MIRA
INFORM REPORT
s
|
Report Date : |
05.12.2011 |
IDENTIFICATION DETAILS
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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) : |
31.03.2011 |
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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 : |
Rs.144.010 Millions |
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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 : |
A 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 : |
243 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (66) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 11000000 |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
Dorr-Oliver House, |
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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: ·
Mumbai ·
Ahmedabad ·
Kolkata ·
Chennai ·
Noida · 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 31.03.2011
|
Name : |
Mr. Prabhakar Ram Tripathi |
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Designation : |
Chairman |
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Name : |
Mr. E. Sundhir Reddy |
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Designation : |
Vice Chairman |
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Name : |
Mr. E. Sunil Reddy |
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Designation : |
Managing Director |
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Name : |
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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 |
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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 |
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Designation : |
Non-Executive Director |
KEY EXECUTIVES
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Name : |
Ms. Pragya Sahal Kaul |
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Designation : |
Company
Secretary |
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Name : |
Ms. Priya Vishwanathan |
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Designation : |
Company
Secretary (w.e.f.12.08.2011) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
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39804430 |
55.28 |
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|
39804430 |
55.28 |
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Total shareholding
of Promoter and Promoter Group (A) |
39804430 |
55.28 |
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(B) Public
Shareholding |
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|
9260193 |
12.86 |
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|
383950 |
0.53 |
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|
3846970 |
5.34 |
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|
13491113 |
18.74 |
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|
4188984 |
5.82 |
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|
12486868 |
17.34 |
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1110616 |
1.54 |
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923797 |
1.28 |
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|
672124 |
0.93 |
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|
3720 |
0.01 |
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130700 |
0.18 |
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117253 |
0.16 |
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18710265 |
25.98 |
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Total Public shareholding
(B) |
32201378 |
44.72 |
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Total (A)+(B) |
72005808 |
100.00 |
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(C) Shares held
by Custodians and against which Depository Receipts have been issued |
-- |
-- |
|
(1) Promoter and Promoter Group |
-- |
-- |
|
(2) Public |
-- |
-- |
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Sub Total |
-- |
-- |
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Total
(A)+(B)+(C) |
72005808 |
-- |
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(1) Indian
Bodies Corporate
Individual shareholders holding nominal share
capital up to Rs.0.100 MillionBUSINESS DETAILS
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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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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
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Particulars |
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Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Filteration |
|
(See Note below) |
(See Note below) |
(See Note below) |
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Sedimentation |
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Classification |
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NA |
7608* |
7231 |
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Centrifugation |
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Pollution Control |
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Fluidisation |
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Miscellaneous |
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*
production capacity has been derived on the assumptions of 0.76 MT per square
meter per year 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. viii) Mixers Agitators and Aerators up to 750 Metric Tons p.a.
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
243 (Approximately) |
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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 : |
-- |
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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 Chartered
Accountants |
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Solicitors and Advocates : |
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Holding Company : |
IVRCL Infrastructures and Projects Limited |
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Subsidiary [The
ownership, directly or indirectly through subsidiary (ies) |
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Fellow
Subsidiaries : |
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Subsidiaries of
Fellow Subsidiaries : |
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Joint Ventures of
Holding Company : |
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Related Parties : |
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CAPITAL STRUCTURE
As on : 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
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|
100000000 |
Equity
Shares |
Rs.2/- each |
Rs.200.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
72005808 |
Equity
Shares |
Rs.2/- each |
Rs.144.010 Millions |
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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
Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
144.010 |
144.010 |
72.006 |
|
|
2] Stock Option |
20.920 |
3.610 |
0.000 |
|
|
3] Reserves & Surplus |
2530.610 |
2096.850 |
1681.482 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2695.540 |
2244.470 |
1753.488 |
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|
LOAN FUNDS |
|
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|
1] Secured Loans |
1600.090 |
786.110 |
155.696 |
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2] Unsecured Loans |
400.000 |
0.000 |
0.000 |
|
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TOTAL BORROWING |
2000.090 |
786.110 |
155.696 |
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|
DEFERRED TAX LIABILITIES |
26.740 |
16.320 |
9.466 |
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|
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TOTAL |
4722.370 |
3046.900 |
1918.650 |
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APPLICATION OF FUNDS |
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|
|
|
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FIXED ASSETS [Net Block] |
740.990 |
763.750 |
661.096 |
|
|
Capital work-in-progress |
97.200 |
22.620 |
21.516 |
|
|
|
|
|
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|
INVESTMENT |
90.640 |
17.610 |
17.025 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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|
Inventories |
858.580 |
501.700 |
311.477 |
|
|
Sundry Debtors |
2933.860 |
1672.090 |
1556.192 |
|
|
Cash & Bank Balances |
34.140 |
42.070 |
246.605 |
|
|
Other Current Assets |
3569.550 |
2972.420 |
1955.697 |
|
|
Loans & Advances |
1499.520 |
1000.200 |
891.871 |
|
Total
Current Assets |
8895.650
|
6188.480
|
4961.842
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2690.740
|
2118.280 |
2489.401
|
|
|
Other Current Liabilities |
2317.400
|
1731.170
|
1192.902
|
|
|
Provisions |
93.970
|
96.110
|
60.526
|
|
Total
Current Liabilities |
5102.11
|
3945.560
|
3742.829
|
|
|
Net Current Assets |
3793.540
|
2242.920
|
1219.013
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
Others |
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
4722.370 |
3046.900 |
1918.650 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9444.640 |
8631.120 |
5133.219 |
|
|
|
Other Income |
161.110 |
59.610 |
69.641 |
|
|
|
TOTAL (A) |
9605.750 |
8690.730 |
5202.860 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Sales and Services |
7946.810 |
6972.710 |
4121.565 |
|
|
|
(Increase)/Decrease in Inventories |
(213.200) |
(24.590) |
(37.262) |
|
|
|
Operating and Administrative Expenses |
806.960 |
674.230 |
537.905 |
|
|
|
TOTAL (B) |
8540.570 |
7622.350 |
4622.208 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1065.180 |
1068.380 |
580.652 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST AND
FINANCIAL EXPENSES (D) |
217.650 |
176.010 |
79.967 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
847.530 |
892.370 |
500.685 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
68.240 |
54.980 |
33.856 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
779.290 |
837.390 |
466.829 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
241.760 |
282.220 |
165.232 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
537.530 |
555.170 |
301.597 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
579.030 |
341.030 |
261.559 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
57.600 |
57.600 |
36.003 |
|
|
|
Corporate Dividend Tax |
9.350 |
9.570 |
6.119 |
|
|
|
Transfer to General Reserve |
200.000 |
250.000 |
180.000 |
|
|
BALANCE CARRIED
TO THE B/S |
849.610 |
579.030 |
341.034 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
|
13.100 |
13.060 |
6.026 |
|
|
|
Freight and insurance recoveries |
0.420 |
0.500 |
0.147 |
|
|
|
Recovery of Cost |
0.000 |
148.400 |
0.000 |
|
|
TOTAL EARNINGS |
13.520 |
161.960 |
6.173 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Cost of systems, equipments, components, spares and services |
405.430 |
470.010 |
114.008 |
|
|
|
Capital Expenditure (Import of machineries) |
49.140 |
0.000 |
27.463 |
|
|
TOTAL IMPORTS |
454.570 |
470.010 |
141.471 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
7.47 |
7.71 |
8.38 |
|
|
|
- Diluted |
7.41 |
7.69 |
8.38 |
|
|
Particulars |
30.06.2011 |
30.09.2011 |
|
|
1st
Quarter |
2nd
Quarter |
|
|
|
|
|
Net Sales |
1495.800 |
1487.600 |
|
Total Expenditure |
1347.000 |
1372.200 |
|
PBIDT (Excl OI) |
148.800 |
115.400 |
|
Other Income |
35.400 |
54.800 |
|
Operating Profit |
184.200 |
170.200 |
|
Interest |
78.700 |
112.600 |
|
Exceptional Items |
0.000 |
0.000 |
|
PBDT |
105.500 |
57.600 |
|
Depreciation |
17.500 |
18.200 |
|
Profit Before Tax |
88.000 |
39.400 |
|
Tax |
27.300 |
11.400 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
60.700 |
28.000 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
60.700 |
28.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
5.60
|
6.39 |
5.80 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.25
|
9.70 |
9.10 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.09
|
12.04 |
8.30 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29
|
0.37 |
0.27 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.63
|
2.11 |
2.22 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.74
|
1.57 |
1.33 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE
The Financial year
2010-11 was a year of marginal growth and new business opportunities for the
Company.
The Company, by maintaining
its strong leadership position in proven fields, achieved the turnover of
Rs.9444.640 Million (previous year Rs.8631.120 Million). This was due to robust
business traction across the EPC and manufacturing divisions. Further, the year
ended with an operational performance with Profit before Tax at Rs.779.290
Million (previous year Rs.837.390 Million), a fall of 6.94% over the previous
year, whereas Profit after Tax decreased by 3.18 %. These results were achieved
through a focussed 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.
FUTURE PROSPECTS
The company’s
effort is consistently directed towards the upgradition 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-class performance has been put into action through creation of
multiple business drivers of growth which have synergy with existing skills and
competencies of the Company.
HDO is on the path
of setting global footprints and is looking at minerals and metals and
electromechanical packages in refineries and smelters in and around
Future Plan of
action
The corporate R
and D Centre at Ahmedabad has been expanded in line with the requirements of
the company and outlined in discussions with the Department of Scientific and
Industrial Research (DSIR), Ministry of Science and Technology, Government of
India.,
MANAGEMENT DISCUSSION AND ANALYSIS
OVER VIEW OF
INDIAN ECONOMY
The Indian economy
driven primarily by domestic demand and consumption, powered by a rebound in
the agricultural sector, has very decisively put behind the effects of global
slow down and posted vigorous and positive macro economic factors. Continued
momentum in some sectors of manufacturing and construction enabled the economy
to achieve a higher growth in GDP of 8.5% for the year 2010-11 compared to 8%
over 2009-10.
COMPANY
PERFORMANCE
The company
recorded a good performance during the year 2010-11 with all round growth in
various operating and financial parameters despite intense competition
spiraling input costs, subdued tendering activity in certain sectors due to
pending decisions of investment and statutory Governmental clearances
BUSINESS PORTFOLIO
HDO has always
focused on adding value across the different elements of supply chain in
Engineering and Manufacturing sector. Today the company operates on diversified
portfolio of different businesses that have different market segments, require
different skill sets and operate under varying risk return profiles.
The diverse portfolio
includes the following business:
a) Integrated
Engineering Division
b) Engineering and
Construction Division
c) Manufacturing
Division.
A) Integrated
Engineering Division
This Division provides
leading edge Engineering solutions to multiple industrial sectors like Minerals
and Metals, Water
Management,
Fertilizer and Chemicals, Pulp and Paper, Cement, Steel, etc.
It has Head
Quarter at Mumbai and operates from dedicated Engineering Centres at Ahmedabad,
During the year,
the following major Engineering Services were rendered:
1. Study of
DAP/NPK Plant Expansion feasibility through Pipe Reactor at IFFCO-Paradip
2. Detailed
Engineering Services and Project Management for marine chemicals unit of
Archean Chemical Group
3. ETP Revamp
technical study for Coramandel Fertilizer Plant
4. Kemira for
detailed engineering services for Inorganic Coagulant Plant
B) Engineering,
Procurement and Construction Division (EPC)
Engineering and
Construction Division designs, engineers and execute worldclass projects for
various industrial sector with single-point responsibility from frontend design
through detailed engineering, modular fabrication, procurement, project
management, construction and installation, to commissioning Strategic alliances
with world leaders enable the Division to access advanced know-how and deliver
projects that meet stringent Health, Safety and Environment, quality
requirements and time schedules.
The company
secured first Global order from M/s. Konkola Copper Mines (KCM), Zambia for
Copper Refinery through Acid leaching route acid leaching route – valued
Rs.85.000 Millions US$. The scope involves desing, engineering, supply,
manufacturing, installation, erection, commissioning of EPC-02 Package of CRO
Plant. This project is for expansion of the existing facility by 50000TPA of
finished copper production though installation of hydrometallurgical plant
which consists of crushing, milling, leaching, solvent extraction and
electrowinning for treating CRO material. The basic engineering package is
given by Outotec
The Division has a
good track record of executing large size and complex projects on turnkey basis
in Metals and Minerals Sector, Fertilizers and Chemical, Pulp and Paper and
Water Technology sectors. Division major capabilities include in house
engineering, RandD, engineering, joint ventures with reputed international
companies, offshore installation capabilities, world class fabrication
facilities, experienced and competent project execution team and safe work
culture.
Major jobs
completed during the year include the following:
a) Effluent
Treatment Plant at IOCL Refinery at Haldia
b) Ammonium Nitro
Phosphate Production facility at RCF-Mumbai
c) Effluent
Treatment Plant at Bharat Oman Refinery Limited
d) Integrated
Effluent Treatment Plant at HPCL-Mumbai
e) RWTP and RO-DM Plant
in HMEL-Guru Gobind Singh Refinery, Bathinda
Domestic market is
increasingly flooded with new aggressive competitors, both Indian and foreign.
This Division is pursuing actions in terms of improving cost competitiveness,
diversifying into new geographies and venturing into new product lines. The
Division has been able to maintain the operating margins through various
initiatives such as expanding vendor base, low cost country sourcing, frame
rate agreement with suppliers, value engineering and improved contract
management.
New areas of
business entered into during the year 2010-11:
1) Iron
2) Copper Refinery
3) Nuclear Power
Plant equipment manufacture
4) Department of
Atomic Energy (Heavy Water Board) Uranium Nirty Conversion Facility
5) Uranium Ore
Processing Plant of huge capacity is under commissioning
6) Seawater
Desalination Plant on their own pre-qualifications
7) DM/RO Plant,
inclusive of ultra-filtration and condensate polishing units
C) Manufacturing
HDO has manufacturing
and fabrication facilities at:
i) Vatva in
Ahmedabad,
ii) DavyMarkham,
i) Facility at Ahmedabad, Gujarat
During the year,
the manufacturing business secured orders from Nuclear Power Corporation of
India (NPCIL), for manufacture of IFTM Shield Doors for Nuclear Reactors, ECCC
Light Water Accumulator and Gas Accumulators, Heavy Water Storage Tank,
D20-Heat Exchangers and Mechanical design, manufacture, supply of Heat
Exchanger/Condenser for RAPP 7and8 Nuclear power projects.
The company
state-of-the-are manufacturing facility at Ahemdabad has been approved by all
leading projects management consultants, like EIL, UHDE, Foster Wheeler, Lurgi,
TOYO, Technimont, Jacobs, TCE, TCPL, BARC, NPCIL, etc., and the workshop is
further upgraded to manufacture equipment for the power sector. Proud to inform
that the manufacturing facility is one among the top ten leading engineering
manufacturing facility in the country. The company has EOT crane facility of
200 tons capacity, and they have been qualified for manufacturing of Alloy
Steels, and exotic metallurgy which are normally used in Reactor, High Pressure
Heat Exchanger, Large Columns and Auto Clave manufacture.
HDO manufacturing
facility is being upgraded with U-2/S certifications from ASME-USA to undertake
nuclear component manufacturing. Moreover the experience of Davy Markham shall
also find effective utilization at their manufacturing works in the
accomplishment of this task. Substantial progress for acquiring "N"
stamp are made for further manufacture of specialized nuclear components.
Further step in the area of Heat Transfer Equipment for Power Sector, HDO has
booked good amount of orders under technical collaboration with Brownswerk Heat
Transfer,
The company is
happy to announce that it has manufactured AutoClave, (2 nos.), each of 350 MT
for processing of
The company has
launched a number of initiatives aimed at establishing leadership position in
manufacturing in the global market and seized the opportunities in
manufacturing in overseas markets. The key initiatives are as follows:
a) Facility
Enhancement
b) Automation and
Productivity Improvement
c) Quality
Improvement
Facility
Enhancement
Company has
incurred substantial capital expenditure during the year in line with this growth
plans through creation of new fabrication shed 2 nos. of total area for 4200
sq.mtrs area, with a height of 21 mtrs. New state-of-art fabrication equipments
are Tube Finning Machine, Power Press of 20 MT capacity and Die for Plate Fins
which are required for manufacture of Air Cooled Heat Exchangers.
Material handling
equipment such as EOT Crane, Goliath Gantry Crane, Portable Gantry Crane, Jib
Cranes and Welding
Rotators, etc.
have been procured to assist in expediting the manufacturing cycle time.
Automation and
Productivity Improvement
Due to the change
in market scenario, customers were squeezing the normal delivery time and
majority of their projects are on fast track. With intention of meeting the
market requirements, several initiatives on automation of manufacturing
sub-activities as given below are pursued. Installation of High frequency
Grinding machines, SAW Tractor type, Nozzle Opening machine, Edge Cut Machine,
Tube Expander, CNC Gas cutting machine, Hydraulic Bolt Tightener, Tube to Tube
Sheet welding machine, Strip cladding facility leads to enhanced automation and
productivity.
ii) DavyMarkham
Limited,
This manufacturing
facility has a long and distinguished track record in the design, manufacture,
fabrication and machining of heavy and complex engineering components and
assemblies catering to various industrial segments given below:
a) Mining and
tunneling
b) Civil
construction including moving bridges
c) Steel and metal
processing
d) Water control,
storage and barrier solutions
e) Power
generation including wind and hydro power
f) Nuclear –
Storage and transportation and
g) Renewable
energy
This extensive
workshop, situated in Sheffield (UK) is unique in Western Europe, in terms of capacity
and capabilities for heavy fabrications and machined components and can handle
extremely large turnkey projects, utilizing their expertise in hydraulics,
controls, engineering, installation and servicing with the capability of moving
individual structures weighing up to 350 tonnes.
DavyMarkham has
secured an important $5.4 Million contract for the supply of two heavy duty
mining hoists to Volcan Compania Minera of
DavyMarkham has
secured an impressive contract worth more than Euro 10 Millions to supply drum
hoists to a Canadian gold producer. This facility, which fabricates and
supplies complex engineered component, has a strong track record in delivering
drum hoists to mines across the globe and the contract will see the hoists
operating at the Goldcorp Eleonore project in northern
QUALITY
IMPROVEMENT:
HDO being an ISO
certified company is engaged in continuous improvement in quality surpassing
customer expectation and create its own benchmark quality standards. In this
endeavour, quality testing equipment like Universal testing machine, Impact
Testing Machine, Charpy notch broaching machine, Profile Projector, Hardness
Tester, FeritScope, PMI-Positive Material Identification M/C, MPI-Magnetic
Particle Inspection M/C have been installed. The human assets have been given
adequate training on usage of these new gadgets and use them on consistent
basis. They are already establishing a clean room facility to cater to the
requirement during manufacture of critical equipment using exotic metallurgy as
required by global customers.
R AND D, QUALITY
AND RODUCT DEVELOPMENT
Innovation across
every element of the business value chain through a sustained process of
Research and Development (R and D) is a key imperative in today’s competitive
context. The company’s R and D Center has been recognized by department of
Science and Technology (DSIR) and major test work and stimulation studies of
various metallic ores and water samples is being carried out regularly. This R
and D Center assumes critical significance for the company since its
competitive landscape is marked with technical partnership with world-class
companies having strong R and D focus and passion for innovation. The company
is continuously engaged in development of niche products/projects across the
various industrial sectors in order to gain the pre-qualification criteria for
participation in new areas of business and sustain their growth.
BUSINESS
CHALLENGES
players to the
country. The emerging prospects in the
GROWTH STRATEGIES
AND THRUST AREAS:
Ensuring cost
competitiveness, timely execution of projects within cost estimates, managing
volatility, control over working capital, achieving operational efficiency,
improved supply chain management will be the key success factors for the
projects and product businesses to achieve the desired growth in the medium
term. 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
The major
strategies for growth are penetration into new emerging thrust areas of
industrial growth.
a) Coal Washeries
The coal washeries
help reduce ash content by 7-8 percent in the coal and improve its calorific
value translating to further benefits such as improvement in thermal
efficiency, plant load factor, savings in freight, savings in ash rehandling
and land and reduction in operation and maintenance cost. As per the Economy
Survey report: CIL has envisaged setting up new coal washeries with an
estimated investment of about Rs. 25,000 Millions and CIL wants the private
sector Indian and foreign companies to set up non-coking coal washeries on
Build, Own and Operate” basis. HDO is
well geared up to take up to take up this challenge and has tied up with M/s
Tangshan Guohua Technology Company Limited,
b) Nuclear Power
Plant
Power and Energy
continues to be the thrust area in
The company has
already entered the Nuclear Sector and executing orders from nuclear
establishments. Currently the company is executing four orders from Nuclear
Power Corporation of India Limited in respect of Pressure Vessels, Heat
Exchangers and Tanks. The company is also executing an order from Bharatiya
Nabhikiya Vidyut Limited (BHAVINI) in respect of Shielding, Duct Flange and
Flux for PFBR at Kalpakkam. The company is also executing orders from Uranium
Corporation of India Limited and Heavy Water Board for engineering,
procurement, construction (EPC) involving civil process, mechanical, electrical
and instrumentation works, complete project management and execution consisting
of plant building, complete civil work, etc. The company is also technically
qualified for EPC packages of NPCIL for:
a) Primary Piping
Package
b) Common Services
c) Heavy water
upgradation and waste management plant
d) Field
Instrumentation package
e) AC and
Ventilation package
The company is
also augmenting facilities to cater to special quality requirements of nuclear
sector in respect of Pressure Vessels, Heat Exchangers, Process Vessels,
Dilution Columns, Tanks, Shielding. On engineering, procurement, construction
(EPC) the company is participating in critical and high ended works pertaining
to nuclear sector. The company is also augmenting on project management tools
and skills to be in line with the state-of-art techniques in the world in the
nuclear power sector area.
c) Heat Recovery
System in Cement Plants
Power generation
along with waste heat recovery system at Cement Plants is the other potential
area HDO has ventured in. Cement Plants being highly power intensive, is
aggressively adopting this technology to meet their captive power requirements.
The clinker kiln is normally operated at very high temperatures and the exhaust
heat from the kiln is utilized for power generation. HDO has secured an order
with ACC for their Gagal Plant in Himachal Pradesh.
d) Steel Business
Iron and Steel
industries is poised for major growth and expansion due to the thrust on the
infrastructure development of the country. Also lots of
a) Handling of
iron ore, coal and fluxes
b) Coke oven
rebuilding
c) Wastewater
treatment and recirculation in process areas like Coke Oven, Blast Furnace,
Lime and Dolomite
Plants, Rolling
Mills
d) In-plant Air
and Water Systems
e) Sulphuric Acid
Plants
f) Washing of coal
g) Beneficiation
of iron ore
h) Agglomeration of
iron ore-Sintering and Pelletization
e) Hydrocarbon
Sector
The hydrocarbon
sector in
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
Ore Beneficiation and Pelletisation Plant. 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
SHARE CAPITAL
At present, the
Company has only one class of shares – equity shares at par value of Rs.2.00
each. The authorized share capital of the Company consists of 100 Million equity
shares of Rs.2.00 each amounting to Rs.200.00 Million. The total paid up share
capital as at March 31, 2011 is Rs.144.010 Million (72.01 Million Equity shares
of Rs.2 each).
CONTINGENT LIABILITIES:
(Rs.
In Millions)
|
Particulars |
31.03.2011
|
|
i) Bank
Guarantees/Letters of Credit issued by the bank on behalf of the Company (Net
of margin money aggregating to Euro 133893) |
4784.110 |
|
ii) Corporate
Guarantees |
1502.090 |
|
iii) *Claims against
the Company not acknowledged as debts, to the extent quantifiable. |
14.170 |
|
iv) *Income-tax matters |
20.880 |
|
v) *Sales-tax / WCT / VAT matters |
80.200 |
|
vi) *Excise/Service Tax matters |
5.860 |
|
vii) * Labour Cess |
0.000 |
|
viii) *Customs duty matters |
0.770 |
* Excluding interest / penalty as may be determined / levied on the
conclusion of the matters.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2011
(Rs.
In Millions)
|
Particulars |
3
Months Ended 31.06.2011 |
|
|
Unaudited |
|
Income from
Operations. |
1510.700 |
|
Less : Excise Duty |
14.900 |
|
Net Sales /
Income from Operations. |
1495.800 |
|
Total
Expenditure |
1364.500 |
|
(Increase)/Decrease In Stock-in-trade |
(69.700) |
|
Cost of Material/ services |
1248.900 |
|
Staff Cost |
111.100 |
|
Depreciation / Amortisation |
17.500 |
|
Other Expenditure |
56.700 |
|
Profit from
Operations before Other Income, Interest, Exchange Currency Fluctuation and
Exceptional Items |
131.300 |
|
Other Income |
35.400 |
|
Profit before
Interest, Exchange Currency Fluctuation and Exceptional Items |
166.700 |
|
Interest and Finance Charges |
78.700 |
|
Profit after
Interest but before Exchange Currency Fluctuation and Exceptional Items |
88.000 |
|
Exceptional Items |
0.000 |
|
Profit from
Ordinary Activities before Tax |
88.000 |
|
Tax Expenses |
|
|
- Current Assets |
29.900 |
|
- Deferred Tax |
(2.600) |
|
Net Profit from
Ordinary Activities after Tax |
60.700 |
|
Paid Up Equity Share Capital |
144.000 |
|
Face Value (Rs.) |
2 |
|
Reserves |
|
|
Earning per share (EPS) |
|
|
- Basic |
0.84 |
|
- Diluted |
0.84 |
|
Public Shareholding |
|
|
- Number of Shares |
32201378 |
|
- Percentage of Shareholding |
44.72 |
|
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 shareholding 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 shareholding of the total
share capital of the company) |
55.28 |
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:
Business
Description
Subject is an India-based company. The Company is engaged in the business
of providing engineering and turnkey solutions, technology and engineering,
procurement and construction (EPC) installations in liquid-solid separation
applications in various segments, such as mineral processing and beneficiation,
pulp and paper processing, fertilizer and chemicals, and environmental
management. The Company is also engaged in the business of manufacturing,
supply of equipment, including erection and commissioning and providing
engineering services. The Company has manufacturing facility at Vatva, Ahmedabad,
which manufactures pressure vessels, heat exchangers, storage tanks and other
solid-liquid separation equipments, such as filters, classifiers, thickeners
and clarifiers. HDO operates mainly in
Board of
Directors
Mr. E. Sudhir
Reddy
Non-Executive
Vice Chairman of the Board
He holds Bachelor's degree in commerce as qualification. Has the
experience in construction and engineering business. Has been the Director of
the IVRCL Assets and Holdings Limited Soma Hotels and Resorts Limited Palladium
Infrastructures and Projects Limited S.V. Equities Limited Indus Palms Hotels
and Resorts Limited Eragam Holdings Limited IVR Hotels and Resorts Limited IVRCL Mega Malls Limited AP Enercon Engineers Private Limited IVRCL
Limited (Formerly known as IVRCL Infrastructures and Projects Limited).
Mr. M. L.
Majumdar
Independent
Non-Executive Director
He is a Retired I.A.S. He has the experience in Mining and Energy sector.
Has been the Director of the R. B. G. Minerals Industries Limited.
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.
PRESS RELEASE:
01 December 2011
Hindustan
Dorr-Oliver is currently trading at Rs. 24.95, up by 1.10 points or 4.61% from
its previous closing of Rs. 23.85 on the BSE. The scrip opened at Rs. 26.00 and
has touched a high and low of Rs. 27.00 and Rs. 24.65 respectively. So far
17,821 shares were traded on the counter. The BSE group 'B' stock of face value
Rs. 2 has touched a 52 week high of Rs. 132.50 on 02-Dec-2010 and a 52 week low
of Rs. 23.10 on 30-Nov-2011.Last one week high and low of the scrip stood at
Rs. 27.00 and Rs. 23.10 respectively. The current market cap of the company is
Rs. 1790.000 Millions. The promoters holding in the company stood at 55.28%
while Institutions and Non-Institutions held 18.74% and 25.98% respectively.
Hindustan Dorr-Oliver has bagged a prestigious order of the value of Rs
1700.000 millions from ONGC Petro Additions (OPAL) for entire effluent
collection and treatment system (ECTS) package for its grass root mega
petrochemical project in the PCPIR / SEZ zone at Dahej. The project is to be
completed in 24 months. ECTS package includes various technology packages from
leading global suppliers for treatment of petrochemical waste. Earlier the
company had received an order for waste heat recovery system from ACC valued at
Rs 680.000 Millions to be completed by December 2012. The company had also
received an order for iron ore beneficiation plant from NMDC valued at Rs
1280.000 millions to be completed by November 2012. Further, the company also
bagged an order for heavy water upgradation facility for NPCIL valued at Rs
450.000 Millions to be completed by November 2014.With the new orders the
company will have approximately 2000 MT of equipment to be manufactured in its
own factory at Ahmedabad. The company will also be utilizing approximately
1,20,000 man-hours of design, engineering from its own centres in Ahmedabad,
Industry, academia tie-up looks to aid
education in smaller cities
23 November 2011
A group of manufacturing
and capital goods companies have come together to handhold engineering colleges
and universities in small cities and towns, seeking to improve the quality of
their graduates and their employment prospects.
Industry experts
will be sent to the institutions to help upgrade facilities and teach students,
who will also get to work on live corporate projects, as part of the initiative
being overseen by K. Venkataramanan, president (operations), Larsen and Toubro
Limited (L and T), India's biggest construction and engineering firm.
Venkataramanan says
the quality of many graduates being turned out by Indian universities tends to
be substandard because of the lack of sufficient interaction between industry
and academic institutions. That means many engineering students graduate
without possessing the skills needed by industry, hurting their own job
prospects while depriving employers of a sufficiently large talent pool.
"Industries as
a group and academic institutes as another group should work together to
improve the employability situation," Venkataramanan says. "It will
be mutually beneficial." With manufacturing gaining traction again, and
the Centre approving a National Manufacturing Policy, these companies say
industry needs to contribute its bit to help create an employable workforce
with the requisite job skills. The policy approved on 25 October seeks to set
up large industrial zones, create 100 million jobs, and expand the share of
manufacturing from 16% of gross domestic product at present to 25% by 2025.
Companies taking
part in the initiative include steel parts maker Bharat Forge Limited, power
equipment manufacturer Ther max Limited, Hindustan Dorr Oliver Limited, a unit
of the infrastructure firm IVRCL Limited, and GW Preci sion Tools India Private
Limited, according to Venkataramanan. Amrita Vishwa Vidyapeetham University in
Coimbatore, Tamil Nadu; Narsee Monjee Institute in Sirpur, Maharashtra;
Chitkara University in Barotiwala, Himachal Pradesh; and Manipal Institute of
Technology in Karnataka are some of the institutes involved in the project.
Industry linkage
with colleges will bridge the education employability gap, a source of concern
for both the government and corporate entities. It will also take the corporate
recruitment process, which is largely tilted towards institutes in big cities,
to smaller cities and towns. According to education services firm Aspire Human
Capital Management Private Limited,
"If industries
get involved in improving the employability, then it will boost the human re
source supply chain," says Amit Bhatia, chief executive of Aspire Human
Capital. "The quality of education and human resources has one goal,
hence, embedded employable education and its understanding will be good for
their business."
M. Anandakrishnan,
chair man of the board of governors at the Indian Institute of Technology
(IIT),
"But we will
make sure that these colleges and universities don't take this as a plea to
increase course fees," said Anandakrishnan, who is also the head of the
higher education committee at industry lobby Federation of Indian Chambers of
Commerce and Industry.
The initiative will
serve as a pilot programme that, depending on its success, will pull in more
companies to improve their interaction with education al institutes. "The
upgrade of curricula and industry experience will be directly taken care of by
such a move," he says.
Rajan Saxena,
vice-chancellor of
"When you hire
from big cities, the salary structure is big. The manufacturing sector, un like
services sector, does not have the liberty to spend more on human
resources," says Saxena, a former director of the Indian Institute of
Management,
"Industries
also understand that by improving the standard of colleges in small towns, they
can hire the same quality with relatively lower salary. Here they will stay
with them for a longer time than, say, an IIT graduate," Saxena adds.
Saxena says new
industrial processes, design and latest technology often elude students, and
"learning from the shop floor" in industries will help their cause.
Most engineering
colleges in small cities lack good laboratories, which may cost crores of rupees
to set up or upgrade. The upshot is that students lack access to the technology
that makes them job ready.
"Our students
in Sirpur can go to an apparel manufacturer or an engineering company to learn
what the new technologies used in producing technical textiles or building a
quick road project with prefabricated structures are," Saxena says.
Anandakrishnan says
that what industry is looking for is an understanding on the part of students
of the design concept, the use of new technology, machinery and management of
the factory floor. They need to understand what is an assembly line, for
example, and how things are put together.
Venkataramanan says
industries, apart from upgrading coursework in line with the needs of colleges,
will also gift them machines and equipment that will enable a better learning
environment. In return, the companies will expect colleges to help them file
patents.
Vijay Pahwa,
director, industry relations, Dehradun-based
"Smaller town
institutes need industry exposure, and we see the benefit here," says S.K.
Mohapatra, dean, academics,
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.51.35 |
|
|
1 |
Rs.80.51 |
|
Euro |
1 |
Rs.69.14 |
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.