|
Report Date : |
21.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
TECNIMONT ICB PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Technimont ICB House, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
09.07.1958 |
|
|
|
|
Com. Reg. No.: |
11-13544 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 13.887 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U74140MH1958PTC013544 |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
The Company is engaged
in industrial and engineering construction contract and advisory activities
including engineering, instrumentation, electrical and erection works and
deputation of staff to associate entities. |
|
|
|
|
No. of Employees
: |
Not Divulged by Management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 6600000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having fine track. Financial position
of the company appears to be sound. Trade relations are reported as fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at 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.
INFORMATION DENIED
Unable to Contract
LOCATIONS
|
Registered/ Head Office : |
Technimont ICB House, |
|
Tel. No.: |
91-22-66945555 |
|
Fax No.: |
91-22-66945599 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Branch Office : |
Room No.201-202, Ashoka Hotel, 50/B, Chankya Puri, New Tel/Fax : 91-11-24102337 e-mail : ticbdel@satyam.net.in Electra Street, 202 Al Nowais
Building, 2nd Floor, Behind Dana Hotel, Post Box 51120, Abu Dhabi, U.A.E. Tel: + 971-2-6451228 Fax: + 971-2-6451252 e-mail : ticbabd@emirates.net.ae Al Tel: + 966-2-6926475 Fax : + 966-2-6926143 e-mail : infoticb.saudi@ticb.com Tecnimont ICB Tel: +974 4665557 Fax : +974 4650680 e-mail : b.venugopalan@ticb.com |
DIRECTORS
As on 12.08.2011
|
Name : |
Mr. Roberto Bertocco |
|
Designation : |
Director |
|
Address : |
VI-A, Mameli 6, Mogliiano Veneto, Italy |
|
Date of Birth/Age : |
09.10.1962 |
|
Date of Appointment : |
12.08.2011 |
|
DIN No.: |
00213621 |
|
|
|
|
Name : |
Mr. Mario Ruzza |
|
Designation : |
Director |
|
Address : |
VI A Baldassara, 5 Cogliate, Milano 20020, |
|
Date of Birth/Age : |
10.04.1954 |
|
Date of Appointment : |
30.05.2006 |
|
DIN No.: |
00256448 |
|
|
|
|
Name : |
Mr. Gopalsamy Sathiamoorthy |
|
Designation : |
Managing Director |
|
Address : |
17-602, Vindyagiri, Siddachal, Phase – III, Near Vasant Vihar. Thane –
400610, |
|
Qualification: |
B.E. (Mechanical)-Hons. |
|
Experience: |
24 Years |
|
Date of Birth/Age : |
19.05.1965 |
|
Date of Appointment : |
01.09.2010 |
|
DIN No.: |
03057853 |
|
|
|
|
Name : |
Mr. Gianni Bardazzi |
|
Designation : |
Director |
|
Address : |
VIA Jacopo Nardi, 19 Firenze – 50132, Italy |
|
Date of Birth/Age : |
31.01.1965 |
|
Date of Appointment : |
12.08.2011 |
|
DIN No.: |
03121568 |
|
|
|
|
Name : |
Mr. Francesco Rossi |
|
Designation : |
Director |
|
Address : |
Vile Umbria, 44 Milano – 20135, Italy |
|
Date of Birth/Age : |
09.12.1952 |
|
Date of Appointment : |
12.08.2011 |
|
DIN No.: |
03123058 |
|
|
|
|
Name : |
Mr. Naresh Hariprasad Desai |
|
Designation : |
Whole time Director |
|
Address : |
1-B, Takshashila Apartments, 50, Tagore Road, Santacruz (West), Mumbai
– 400610, Maharashtra, India |
|
Date of Birth/Age : |
24.09.1952 |
|
Date of Appointment : |
12.08.2011 |
|
DIN No.: |
03113055 |
|
|
|
|
Name : |
Mr. Vernon Correa |
|
Designation : |
Whole time Director |
|
Address : |
47/1001, Evershine Millennium Paradise, Kandivali (East), Mumbai –
400101, Maharashtra, India |
|
Date of Birth/Age : |
09.12.1952 |
|
Date of Appointment : |
12.08.2011 |
|
DIN No.: |
02570170 |
KEY EXECUTIVES
|
Name : |
Mr. T.P Parameswaran |
|
Designation : |
Secretary |
|
Address : |
A-3/302, Vikas Complex, Castle Mills, L B S Marg, Thane (East), Thane
– 400601, Maharashtra, India |
|
Date of Birth/Age : |
07.05.1953 |
|
Date of Appointment : |
05.12.1990 |
|
|
|
|
Name : |
Mr. Alessandrello Pietro |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
48 Years |
|
Qualification: |
Uni. Degree in Mech. Eng. |
|
Experience: |
22 Years |
|
|
|
|
Name : |
Mr. Ciparian Baractaru Mihil |
|
Designation : |
Assistant (Commg-Machi) |
|
Date of Birth/Age : |
34 Years |
|
Qualification: |
Dip. (Mech.) |
|
Experience: |
9 Years |
|
|
|
|
Name : |
Mr. Correa V.F. |
|
Designation : |
Director (Projects) |
|
Date of Birth/Age : |
58 Years |
|
Qualification: |
B.Tech (Chemical) |
|
Experience: |
35 Years |
|
|
|
|
Name : |
Mr. Desai N.H. |
|
Designation : |
Director (Procurement) |
|
Date of Birth/Age : |
58 Years |
|
Qualification: |
B.E. (Chemical) |
|
Experience: |
36 Years |
|
|
|
|
Name : |
Mr. Desai Vishwas D. |
|
Designation : |
Director (Human Resources and Administrative.) |
|
Date of Birth/Age : |
53 Years |
|
Qualification: |
MBA, B.Sc., Dip. T.D. |
|
Experience: |
30 Years |
|
|
|
|
Name : |
Mr. Orlandi Roberto |
|
Designation : |
Control Analyst Senior |
|
Date of Birth/Age : |
36 Years |
|
Qualification: |
Master (Communi), B.E. Civil |
|
Experience: |
10 Years |
|
|
|
|
Name : |
Mr. Rao V.G. |
|
Designation : |
Director (Projects) |
|
Date of Birth/Age : |
60 Years |
|
Qualification: |
B.E. (Chem.) |
|
Experience: |
39 Years |
|
|
|
|
Name : |
Mr. Richardson Jay |
|
Designation : |
Manager (Commissioning) |
|
Date of Birth/Age : |
57 Years |
|
Qualification: |
Degree from Louisiana Univ. |
|
Experience: |
37 Years |
|
|
|
|
Name : |
Mr. Smart William Russell |
|
Designation : |
Manager (Health and Safety) |
|
Date of Birth/Age : |
72 Years |
|
Qualification: |
(C. Eng.) First Class Marine Engineer(Steam) |
|
Experience: |
42 Years |
|
|
|
|
Name : |
Mr. Simon Ion |
|
Designation : |
Supervisor (Piping) |
|
Date of Birth/Age : |
48 Years |
|
Qualification: |
Dip. (Mech) |
|
Experience: |
27 Years |
|
|
|
|
Name : |
Mr. Thiyagarajan B. |
|
Designation : |
Director (Information Technology) |
|
Date of Birth/Age : |
46 Years |
|
Qualification: |
B.E. (Mechanical) |
|
Experience: |
24 Years |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 12.08.2011
|
Names of Shareholders |
|
No. of Shares |
|
|
|
|
|
Tecnimont Planung Und Industrieanlagenbau GMBH |
|
1 |
|
Tecnimont S.P.A. |
|
1388669 |
|
|
|
|
|
Total |
|
1388670 |
Equity Share Break up (Percentage of Total Equity)
As on 12.08.2011
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional investor(s),
Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s)
or Overseas Corporate bodies or Others |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Provide
Services in Engineering Consultancy, Turnkey Projects, Instruments Erection,
Software Development and Allied Activities. |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged by Management |
|
|
|
|
Bankers : |
State Bank of India, Commercial Branch, G N Vaidya Marg, Mumbai –
400023, Maharashtra, India |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and sells Chartered Accountant |
|
Address : |
|
|
Tel. No.: |
91-22-66679000 |
|
Fax No.: |
91-22-66679100 |
|
PAN.: |
AADFD2337G |
|
|
|
|
Holding Company : |
· Tecnimont Spa, Italy |
|
|
|
|
Joint ventures: |
Hazira Cryogenic Engineering and Construction
Management private Limited, India (CIN: U45201MH2001PTC134378) |
|
|
|
|
Subsidiaries : |
· Engineering and Designs Tecnimont ICB Private Limited, India (CIN: U74210MH2003PTC142289) · Tecnimont ICB Qatar W.L.L, Qatar ·
Tecnimont Arabia Limited, United Arab
Emirates |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3000000 |
Equity Share |
Rs.10/- each |
Rs.30.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1388670 |
Equity Share |
Rs.10/- each |
Rs.13.887
Millions |
|
|
|
|
|
Note:
Of the above 6,94,335
equity shares are allotted as fully paid-up by way of bonus shares by
capitalisation from General Reserve. Of the above 13,88,669 Equity shares are
held by Tecnimont S.P.A, the holding company
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
13.887 |
13.887 |
13.887 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1640.047 |
1476.708 |
1270.910 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1653.934 |
1490.595 |
1284.797 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
542.676 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
542.676 |
|
|
DEFERRED TAX LIABILITIES |
2.621 |
4.961 |
13.634 |
|
|
|
|
|
|
|
|
TOTAL |
1656.555 |
1495.556 |
1841.107 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
375.225 |
330.862 |
349.705 |
|
|
Capital work-in-progress |
3.024 |
0.649 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
1.205 |
1.256 |
1.255 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000 |
0.000 |
0.000 |
|
|
Sundry Debtors |
1646.894
|
1824.215 |
2110.251 |
|
|
Cash & Bank Balances |
480.858
|
297.421 |
363.663 |
|
|
Other Current Assets |
316.350
|
118.449 |
387.886 |
|
|
Loans & Advances |
665.477
|
401.604 |
201.148 |
|
Total
Current Assets |
3109.579
|
2641.689 |
3062.948 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1551.255
|
896.074 |
856.005 |
|
|
Other Current Liabilities |
99.253
|
567.737 |
638.608 |
|
|
Provisions |
181.970
|
15.089 |
78.188 |
|
Total
Current Liabilities |
1832.478
|
1478.900 |
1572.801 |
|
|
Net Current Assets |
1277.101
|
1162.789 |
1490.147 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1656.555 |
1495.556 |
1841.107 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
500.135 |
310.439 |
551.988 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
175.400 |
104.642 |
208.507 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
324.735 |
205.797 |
343.481 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
998.908 |
793.111 |
449.630 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
32.500 |
0.000 |
0.000 |
|
|
|
Dividend |
138.867 |
0.000 |
0.000 |
|
|
|
Tax on Dividend |
22.528 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1129.748 |
998.908 |
793.111 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Value Export |
1414.182 |
3129.809 |
2965.155 |
|
|
TOTAL EARNINGS |
1414.182 |
3129.809 |
2965.155 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Value Import |
NA |
5.560 |
1.027 |
|
|
TOTAL IMPORTS |
NA |
5.560 |
1.027 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
233.85 |
148.20 |
247.35 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
16.08
|
11.75 |
18.02 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.30
|
0.21 |
0.44 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.11
|
0.99 |
1.22 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.70
|
1.79 |
1.95 |
LOCAL AGENCY FURTHER INFORMATION
Sundry Creditors Details:
Rs. In Millions
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
Sundry Creditors |
|
|
|
|
Creditors due Small micro enterprise |
57.494 |
5.792 |
1.103 |
|
Creditors due Others |
1493.761
|
890.282 |
854.902 |
|
Total |
1551.255
|
896.074 |
856.005 |
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
No |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
BUSINESS ENVIRONMENT
AND OPERATING PERFORMANCES
During the year, the Company was able to obtain award of new turnkey projects in the refinery and fertilizer sectors. The Company continues to undertake Electrical, Instrument and Mechanical construction projects and also provide Services for the execution of projects of Tecnimont S.p.A., on a global basis. The company is continuing to bid for new projects some of which are expected to fructify in due course.
Background
The Company was
incorporated on 9 July 1958. The Company is engaged in industrial and
engineering construction contract and advisory activities including
engineering, instrumentation, electrical and erection works and deputation of
staff to associate entities.
CONTINGENT
LIABILITIES IN RESPECT OF:
|
Particulars
|
31.03.2011 |
|
|
|
|
Claims against the Company not
acknowledged as debts |
1.700 |
|
|
|
|
Sales tax demands disputed in appeals |
1.047 |
|
|
|
|
Bank Guarantees |
1623.196 |
|
|
|
|
Income Tax |
75.550 |
BANKERS CHARGES
REPORT AS PER REGISTRY
|
Corporate
identity number of the company |
U74140MH1958PTC013544 |
|
Name of the
company |
TECNIMONT ICB PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
Technimont ICB House, 504 Link Road, Chincholo Bunder, Malad (West),
Mumbai – 400064, Maharashtra, India Email: t.p.parameswaran@ticb.com
|
|
This form is for |
Modification of charge |
|
Charge
identification (ID) number of the charge to be modified |
90235117 |
|
Type of charge |
·
Book debts ·
Movable property (not being pledge) |
|
Particular of
charge holder |
State Bank of India, Commercial Branch, G N Vaidya Marg, Mumbai –
400023, Maharashtra, India Email: omprakash.g@sbi.co.in
|
|
Nature of instrument
creating charge |
Joint Deed of Hypothecation |
|
Date of
instrument Creating the charge |
12.08.2011 |
|
Amount secured by
the charge |
Rs. 4350.000 Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest As Per Sanction Terms Terms of Repayment As Per Sanction Terms Margin As Per Sanction Terms Extent and Operation of the charge Borrowers entire goods, movables and other assets present and future
including documents of title to the goods and assets whcih are hypothecated
by the borrower to and in favour of the participating banks by way of first
charge. Others Not Applicable |
|
Short particulars
of the property or asset(s) charged (including complete address and location of
the property) |
A. Hypothecation and charge by way of first charge to and in favour of
the participating Banks jointly ranking pari passu inter se without any
preference or priority to one over the others. The Company's Entire Goods, Movables And Other Assets, Present And
Future Including Bookdebts, Outstanding Moneys, Receivables, Claims And Bills
Arising Out Of Sale Disposal Of Goods Which Are Owing Or Payable Or Belonging To Company
In Course Of Its Business (Further Details As Per Annexure) |
|
Date of
instrument modifying the charge |
07.01.2009 |
|
Particulars of
the present modification |
Now by the present modification dated 12.08.2011 BNP Paribas, SBI,
Bank of Baroda has agreed to enhance the credit facilities while ICICI Bank
and Corporation Bank opted out of Banking Arrangement. The HSBC Banks Limits
remained unchanged, thus the total credit facilities Aggregates to Rs
4350.000 Millions |
FIXED
ASSETS:
·
· Building
· Computers
· Furniture and Fixtures
· Office Equipment
· Motor cars
AS PER WEBSITE
DETAILS:
COMPANY PROFILE
Headquartered in Mumbai, the business capital of
They cater to a wide spectrum of business sectors that mainly includes Oil
& Gas, Chemicals and Petrochemicals, Refineries, Fertilizers, Energy, Civil
Engineering and Infrastructure, from concept to commissioning with over 5
decades of experience in multi discipline engineering services. They offer cost
optimized, world class engineering solutions, flawless planning and immaculate
execution of complex projects.
With support offices in New Delhi in India and Abu Dhabi, Qatar and Jeddah in
Middle East , TICB combines high quality and planning standards with unwavering
commitment for timely implementation of the projects.
HISTORY:
To outline its history, in 1958, ICB (Industrial Consulting
Bureau), an Engineering Company, was founded by Kapadia family. In 1996,
Tecnimont S.p.A.
Company is a 100% subsidiary of
PRESS
RELEASE
Ravindran
Kayarat
CEO -
Hydrocarbon, Essar Projects (India) Limited
Hydrocarbon sector with its major expansion plans in
refineries, fertilisers, LNG terminals, etc, will provide ample scope for EPC
companies in the years to come. The huge growth plans in various industries will
have a cascading effect on associated EPC sector for the next three years.
Sanjeev Nakhasi
Corporate
Vice President - Operations, Synefra E and C Limited
In EPC projects, estimating the cost and tendering requires
efficient skilisets to ensure that we do not run into a financial loss in
executing a project. The availability of vast pool of personnel with
specialised technical knowledge makes India one of the best manpower providers
in the international market.
Sathiamoorthy G
Managing
Director, Tecnimont ICB (TICB) Private Limited
Each EPC company will have to develop its own
strategy for optimal profitability and success. Leadership in use of
information technology wit! be most important in winning future EPC LSTK work,
and knowledge management systems may become a mandatory EPC offering in the
near future.
EPC sector in India is
making a steady progress across industries since the last few years. There is a
high demand worldwide for new and refurbished infrastructure of all kinds -
roads, bridges, mass transit systems, water treatment facilities, power,
chemical, petrochemical plants, healthcare facilities - the list is virtually
endless. Against the backdrop of increasing focus on India as the manufacturing
hub of Asia, the construction activities in different sectors have accelerated.
This has fuelled the growth of EPC as a whole.
Growth
propellers
The emphasis on
infrastructure development is one of the major growth drivers for the EPC
sector. "Infrastructure has to be spruced up at all levels across India to
support the burgeoning economy, which is projected to grow consistently at 9
per cent per annum in the 12th Plan period (201217). To meet the
growing demand, the Indian companies - from both public and private sector -
are seeking EPC firms having the expertise to deliver complex mega projects,
which are being envisaged for oil and gas, power, steel, pipelines, marine,
offshore, civil and building sectors in India," points out Ravindran Kayarat,
CEO - Hydrocarbon, Essar Projects (India) Limited (EPL).
A closer look says that it
is a win-win situation for both the companies (clients of EPC} and the EPC
contractor, since they get to concentrate on their core business strengths. The
client needs to build a quality asset at a competitive cost within schedule,
while effectively transferring major risk factors. The EPC contractor's role in
such a case is to take up single point responsibility to deliver a project
utilising the excellent project management skills, dedicated vendor base, and
the ability to engineer and visualise the project as per client requirements.
"We have delivered projects worth $ 15 billion across key segments like
oil and gas, power, steel, pipelines, marine, offshore, civil and building. EPL
brings an unparalleled advantage of providing an owner's perspective to the
client as the EPC sector in India gathers momentum," says Kayarat.
As infrastructure segment
is making rapid strides, this is bound to fuel the growth of EPC sector.
"The government proposed an investment worth t 20,56,150
crore in infrastructure during the 11*n Plan. During the period
2011-2012, the aim has been to attain sustainable growth of 9 per cent, with
emphasis on growth and quality of life. But it is also clear that
infrastructure inadequacies will act as a constraint in achieving this growth.
To overcome this challenge, the government is also emphasising on the PPP
model," says Sanjeev Nakhasi, Corporate Vice President - Operations,
Synefra EandC Limited.
Besides the infrastructure
aspect, there are few important leverage points for which companies are roping
in EPC contractors. Today, customers' mindsets have changed. They do not want
to be responsible for project management on a day-to-day basis and prefer to
appoint an EPC contractor, who takes single point responsibility for the entire
project. While elaborating on this scenario, Nakhasi explains, "This helps
the client to save time for project execution, and system integration has also
become easier. There is one contractor who can be contacted for all issues
involving the project, and the client needs to maintain only a skeletal staff
for project monitoring. This trend has also ied to the emergence of SMEs in EPC
sector, thus leading to entrepreneurial and employment opportunities."
Despite the growing demand
for EPC activities, the question remains as to whether EPC contracting is a
complete safe method or not. There are many issues associated with EPC as well.
Higher risk exposures and global competition are driving owners and EPC
contractors to dwell upon alternative ways to mitigate and control risks. EPC
projects today are getting more complex and realisation of larger projects are
getting uncertain; at the same time projects are being broken up into phases
for. cost benefits. Timing of project awards is becoming more unpredictable
than ever and it is reflected in delay in the finalisation of contracts by way
of lengthy negotiations/budget issues. Service providers are on the frontline
of cuts, but opinions differ on the impact.
Taking everything into
consideration EPC Lump Sum Turnkey (LSTK) mode of execution appears to be the
most preferred method. "The EPC LSTK method of project delivery still
remains the preferred choice, since it generates substantial benefit for
project owners,
What India offers for EPC
Sector
Creating infrastructure for
all sectors is a priority
·
PCPIR
policy aims at promoting huge investments in the chemicals sector in the country
and making it a prominent hub for both domestic and international players
·
Oil
and gas sector in India is poised for tremendous growth with major expansions
planned in refineries (302 MMTPA by 2017)
largely due to transfer of
all associated risks to EPC contractor vide assignment of single point
responsibility towards quality, price and timely delivery," says
Sathiamoorthy G, Managing Director, Tecnimont ICB (TICB) Private Limited.
Refining
and petrochemical projects
In India, the oil and gas
sector is a lucrative one for EPC, as it is poised for tremendous growth, with
major expansions planned in refineries {302 MMTPA by 2017) as a part of? 2.8
trillion investment for the 12*n Plan period, The progressive steps
like price deregulation in petroleum products should ensure that the oil and
gas majors are on track for the expansion of projects. "After introduction
of nutrient-based subsidy for fertiliser industry, there is now incentive for
the dormant companies to finally carry on with the planned investments. With
obvious advantages of the single point responsibility EPC LSTK contracts, the
clients trust only those EPC contractors with experience of having effectively
delivered complex mega projects," asserts Kayarat.
Huge investments are also
being planned to establish/expand LNG terminals by public and private sector
Petrochemical Investment Region (PCPIR) policy, aimed at promoting huge
investments in the chemicals sector in the country and making it a prominent
hub for both domestic and international players, is expected to attract
investments to the tune of ^ 2-3 trillion to each notified PCPIR. The PCPIRs
approved by the Centre are brownfield Bharuch (Gujarat), Visakhapatnam (AP),
Haldia (West Bengal) and greenfield Paradeep (Orissa). The one proposed at
Cuddalore in Tamil Nadu is in advanced stages of approvals while the Mangalore
(Karnataka) project is under the planning stage.
There are few projects
either completed or soon to be completed through EPC method in the country.
Take the example of Gujarat's Vadinar Refinery - a 20-MMTPA project, out of
which 14 MMTPA has already been completed by Essar Projects (India). IOCL
Paradip Refinery (15 MMTPA-LSTK package A-ongoing-within Paradip PCPIR) is also
faster mobilisation of equipment and manpower," claims Kayarat.
Similarly, TICB (an
integral part of Maire Tecnimont Group) is a 52-year old company and among the
few engineering and construction companies in India that have the capability
and experience to supply plants to petrochemicals/chemical/oil and gas sectors
on EPC LSTK basis. "Our strength can be attributed to strong orientation
to technology, engineering and advanced skills in vendor development, project
management and control to deliver complex projects," claims Sathiamoorthy.
The
issues
The construction industry
has been expanding rapidly over the last few decades. Along with this, the
nature of main contracts has also dramatically changed. Contracts are of
increasingly complex types - EPC, turnkey, BOOT, PPP, etc. With the opening of
different sectors to privatisation and international investment and
competition, projects (even in private sector) in areas like roads and bridges,
complete townships, SEZs, airports, power plants, industrial plants, etc, are
expected to increase manifolds.
To cater to all these
sectors, companies should possess high level of skilisets. It is implied that
these companies should have an in-house capacity to undertake projects and also
deal with eventualities. Project delivery calls for multiple skilisets and
involves high risk, owing to the size and complexity of certain projects,
"In EPC projects, estimating the cost and tendering requires efficient
skilisets to ensure that we do not run into a financial loss in executing a
project, and at the same time, stay competitive in winning contracts,"
points out Nakhasi.
Project management is
critical in executing complex projects. The to ensure timely completion within
budgeted costs. Site management
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.54.87 |
|
|
1 |
Rs.86.46 |
|
Euro |
1 |
Rs.69.48 |
INFORMATION DETAILS
|
Information
Gathered by : |
PJA |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
53 |
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.