MIRA INFORM REPORT

 

 

Report Date :

07.07.2012

 

IDENTIFICATION DETAILS

 

Name :

HILTI MANUFACTURING INDIA PRIVATE LIMITED (w.e.f. 20.05.2010)

 

 

Formerly Known As :

BHUKHANVALA DIAMOND SYSTEMS PRIVATE LIMITED

 

 

Registered Office :

Koteshwar Palace Co-operative Housing Society, Jiva Mahale Marg, Kaldongri Lane No.4, Andheri (East), Mumbai – 400 069, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

16.10.2007

 

 

Com. Reg. No.:

11-175039

 

 

Capital Investment / Paid-up Capital :

Rs.246.388 millions

 

 

CIN No.:

[Company Identification No.]

U29299MH2007PTC175039

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMB17968G

 

 

PAN No.:

[Permanent Account No.]

AADCB2566L

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Seller of diamond cutting tools and core drills.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca (15)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record. There appears huge accumulated losses recorded by the company. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow.

 

The company can be considered for business dealing on a secured 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 – September 30, 2011

 

Country Name

Previous Rating

(30.09.2011)

Current Rating

(31.12.2011)

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 :

Koteshwar Palace Co-operative Housing Society, Jiva Mahale Marg, Kaldongri Lane No.4, Andheri (East), Mumbai – 400 069, Maharashtra, India

Tel. No.:

91-22-40883000

Fax No.:

91-22-40883030

E-Mail :

amit.dhulap@hmipltd.com

admin@hmipltd.com

Website :

www.hmipltd.com

 

 

DIRECTORS

 

As on 29.07.2011

 

Name :

Mr. Pankaj Gupta

Designation :

Director

Address :

C-103, Rosewood Apartments, Mayur Vihar, Phase I Extenson, Delhi – 110 091, India

Date of Appointment :

22.04.2010

DIN No.:

02611667

Other Directorship :

 

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Company/ LLP Status

Defaulting status

1

U29248DL1996PTC082819

Hilti India Private Limited

Director

30/09/2009

01/06/2009

Active

NO

2

U29299MH2007PTC175039

Hilti Manufacturing India Private Limited

Director

22/04/2010

22/04/2010

Active

NO

 

 

Name :

Mr. Johannes Wilfried Huber

Designation :

Director

Address :

Kiefernweg 3A, Starberg, 82319, Germany

Date of Appointment :

29.01.2009

DIN No.:

02457589

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 29.07.2011

 

Names of Shareholders

 

No. of Shares

 

Hilti Equipment Corporation, Liechtenstein

 

1

Hilti Far East Pte. Limited, Singapore

 

57511249

Total

 

57511250

 

As on 29.07.2011

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Seller of diamond cutting tools and core drills.

 

 

Products :

Item Code No. (ITC Code)

6804 22 90

Product Description

Diamond, CBN Wheels, Electroplating Wheels

Item Code No. (ITC Code)

8202 10 90 and 8202 10 10

Product Description

Diamond Segmented Saws and Diamond Impregenated Segments

Item Code No. (ITC Code)

8205 50 00

Product Description

Diamond Core Bit Drills

 

PRODUCTION STATUS (AS ON 31.03.2011 - FOR 15 MONTHS)

 

Particulars

Unit

Installed Capacity

 

Diamond Tools

(in nos.)

3500000

Diamond Powder and Compound

(in Kgs )

1000

 

1) Licensed Capacity has not been shown, as the industry has been de-licensed.

2) Installed Capacity is as certified by the management and has been accepted by the auditors without verification, being a technical matter.

 

Particulars

Unit

Actual Production

 

Diamond tools

Nos.

 

Segmented Saws

 

192987

Segments

 

658109

Turbo Blades

 

1182284

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Citi Bank

 

 

Facilities :

Unsecured Loans

31.03.2011

Rs. In Millions

31.12.2009

Rs. In Millions

Rupee term loans others unsecured

0.000

25.000

Foreign currency loans banks unsecured

452.100

684.255

Working capital loans banks unsecured

18.873

344.734

Other debt unsecured

(A)0.000

(B)20.630

Total

470.973

1074.619

 

Notes:

(A) Cash credit overdrawn facility

(B) Cash credit overdrawn facility

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

T.R. Chadha and Company

Chartered Accountants

Address :

B-30 Kuthiala Building, Connaught Place, New Delhi, Delhi – 110 001, India

Income-tax PAN of auditor or auditor's firm :

AAAFT1655Q

 

 

Holding Company :

Hilti Far East Pte Limited, Singapore

 

 

Ultimate Holding Company :

Hilti Corporation, Liechtenstein

 

 

Subsidiaries :

v      Peacock Diamond Systems Inc., USA (formerly known as Bhukanwala Diamond Systems Inc., USA)

v      Peacock Diamond Systems B.V., Netherlands (formerly known as Bhukanwala Diamond Systems B.V., Netherlands)

 

 

Fellow Subsidiaries :

v      Hilti India Private Limited

v      Hilti Mexicana S.A.

v      Hilti North America

 

 

CAPITAL STRUCTURE

 

As on 29.07.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

114675000

Equity Shares

Rs.10/- each

Rs.1146.750 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

57511250

Equity Shares

Rs.10/- each

Rs.575.113 millions

 

 

 

 

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

114675000

Equity Shares

Rs.10/- each

Rs.1146.750 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

24638750

Equity Shares

Rs.10/- each

Rs.246.388 millions

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

(15 Months)

31.12.2009

(12 Months)

31.12.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

246.388

246.388

251.424

2] Share Application Money Pending Allotment

657.450

0.000

0.000

3] Reserves & Surplus

5.036

5.036

0.000

4] (Accumulated Losses)

(447.532)

(436.027)

(414.322)

NETWORTH

461.342

(184.603)

(162.898)

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

470.973

1074.619

986.065

TOTAL BORROWING

470.973

1074.619

986.065

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

932.315

890.016

823.167

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

381.619

477.748

499.764

Capital work-in-progress

4.422

5.910

2.497

 

 

 

 

INVESTMENT

114.414

1.230

1.205

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

298.584

412.621

311.213

 

Sundry Debtors

184.333

90.044

153.054

 

Cash & Bank Balances

16.664

2.901

16.491

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

74.487

44.801

49.036

Total Current Assets

574.068

550.367

529.794

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

87.353

121.175

178.831

 

Other Current Liabilities

48.601

18.760

23.967

 

Provisions

6.254

5.304

7.295

Total Current Liabilities

142.208

145.239

210.093

Net Current Assets

431.860

405.128

319.701

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

932.315

890.016

823.167

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

(15 Months)

31.12.2009

(12 Months)

31.12.2008

 

SALES

 

 

 

 

 

Income

1059.900

519.845

507.004

 

 

Service Charges

NA

18.496

0.000

 

 

Other Income

NA

58.813

10.520

 

 

TOTAL                                     (A)

NA

597.154

517.524

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials

NA

204.796

330.431

 

 

Other Manufacturing Expenses

NA

105.154

78.592

 

 

Employee Costs

NA

106.217

80.256

 

 

Administrative and Selling Expenses

NA

61.984

82.081

 

 

Provision for doubtful debts

8.940

18.360

84.411

 

 

Write off Fixed Assets

20.552

0.000

0.000

 

 

TOTAL                                     (B)

NA

496.511

655.771

 

 

 

 

 

Less

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

103.544

100.643

(138.247)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

45.369

59.839

221.917

 

 

 

 

 

 

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

58.175

40.804

(360.164)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

69.666

62.199

53.008

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX (E-F)                  (G)

(11.491)

(21.395)

(413.172)

 

 

 

 

 

Less

TAX                                                                  (H)

0.014

0.310

1.150

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX (G-H)                   (I)

(11.505)

(21.705)

(414.322)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(436.027)

(414.322)

0.000

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(447.532)

(436.027)

(414.322)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

997.067

476.388

425.217

 

 

 

 

 

 

Earnings Per Share (Rs.)

(0.47)

(0.88)

(18.59)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

(15 Months)

31.12.2009

(12 Months)

31.12.2008

PAT / Total Income

(%)

NA
(3.63)
(80.06)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(1.08)
(4.12)
(81.49)

 

 

 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)

(1.20)
(2.08)
(40.13)

 

 

 
 
 

Return on Investment (ROI)

(PBT/Networth)

 

(0.02)
0.12
2.54

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

1.33

(6.61)

(7.34)

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

4.04

3.79

2.52

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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

No

5) Type of Business

Yes

6) Line of Business

Yes

7) Promoter’s background

Yes

8) No. of employees

Yes

9) Name of person contacted

No

10) Designation of contact person

No

11) Turnover of firm for last three years

Yes

12) Profitability for last three years

Yes

13) Reasons for variation <> 20%

--

14) Estimation for coming financial year

No

15) Capital in the business

Yes

16) Details of sister concerns

Yes

17) Major suppliers

No

18) Major customers

No

19) Payments terms

No

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter involved in

--

23) Banking Details

Yes

24) Banking facility details

Yes

25) Conduct of the banking account

--

26) Buyer visit details

--

27) Financials, if provided

Yes

28) Incorporation details, if applicable

Yes

29) Last accounts filed at ROC

Yes

30) Major Shareholders, if available

Yes

 

BACKGROUND:

 

The Company was incorporated on 16th October, 2007 as a private limited Company and is a subsidiary of Hilty Far East Pte Limited, Singapore. The Company is primarily engaged in the business of manufacture and sale of diamond cutting tools and core drills. The Company has acquired the diamond tools business of Bhukhanvala Tools Private Limited (‘BTPL’), a private limited company, as a going concern on slump sale basis w.e.f. 5th February 2008.

 

Hitherto, the company was following Calender Year as it’s accounting year. During the year the company has changed it’s accounting year from calendar year to 01.01.2010 to 31.03.2011. Accordingly these financial statements are being prepared for a period of fifteen months from 01.01.2010 to 31.03.2011.

 

PERFORMANCE:

 

The sales of the Company for the period from January 1, 2010 to March 31, 2011 was 1059.900 millions up by 535.900 millions and Loss after tax amounted to Rs.11.500 millions as against for the year ended December 31, 2009 at Rs.524.000 millions and Loss after tax amounted to Rs.21.700 millions respectively. Though the turnover has increased substantially the same is not reflected in profits of the company due to increase in raw material prices and increase in fixed cost. The Company is continuously thriving to improve the productivity with introduction of the better processes through research and development.

 

INCREASE IN AUTHORISED SHARE CAPITAL:

 

The Company has increased its Authorised Share Capital vide special resolution with the consent of its members from Rs.296.750 millions to Rs.1146.750 millions with effect from February 19, 2010.

 

SUBSIDIARY OF THE COMPANY:

 

The Company has two subsidiary Company, viz. Peacock Diamond Systems Inc., (Formerly known as Bhukhanvala Diamond Systems Inc.), USA incorporated on April 22, 2008 and Peacock Diamond Systems B.V., (Formerly known as Bhukhanvala Diamond Systems B.V.), Netherlands incorporated on May 30, 2008.

 

FIXED ASSETS:

 

v      Freehold Land

v      Leasehold Land

v      Residential Building

v      Factory Building

v      Plant and Machinery

v      Office Equipments

v      Computer Equipments

v      Other Equipments

v      Furniture and Fixtures

v      Motor Vehicles

 


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 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.55.42

UK Pound

1

Rs.86.04

Euro

1

Rs.68.60

 

 

INFORMATION DETAILS

 

Report Prepared by :

SMN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

2

PAID-UP CAPITAL

1~10

2

OPERATING SCALE

1~10

2

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

2

--PROFITABILIRY

1~10

-

--LIQUIDITY

1~10

2

--LEVERAGE

1~10

2

--RESERVES

1~10

2

--CREDIT LINES

1~10

1

--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

 

15

 

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.