MIRA INFORM REPORT
|
Report Date : |
29.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
HINDUSTAN DORR OLIVER LIMITED |
|
|
|
|
Registered
Office : |
Dorr-Oliver House, |
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Country : |
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Financials (as
on) : |
30.06.2012 |
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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 |
|
|
|
|
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
|
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 7540000 |
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|
|
|
Status : |
Moderate |
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|
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a moderate track record.
There appears huge loss and dip in the sales turnover during the current
year. The reserve of the company is deteroating and external borrowing seems
to be increasing over a year which effect the liquidity position. However, trade relations are reported to be fair. Business is active.
Payments are reported to be slow but correct. The company can be considered for business dealings with some caution. |
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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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
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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
FITCH |
|
Rating |
BB (Long Term Rating) |
|
Rating Explanation |
This rating indicate vulnerability to default risk, particularly in
the event of adverse change in business or economic condition. |
|
Date |
26.03.2013 |
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 : |
Dorr-Oliver House, |
|
Tel. No.: |
91-22-28325541/ 28326416/ 28326417/ 28326418/ 28359400 |
|
Fax No.: |
91-22-28365659 |
|
E-Mail : |
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|
Website : |
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|
Factory : |
5/1/2, G.I.D.C. Vatva, Near Railway Crossing, |
|
Tel. No.: |
91-79-25830591/4 |
|
Fax No.: |
91-79-25833286 |
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E-Mail : |
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Branch Office : |
Located at:
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Overseas Office : |
Davy Mrakham Limited, Prince Of Wales Road, Damall, Sheffield, South Yorkshire, United Kingdom, 59 4 EX |
|
Tel. No.: |
44-114-2449971 |
|
Fax No.: |
44-114-2449641 |
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E-Mail : |
DIRECTORS
As on 30.06.2012
|
Name : |
Mr. Prabhakar Ram Tripathi |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. E. Sundhir Reddy |
|
Designation : |
Vice Chairman |
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|
Name : |
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Designation : |
Executive Director |
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|
Name : |
Mr. R. Balarami Reddy |
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Designation : |
Non-Executive Director |
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Name : |
Mr. T.N. Chaturvedi |
|
Designation : |
Non-Executive Director |
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Name : |
Mr. M.L. Majumdar |
|
Designation : |
Non-Executive Director |
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|
|
|
Name : |
Mr. Shiv Dayal Kapoor |
|
Designation : |
Non-Executive Director |
KEY EXECUTIVES
|
Name : |
A.S. Pradha Saradhi |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2012
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
39804430 |
55.28 |
|
|
39804430 |
55.28 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
39804430 |
55.28 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
7025475 |
9.76 |
|
|
3316057 |
4.61 |
|
|
10341532 |
14.36 |
|
|
|
|
|
|
4527134 |
6.29 |
|
|
|
|
|
|
15025395 |
20.87 |
|
|
1330056 |
1.85 |
|
|
977261 |
1.36 |
|
|
798441 |
1.11 |
|
|
3720 |
0.01 |
|
|
130700 |
0.18 |
|
|
44400 |
0.06 |
|
|
21859846 |
30.36 |
|
Total Public
shareholding (B) |
32201378 |
44.72 |
|
Total (A)+(B) |
72005808 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
-- |
-- |
|
(1) Promoter and Promoter Group |
-- |
-- |
|
(2) Public |
-- |
-- |
|
Sub Total |
-- |
-- |
|
Total
(A)+(B)+(C) |
72005808 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers
and Sellers of machinery for making Pulp
of Fibrous Cellulosic Material, Waste Water Treatment Plant and Mixing
and Homogenizing Equipments for Chemical Industries. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
|
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Filteration |
|
(See Note below) |
(See Note below) |
(See Note below) |
|
Sedimentation |
|
|||
|
Classification |
|
NA |
7608* |
7231 |
|
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
|
Customers : |
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No. of Employees : |
243 (Approximately) |
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Bankers : |
·
Bank of ·
Andhra Bank |
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Facilities : |
(Rs.
In Millions)
Note : As per the Scheme of the Arrangement, more fully described
in Note 29, working capital loan of the company related to the
activities/utilisation for the manufacturing undertaking is vested
in/transferred to the Wholly Owned Subsidiary Company. The parties to the
Scheme of Arrangement are in process of filing for approval with the
respective bankers. Nature of Security
and Interest Working capital loan from banks are secured by hypothecation of entire stocks, book debts, outstanding money receivable, claims and bills (both present and future), the loan is further secured by fixed assets situated at company’s works at Vatva, Ahmedabad (Gujarat) and flats situated in Ahmedabad and Mumbai. The facility carries interest @11% to 13%. |
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Banking Relations
: |
-- |
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Auditors : |
|
|
Name : |
Chaturvedi and Partners Chartered
Accountants |
|
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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|
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Subsidiary [The ownership, directly or indirectly through subsidiary
(ies) |
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Fellow Subsidiaries |
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Joint Ventures of Holding Company : |
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Companies Under Common Control : |
|
CAPITAL STRUCTURE
As on 30.06.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity
Shares |
Rs.2/- each |
Rs.
200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
72005808 |
Equity
Shares |
Rs.2/- each |
Rs.
144.010 Millions |
|
|
|
|
|
Reconciliation of the number of Shares outstanding at the beginning and
at the end of the reporting period:
|
Particulars |
As at 30.06.2012 |
|||
|
|
No. of Shares |
No. of Shares
Amount (Rs. In
Millions) |
|
|
|
Number of Equity Shares at the beginning and end of the period/year |
72005808 |
Rs.144.010 Millions |
|
|
Rights, preferences and restrictions of equity shares:
The Company has only one class of Equity Shares having a par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Equity Shares held by
Holding Company
|
Particulars |
As at 30.06.2012 |
|||
|
|
No. of Shares |
No. of Shares
Amount (Rs. In
Millions) |
|
|
|
Equity shares are held by IVRCL Limited |
39804430 |
Rs. 79.610 Millions |
|
|
The Shareholder
holding more than 5% Shares in the Company
|
Name |
No. of Shares |
% Shareholding |
|
IVRCL Limited, the Holding Company |
39804430 |
55.28% |
Aggregate number of
equity shares alloted as fully-paid up by way of bonus shares
|
Particulars |
As at 30.06.2012 |
|||
|
|
Year |
No. of Shares |
|
|
|
Equity shares were issued as fully paid |
2006-2007 |
6000484 |
|
|
|
bonus shares by capitalisation of General Reserve |
2009-2010 |
36,002,904 |
|
|
|
Total |
|
42003388 |
|
|
Shares reserved for
issue under employee stock option scheme
|
Particulars |
As at 30.06.2012 |
|||
|
|
No. of Shares |
Weighted Average
Exercise Price Per Stock Option |
|
|
|
Employees Stock Options Granted and outstanding at beginning of the
year |
504000 |
41.51 |
|
|
|
Granted during the period/year |
- |
- |
|
|
|
Exercised during the period/year |
- |
- |
|
|
|
Lapsed during the period/year |
- |
- |
|
|
|
Option withdrawn during the period/yea |
504000 |
41.51 |
|
|
|
Employees Stock Options outstanding at end of the year. |
- |
- |
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2012 (15 Months) |
31.03.2011 (12 Months) |
31.03.2010 (12 Months) |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
144.010 |
144.010 |
144.010 |
|
|
2] Share Application Money |
0.000 |
0.000 |
3.610 |
|
|
3] Reserves & Surplus |
1741.130 |
2551.530 |
2096.850 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1885.140 |
2695.540 |
2244.470 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3260.360 |
1600.090 |
786.110 |
|
|
2] Unsecured Loans |
0.000 |
400.000 |
0.000 |
|
|
TOTAL BORROWING |
3260.360 |
2000.090 |
786.110 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
26.740 |
16.320 |
|
|
|
|
|
|
|
|
TOTAL |
5145.500 |
4722.370 |
3046.900 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
258.000 |
740.990 |
763.750 |
|
|
Capital work-in-progress |
0.000 |
97.200 |
22.620 |
|
|
|
|
|
|
|
|
INVESTMENT |
1390.690 |
90.640 |
17.610 |
|
|
DEFERREX TAX ASSETS |
151.650 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
25.800
|
858.580 |
501.700 |
|
|
Sundry Debtors |
2450.490
|
2933.860 |
1672.090 |
|
|
Cash & Bank Balances |
38.410
|
34.130 |
42.070 |
|
|
Other Current Assets |
4015.900
|
3509.820 |
2972.420 |
|
|
Loans & Advances |
3580.440
|
2458.370 |
1000.200 |
|
Total
Current Assets |
10111.040
|
9794.760 |
6188.48 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
4975.460
|
4365.580 |
2118.280 |
|
|
Other Current Liabilities |
1161.600
|
642.560 |
1731.170
|
|
|
Provisions |
628.820
|
993.080 |
96.110
|
|
Total
Current Liabilities |
6765.880
|
6001.220 |
3945.560 |
|
|
Net Current Assets |
3345.160
|
3793.540 |
2242.920 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5145.500 |
4722.370 |
3046.900 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2012 (15 Months) |
31.03.2011 (12 Months) |
31.03.2010 (12 Months) |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7187.530 |
9483.050 |
8631.120 |
|
|
|
Other Income |
105.520 |
127.120 |
59.610 |
|
|
|
TOTAL (A) |
7293.050 |
9610.170 |
8690.730 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of material/ services consumed |
6511.400 |
7946.810 |
|
|
|
|
Changes in inventories of work-in-progress |
14.380 |
(213.200) |
|
|
|
|
Employee benefits expense |
405.930 |
466.930 |
|
|
|
|
Other expenses |
268.450 |
340.030 |
|
|
|
|
TOTAL (B) |
7200.160 |
8540.570 |
7622.350 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
92.890 |
1069.600 |
1068.380 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
513.980 |
222.070 |
176.010 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(421.090) |
847.530 |
892.370 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
41.740 |
68.240 |
54.980 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(462.830) |
779.290 |
837.390 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(766.150) |
241.760 |
282.220 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(303.320) |
537.530 |
555.170 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
849.610 |
579.030 |
341.030 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
0.000 |
57.600 |
57.600 |
|
|
|
Corporate Dividend Tax |
0.000 |
9.350 |
9.570 |
|
|
|
Transfer to General Reserve |
0.000 |
200.000 |
250.000 |
|
|
BALANCE CARRIED
TO THE B/S |
546.300 |
849.610 |
579.030 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Sale of Equipment (including components and spares) on FOB basis |
13.640 |
13.100 |
13.060 |
|
|
|
Freight and insurance recoveries |
0.020 |
0.420 |
0.500 |
|
|
|
Earning in the form of advances |
1.210 |
0.000 |
148.400 |
|
|
TOTAL EARNINGS |
14.870 |
13.520 |
161.960 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Cost of systems, equipments, components, spares and services |
277.250 |
405.430 |
470.010 |
|
|
|
Capital Expenditure (Import of machineries) |
0.000 |
49.140 |
0.000 |
|
|
TOTAL IMPORTS |
277.250 |
454.570 |
470.010 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.)
Basic |
(4.21) |
7.47 |
7.71 |
|
|
|
Diluted |
(4.21) |
7.41 |
7.69 |
|
QUARTERLY /
SUMMARISED RESULTS
|
Particulars |
30.09.2012 |
31.12.2012 |
|
|
1st
Quarter |
2nd
Quarter |
|
|
|
|
|
Net Sales |
819.600 |
758.000 |
|
Total Expenditure |
846.300 |
1131.500 |
|
PBIDT (Excl OI) |
(25.700) |
(373.500) |
|
Other Income |
94.200 |
4.500 |
|
Operating Profit |
8.500 |
(369.000) |
|
Interest |
119.200 |
121.100 |
|
Exceptional Items |
(342.800) |
0.000 |
|
PBDT |
(453.500) |
(490.100) |
|
Depreciation |
6.800 |
6.800 |
|
Profit Before Tax |
(460.300) |
(496.900) |
|
Tax |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
(460.300) |
(496.900) |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
(460.300) |
(496.900) |
KEY RATIOS
|
PARTICULARS |
|
30.06.2012 (15 Months) |
31.03.2011 (12 Months) |
31.03.2010 (12 Months) |
|
PAT / Total Income |
(%) |
(4.16)
|
5.59 |
6.39 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(64.41)
|
8.22 |
9.70 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(4.46)
|
7.40 |
12.04 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.25)
|
0.29 |
0.37 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.73
|
0.74 |
2.11 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.49
|
1.63 |
1.57 |
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 |
No |
|
8] |
No. of employees |
Yes |
|
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 |
Yes |
|
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 |
No |
|
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 |
Yes |
PERFORMANCE
The Company achieved a gross turnover of Rs.7187.530 Million for the fifteen months period ended June 30, 2012 as against Rs.9483.050 Million for the previous twelve months ended March31, 2011. On an annualized basis, turnover for the current period ended June 30, 2012 reduced by 39.37% as compared to the previous year. The pressure on liquidity coupled with reduced investments in infrastructure and other industries has adversely affected the Company resulting in reduced turnovers and consequent under realization of overheads leading to a gross loss of RS. 462.830 Million and net loss after tax of Rs.303.320 Million.
In view of the loss incurred by the Company, the Directors regret and
express their inability to recommend dividend for the fifteen months period
ended June 30, 2012.
FUTURE OUTLOOK
The negative effects of global recessionary conditions are being attenuated by various countries through huge investments in infrastructure and India is no exception in this regard. The directors are confident that the present environment of investments in infrastructure by the State and Central Governments assures growth of operations of the Company.
MANAGEMENT DISCUSSION AND ANALYSIS
COMPANY
PERFORMANCE
The company recorded a good performance during the year 2010-11. But
during the year 2011-12, the company is showing a negative performance at the
end of 3rd quarter due to the economic slowdown. This is mainly certain sectors
due to pending decisions of investment and statutory Government clearances.
BUSINESS PORTFOLIO
HDO operates on diversified portfolios of business that have wide market
segments. The Engineering, Procurement and Construction (EPC) Division of HDO
has a good track record of executing large size and complex projects on turnkey
basis. The projects include in the field of Minerals and Metals, Fertilizer and
Chemicals, Water Management and Pulp and Paper sectors. The Divisions major
capabilities include in-house engineering, global technology tie ups, world
class manufacturing facilities, highly experienced project execution team and
safe work culture.
Intense competition in domestic market with new competitors both from
India and global companies, this division is diversifying into new product
lines as well as venturing into new geographic locations.
The company is proud to inform that your Manufacturing facility is one among the top ten leading engineering manufacturing facility in the country. It has been approved by all leading project management consultants in the country. Further, it has been upgraded with S and R certifications from ASME-USA to undertake various pressure vessels and heat exchangers manufacturing for Nuclear and Power sectors. Many global companies have visited our facility for their global requirement of their product to be manufactured at your workshop.
The company has launched a number of initiatives such as facility
enhancement, automation of the system and quality improvement to meet the global
market demand.
The company has another world class manufacturing facility in the name
of Davy Markham Limited at Sheffield, U.K. This manufacturing facility is
distinguished in the design fabrication, machining and manufacturing of heavy
and complex engineering component to various industrial segments.
Davy Markham have been receiving large orders for manufacturing of
Mining equipment such as Mining Hoists and tunnel boring machines from Europe
and U.S. markets.
HDO being an ISO certified company , is engaged in continuous
improvement in quality standards.
GROWTH STRATEGIES
Economy is likely to grow in the range of 7.5 to 8%. Mining and Manufacturing are expected to show substantial improvement in 2012-13 over the previous year.
As per the revised projections done by the Planning Commission, the expected investment in Infrastructure during the 11th Plan period will be Rs. 20.50 Lakh Crores for the 12th Plan (2012-17), the Planning Commission has indicated that the investment will be double.
In company, each business vertical is continuously engaged in strategic growth in competitive market scenario.
A related sector wise analysis as follows:
a. Power
As per central Electricity Authority 9CEA), there will be a requirement of 1,100 BOP packages during 12th Plan comprising of coal handling plants, water packages, cooling towers, fuel oil systems and chimney stacks. HDO is already executing LSTK project for NPCIL and is active in this areas.
b. Steel
In 2011, India produced 72.200 million tons of steel and was 4th largest
producer in the world. The installed capacity is expected to increase upto 142
million tons by 2018. HDO has already signed MOU with global technology players
for EPC packages on this Sector in Coke Owen, Sinter Plants, Blast Furnace and
By Product Plants.
c. Mining and
Minerals
India has vast reserves of many different minerals. It is world’s 3rd largest producer of coal, 4th largest producer of ore and 5th largest producer of bauxite. It also has significant reserves of copper, zinc, lead and other minerals.
Iron ore beneficiation and pelletisation of unused iron ore fines will
be needed in a big way to meet the growing demand of the steel industry. HDO is
already existing two number of Iron ore slimes and fines beneficiation project
for NMDC LIMITED at Donimali Karnataka. HDO hopes to play a significant role in
setting up of iron ore beneficiation and pelletisation with international
technology partners.
HDO is a market leader in Mineral Beneficiation in India having involved
in all Alumina Refineries and also setting up the complete uranium ore
processing plant for UCIL of 3000 TPD Capacity which is Asia's largest Uranium
Processing Plant and worlds 4th Alkali leached plant in Kadappa, Andhra
Pradesh.
During the 12th plan, many such plants are expected to come up where HDO
has its strong credentials.
d. Opportunities
and Threats
HDO is facing increased competition in many areas of operation due to
entry of new players in the market. In addition ordering of new projects had
slowed down in 2011-12 due to delays in policy decisions by the Government
environmental clearances and other issues. To counter increased competitions in
domestic markets, HDO is focusing on international markets in Africa, U.A.E, Brazil
etc. HDO is also entering into manufacturing of new equipment from Oil and Gas,
Steel Plants Components, etc.
REVENUE FROM
OPERATIONS
The growth rate was negative as regards Revenue from operation almost by 39.29% on an annualized basis. The reasons attributable for such negative growth are slow progress of some major works due to unavailability of fronts, delay in handing over sites for new projects and permissions by various authorities.
AS PER WEBSITE
PRESS RELEASE
INDIA
RATINGS DOWNGRADES HINDUSTAN DORR-OLIVER TO ‘BB’
21.03.2013
Rating agency India Ratings has revised Hindustan Dorr-Oliver Limited long term issuer rating from "BBB" to "BB" on weak financial performance in six months ended December 2012.
IT placed It on Rating Watch Negative (RWN).
The downgrade reflects HDOL’s continued weak financial performance during six
month of FY13 (ended 31 December 2012). Its standalone revenue declined 53%
(year-on year) to Rs 1600.000 Millions
The cause for the fall in revenue was the company’s slower execution of
projects due to lack of funding and minimal order inflow during the period,
rating agency said.
Its parent company IVRCL Infrastructures and Projects Limited holds 55% of
stock, according to company website.
The decline in revenue and cost overrun estimated at Rs 480.000 Millions
severely impacted operating margins. It was expecting to receive around Rs
1200.000 Millions of its receivables end of December.
These payments were blocked in some of its projects executed in the minerals
and environmental divisions. However, no significant collection happened
against this amount during the period which has further stretched its
liquidity.
The agency has not received any representation from the management team of HDOL
confirming the timely debt servicing by the company. The company has to pay the
first installment of $1.25 million on its $20 million external commercial
borrowing (ECB) loan on 17 April 2013. It may face challenges in repayment
given its current strained liquidity situation, India Ratings said.
UNSECURED LOAN :
(Rs.
In Millions)
|
Particulars |
30.06.2012 (15 Months) |
31.03.2011 (12 Months) |
|
Loan from Bank |
0.000 |
400.000 |
|
Total |
0.000 |
400.000 |
CONTINGENT
LIABILITIES :
|
Particulars |
30.06.2012 |
|
Claims against
the Company not acknowledged as debt |
34.610 |
|
Guarantees |
|
|
Bank
Guarantees/Letters of Credit issued by the bank on behalf of the
Company (Net of margin money aggregating to Ď 8.92 Million.
Previous year Ď 9.18 Million) |
5367.600 |
|
Corporate Guarantees |
133.850 |
|
Other money for
which the Company is contingently liable |
|
|
*Income-tax matters |
23.840 |
|
*Sales-tax / WCT / VAT matters |
81.300 |
|
*Excise/Service Tax matters |
0.000 |
|
*Customs duty matters |
0.770 |
* Excluding interest / penalty as may be determined / levied on the
conclusion of the matters.
FIXED ASSETS
·
Freehold
Land
·
Leasehold
Land
·
Building
(Including company owned flats)
·
Plant
and Machinery
·
Office
Equipment
·
Electrical
Fittings
·
Jigs,
Fixtures and Templates
·
Furniture
and Fixtures
·
Vehicles
·
Technical
Know-How
·
Goodwill
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] 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.54.39 |
|
|
1 |
Rs.82.32 |
|
Euro |
1 |
Rs.69.54 |
INFORMATION DETAILS
|
Report Prepared
by : |
RSMK |
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 |
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 |
YES |
|
--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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.