MIRA INFORM REPORT

 

 

Report Date :

30.04.2011

 

IDENTIFICATION DETAILS

 

Name :

DIABU DIAMOND TOOLS (INDIA) PRIVATE LIMITED

 

 

Registered Office :

131/132, 7th Floor, Devatha Plaza, Residency Road, Bangalore 560025, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

02.07.1993

 

 

Com. Reg. No.:

014482

 

 

CIN No.:

[Company Identification No.]

U36911KA1993PTC014482

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRD02984C

 

 

PAN No.:

[Permanent Account No.]

AABCD9636K

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Supplier of Diamond Tools

 

RATING & COMMENTS

 

MIRA’s Rating :

B (30)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 126000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderated track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct.

 

The company can be considered for small to mediocre business dealings at usual trade terms and conditions.

 

 

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

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 

LOCATIONS

 

Registered Office :

131/132, 7th Floor, Devatha Plaza, Residency Road, Bangalore 560025, Karnataka, India 

Tel. No.:

91-80-22212143

Fax No.:

91-80-22270634

E-Mail :

info@diabuindia.com

 

 

Factory  :

No. 58, Manipal Country Road, Singasandra, Bangalore 560068, Karnataka, India

Tel. No.:

91-80-25731256 / 2240

Fax No.:

91-80-25734720

 

 

DIRECTORS

 

AS ON 10.07.2010

 

Name :

Mr. Venkatesh Maitreya Raju

Designation :

Director

Date of Birth/Age :

09.05.1963

Date of Appointment :

11.07.2006

 

 

Name :

Mr. Vippen Sareen

Designation :

Director

Date of Birth/Age :

07.07.1949

Date of Appointment :

25.05.2004

 

 

Name :

Mr. Dirk Buttner

Designation :

Director

Date of Birth/Age :

08.04.1965

Date of Appointment :

09.02.2004

 

 

Name :

Mr. Michael Jank

Designation :

Director

Date of Birth/Age :

29.306.1966

Date of Appointment :

25.07.2004

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 10.07.2010

 

Names of Shareholders

No. of Shares

Mr. Dirk Buttner

15015

Mr. Vippen Sareen

9100

Mr. Venkatesh Maitreya Raju

7280

Mr. Michael Jank

5200

Diabu Diamantwerkzcuge Heinz Buttner GmbH, Germany 

129480

Mr. Sunil Joseph

5460

Mr. Arvind Kumar Sharma

5460

Maini Samaj Kalyan Kendra, Bangalore

5005

Total

182000

 

 

AS ON 10.07.2010

 

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]

 

82.25

Bodies corporate

 

2.75

Directors or relatives of directors

 

15.00

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Supplier of Diamond Tools

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :
  • Small Industries Development Bank of India, Khanija Bhavan, 5th Floor, East Wing, 49 Race Course Road, Bangalore 560001, Karnataka, India
  • ING Vysya Bank
  • Axis Bank
  • IDBI Bank
  • Bank of Rajasthan
  • Barclays Bank

 

 

Facilities :

 

SECURED LOAN

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

ING Vysya Bank - CCOD- 3817

13.777

12.031

Axis Bank Limited

1.079

0.000

Total

14.856

12.031

 

Note:

 

Working capital Loan from ING Vysya Bank is secured by hypothecation of Plant and Machinery by creating first charge thereon and hypothecation of present and future stock of Raw Material, Stock in Process, Finished goods, Stores and Spares Book Debts and outstanding monies and is further secured by the personal guarantees some of the Directors

 

Term Loan of Axis Bank are secured by hypothecation of Vehicle.

 

UNSECURED LOAN

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

Mr, V Sareen - Loan A/C

0.000

1.600

Magma Fincorp Limited

1.983

0.000

Kotak Mahindra Prime Limited

1.395

2.111

Barclays Bank

2.200

2.961

Total

5.578

6.672

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Iqbal Khan and Company

Chartered Accountant

Address :

The Pinnacle United States F 101, 30/1-2, Church Street, Bangalore 560001, Karnataka, India

 

 

Associates/Subsidiaries :

Nil

 

 

CAPITAL STRUCTURE

 

AS ON 10.07.2010

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

200000

Equity Shares

Rs. 100 each

Rs.20.000 millions 

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

182000

Equity Shares

Rs. 100 each

Rs.18.200 millions 

 

 

 

 

 

 

 

 

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

18.200

18.200

18.200

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

13.406

8.446

4.524

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

31.606

26.646

22.724

LOAN FUNDS

 

 

 

1] Secured Loans

14.856

12.031

17.448

2] Unsecured Loans

5.578

6.672

1.265

TOTAL BORROWING

20.434

18.703

18.713

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

EQUITY SHARE PREMIUM

4.420

4.420

4.420

 

 

 

 

TOTAL

56.460

49.769

45.857

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

13.909

9.935

10.531

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
12.787

10.680

8.291

 

Sundry Debtors
42.072

40.136

31.630

 

Cash & Bank Balances
0.155

0.053

0.208

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances
17.562

15.289

13.979

Total Current Assets
72.576

66.158

54.108

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
23.881

21.845

16.979

 

Other Current Liabilities
6.144

4.479

1.803

 

Provisions

0.000

0.000

0.000

Total Current Liabilities
30.025

26.324

18.782

Net Current Assets
42.551

39.834

35.326

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

56.460

49.769

45.857

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Sales

82.181

77.887

60.751

 

 

Other Income

0.000

0.000

0.000

 

 

TOTAL                                     (A)

82.181

77.887

60.751

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Office Expenses

 

 

Administrative Expenses

75.072

72.105

57.534

 

 

Advertising Expenses

 

 

 

 

 

TOTAL                                     (B)

75.072

72.105

57.534

 

 

 

 

 

Less

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

7.109

5.782

3.217

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

NA

NA

NA

 

 

 

 

 

 

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

7.109

5.782

3.217

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

NA

NA

NA

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

7.109

5.782

3.217

 

 

 

 

 

Less

TAX                                                                  (H)

2.150

1.860

1.120

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

4.959

3.922

2.097

 

 

 

 

 

 

IMPORTS

3.605

3.899

3.399

 

 

 

 

 

 

Earnings Per Share (Rs.)

39.06

31.77

--

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
6.03

5.03

3.45

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
8.65

7.42

5.29

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
8.22

7.59

4.97

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.22

0.21

0.14

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.73

1.85

1.84

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.41

2.51

2.88

 

 

LOCAL AGENCY FURTHER INFORMATION

 

PERFORMANCE:

 

The Company has produced improved turnover from Rs.77.800 millions for the FY ended 31.03.2009 to Rs.82.100 millions for the FY ended 31.03.2010. Percentage wise the Company has achieved 5.5% growth so far as sales is concerned. Similarly the net profit of the Company has also grown by 26.44% during the period under review, when compared to the net profit of previous financial year. The net profit for the current year is Rs.4.900 millions when compared to Rs.3.900 million of the previous Financial year.

 

The Directors are hopeful that they will continue to show the better performance in the ensuing financial year.

 

 

FIXED ASSETS:

 

  • Air Conditioner
  • Computer
  • Electrical Fittings
  • Furniture and Fixtures
  • Office Equipment
  • Plant and Machinery
  • Tools and Instruments
  • Vehicle

 

 

FORM 8

 

Corporate identity number of the company

U36911KA1993PTC014482

Name of the company

DIABU DIAMOND TOOLS (INDIA) PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

131/132, 7th Floor, Devatha Plaza, Residency Road, Banaglore 560025, Karnataka, India

This form is for

Creation of charge

Type of charge

Movable property (not being pledge)

Particular of charge holder

Small Industries Development Bank of India, Khanija Bhavan, 5th Floor, East Wing, 49 Race Course Road, Bangalore 560001, Karnataka, India

Email: bgbo_sidbi@sidbi.in

Nature of instrument creating charge

Deed of hypothecation

Date of instrument Creating the charge

29.10.2007

Amount secured by the charge

Rs. 3.600 millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of interest

12.5 % PER ANNUM; upfront 1% of the loan; 2% p.a. over and above the interest rate by way of liquidated damages in case of defaults in principal, interest and other moneys payable under the loan agreement.  Arrears of liquidated damages also carry interest at the applicable rate for loan.

 

Terms of repayment

60 monthly installments of Rs 0.060 million each with a moratorium of 6 months after disbursement of the loan.

 

Margin

Rs1.400 millions

 

Extent and operation of the charge

First and Exclusive Charge In Favour of SIDBI On All Movables Including Plant, Machinery and Equipment Acquired and to be Acquired.

Short particulars of the property charged (Including location of the property)

All movables existing such as Plant, Machinery and equipment etc., already acquired and to be acquired

 

 

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.44.38

UK Pound

1

Rs.73.88

Euro

1

Rs.65.83

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--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

 

30

 

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.