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Report No. : |
345265 |
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Report Date : |
19.10.2015 |
IDENTIFICATION DETAILS
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Name : |
VELAN INC |
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Registered Office : |
7007
Chemin de la Côte-de-Liesse, Montreal,
Quebec H4T 1G2 |
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Country : |
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Financials (as on) : |
28.02.2015 |
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Date of Incorporation : |
12-12-1952 |
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Legal Form : |
Public Company (TSX = VLN) |
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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. |
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No. of Employees : |
2,051 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Canada |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source
: CIA |
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
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:
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.
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 & complaints:
As of today date, there is no legal filing pending
with the Courts.
Secured debts summary: Several
Haut du formulaire
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.64.97 |
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UK Pound |
1 |
Rs.100.55 |
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Euro |
1 |
Rs.73.99 |
INFORMATION DETAILS
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Analysis Done by
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HNA |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.