MIRA INFORM REPORT

 

 

Report Date :

21.12.2013

 

IDENTIFICATION DETAILS

 

Name :

TITANIUM EQUIPMENT AND ANODE MANUFACTURING COMPANY LIMITED

 

 

Registered Office :

Team House, GST Salai, Vandalur, Chennai – 600048, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

25.10.1975

 

 

Com. Reg. No.:

18-007017

 

 

Capital Investment / Paid-up Capital :

Rs.8.304 Millions

 

 

CIN No.:

[Company Identification No.]

U41000TN1975PLC007017

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHET00312E

 

 

PAN No.:

[Permanent Account No.]

AAACT1243P

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

To design, engineer and manufacturer chemical, textile, metallurgical and electrolytic plant, machinery and process equipment.

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 1900000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established company having good track record.

 

Financial position of the company is good.

 

Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment.

 

The company can be considered 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.

 

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

 

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

 

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

 

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1st November.

 

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

LOCATIONS

 

Registered Office :

Team House, GST Salai, Vandalur, Chennai – 600048, Tamilnadu, India

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

team@drraoholdings.com

 

 

DIRECTORS

 

As on: 30.09.2013

 

Name :

Mr. Suresh Krishnamurthi Rao

Designation :

Whole-Time Director

Address :

33, Maharaja Surya Rao Road, Alwarpet, Chennai – 600018, Tamilnadu, India 

Date of Birth/Age :

26.09.1971

Date of Appointment :

26.12.2011

DIN No.:

00127809

 

 

Name :

Cittur Sundar Rao Ramesh

Designation :

Director

Address :

New.No.14, Old No. 41, 1st Avenue, 2-A, Abinaya Apts, Sastri Nagar, Adyar, Chennai -  600020, Tamilnadu, India

Date of Birth/Age :

02.05.1945

Date of Appointment :

30.09.2013

DIN No.:

00019178

 

 

Name :

Mr. Jayakumar Sivagnanam

Designation :

Whole-Time Director

Address :

Plot No.6, IOB Colony, Selaiyur, Chennai – 600073, Tamilnadu, India

Date of Birth/Age :

02.07.1939

Date of Appointment :

10.11.2010

DIN No.:

00389723

 

 

Name :

Mr. C.S. Ramesh

Designation :

Additional Director

Address :

New.No.14, Old No. 41, 1st Avenue, 2-A, Abinaya Apts, Sastri Nagar, Adyar, Chennai -  600020, Tamilnadu, India

Date of Birth/Age :

02.05.1945

Date of Appointment :

30.09.2013

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 30.09.2013

 

Names of Shareholders

 

No. of Shares

Dr Rao Holdings Pte Limited, Singapore

 

413592

K.M. Padma

 

348958

Suresh Krishnamurthi Rao

 

36000

C.S. Ramesh

 

5

Krishna Suresh

 

7

Chandraditya

 

7

N. Ramachandran

 

5

Meenakshi Ratnam

 

31842

 

 

 

Total

 

830416

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 30.09.2013

 

Category

 

Percentage

 

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

49.81

Directors or relatives of directors

 

50.19

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

To design, engineer and manufacturer chemical, textile, metallurgical and electrolytic plant, machinery and process equipment.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Bank of Baroda, Mylapore Branch, Mylapore, Chennai - 600004, Tamilnadu, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

SHORT TERM BORROWINGS

 

 

Cash Credit facility horn Bank of Baroda

15.742

38.754

 

 

 

Total

15.742

38.754

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

R. Janakiraman and company

Chartered Accountants

Address :

43, Maharaja Surya Road, Alwarpet, Chennai – 600018, Tamilnadu, India

PAN No.:

AAAFR0910L

 

 

Substantial Interest :

Dr Rao Holdings Pte Limited

 

 

Parties  with Significant Influence  :

·         Chemfab Alkalis Limited

·         Teamec Chlorates Limited

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5250000

Equity Shares

Rs.10/- each

Rs.52.500 Millions

200000

Preference Shares

Rs.100/- each

Rs.20.000 Millions

 

 

 

 

 

Total

 

Rs.72.500 Millions

 

Issued Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

945957

Equity Shares

Rs.10/- each

Rs.9.460 Millions

 

 

 

 

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

830416

Equity Shares

Rs.10/- each

Rs.8.304 Millions

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

8.304

8.304

19.114

(b) Reserves & Surplus

467.299

335.432

79.425

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

475.603

343.736

98.539

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

12.765

10.860

0.356

(c) Other long term liabilities

30.000

30.000

30.000

(d) long-term provisions

1.575

3.725

1.457

Total Non-current Liabilities (3)

44.340

44.585

31.813

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

15.742

38.754

15.000

(b) Trade payables

71.991

21.101

8.247

(c) Other current liabilities

43.370

44.875

4.814

(d) Short-term provisions

30.194

10.503

3.926

Total Current Liabilities (4)

161.297

115.233

31.987

 

 

 

 

TOTAL

681.240

503.554

162.339

 

 

 

 

ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

168.648

154.099

109.319

(ii) Intangible Assets

0.314

0.263

0.000

(iii) Capital work-in-progress

0.000

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

12.946

12.946

18.342

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

52.589

2.227

0.489

(e) Other Non-current assets

0.500

0.500

0.000

Total Non-Current Assets

234.997

170.035

128.150

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

42.839

39.089

0.282

(b) Inventories

152.332

155.974

9.186

(c) Trade receivables

148.423

65.965

17.217

(d) Cash and cash equivalents

86.990

67.831

6.408

(e) Short-term loans and advances

12.241

3.424

0.649

(f) Other current assets

3.418

1.236

0.447

Total Current Assets

446.243

333.519

34.189

 

 

 

 

TOTAL

681.240

503.554

162.339

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

552.742

332.539

48.362

 

 

Other Income

36.965

16.551

20.720

 

 

TOTAL                                     (A)

589.707

349.090

69.082

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

154.010

124.537

12.675

 

 

Purchase of stock in trade

17.917

14.747

4.484

 

 

Change in inventories of finished goods and work in progress

6.404

(34.369)

2.042

 

 

other Direct manufacturing expenses

39.347

29.732

1.963

 

 

Employee benefits expenses

80.080

74.317

10.237

 

 

Other expenses

88.096

68.507

8.650

 

 

Exceptional items

0.000

0.100

0.000

 

 

TOTAL                                     (B)

385.854

277.571

40.051

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

203.853

71.519

29.031

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

4.082

5.514

2.538

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

199.771

66.005

26.493

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

6.387

5.896

1.054

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

193.384

60.109

25.439

 

 

 

 

 

Less

TAX                                                                  (H)

60.036

15.520

8.023

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

133.348

44.589

17.416

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

0.000

0.000

23.389

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

133.348

44.589

40.805

 

 

 

 

 

 

Earnings Per Share (Rs.)

161.00

54.00

71.00

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

22.61

12.77

25.21

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

34.99

18.08

52.60

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

28.94

12.25

17.67

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.41

0.17

0.26

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.03

0.11

0.15

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.77

2.89

1.07

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

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 involved in

--

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

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

 

BACKGROUND

 

The company is a small and medium sized company as defined in the general instructions in respect of accounting standards, notified under the companies act 1956,. Accordingly, the company has complied with the accounting standards as applicable to a small and medium sized company.  

 

 

AMALGAMATION OF TEAMO HITECH ENGINEERING LIMITED

 

(a) The transferor company was mainly engaged in the business of design and manufacture of process equipment, metal amodes and purification and sale of packaged drinking water.

 

(b) The amalgamation has been given effect to under the pooling of Interest method as prescribed by the accounting standard 14. Pursuant to the scheme, the company has recorded the assets and liability of Teamo Hitech Engineering Limited (the transferor company) in the same from as they were appearing in the books of the company at the close of the business hours on the day immediately preceding the appointed day under the scheme, namely the 1st April 2011 at their respective book values. The scheme has accordingly been given effect to in these accounts vide the hon’ble high court of madras order 13.12.2011 vide company petion no. 159 and 160 of 2011.

 

(c) The net surplus in the value of the net worth of the amalgamating company that arose on the share exchange ration amounting to Rs. 3.056 Millions has been credited to the general reserve account of the company as per Scheme, during the year 2011-2012.

 

(d) Pursuant to the scheme of amalgamation each of the shareholders of Teamo Hitech Engineering Limited shall be allotted three equity shares of Rs. 10/- each, of this company credit as fully paid up, for every 7 equity shares of Rs. 10/- each, held by them in Teamo Hitech Engineering Limited. Accordingly 586633 Equity Shares of this company have been allotted to the shareholders of Teamo Hitech Engineering Limited, in the year 2011-2012. 

 

 

OPERATIONS

 

During the year, the Company's turnover was Rs. 552.742 Millions as against Rs. 332.539 Millions in the previous year. The Order Book for the current year shows an encouraging trend and your Directors expect that the Company would record at least a 20% increase in the turnover during the current year.

 

The company, to, achieve the exponential growth as targeted, has ventured in to a product line viz., Electro-Chlorination. This system is used for water and wastewater disinfection, anti-bio fouling in industrial water applications and marine growth prevention in sea-water intake for power plants and off-shore oil and gas installations. The company has identified the huge potential in this line of business and has planned for necessary infrastructure and man power.

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10240079

03/09/2010

205,000,000.00

BANK OF BARODA

NO 153 LUZ CHURCH ROAD, MYLAPORE, CHENNAI, TAMILNADU - 600004, INDIA

A95109807

 

 

FIXED ASSETS

 

TANGIBLE ASSETS

·         Land

·         Building

·         Plant and Equipment

·         Furniture and Fixture

·         Vehicle

·         Office Equipment

·         Sliver Article

·         Electrical Installation

 

INTANGIBLE ASSETS 

·         Computer Software

·         Licence for Software

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No 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.62.24

UK Pound

1

Rs.101.81

Euro

1

Rs.84.88

 

 

INFORMATION DETAILS

 

Report Prepared by :

VRN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

 

 

 

TOTAL

 

54

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 


 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

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

 

--

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.