MIRA INFORM REPORT

 

 

Report Date :

27.02.2012

 

IDENTIFICATION DETAILS

 

Name :

EISENMANN SURFACE FINISHING SYSTEMS INDIA PRIVATE LIMITED (w.e.f. 24.09.2010)

 

 

Formerly Known as:

HADEN INTERNATIONAL GROUP INDIA PRIVATE LIMITED

 

 

Registered Office :

Technosoft Knowledge Gateway, 1st Floor, Plot No. B-14, Road No.1, Wagle Industrial Estate, Thane – 400604, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

10.02.1995

 

 

Com. Reg. No.:

085467

 

 

Capital Investment / Paid-up Capital :

Rs.65.418 Millions

 

 

CIN No.:

[Company Identification No.]

U29190MH1995PTC085467

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNEH06222G

 

 

PAN No.:

[Permanent Account No.]

AAACH1459D

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Trader and Construction of Paint Finishing System

 

 

No. of Employees :

83 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (26)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 117836

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. Profitability of the company is under pressure. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. 

 

The company can be considered for 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.

 

INFORMATION PARTED BY

 

Name :

Mr. Santosh Singh

Designation :

Accounts Head

Contact No.:

91-22-25832929

Date :

23.02.2012

 

 

LOCATIONS

 

Registered Office :

Technosoft Knowledge Gateway, 1st Floor, Plot No. B-14, Road No.1, Wagle Industrial Estate, Thane – 400604, Maharashtra, India

Tel. No.:

91-22-25832929

Fax No.:

91-22-25833800

E-Mail :

Santosh.singh@eisenmann.com

Website :

www.eisenmann.com

Location :

Owned

 

 

Corporate Office:

Regas Olympia, Olympia Technology Park, Level 2, Altius Building No.1, SIDCO Industrial Estate, Tamilnadu, India

 

 

DIRECTORS

 

AS ON 09.09.2011

 

Name :

Mr. Jefferey Kirk Betzoldt

Designation :

Director

Address :

350 East Short Street, No. 229, Lexington, Kentucky – 40507, USA

Date of Birth/Age :

10.04.1962

Date of Appointment :

21.12.2006

 

 

Name :

Mr. Raveendran V Nair

Designation :

Director

Address :

Plot No. 4A Floor, Uttar Vidhi Apartment, Second Seaward Road, Valmiki Nagar, Chennai – 600041, Tamilnadu, India

Date of Birth/Age :

20.09.1949

Date of Appointment :

30.09.2002

 

 

Name :

Mr. David Anthony Overton

Designation :

Director

Address :

66 Tiddington Road, Stratford Upon Avon Warks UK

Date of Birth/Age :

22.07.1945

Date of Appointment :

21.12.2006

 

 

Name :

Mr. Vinay Wamanrao Marawar

Designation :

Director

Address :

1002, C1/Freesia Neelkanth Greens Behind Tiku ni wadi manpada, Thane West, Maharashtra, India

Date of Birth/Age :

10.12.1956

Date of Appointment :

24.01.2007

 

 

Name :

Mr. Sanjay Singh

Designation :

Director

Address :

226 Windhaven Drive Nicholaavilli, United States America

Date of Birth/Age :

13.09.1966

Date of Appointment :

29.06.2010

 

 

Name :

Mr. Ralf Vollinger

Designation :

Director

Address :

Schleif Mue Hleweg 43/2, Tuebingen, Germany

Date of Birth/Age :

19.11.1970

Date of Appointment :

10.08.2010

 

 

Name :

Mr. Jan Siebert

Designation :

Director

Address :

Mittlerer Bauernwaldweg 34A, Botnang Stuttgart, Germany

Date of Birth/Age :

29.10.1973

Date of Appointment :

10.08.2010

 

 

KEY EXECUTIVES

 

Name :

Mr. Santosh Singh

Designation :

Accounts Head

 

 

Name :

Mr. Vinayak V Gorhe 

Designation :

Secretary 

Address :

301, Saraswati Nivas, M G Road, Thane West, Thane – 4000602, Maharashtra, India

Date of Birth/Age :

28.12.1952

Date of Appointment :

01.02.2007

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 09.09.2011

 

Names of Shareholders

 

No. of Shares

Eisenmann Beteiligungen GMBH, Germany

 

6541821

Eisenmann Böblingen Verwaltung GMBH, Germany

 

10

Total

 

6541831

 

AS ON 09.09.2011

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Trader and Construction of Paint Finishing System

 

 

Imports :

 

Products :

Raw Materials

Countries :

Germany

 

 

Terms :

 

Selling :

Cash, Credit 

 

 

Purchasing :

Cash, Credit 

 

 

GENERAL INFORMATION

 

Customers :

·         End Users

·         OEM’s

·         Manufacturing Company

·         Mercedes

·         Mahindra and Mahindra

 

 

No. of Employees :

83 (Approximately)

 

 

Bankers :

·         3i Infotech Trusteeship Services Limited, 3rd to 6th floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai - 400703, Maharashtra, India

·         Oriental Bank of Commerce, Nariman Point , Bombay, Mumbai - 400021,Maharashtra, India

 

 

Facilities :

--

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

V P Thakur and Company

Chartered Accountant

Address :

1105, Embassy Centre, Nariman Point, Mumbai – 400021, Maharashtra, India

 

 

Ultimate Holding Company:

EISENMANN AKTIENGESELLSCHAFT

 

 

Immediate Holding Company:

EISENMANN Beteilgungen GmbH

 

 

Group Company:

EISENMANN Boeblingen Verwaltung GmbH

 

 

Fellow Subsidiaries :

EISENNANN India Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.0.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

10000000

Equity Shares

Rs.10/- each

Rs.100.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

6541831

Equity Shares

Rs.10/- each

Rs.65.418 Millions

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

65.418

65.418

65.418

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

(35.959)

6.456

7.529

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

29.459

71.874

72.947

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

23.095

30.103

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

23.095

30.103

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

29.459

94.969

103.050

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

5.598

6.322

6.096

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

5.352

5.043

5.803

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

0.000

0.000

0.000

 

Sundry Debtors

46.909

31.607

100.038

 

Cash & Bank Balances

34.334

67.547

142.048

 

Other Current Assets

1.684

0.820

1.702

 

Loans & Advances

32.878

40.155

27.978

Total Current Assets

115.805

140.129

271.766

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

25.149

29.605

NA

 

Other Current Liabilities

67.502

22.394

114.074

 

Provisions

4.645

4.526

66.541

Total Current Liabilities

97.296

56.525

180.615

Net Current Assets

18.509

83.604

91.151

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

29.459

94.969

103.050

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

TOTAL                                    

149.320

227.680

52.168

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                    

NA

NA

NA

 

 

 

 

 

 

PROFIT BEFORE TAX

(37.980)

(0.300)

91.830

 

 

 

 

 

Less

TAX                                                                 

4.430

0.780

37.310

 

 

 

 

 

 

PROFIT AFTER TAX

(42.410)

(1.080)

54.520

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(0.570)

0.500

15.670

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(42.990)

(0.580)

70.280

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

6.856

2.675

NA

 

TOTAL IMPORTS

6.856

2.675

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

(0.16)

(6.48)

--

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

(28.40)

(0.47)

(104.51)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

NA

NA

NA

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(31.28)

(0.74)

19.62

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(1.29)

(0.01)

1.26

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

3.30

1.11

2.89

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.19

2.48

1.50

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF SUNDRY CREDITORS

(Rs. In Millions)

Particulars

 

31.03.2011

31.03.2010

31.03.2009

Sundry Creditors

 

 

 

Creditors due small micro enterprises

1.442

0.666

NA

Creditors due others

23.707

28.939

NA

 

REVIEW OF OPERATIONS:

 

(A)    Change of Ownership :

 

The Board of Directors are pleased to report that EISENMANN AG through its Subsidiaries has purchased share holdings of the Company from MacLellan Services Asia, Mauritius and MacLellan Services Inc., USA making the Company a 100% subsidiary of EISENMANN Beteilgungen GmbH.

 

EISENMANN Beteilgungen GmbH is 100% subsidiary of EISENMANN AG. EISENMANN AG is established in 1951 and operates throughout the globe with subsidiaries and associate companies. EISENMANN AG holds a prime place in the business of surface finishing and paint shop technology with ongoing research. The directors are confident that this ownership change augurs well and will be of immense benefit to the Company.

 

In order to display ownership and affiliation with the Group Companies, name of the Company was changed to EISENMANN Surface FinishingSystems India Pvt. Ltd. w.e.f. September 24, 2010.

 

As part of the process of integration, EISENMANN AG Systems and procedures are being incorporated in estimation, design, drawing and in project execution.

 

(B)    Operations :

 

The announcement of ownership change resulted in inflow of orders worth INR 393 M till the year end. However, these orders were at a drawing stage and Company was not able to turn around the Revenue there from in the current year. As an after effect of global melt down witnessed for 2009-10, the Company faced blank order book in later half of 2010. As a consequence, the Company started the current year with residual orders remaining for execution. Secondly, the news of upcoming ownership change resulted in the Company not receiving any new enquiries due to apprehension in the minds of its customers regarding completion of the awarded projects in the even of ownership change. The Revenue from operations decreased by 34% from INR 227.68 M to INR 149.32 M of previous year, the Loss for the year stands at INR (37.98) M as against Loss of INR (0.30) for the previous year.

 

Provision for tax for the year INR NIL (Previous Year INR NIL). Provision for tax for prior year INR 5.24 M (Previous year INR 0.11 M), reversal of provision for tax for earlier year INR 0.5 M (Previous year INR NIL). Deferred Tax provision for the year INR NIL (Previous year INR 0.76 M). Deferred tax asset for the year INR 0.31 M (Previous Year INR NIL).

 

Even though the Company has carried forward loss of INR 42.91 M for the year , the Directors are confident that the Company has no issue as a going concern due to continuous inflow of the enquiries with the ownership change and the support provided and assured by Parent Company for the operations of the Company.

 

(C)    Future outlook

 

Future outlook is promising with a likely GDP growth of 8.5%, double digit growth for automotive infrastructure and agricultural sectors. Even though the Order Book for their Company as on date is not as promising on the date of the report but the large enquiry funnel and the few LOIs are being pursued to improve the possible Turnover for the Financial Year 2011. This will also ensure reversal of downslide and a good Order Carry Forward to the next Financial Year.

 

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

Yes

5) Type of Business

Yes

6) Line of Business

Yes

7) Promoter's background

 --

8) No. of employees

Yes

9) Name of person contacted

Yes

10) Designation of contact person

Yes

11) Turnover of firm for last three years

Yes

12) Profitability for last three years

 No

13) Reasons for variation <> 20%

 --

14) Estimation for coming financial year

Yes

15) Capital in the business

Yes

16) Details of sister concerns

 --

17) Major suppliers

No

18) Major customers

Yes

19) Payments terms

Yes

20) Export / Import details (if applicable)

Yes

21) Market information

 --

22) Litigations that the firm / promoter involved in

--

23) Banking Details

Yes

24) Banking facility details

 --

25) Conduct of the banking account

 --

26) Buyer visit details

 --

27) Financials, if provided

 No

28) Incorporation details, if applicable

 --

29) Last accounts filed at ROC

 --

30) Major Shareholders, if available

 --

 


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.49.06

UK Pound

1

Rs.77.19

Euro

1

Rs.65.57

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

2

--CREDIT LINES

1~10

2

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

26

 

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.