MIRA INFORM REPORT

 

 

Report No. :

345265

Report Date :

19.10.2015

 

 

IDENTIFICATION DETAILS

 

Name :

VELAN INC

 

 

Registered Office :

7007 Chemin de la Côte-de-Liesse, Montreal, Quebec H4T 1G2

 

 

Country :

Canada

 

 

Financials (as on) :

28.02.2015

 

 

Date of Incorporation :

12-12-1952

 

 

Legal Form :

Public Company (TSX = VLN)  

 

 

Line of Business :

Subject is engages in designing, manufacturing, and marketing various industrial valves worldwide.

It offers gate, globe, and check valves, including cast steel valves for use in process and power industries; stainless steel valves for corrosive applications; small forged valves for industrial applications; forged high pressure valves for use in nuclear and fossil power generation industries, the U.S. Navy, and high pressure/temperature steam applications; Y-pattern valves for use in power plants; knife gate valves to handle slurries; and proquip dual-plate check valves for use in oil and gas industries.

 

 

No. of Employees :

2,051

 

 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

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 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 


 

CANADA - ECONOMIC OVERVIEW

 

As a high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and high living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US, its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian merchandise exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, and electric power, and a top source of US uranium imports. Given its abundant natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the early intervention by the Bank of Canada and the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-14 and plans to balance the budget by 2015 despite the recent drop in oil prices. In addition, the country's petroleum sector is rapidly expanding, because Alberta's oil sands significantly boosted Canada's proven oil reserves. Canada now ranks third in the world in proved oil reserves behind Saudi Arabia and Venezuela and is the world’s fifth-largest oil producer.

 

Source : CIA

 

 

Company summery

 

Company name:            VELAN INC.

 

Address:                       7007 Chemin de la Côte-de-Liesse, Montreal, Quebec H4T 1G2

                                     Canada

 

Telephone:                    +1 514-748-7743

 

Fax:                              +1 514-748-8635

 

Website:                       www.velan.com

 

Corporate ID#:               146145

 

State:                           Federal

 

Judicial form:                 Public Company (TSX = VLN)  

 

Date incorporated:          12-12-1952

 

Stock:                           6,297,568 shares issued and outstanding (as of 10-15-2015)

 

Market capitalization:     CAD 101,957,626=

 

Name of manager:          Thomas C. VELAN

 

 

ACTIVITIES & OPERATIONS

 

IST

 

Business:

 

Velan Inc. engages in designing, manufacturing, and marketing various industrial valves worldwide.

It offers gate, globe, and check valves, including cast steel valves for use in process and power industries; stainless steel valves for corrosive applications; small forged valves for industrial applications; forged high pressure valves for use in nuclear and fossil power generation industries, the U.S. Navy, and high pressure/temperature steam applications; Y-pattern valves for use in power plants; knife gate valves to handle slurries; and proquip dual-plate check valves for use in oil and gas industries.

 

The company also provides quarter-turn valves comprising resilient-seated ball valves; metal-seated ball valves for high temperature, high corrosive, and/or media applications; ball valves for delayed cokers in oil refineries; power ball valves to handle steam isolation applications; trunnion-mounted pipeline ball valves for cryogenic, offshore, sub sea, and underground applications; torqseal triple-offset butterfly valves for use in offshore oil platforms, fossil and nuclear power plants, and petroleum refineries; and cryogenic butterfly valves for use in liquid natural gas industry.

In addition, it offers bimetallic steam traps for steam applications in thermal and nuclear power plants, or aboard ships; Adareg control valves for cryogenic applications; emergency shut-down valves, high integrity pressure protection systems, subsea ball valves, control ball valves, diverter valves, modular double block and bleed valves, slab gate valves, choke valves, and nozzle check valves; and pneumatic and hydraulic actuators, including gas-over-oil actuators. Velan Inc. sells its products directly or through a network of distributors and agents.

The company was formerly known as Velan Engineering Ltd. and changed its name to Velan Inc. in February 1981.

The company was founded in 1950 and is headquartered in Montreal, Canada. Velan Inc. is a subsidiary of Velan Holding Co. Ltd.

 

The Company exports worldwide.

 

Staff:     2,051

 

Operations & branches:

 

At the headquarters, we find a factory, warehouse and office, owned.

 

The Company maintains several branches in Canada.

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

SOCIETE HOLDING VELAN HOLDING LTEE (in French)

VELAN HOLDING LTD. (in English)

7007 Chemin de la Côte-de-Liesse, Montreal, Quebec H4T 1G2 – Canada

 

 

Management:

 

Thomas C. VELAN is the CEO

He has been the President of Velan Inc. since May 14, 2003 and serves as its Chief Executive Officer. He served as the Corporate Secretary and Executive Vice President of Export Sales Overseas Operations at Velan, Inc. until May 14, 2003. He has been a Director of Velan, Inc. since 1976.

 

John D. BALL is the CFO

 

Adolf K. VELAN is the Founder and Executive Chairman

 

 

Directors include Kenneth MACKINNON, Peter VELAN, William SHEFFIELD,

Robert VELAN, Cheryl HOOPER, and Jacques LATENDRESSE.

 

Yves LEDUC is the President

 

Sabine BRUCKERT is Secretary.

As far as we know, they are involved in other corporations, including:

 

SOCIETE HOLDING VELAN HOLDING LTEE (in French)

VELAN HOLDING LTD. (in English)

7007 Chemin de la Côte-de-Liesse, Montreal, Quebec H4T 1G2 – Canada

 

GESTION VELAN CHINA INC.

7007 Chemin de la Côte-de-Liesse, Montreal, Quebec H4T 1G2 – Canada

 

VELAN S.A.S

France

 

VELAN VALVES LTD

England

 

and others.

 

 

FINANCIALS

 

On October 14, 2015, The board of Velan, Inc. declared an eligible quarterly dividend of CAD 0.10 per share, payable on December 31, 2015, to all shareholders of record as at December 15, 2015.

 

The company announced earnings results for the second quarter and six months ended August 31, 2015.

 

For the quarter, the company reported sales of $111.6 million compared to $110.9 million a year ago. Net income attributable to subordinate and multiple voting shares was $4.7 million or $0.22 per basic and diluted share compared to $5.1 million or $0.23 per basic and diluted share a year ago.

Net cash was $66.5 million or $3.04 per share at the end of the quarter.

Net cash increased by $5.2 million during the quarter mainly due to positive cash net earnings and new long-term debt. The $0.4 million decrease in net earnings is primarily attributable to a lower gross profit percentage partially offset by decreased administration costs.

 

For the six months, the company reported sales of $214.7 million compared to $214.0 million a year ago. Net income attributable to subordinate and multiple voting shares was $7.9 million or $0.36 per basic and diluted share compared to $9.1 million or $0.41 per basic and diluted share a year ago.

The $1.2 million decrease in net earnings is primarily attributable to a lower gross profit percentage partially offset by decreased administration costs.

 

 

On attachment:

 

- 10K 2014/2015 (fiscal year ending February 2013)

- 2nd 10Q 2015

 

 

Banks:  CIBC Canadian Imperial Bank of Commerce

                                            

 

 

LEGAL FILINGS

 

Legal filings & complaints:

 

As of today date, there is no legal filing pending with the Courts.

 

 

Secured debts summary:   Several

 

Haut du formulaire

 

 

COMPANY CREDIT HISTORY

 

Trade references:

 

Date reported:                September 2015

High credit:                    CAD 100,000

Now owing:                    0

Past due:                      0

Last purchase:               August 2015

Line of business:            Office supply

Paying status:               On terms

 

Date reported:                September 2015

High credit:                    CAD 3,000,000

Now owing:                    0

Past due:                      0

Last purchase:               August 2015

Line of business:            Payroll

Paying status:               As agreed

 

Date reported:                September 2015

High credit:                    CAD 4,000

Now owing:                    0

Past due:                      0

Last purchase:               August 2015

Line of business:            Telecommunications

Paying status:               On terms

 

 

Domestic credit history:

 

National Credit Bureaus gave a satisfying credit rating.

 

According to our credit analysts, during the last 6 months, domestic payments were made on due date.

 

 

International credit history:

 

Payments of imports are currently made on terms.

 

 

Other comments:

 

The Company is developing a strong business.

 

The bank confirmed a regular account.

 

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

Last report was filed on 08-18-2015.

 

The risk is low.

 

 

Our opinion:

 

A business connection may be conducted.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.97

UK Pound

1

Rs.100.55

Euro

1

Rs.73.99

 

INFORMATION DETAILS

 

Analysis Done by :

HNA

 

 

Report Prepared by :

TRU

 

               

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 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%)

 

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.