MIRA INFORM REPORT

 

 

Report Date :

06.03.2013

 

IDENTIFICATION DETAILS

 

Name :

DRESSER-RAND INDIA PRIVATE LIMITED

 

 

Registered Office :

Lotus Business Park, 11th Floor, Veera Desai Road, Off Andheri Link Road, Opposite Fun Republic, Andheri (West), Mumbai – 400 053, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

01.12.1998

 

 

Com. Reg. No.:

11-117293

 

 

Capital Investment / Paid-up Capital :

Rs.503.978 Millions

 

 

CIN No.:

[Company Identification No.]

U29100MH1998PTC117293

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMD06431F

 

 

PAN No.:

[Permanent Account No.]

AAACD9897P

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Gas Compressors.

 

 

No. of Employees :

300 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (36)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 8496000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

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

 

The latest financials of the company are not made available.

 

As per previous year’s record, the company is reported as normal for business dealings.

 

Trade relations are fair. Business is active. Payment terms are unknown.

 

In absence of latest financials, the company can be considered for business dealings with slight caution.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

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.

 

INFORMATION PARTED BY 

 

Name :

Mr. Sandeep C.

Designation :

Finance Head

Contact No.:

91-22-67248600

Date :

04.03.2013

 

 

LOCATIONS

 

Registered Office :

Lotus Business Park, 11th Floor, Veera Desai Road, Off Andheri Link Road, Opposite Fun Republic, Andheri (West), Mumbai – 400 053, Maharashtra, India

Tel. No.:

91-22-67248600

Fax No.:

91-22-67248623

E-Mail :

drindia@dresser-rand.com

Website :

http://www.dresser-rand.com

Location :

Owned

 

 

Factory :

187, GIDC, Naroda, Ahmedabad – 382 330, Gujarat, India

Tel. No.:

91-79-22800800

Fax No.:

91-79-22805566

Area :

1500 sq ft

Location :

Leased

 

 

Branch Office :

Located at:

 

v      Kolkata

v      Chennai

v      Delhi

 

 

Sales  Offices in Asia Pacific :

Located at:

 

v      Kuala Lumpur

v      Singapore

v      Victoria

v      Vadodara

v      Chennai

v      Kolkata

v      Ahmedabad

v      Tokyo

v      Beijing

v      Hong Kong

v      Mumbai

v      New Delhi

v      Shanghai

 

 

DIRECTORS

 

As on 12.09.2012

 

Name :

Mr. Vijay Ramesh Phatarphekar

Designation :

Managing Director

Address :

Flat No.903, Laburnum, Mahindra Gardens, Goregaon (West), Mumbai – 400 062, Maharashtra, India

Date of Birth/Age :

22.06.1955

Date of Appointment :

15.11.2007

DIN No.:

02138401

 

 

Name :

Mr. Gabriel Mircea Popescu

Designation :

Director

Address :

Kiaramas Sutera Condominium, Unit B 06-03, Malaysia 50480

Date of Birth/Age :

14.08.1965

Date of Appointment :

19.11.2008

DIN No.:

02428230

 

 

Name :

Mr. Srinath Mukherjee

Designation :

Additional Director

Address :

C 402, Amaltas Juhu, Versova Link Road, Andheri (West), Mumbai – 400 053, Maharashtra, India

Date of Appointment :

27.09.2010

DIN No.:

03328093

 

 

Name :

Mr. Girish Garg

Designation :

Additional Director

Address :

55, Nishkam Apartments, Plot No.23, Dwarka, Phase I, Mahavir Enclave, New Delhi – 110 045, India

Date of Birth/Age :

26.11.1968

Date of Appointment :

28.01.2012

DIN No.:

05253676

 

 

KEY EXECUTIVES

 

Name :

Mr. Sandeep C.

Designation :

Finance Head

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 12.09.2012

 

Names of Shareholders

 

 

No. of Shares

Vijay Ramesh Phatarphekar

 

1

Dresser Rand Company, New York

 

50397839

Vasant Mahableshwar Naik

 

1

Total

 

50397841

 

As on 12.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

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

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Gas Compressors.

 

 

Products :

Product Description

 

Item Code

Gas Compressors

841480.01

 

v      Turbomachinery Products

v      Reciprocating Products

v      Coppus Portable Ventilators

v      Combined Head and Power Solutions

v      Control System

v      Commercial Nuclear Products

 

 

Exports :

 

Products :

Gas Compressors

Countries :

v      Iran

v      Brazil

 

 

Imports :

 

Products :

Components

Countries :

v      Germany

v      China

 

 

Terms :

 

Selling :

L/C, Cash and Credit

 

 

Purchasing :

L/C, Cash and Credit

 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Annual Installed Capacity at the Year End (Nos.) (@)

Actual Production for the Year (Nos.)

Process Compressors

Complete Machine and Accessories

183

88

 

 

 

 

@ The installed capacity is annual capacity as certified by the management and is not verified by the auditors, being a technical matter.

 

GENERAL INFORMATION

 

Customers :

Wholesalers, Retailers and End Users

 

 

No. of Employees :

300 (Approximately)

 

 

Bankers :

Citi Bank, Branch Fort, Mumbai, Maharashtra, India

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse

Chartered Accountants

Address :

Pricewater House, 252, Veer Savarkar Marg, Shivaji Park, Dadar (West), Mumbai – 400 028, Maharashtra, India

PAN No.:

AAEFP3641G

 

 

Holding Company :

Dresser-Rand Company, New York (holds 99.99% of equity share capital as at 31st March 2011)

 

 

Fellow Subsidiaries :

v      Dresser-Rand France S.A.

v      Dresser-Rand Asia Pacific SDN.BHD.

v      Dresser-Rand Nadrowski GMBH

v      Dresser-Rand China

v      Dresser-Rand Millbury

v      Dresser-Rand International Sales

v      Dresser-Rand Indonesia

v      Dresser-Rand Brazil

v      Dresser-Rand UK

v      Dresser-Rand Columbia

v      Dresser-Rand GMBH

v      Dresser-Rand Malaysia

v      Dresser-Rand Services - ARROW

v      Dresser-Rand Thailand

 

 

CAPITAL STRUCTURE

 

As on 12.09.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

70000000

Equity Shares

Rs.10/- each

Rs.700.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

50397841

Equity Shares

Rs.10/- each

Rs.503.978 Millions

 

 

 

 

 

 

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

503.978

503.978

503.978

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1619.944

675.061

185.039

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

2123.922

1179.039

689.017

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

0.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

2123.922

1179.039

689.017

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

340.232

275.959

292.795

Capital work-in-progress

19.482

1.903

0.651

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERRED TAX ASSETS

98.248

94.739

69.384

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
571.310
654.567

850.621

 

Sundry Debtors
1126.007
1464.363

701.690

 

Cash & Bank Balances
2033.073
877.956

1704.412

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
184.411
191.839

420.529

Total Current Assets
3914.801
3188.725

3677.252

Less : CURRENT LIABILITIES & PROVISIONS

 
 

 

 

Sundry Creditors

488.737
563.397

743.727

 

Other Current Liabilities
1620.641
1637.530

1613.710

 

Provisions
139.463
181.360

993.628

Total Current Liabilities
2248.841
2382.287

3351.065

Net Current Assets
1665.960
806.438

326.187

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

2123.922

1179.039

689.017

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

Income

4092.458

5251.752

3001.650

 

 

Services Income

 

 

171.913

 

 

Other Income

 

 

94.301

 

 

TOTAL                                    

4092.458

5251.752

3267.864

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Manufacturing and Other Expenses

2621.180

3994.305

2750.882

 

 

TOTAL                                    

2621.180

3994.305

2750.882

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

1471.278

1257.447

516.982

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

36.904

71.958

66.597

 

 

 

 

 

 

PROFIT BEFORE TAX

1434.373

1185.489

450.385

 

 

 

 

 

Less

TAX                                                                 

489.490

430.145

183.602

 

 

 

 

 

 

PROFIT AFTER TAX

944.883

755.343

266.783

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

NA

19.032

604.373

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

NA

NA

26.678

 

 

Dividend

NA

NA

705.570

 

 

Tax on Dividend

NA

NA

119.876

 

BALANCE CARRIED TO THE B/S

NA

NA

19.032

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Goods (calculated on FOB basis) and services

1358.546

1456.568

831.119

 

 

Other Income

13.619

9.251

7.621

 

TOTAL EARNINGS

1372.165

1465.819

838.740

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials, Complete Machine, Accessories and Spare Parts (Includes imported materials in transit.)

599.638

2137.642

1680.899

 

 

Capital Goods

34.064

0.000

0.000

 

TOTAL IMPORTS

599.638

2137.642

1680.899

 

 

 

 

 

 

Earnings Per Share (Rs.)

18.75

14.99

5.29

 

 

 

Particulars

 

 

 

31.03.2012

Sales Turnover (Approximately)

 

 

3470.000

(Project are delay)

 

 

 

 

 

Expected Sales (2012-2013): Rs.6000.000 millions

 

The above information has been parted by Mr. Sandeep C. (Finance Head).

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

23.09
14.38

8.16

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)
NA
NA

15.00

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

33.71
34.22

11.34

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.68
1.01

0.65

 

 

 
 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.00
0.00

0.00

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

1.74
1.34

1.10

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

Sundry Creditors

 
 

 

- Creditors due small micro enterprises

39.204
17.618

743.727

- Creditors due others

449.533
545.779

 

Total

488.737
563.397

743.727

 

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

Yes

5) Type of Business

Yes

6) Line of Business

Yes

7) Promoter’s background

Yes

8) No. of employees

Yes

9) Name of person contacted

Yes

10) Designation of contact person

Yes

11) Turnover of firm for last four years

Yes

12) Profitability for last three years

Yes

13) Reasons for variation <> 20%

Yes

14) Estimation for coming financial year

Yes

15) Capital in the business

Yes

16) Details of sister concerns

Yes

17) Major suppliers

No

18) Major customers

No

19) Payments terms

Yes

20) Export / Import details (if applicable)

Yes

21) Market information

--

22) Litigations that the firm / promoter involved in

--

23) Banking Details

Yes

24) Banking facility details

No

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

No

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

 

 


Note:

The registered office of the company has been shifted from 4th Floor, Paville House, Off Veer Savarkar Marg, Prabha Devi, Mumbai, Maharashtra to the present address w.e.f. 01.04.2008.

 

OPERATIONS:

 

The company was impacted during the year on account of lower sales during the financial year due to lower backlog of previous year.

 

FUTURE OUTLOOK:

 

The Company will continue to focus on operational excellence. Execution of backlog of orders and converting the same in Billed Sales coupled with cost improvement would be a major focus to improve profitability.

 

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF: (AS ON 31.03.2011)

 

(a) Performance Bank guarantees given to Customers – Nil

 

(b) Central Excise Liability for demands raised – Rs.33.675 millions

 

(c) Income Tax demands raised for various assessment years – Rs.38.214 millions

 

FIXED ASSETS:

 

Intangible Assets

v      Goodwill

v      Software

Tangible Assets

v      Land- Leasehold

v      Buildings

v      Plant and Machinery

v      Electrical Installations

v      Furniture, Fixtures and Equipments

v      Vehicles

v      Small Tools

 

 

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.54.65

UK Pound

1

Rs.82.65

Euro

1

Rs.71.21 

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

36

 

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.