MIRA INFORM REPORT

MIRA INFORM REPORT

Report Date :

27.04.2011

IDENTIFICATION DETAILS

Name :	mukand bekaert wire industries private limited

Registered Office :	Sai Trinity Building, Unit No. 9 and 10, 5^th Floor, Central Wing, S. No. 146, Pashan, Pune – 411021, Maharashtra

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	24.08.2007

Com. Reg. No.:	11-130605

CIN No.: [Company Identification No.]	U27104PN2007PTC130605

TAN No.: [Tax Deduction & Collection Account No.]	PNEM12289E

PAN No.: [Permanent Account No.]	AAFCM1972K

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and Exporter of Stainless Steel Wire.

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1410000

Status :	Moderate

Payment Behaviour :	Slow

Litigation :	Clear

Comments :	Subject is a Subsidiary of Bekaert Holding B.V. Netherlands. It is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. 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 – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Sai Trinity Building, Unit No. 9 and 10, 5^th Floor, Central Wing, S. No. 146, Pashan, Pune – 411021, Maharashtra, India
Tel. No.:	91-20-66276600
Fax No.:	91-20-66276601
E-Mail :	Mitil.birla@mukandbekaert.com
Website :	www.bekaert.com

Factory :	B – 21, Lonkand Industrial Area, Tal-Khandala, District Satara – 415521, Maharashtra, India
Tel. No.:	91-2169-304713
Fax No.:	91-2169-304718

DIRECTORS

As on 14.09.2010

Name :	Mr. Arnold Alfred Lucien Camelbeke
Designation :	Director
Address :	27, Empress garden View CHS, Wanowire, Ghorpadi, Sopan Baugh, Pune – 411001, Maharashtra, India
Date of Birth/Age :	24.03.1948
Date of Appointment :	24.08.2007
Date of Ceasing :	15.12.2008

Name :	Mr. Arvind Madhav Kulkarni
Designation :	Director
Address :	504, Swastik Apts, Khopa, Thane – 400601, Maharashtra, India
Date of Birth/Age :	19.08.1951
Date of Appointment :	24.08.2007
DIN :	01656086

Name :	Mr. Niraj Ramkrishna Bajaj
Designation :	Director
Address :	Mount Unique, 13^th Floor, 62, Peddar Road, Mumbai, Maharashtra, India
Date of Birth/Age :	10.10.1954
Date of Appointment :	15.11.2007
DIN :	00028261

Name :	Mr. Bruna R. Cluydts
Designation :	Director
Address :	Leieriggestraat 44, Gent, 9051, Belgium
Date of Birth/Age :	13.11.1960
Date of Appointment :	15.11.2007
DIN :	01741987

Name :	Mr. Rajesh Viren Shah
Designation :	Director
Address :	7Janki Kutir, Juhu Tara Road, Juhu, Mumbai, Maharashtra, India
Date of Birth/Age :	01.10.1951
Date of Appointment :	15.11.2007
DIN :	00033371

Name :	Mr. Henri Jean Velge
Designation :	Director
Address :	Route Gouvernmentale 75, Brussels, 1150, Belgium
Date of Birth/Age :	10.10.1956
Date of Appointment :	15.11.2007
Din :	01792002

Name :	Mr. Kevin Mansell
Designation :	Director
Address :	Aprt No. 501, Bldg No. A 1, Brahma Suncity Vadgaonsheri, Pune – 411014, Maharashtra, India
Date of Birth/Age :	06.06.1960
Date of Appointment :	30.09.2009
DIN :	02423271

KEY EXECUTIVES

Name :	Mr. Mitil Kumar Birla
Designation :	Secretary and Finance Head
Address :	B 103, Lunkad Heritage II, Near Dutta Mandir, Viman Nagar, Pune, India
Date of Birth/Age :	16.04.1979
Date of Appointment :	25.08.2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 14.09.2010

Names of Shareholders		No. of Shares
Mukand Limited		13000000
Bekaert Holding B.V., Netherlands		36999999
Bekaert Asia N.V., Belgium		1

Total		50000000

As on 14.09.2010

Category		Percentage of Holding

Foreign Holdings (FIIs / Fcs / FFIs / NRIs / OCBs)		74.00
Bodies corporate		26.00

	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Stainless Steel Wire.

Product :

Product Description	Item Code
Stainless Steel Wire	72230000

Exports :

Products :

Stainless Steel Wire

Countries :

Singapore
Belgium
Australia
Italy
Russia
USA

Terms :

Selling :

Cash / Credit

Purchasing :

Cash / Credit

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production

Stainless Steel Wire	Tons	12000	6000	866

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

Bankers :

Not Available

Facilities :

Secured Loans (Rs. In Millions)	31.03.2010	31.03.2009
Other Loans and Advances
Term Loan in Foreign Currency from Bekaert Holding B.V., the Holding Company [term loan is secured by the first charge on all present and future intangible assets, current assets including inventories, book debts, Claims outstanding immovable fixed assets excluding land from MIDC with a provision for grant of lease] movable plant and machinery.	681.711	459.776
Short term loan from bank [secured by corporate guarantee from NV Bekaert SA, Belgium]	230.000	0.000
Export packing credit [secured by corporate guarantee from NV Bekaert SA, Belgium] ]	11.584	0.000
Total	923.295	459.776

Banking Relations :

---

Auditors :

Name :

Deloitte Haskins and Sells

Chartered Accountant

Address :

706, B Wing, 7^th floor, ICC Trade Tower, International Convention Centre, Senapati Bapat Road, Pune - 411016, Maharashtra, India

Tel. No.:

91-20-66244600

Fax No.:

91-20-66244601

Holding Company :

Bekaert Holdings B.V.

J.C. Van Markenstraat, 19, Assen – 9403, Netherlands

Fellow Subsidiaries :

Mukand Limited
N.V. Bekaert S.A., Belgium
Bekaert (China) Technology and Research and Development Company Limited. China
Bekaert Corporation, USA
Bekaert Industries Private Limited, India
Leon Bekaert SPA , Italy
Bekaert Hlohovee, a.s. Slovakia
Industrias Del Uneing, S.A. Spain
Bekaert A/S Denmark
Bekaer Coordinatiecentrum N.V. Belgium
Bekaert Svenska AB, Sweeden
Bekaert AG, Switzerland

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

50,000,000	Equity Shares	Rs. 10 /- each	Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

50,000,000	Equity Shares	Rs. 10 /- each	Rs.500.000 Millions

Note:

Of the above 36999999 (Previous year 25000000) equity shares are held by Bekaert Holding B.V., Netherlands the Holding Company.
13000000 (Previous year 11000000) Equity Shares are held by Mukand Limited

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		500.000	360.000	20.000
2] Share Application Money		0.000	8.700	100.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		145.393)	(30.935)	0.000
NETWORTH		354.607	337.765	120.000
LOAN FUNDS
1] Secured Loans		923.295	459.776	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		923.295	459.776	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		1277.902	797.541	120.000

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		1052.897	12.125	6.220
Capital work-in-progress		0.826	777.340	19.922

INVESTMENT		0.000	0.000	28.920
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	106.635	13.695	0.000
	Sundry Debtors	61.818	0.073	0.000
	Cash & Bank Balances	31.958	234.548	73.654
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	125.991	70.909	3.490
Total Current Assets		326.402	319.225	77.144
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	91.846	303.380	1.672
	Sundry Creditors	8.804	6.409	14.165
	Provisions	1.573	1.360	0.000
Total Current Liabilities		102.223	311.149	15.837
Net Current Assets		224.179	8.076	61.307

MISCELLANEOUS EXPENSES		0.000	0.000	3.631

TOTAL		1277.902	797.541	120.000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	100.799	0.000
		Other Income	2.086	0.000
		TOTAL (A)	102.885	0.000

Less	EXPENSES
		Raw Material Finished Goods, Semi Finished Goods	86.496	4.844
		Employee Cost	13.230	0.556
		Operating and Other Expenses	73.801	24.543
		TOTAL (B)	173.527	29.943

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(70.642)	(29.943)

Less	FINANCIAL EXPENSES (D)		22.914	0.000

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(93.556)	(29.943)

Less/ Add	DEPRECIATION/ AMORTISATION (F)		20.347	0.494

	PROFIT BEFORE TAX (E-F) (G)		(113.903)	(30.437)

Less	TAX (I)		0.555	0.498

	PROFIT AFTER TAX (G-I) (J)		(114.458)	(30.935)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(30.935)	0.000

	BALANCE CARRIED TO THE B/S		(145.393)	(30.935)

	EARNINGS IN FOREIGN CURRENCY
		Sales	70.127	0.000
	TOTAL EARNINGS		70.127	0.000

	IMPORTS
		Raw Materials	0.000	12.418
		Stores & Spares	19.243	10.681
		Capital Goods	62.631	235.049
	TOTAL IMPORTS		81.874	258.148

	Earnings Per Share (Rs.)		(2.40)	(1.66)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(112.25)	NA	NA

Net Profit Margin (PBT/Sales)	(%)	(113.00)	NA	NA

Return on Total Assets (PBT/Total Assets)	(%)	(8.26)	(9.19)	NA

Return on Investment (ROI) (PBT/Networth)		(0.32)	(0.09)	NA

Debt Equity Ratio (Total Liability/Networth)		2.89	2.28	0.13

Current Ratio (Current Asset/Current Liability)		3.19	1.03	4.87

LOCAL AGENCY FURTHER INFORMATION

NOTE: As Confirmed by Mr. Mitil Birla, Subject is a Joint Ventre of Mukand Limited and Bekaert Holding B.V.

FIXED ASSETS:

Leasehold Land
Office Equipment
Computers
Computer Software

FORM 8:

This form is for	Creation of charge
Corporate identity number of the company	U27104PN2007PTC130605
Name of the company	mukAnd bekaert wire industries private limited
Address of the registered office or of the principal place of business in India of the company	Sai Trinity Building, Unit No. 9 and 10, 5^th Floor, Central Wing, S. No. 146, Pashan, Pune – 411021, Maharashtra, India
Type of charge	Book Debts Movable Property Others – Inventories, Claims, Outstanding and all Stocks
Particular of charge holder	Bakaert Holding B.V., J.C. Van Markenstraat, 19, Assen – 9403
Nature of description of the instrument creating or modifying the charge	Special Hypothecation Agreement
Date of instrument Creating the charge	31.03.2009
Amount secured by the charge	Rs. 950.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 1. If loan is drawn in INR - The offer side INR non-deliverable swap rate for the applicable period i.e from each drawdown date until the Repayment Date i.e 31.12.2014, two business days before the relevant drawdown date plus a margin of 1.50%. 2.If the loan is drawn in Euro or USD – The applicable EURIBOR or LIBOR plus a margin of 5% or such other lower margin as may be agreed by the lender. Terms of Repayment The Loan shall be repaid in one installment on the Repayment Date being December 31, 2014 Margin Nil Extent and Operation of the charge First charge on the Assets Hypothecated
Short particulars of the property charged	Intangible Assets, Current Assets including inventories, receivables, book debts, claims, outstandings, immovable fixed assets (excluding land), both present and future, movable machinery and plant (including without prejudice to the generality of the foregoing all stocks of raw materials and finished goods, stock in process, spare parts, components) whether installed or not

AS PER WEBSITE

Subject is a joint-venture between India’s leading producer of alloys and stainless steel long products Mukand Limited and international steel wire expert Bekaert.

Strategically situated in Lonand in the Maharashtra region, subject produces a broad range of stainless steel wires for an equally broad range of applications.

Quality stainless steel wires at a competitive price

Thanks to the combined strengths and experience of the parenting companies and the use of state-of-the-art production lines, subject offers its customers stainless steel wires of the highest quality and performance at a competitive price.

In order to maintain the consistent and uncompromised quality of their wires subject produces according to the ISO quality management system. In addition it also holds the TÜV certificate for welding wire.

A strategic partnership

The partnership between Mukand Limited and Bekaert is a new step forward in their joined strategy to address more effectively the growing demand for stainless steel wires on the Indian and global markets. Thanks to Mukand’s expertise in wire rod production and Bekaert’s advanced knowledge and skills in coating technology and metal transformation, subject forms a solid pillar for their further development and leadership position in India and the world.

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 records 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 records 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.44.59
UK Pound	1	Rs.73.43
Euro	1	Rs.64.81

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	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	--
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.

106.635

61.818

31.958

0.000

125.991

326.402

91.846

8.804

1.573

102.223

224.179

Unit