings Limited (formerly IVR
Prime Urban Developers Limited) v
IVRCL Steel Constructions and Services Limited v
IVRCL Chengapalli Tollways Limited v
IVRCL Holdings and Services Pte. Limited v
IVRCL Infrastructures and Projects ( |
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|
|
|
Company under
common control : |
v
Indus Palm Hotels and Resorts Limited v
S.V. Equities Limited v
Palladium Infrastructures and Projects Limited v
Soma Hotels and Resorts Limited v
Eragam Holdings Limited v
Eragam Finlease Limited v
A P Enercon Engineers Private Limited |
|
|
|
|
Subsidiaries of
Fellow Subsidiaries : |
v
Jalandhar Amritsar Tollways Limited v
Alkoor Petro Limited v
Salem Tollways Limited v
Kumarapalyam Tollways Limited v
Chennai Water Desalination Limited v
First STP Private Limited v
Sion Panvel Tollways Private Limited v
IVRCL Building Products Limited v
IVRCL Indore Gujarat Tollways Limited v
VA Hotels and Resorts Limited v
Geo IVRCL Engineering Limited v
IVRCL Mega Malls Limited v
HDO Technologies Limited v
Agaram Developers Private Limited v
Papankuzhi Developers Private Limited v
SPB Developers Private Limited v
Mummidi Developers Private Limited v
Samatteri Developers Private Limited v
Annupampattu Developers Private Limited v
Kunnam Developers Private Limited v
Tirumani Developers Private Limited v
Ilavampedu Developers Private Limited v
Haripuram Developers Private Limited v
Chodavaram Developers Private Limited v
Vedurwada Developers Private Limited v
Rudravaram Developers Private Limited v
Gajuwaka Developers Private Limited v
Geo Prime Developers Private Limited v
Theata Developers Private Limited v
Duvvda Developers Private Limited v
IVR Prime Developers (Mylapore) Private Limited v
IVR Prime Developers (Palakkad) Private Limited v
IVR Prime Developers (Guindy) Private Limited v
Gamaa Developers Private Limited v
Simhachalam Prime Developers Private Limited v
Siripuram Developers Private Limited v
Kasibugga Developers Private Limited v
Vijayawada Developers Private Limited v
Eluru Developers Private Limited v
IVR Prime Developers ( v
VA Prime Developers (Amalapura) Private Limited v
IVR Prime Developers (Erode) Private Limited v
VA Prime Developers ( v
VA Prime Developers ( v
IVR Prime Developers (Araku) Private Limited v
VA Prime Developers (Pudukkottai) Private Limited v
Absorption Aircon Engineer Private Limited v
IVA Prime Developers (Vanaprastha) Private
Limited v
IVR PUDL Resorts and Clubs Private Limited v
IVR Prime Developers (Thandiarpet) Private
Limited v
IVA Prime Developers (Gummidipundy) Private
Limited v
IVR Prime Developers (Kodambakkam) Private
Limited v
VA Prime Developers (Arumbakkam) Private Limited v
IVR Prime Developers (Anna Nagar) Private Limited v
IVR Prime Developers (Pallavaram) Private Limited v
IVR Prime Developers ( v
Bibinagar Developers Private Limited v
IVA Prime Developers (Anakapalle) Private Limited v
VA Prime Developers (Rajampeta) Private Limited v
IVR Prime Developers (Tanuku) Private Limited v
IVR Prime Developers (Red Hills) Private Limited v
IVR Prime Developers ( v
IVR Prime Developers (Tuni) Private Limited v
VA Prime Developers (Bobbilli) Private Limited v
IVR Prime Developers (Bhimavaram) Private Limited v
IVR Prime Developers (Valasaravakkam) Private
Limited v
IVR Prime Developers (Adayar) Private Limited v
IVR Prime Developers (Ananthapuram) Private
Limited v
IVR Prime Developers (Perumbadur) Private Limited v
IVR Prime Developers (Egmore ) Private Limited v
IVR Prime Developers (Tambram) Private Limited v
IVR Prime Developers (Ashram) Private Limited v
IVR Prime Developers (Retiral Homes) Private
Limited v
VA Prime Developers (Avadi) Private Limited v
IVR Prime Developers (Alwarpet) Private Limited |
|
|
|
|
Joint Ventures of
Holding Company : |
v
Bhanu — IVRCL Associates v
IVRCL — Tantia v
IVRCL, Sew and Prasad v
IVRCL, Navayuga and Sew v
Navayuga, IVRCL and Sew v
IVRCL Harsha v
SPCL — IVRCL v
IVRCL JL v
UAN Raju IVRCL Construction v
IVRCL KBL v
IVRCL KBL MEIL v
IVRCL CR18G v
IVRCL SEW and WPIL v
IVRCL MBL v
IVRCL BATPASCO WPIL and MHI v
IVRCL BATPASCO ABB and AAG v
IVRCL CR18G Consortium v
MEIL IVRCL HCC and WPIL v
IVRCL — KIPL v
IVRCL — SAISUDHIR v
UNITY — IVRCL v
IVRCL— RAJ v
CR18 G - IVRCL |
CAPITAL STRUCTURE
As on : 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity
Shares |
Euro 0.03 each |
3000000 Euro |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
72005808 |
Equity
Shares |
Euro 0.03 each |
2160174 Euro |
|
|
|
|
|
Note:
Of the above:
(i)
39804430 Equity shares are held by the holding
company, IVRCL Infrastructures and Projects Limited.
(ii)
62463388 Equity shares were issued as fully paid
bonus shares by capitalization of General Reserve.
FINANCIAL DATA
[all figures in
Euro]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2160174 |
1091000 |
1091000 |
|
|
2] Share Application Money |
000 |
000 |
000 |
|
|
3] Reserves & Surplus |
31770469 |
25477000 |
21555196 |
|
|
4] (Accumulated Losses) |
000 |
000 |
000 |
|
|
5] Stock Options |
54712 |
000 |
86500 |
|
|
NETWORTH |
33985355 |
26568000 |
22732696 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
11910787 |
2359030 |
6169575 |
|
|
2] Unsecured Loans |
000 |
000 |
000 |
|
|
TOTAL BORROWING |
11910787 |
2359030 |
6169575 |
|
|
DEFERRED TAX LIABILITIES |
247181 |
143424 |
000 |
|
|
|
|
|
|
|
|
TOTAL |
46143323 |
29070454 |
28902271 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
11571909 |
10016606 |
6036484 |
|
|
Capital work-in-progress |
342818 |
326000 |
511212 |
|
|
|
|
|
|
|
|
INVESTMENT |
266757 |
257954 |
529060 |
|
|
DEFERREX TAX ASSETS |
000 |
000 |
000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7601424 |
4719348 |
7107606 |
|
|
Sundry Debtors |
25334636 |
23578666 |
17714272 |
|
|
Cash & Bank Balances |
637712 |
3736439 |
5636727 |
|
|
Other Current Assets |
45036757 |
30452060 |
20279363 |
|
|
Loans & Advances |
15154287 |
12637227 |
5905242 |
|
Total
Current Assets |
93764816
|
75123740
|
56643210
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
42095166
|
30598590 |
28311969
|
|
|
Other Current Liabilities |
16229803
|
25138197
|
5912970
|
|
|
Provisions |
1456181
|
917060
|
623212
|
|
Total
Current Liabilities |
59781150
|
56653847
|
34848151
|
|
|
Net Current Assets |
33983666
|
18469893
|
21795059
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
000 |
000 |
000 |
|
|
Others |
(21827) |
1 |
30456 |
|
|
|
|
|
|
|
|
TOTAL |
46143323 |
29070454 |
28902271 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
130774575 |
78076984 |
46083272 |
|
|
|
Other Income |
903045 |
1055166 |
680257 |
|
|
|
TOTAL (A) |
131677620 |
79132150 |
46763529 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Sales and Services |
104087333 |
62748893 |
36744696 |
|
|
|
(Increase)/Decrease in Inventories |
(372606) |
(564575) |
(512333) |
|
|
|
Operating and Administrative Expenses |
11775363 |
8150075 |
4841303 |
|
|
|
TOTAL (B) |
115490090 |
70334393 |
41073666 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
16187530 |
8797757 |
5689863 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST AND
FINANCIAL EXPENSES (D) |
2666818 |
1211621 |
190924 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
13520712 |
7586136 |
5498939 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
832984 |
512969 |
363545 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
12687728 |
7073167 |
5135394 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
4276077 |
2503516 |
1705713 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
8411651 |
4569651 |
3429681 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5167181 |
3963015 |
3429681 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
872803 |
545500 |
327303 |
|
|
|
Corporate Dividend Tax |
144954 |
92712 |
55621 |
|
|
|
Transfer to General Reserve |
3787878 |
2727 |
1818181 |
|
|
BALANCE CARRIED
TO THE B/S |
8773196 |
5167181 |
2201105 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
|
197878 |
91303 |
1171863 |
|
|
|
Freight and insurance recoveries |
7606 |
2227 |
80363 |
|
|
|
Recovery of Cost |
2248484 |
000 |
000 |
|
|
TOTAL EARNINGS |
2453968 |
93530 |
1252226 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Cost of systems, equipments, components, spares and services |
7121318 |
1727393 |
1527272 |
|
|
|
Capital Expenditure (Import of machineries) |
000 |
416106 |
000 |
|
|
TOTAL IMPORTS |
7121318 |
2143499 |
1527272 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Euro) |
0.11 |
0.06 |
0.04 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
6.38
|
5.77 |
7.33 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.70
|
9.05 |
11.14 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.04
|
8.30 |
8.19 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.37
|
0.26 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.11
|
2.22 |
1.80 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.56
|
1.32 |
1.62 |
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
PERFORMANCE:
The Company delivered another year of splendid performance despite a very difficult market scenario that was characterised by extremely volatile financial, commodity and consumer markets.
The Company, by maintaining its strong leadership position in proven fields, achieved the turnover of Euro 130774575 (previous year Euro 78076984). This was due to robust business traction across the EPC and manufacturing divisions. Further, the year ended with an impressive all around operational performance with Profit before Tax at Euro 12687727 (previous year Euro 7073166), a healthy rise of 79.38% over the previous year, whereas Profit after Tax increased by 84.08%.
These results were achieved through a focused strategy of leveraging upon their strong presence in the existing industry verticals and at the same time, by tapping the opportunity presented by a growing economy.
During the year, one of the prestigious projects bagged by the company includes a complete water management system project for HMEL-Guru Gobind Singh Refinery of 9 MMTPA capacity coming up at Bhatinda, Punjab at a value of more than Euro 45454545. The complete package comprised Raw Water Treatment facility, DM/RO Plant and Effluent Treatment with modern eco-friendly technologies. This has given them the confidence that going forward, HDO can look at complete water management in the petroleum refineries.
The manufacturing facility has achieved another milestone of manufacturing a Huge Pressure Vessel called Autoclave which is the most critical equipment in Uranium ore Processing. This equipment was manufactured under stringent quality checks and inspection by Llyods and Bateman of South Africa. Their manufacturing facility has been upgraded with latest fabrication equipments like CNC tube sheet drilling machine, plasma cutting machine, plate bending machine and gearability machine at their factory premises.
Engineers India Limited has accredited HDO with higher fabrication of stainless steel and carbon steel -Pressure Vessels from 30 MT weight to 100 MT and tube sheet thickness from 100 mm to 240 mm and for critical metallurgy like low temperature steel non-ferrous metal and clad construction equipment.
ACQUISITION OF
DAVYMARKHAM:
The Company continues to pursue the strategy of acquiring companies, globally, which complement their capabilities, provide access to niche skill sets and expand their presence in select geographies.
Hindustan
Dorr-Oliver has acquired a 100%
stake in Sheffield,
DavyMarkham Limited is a 180 year old manufacturing company involved in the design, manufacture and assembly of large equipment used in mining, quarrying, power generation, oil, gas and nuclear sectors. DavyMarkham Limited provides total engineering capability for extremely large turnkey projects, and manages the project throughout the whole process from engineering design, fabrication, machining to installation and commissioning of heavy and complex components and assemblies.
HDO intends to utilise Davy Markham's presence and contacts along with its Engineering Capabilities in the oil, gas and power transmission markets in the Indian Market.
FUTURE PROSPECTS:
The company's efforts are consistently directed towards the upgradation of its strategic capability to effectively address the challenge of growth in an increasingly competitive market scenario. The vision of becoming a global corporate entity through world-clasl performance has been put into action through creation of multiple business drivers of growth which has synergies with existing skill and competency.
HDO continues to tap opportunities in emerging as well as existing industry verticals some of which include
a) Material Handling systems
b) Iron
c) Nuclear Power Plant: Component/Manufacture
d) Coal Washeries
e) Power Sector
f) Hydrocarbon sector
Material Handling
Systems:
Material
handling is an
important aspect of all
process industries. Material handling
equipment like long distance Belt
Conveyors, Rapid loading systems,
Belt trippers, Screw Conveyors, Stackers, Reclaimer, etc. are required for the transfer of mined
ore to Process plant areas. HDO has
a technical tie up with FMC Technologies
Limited Inc., a
The natural mineral resource
The process of converting Iron ore fines into uniform size
iron ore pellets is called pelletization
and these can be in blast furnace or in DRI
Kiln. The pelletization plants
are a highly profitable proposition for
HDO has already tied up with the world leader for Technology of pelletization and has bid for jobs with NMDC/JSPL.
Nuclear Power Plant:
Component/Manufacture
After signing the
Nuclear Policy with Super Powers, Nuclear
Power Plants has become a
potential area of growth. Large global technology players have ventured into
Coal Washeries:
Power sector:
HDO has excellent engineering and execution skills to provide the complete utilities package for Power plants.
Their capabilities
Include:
* Water Management systems
* Cooling Towers
* Ash Handing system
* Coal Handling system
* HVAC
* Fire Fighting system
* Associated Electrical and Control systems
* Civil and Structural works for all the above systems
Hydrocarbon Sector:
The hydrocarbon sector
in
They have a highly skilled in-house engineering team and a world class manufacturing facility at Vatva, Ahmedabad. They also have an excellent Testing facility, with R and D lab which ensures quality of all equipments shipped out of the factory. They are certified by all major consultants like EIL, UDHE, Samsung, PDIL, Toyo, Linde, Jacobs, etc. Their clients include both government entities and private players, such as Reliance Industries (RIL), Indian Oil Corporation (IOCL), Oil and Natural Gas Corporation (ONGC), Gas Authority of India (GAIL) and Hindustan Petroleum, etc.
ALTERATION IN OBJECT
CLAUSE-ENTERING INTO NEW AREAS OF BUSINESS:
The Company is planning to make a foray into the area of power plants and various related areas like nuclear, hydro-electric, thermal, wind and other power projects using conventional or non-conventional sources of energy which may be conveniently or advantageously combined with the existing business of the Company. Accordingly the Object Clause of the Company has been altered and has been approved by the Registrar of Companies on April 20, 2010.
BONUS SHARES:
3,60,02,904 no. of equity shares of Euro 0.03 each fully paid-up, were issued as Bonus shares in the ratio of one bonus share for every one equity share held.
Consequently, the paid-up Share Capital of the Company as on March 31, 2010 stands increased to Euro 2182000 divided into 7,20,05,808 no. of equity shares of Euro 0.03 each.
FURTHER ISSUE OF
CAPITAL
To finance growth plans, the Board of Directors have received Members approval to raise monies upto 50 million USD, by way of issue of further shares and/or issue of any convertible instruments either through preferential issue and /or qualified institutional placement and/or private placement/public offering or any combination thereof.
MANAGEMENT
DISCUSSIONS AND ANALYSIS
SOCIO-ECONOMIC
ENVIRONMENT:
Following one of the deepest downturns in recent times, the global economy staged a smart recovery during 2009-10, especially in the latter half, driven by an extraordinary level of coordinated international action in the form of policy stimulus, monetary as well as fiscal.
The Indian economy staged a remarkable recovery to grow at 7.2% during the year, facilitated by policy stimulus and increased government spending. A faster pace of growth in investments, the sharp pick up in capital inflows and a resurgent stock market are some of the key positives that augur well for the economy.
The growth agenda can become sustainable only if it includes in its wake strategies, both national and corporate, to enhance environmental and societal capital, thereby translating to development. In line with this philosophy, the Company is pro-actively engaged in enlarging its contribution to the development of the nation through a conscious strategy of investment/diversification, and operations that enhances the competitiveness of entire value chains it is engaged in.
COMPANY PERFORMANCE:
The Company posted yet another year of impressive performance with a healthy topline growth and high quality earnings, reflecting the robustness of its corporate strategy of creating multiple drivers of growth. This performance is stellar when viewed against the backdrop of the extremely challenging environment.
Gross Turnover for the year grew by 67% to Euro 131992424. Pre-tax profits increased by 79% to Euro 12687878 while Post-tax profits at Euro 8412121 registered a growth of 84%.
BUSINESS VERTICALS:
There are three main business verticals, namely:-
a) Design and Engineering
b) Manufacturing
c) EPC Projects
a) Design and Engineering:-
This division operates in a rapidly changing engineering services outsourcing landscape by providing the right blend of domain expertise and intellectual capital to client base spread all across the globe, besides supporting the in-house requirements. They provide engineering solutions to high end technology sectors comprising of process design, engineering analysis, engineering process support, production and plant engineering, design automation, etc.
Their design and engineering is a key component of their business and is involved from the bidding stage up to final completion of a project. The role of the design team involves the detailed review of the request for proposal, analyzing the requirements and the feasibility of the project, preparing an outline of the peculiarities of the project to ensure the in-house competencies including the design and manufacturing unit are capable of undertaking the project in the time frame.
Their design teams are located at various locations in
HDO-Design and Engineering Offices provide 'concept to commissioning' engineering services also. All their locations have been integrated with Mumbai office to facilitate sharing of technical resources/expertise among the various units.
b) Manufacturing:-
HDO has manufacturing and fabrication facilities at: i)
Vatvain Ahmedabad. Gujarat and ii) Davy
Markham,
HDO manufactures and supplies custom designed and engineered critical equipment and systems to the core sector industries like Fertilizer, Petrochemical, Chemicals, Oil and Gas, Metals and Minerals, Pulp and Paper segments at vatva centre.
HDO is involved in manufacturing of Static equipment like Heat Exchangers, Pressure Vessels, Column, Reactors and various other proprietary equipments related to solid-liquid separation.
The company has launched a number of initiatives aimed at establishing leadership position in manufacturing in the global market and seize the opportunities in manufacturing in overseas markets. The key initiatives are as follows:
a) Capacity augmentation
b) Capability building
c) Improvement initiatives
Capacity Augmentation:
Company has carried out substantial capital expenditure worth Euro 2424242 during the year in line with its growth plans-5 nos. of dedicated fabrication bays with overhead crane of maximum 100 MT capacity, each of 60 ft wide x 380 ft long, each catering to separate material of construction. Further, to enhance productivity and increase precision, ultra modern CNC tube sheet Drilling Machine DAE Yang Korea make, L and T Messermake CNC Plasma/GAS Cutting Machine, Rolling Machine were installed in the factory. With all this augmentation, the manufacturing capacity of their Works has increased to 8000 MT per annum.
The company lays special emphasis on continuous development, adaptation of new manufacturing technology, modification of existing products and development of new products through customer interaction and R and D efforts. New facilities like shot-blasting, painting booth and radiography facility to enhance the quality of finished products has been established at their factory. Welding resources have been expanded with capabilities of long seam welding, narrow gap welding and MIG welding by hiring qualified welders and providing them full fledged training on welding procedures approved by TPI and U Stamp for a large variety of metallurgies It has already received accreditation from agencies like Lloyds, BV and EIL, etc. They could enhance their registration of manufacturing capability with reputed PMCs like EIL, UHDE.TOYO, IOCL, Foster Wheeler, Jacobs, Technimont and ONGC, etc.
HDO entered into License Agreement with a company called Bronswerk Heat Transfer BV, Netherlands to manufacture equipment like Air Cooled Heat Exchangers, C Frame Condenser, HP Shell and Tube Heat Exchangers, Sub Sea Cooler, Fans. These are utilized in Thermal and Nuclear Power Plants which is a promising sector with huge growth potential.
Looking forward, they are also targeting business sectors like Nuclear Power Plant, Solar Power Plant, Thermal Power Plant areas for their component manufacturing requirements.
Improvement
Initiatives:
Automation of Design and Drafting work using knowledge based engineering tools and software is helping in knowledge management and cycle time reduction in engineering in a big way. Improved collaborative working across functions and reduced cycle time has helped in meeting the contractual delivery date of the customers in majority of the cases,
DavyMarkham
DavyMakham is a 180 year old heavy end equipment fabrication company operating from Sheffield, UK with capabilities of design, manufacture, fabricate and machining heavy and complex engineering components and assemblies in Mining, Power generation, Nuclear and Steel sectors. The latest state of the art workshop, situated in Sheffield (UK) is unique in Western Europe, in terms of capacity and capabilities for heavy fabrications and machined components. This company has been acquired by HDO. They are able to handle extremely large turnkey projects, utilizing Davy Markham's expertise in hydraulics, controls, engineering, installation and servicing. They also have the capability of moving individual structures weighing up to 350 tonnes.
DavyMarkham is also one of the world's leading suppliers of mine hoists and associated equipment for the mining industry. Till now, more than 300 hoists of all types and sizes have been supplied to various customers around the world. They are capable of providing complete range of mining hoists and equipment which includes Friction hoists; Single drum hoists; Blair hoists; Sinking hoists; Stage winches; Haulage units; Specialist winches; Head sheave assemblies, etc. With many Indian mining companies opting for underground mines, they see a huge growth potential for these products in Indian Markets.
C) Epc Overview:
EPC business delivers engineering, procurement and construction solutions in the Fertilizers, Metals and Minerals, Petroleum Refinery and Water Management sectors. It provides single source responsibility for execution of lump-sum turnkey projects across multiple geographies. The expertise and experience of E and C (Projects) Division arising out of a successful track record in executing projects, encompasses front-end design, engineering, fabrication, project management, procurement, construction, installation and commissioning. These integrated strengths are backed up by flexibility of operation and agility in response. A well institutionalized project execution strategy, managing costs and operations optimally, risk management structure and high safety standards are the other key strengths of the division.
Some of the key inherent strengths that enables this division to offer world class solutions to its clients include:
a. Large HR base with qualified and experienced personnel from various disciplines with proven expertise in multiple business domains
b. Strong engineering capabilities with sophisticated plant design systems
c. Conformance to globally recognized management systems standards
d. State of art own manufacturing/fabrication facility
e. Technology tie-up with Global market leaders
Tough competition from emerging EPC players both in domestic and international markets is a challenge to tackle. The large size of the envisaged projects in new business areas like Bulk Material Handling, Iron Ore Beneficiation / Pelletisation, Coal Washeries, etc. has brought them additional challenges such as accurate cost estimates, adherence to demanding project schedules, execution on fast track basis within the estimated cost.
SIGNIFICANT
ACHIEVEMENTS DURING THE YEAR:
* The Company has bagged a prestigious order from HMEL, a new grassroot Refinery coming up at Bhatinda for complete Water Management facility worth about Euro 53030303. This includes Raw Water Treatment Facility (RWTP), RO-DM Package, and Effluent Treatment Package (ETP). This order will be a major prequalification to the Company to bid for such big orders in upcoming new refineries with HPCL, Nagarjuna Refineryetc.
* The Company
continued with its thrust on Minerals Business and retained its position
as the
lead playerin Alumina Sector by securing an order around Euro
15151515 from M/s. ANRAK Alumina
Refinery of 1.4 MMTPA capacity for
Settler Washer Package and Milk of Lime Package. The Settler Washer
Package is being executed with
Technology from M/s.
* A major achievement during the year was the award of major
LSTK Contract of Euro 28787878 from Indian Oil
Corporation, Paradip for
their new Refinery for
UF-DM 56 MLD Capacity alongwith
Condensate Polishing Unit (CPU)
of capacity 53 MLD. This is the largest capacity of UF-DM Plant
in
* BALCO, Korba has placed as an order with Hindustan Dorr-Oliver Limited worth around Euro 19696969 for Fume Treatment Plant (FTP) for their Smelter Project. This project is executed with Technology from M/s Fives Solios, France and this is repeat order in recognition of preferred Vendor status with Vedanta Group and completion of FTP Project at Jharsuguda.
* Company secured Sea Water Desalination Project order of Capacity 1.5 MLD from Zirconium Complex, Tuticorin, under Department of Atomic Energy Enterprise.
PATH FORWARD:
The vision of enlarging the company's contribution to the Indian economy is manifested in the creation of unique business model that fosters International Competitiveness of not only its business but also the entire value chain of which it is a part. Each business vertical within the portfolio is continuously engaged in upgrading the strategic capability to effectively address their challenges of growth in a competitive market scenario. The company has identified the following business areas which has synergy with the existing line of business:
a) Bulk Material Handling
b)
c) Nuclear Power- Manufacture of components / sub-assemblies.
I) Coal Washeries
e) Power Sector
f) Hydrocarbons sector
They have identified technology partners for each of the above areas and dedicated teams are working on various tenders in these areas. They have already submitted few tenders in Iron Ore Beneficiation and Pelletisation Plant and Bulk Material Handling.
The manufacturing facility is being upgraded to meet the requirements of Nuclear Component manufacture as nuclear sector is emerging as a major growth sector in the country.
OVERVIEW:
The financial statements have been prepared in compliance with the requirements of the Companies Act, 1956 and Generally Accepted Accounting Principles (GAAP) in India. The management of HDO accepts responsibility for the integrity and objectivity of these financial statements as well as for various estimates and judgments used therein.
The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, in order that the financial statements reflect in a true and fair manner the form and substance of transactions and reasonably present the state of affairs on the Balance Sheet date and profits of the Company for the year ended on that date.
The Company continued its growth in terms of revenue and profitability in Fiscal 2010 also. The Company's total revenue increased to Euro 130774242 i.e. increased by 67.50% over Fiscal 2009 and Net income (PAT) rose to Euro 8412121, an increase of 84.08% over Fiscal 2009.
SHARE CAPITAL:
At present, the Company has only one class of shares-equity shares at par value of Euro 0.03 each. The authorized share capital of the Company consists of 100,000,000 equity shares of Euro 0.03 each amounting to Euro 3030303.
The total paid up share capital as at March 31,2010 increased to Euro 2182000 as against Euro1091000 in the previous financial year pursuant to an issue of bonus shares in the ratio of the equity share of Euro 0.03 each for every one equity share of Euro 0.03 each on record date.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2010 Euro
|
|
i) Bank Guarantees/Letters
of Credit issued by the bank on behalf of the Company (Net of margin money
aggregating to Euro 133893) |
74353242 |
|
ii) Corporate
Guarantees |
23675530 |
|
iii) *Claims against
the Company not acknowledged as debts, to the extent quantifiable. |
337363 |
|
iv) *Income-tax matters |
|
|
|
(16454) |
|
v) *Sales-tax / WCT / VAT matters |
435242 |
|
vi) *Excise/Service Tax matters |
88757 |
|
vii) * Labour Cess |
80484 |
|
viii) *Customs duty matters |
11590 |
* Excluding interest / penalty as may be determined / levied on the
conclusion of the matters.
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
·
Technical
Know-How
·
Goodwill
WEBSITE DETAILS:
PROFILE:
Subject, has been providing state-of-art technology
solutions to its clients for about 7 decades now. They have come a long way
from their humble beginnings as supplier of proprietary solid-liquid separation
equipment to being a major Engineering EPC player, assimilating new
technologies and providing the best, most cost effective and integrated turnkey
solutions. They have a pan
Their wholly owned Engineering Services arm, HDO Technologies, provides
complete range of engineering services in-house, enabling them to have control
over delivery time and quality.
Their manufacturing facility at Vatva, Ahmedabad manufactures pressure vessels,
heat exchangers, storage tanks and other proprietary solid-liquid separation
equipments like filters, classifiers, thickeners, clarifiers etc. They are
recognized amongst the top ten manufacturers of pressure vessels and Heat
Exchangers in
HDO has been involved in major industrial projects in areas of Mining and
Minerals, Water and Wastewater, Fertilizers and Chemicals and Pulp and Paper.
They have done water management and effluent treatment for all major refineries
in
They are a publically listed company with 55% of stock held by their parent
company IVRCL Infrastructures and Projects Limited, 25% held by Foreign
Institutional Investors and the rest by other investors. They are a
professionally managed firm with prominent figures from various industries in
their Board.
HDO has a talented workforce of about 1,300 people of which more than ninety
percent are engineers or hold an equivalent degree. At any given point they
have about 30 active sites at various stages of completion and manage over
14,000 site labour force at various project locations all over
HDO has obtained international certifications for Quality, Safety and
Environment Management Systems. Their manufacturing facility follows
international codes and standards and employs world reputed third party
inspection agency. The company is committed to maintaining the highest
standards of Health, Safety and Environment and has a separate HSE team
dedicated to this task.
They are proud to be
Manufacturing and
Supply Chain Management Division: Manufacturing Facility
Subject as one of the most established and ideally qualified
manufacturing set up, located in western
Growth in terms of Revenue
They take this opportunity to convey; Equipment, Heat Exchangers and Pressure
Vessel business has grown from Euro 5575757 (2007-2008) to Euro 10454545
(2008-2009). The overall HDO’s did Euro 62727272.(2008-09); as against Euro
1212121 in the year 2007-08; Growth of more than 50% in terms of sales; this
has been possible under umbrella of fast growing Hyderabad based
mega-infrastructure company IVRCL
Infrastructures and Projects Limited.
NEWS
HDO will participate
in the 10th Mining and Machinery Exhibition, IMME held in Kolkata...
13
October, 2010
"HDO will participate in the 10th Mining and Machinery Exhibition, IMME
held in Kolkata between the 10th to 13th November 2010."
Hindustan
Dorr-Oliver will be participating in the IMME 2010 which is organized by the
Confederation of Indian Industry, CII in association with the Ministry of
Mines, the Ministry of Coal, and Coal India Ltd. HDO will showcase its strength
in the Mining, Mineral Processing and Material Handling sectors.
AUDITED FINANCIAL
RESULTS FOR THE YEAR ENDED MARCH 31, 2011 (SUMMARIZED FIGURES )
(Amount In Euro)
|
Particulars |
Year Ended March 31, 2011 (audited) |
|
(a) Net Sales/ Income from
operation |
140964179 |
|
(b) Other Operating Income |
000 |
|
Total Income |
140964179 |
|
2. Expenditure |
|
|
a. Increase(-) /Decrease(+) in Stock in trade and W.I.P. |
(3182089) |
|
b. Consumption of Raw-Materials |
118608955 |
|
c. Staff Goods |
6970149 |
|
e. Depreciation |
1017910 |
|
f. Other Expenditure |
5074626 |
|
g. Total |
128489552 |
|
3. Profit(+)/ Loss(-) from Operations before other Income Interest and
Exceptional Item(1-2) |
12474626 |
|
4. Other Income-Foreign Exchange Fluctuation-Gain/(Loss) |
2404477 |
|
5. Profit(+)/ Loss(-) before Interest and Exceptional Item |
14879104 |
|
6. Interest |
3249253 |
|
7. Exceptional Items |
11629850 |
|
9. Profit(+)/
Loss (-) from ordinary activities
before Tax (7-8) |
3452238 |
|
10. Tax Expenses |
|
|
A.
Current Tax B.
Deferred Tax |
3452238 155223 |
|
11. Net Profit(+)/ Loss (-) from ordinary activities after Tax (9-10) |
8022388 |
|
14. Paid Up Equity Share Capital (Face Value of Euro 0.02 Per Share) |
2149253 |
|
15. Reserves excluding Revaluation Reserves as per Balance Sheet of Previous
Accounting Year |
35219402 |
|
16. Earning per Share (EPS) |
|
|
a) Basic and diluted EPS before extraordinary items for the period,
for the year to date and for the previous year (not annualised) |
0.11 |
|
b) Basic and diluted EPS after extraordinary items for the period, for
the year to date and for the previous year (not annualised) |
0.11 |
|
17. Public Shareholding |
|
|
Number of Shares |
32201378 |
|
% of Share holding |
44.72 |
|
18. Promoters and promoter group Shareholding |
|
|
a) Pledged/Encumbered |
|
|
- Number of shares |
--- |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter
group) |
--- |
|
- Percentage of shares (as a %
of the total share capital of the
company) |
--- |
|
b) Non-encumbered |
|
|
- Number of shares |
39804430 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and
promoter group) |
100.00 |
|
- Percentage of shares (as a %
of the total share capital of the
company) |
55.28 |
STATEMENT OF
ASSETS AND LIABILITIES (SUMMERIZED FIGURES)
(Amount In Euro)
|
SOURCES OF FUNDS |
|
|
March 31, 2011 (Audited) |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
|
|
2149253 |
|
2] Stock Oplions |
|
|
311940 |
|
3] Reserves and Surplus |
|
|
3770149 |
|
LOAN FUND |
|
|
|
|
1] Secured Loan |
|
|
23882089 |
|
2] Unsecured Loan |
|
|
5970149 |
|
Deferred Tax Liability |
|
|
398507 |
|
TOTAL |
|
|
70482089 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
Goodwill on Consolidation |
|
|
-- |
|
Fixed Assets |
|
|
12510447 |
|
Investments |
|
|
1352238 |
|
Deferred Tax Assets |
|
|
-- |
|
CURRENT ASSETS, LOANS AND ADVANCES |
|
|
|
|
Inventories |
|
|
12814925 |
|
Sundry Debtors |
|
|
43789552 |
|
Cash and Bank Balance |
|
|
510447 |
|
Other Current Assets |
|
|
53276119 |
|
LOANS AND ADVANCES |
|
|
|
|
Less : Current Liabilities and Provisions |
|
|
|
|
Liabilities |
|
|
74747761 |
|
Provisions |
|
|
1404477 |
|
TOTAL |
|
|
70482089 |
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 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. 45.87 |
|
|
1 |
Rs. 75.14 |
|
Euro |
1 |
Rs. 66.67 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
66 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.