MIRA INFORM REPORT

 

 

Report Date :

02.10.2012

 

IDENTIFICATION DETAILS

 

Name :

BIPICO INDUSTRIES (TOOLS) Private Limited

 

 

Registered Office :

4/D, 2 Kakad House, 4th Floor, 11 Sir V Thackersey Road, Mumbai – 400020, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

18.02.1972

 

 

Com. Reg. No.:

015621

 

 

Capital Investment / Paid-up Capital :

Rs.2.495 Millions

 

 

CIN No.:

[Company Identification No.]

U29220MH1972PTC015621

 

 

Legal Form :

Private Limited Liability Company 

 

 

Line of Business :

Manufacturer and Export of Cutting Tools

 

 

No. of Employees :

100 (Approximately)

 

 

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 145748

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. Even though the company has recorded increase in its sales turnover, it has incurred loss during 2011.

 

However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct.

 

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.

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

BB (Long Term)

Rating Explanation

Moderate Risk of Default

 

 

Rating

A4+ (Short Term)

Rating Explanation

Minimal degree of safety and very high credit risk

Date

25.09.2012

 

 

RBI DEFAILTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION PARTED BY (GENERAL DETAILS)

 

Name :

Mr. Sandeep

Designation :

Import Export Manager

Contact No.:

91-22-22003881

Date :

01.10.2012

 

 

LOCATIONS

 

Registered Office :

4/D, 2 Kakad House, 4th Floor, 11 Sir V Thackersey Road, Mumbai – 400020, Maharashtra, India.

E-Mail :

accounts@bipicoexp.com

Website :

http://www.bipicoexp.com

Area :

Owned

 

 

Corporate Office :

506/A, Loyus House, 5th Floor, 11 Sir V Thackersey Road, Mumbai – 400020, Maharashtra, India

Tel. No.:

91-22-22003881/ 22000747

Fax No.:

91-22-22001631

E-Mail :

bipico@vsnl.com

Area :

Owned

 

 

Factory 1 :

P O Box No. 36, Billimora, Chikli Road, Nadarkha, Millimora – 396321, India

Tel. No.:

91-2634-284630/ 284629

Fax No.:

91-2634-283256

E-Mail :

info@bipicoexp.com (For General Information)

sales@bipicoexp.com (For Domestic Enquiry)

exports@bipicoexp.com (For Exports Enquiry)

Area :

Owned

 

 

Branches :

Block No.2 and 22, Mahalaxmi Heights, Ground Floor, Morwadi, Pune - 411018, Maharashtra, India

Tel. No.:

91-20-27463709/ 711

Fax No.:

91-20-27463710

E-Mail :

pune@bipicoexp.com

 

 

DIRECTORS

 

AS ON 30.09.2011

 

Name :

Mr. Pramit Patel

Designation :

Managing Director

Address :

52-B, Embassy Apartment, 46 Nepean SEA Road, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

26.08.1968

Date of Appointment :

12.06.1992

DIN No.:

00681889

 

 

Name :

Mrs. Kinnaryben Pramit Patel

Designation :

Director

Address :

52-B, Embassy Apartment, 46 Nepean SEA Road, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

06.11.1967

Date of Appointment :

08.09.2003

DIN No.:

01997442

 

 

Name :

Mr. Nupur Bhupendra Patel

Designation :

Director

Address :

Anil Kunj, 37th Rd, B/H National, College, Bandra, Mumbai-400 050

Date of Birth/Age :

21.02.1979

Date of Appointment :

07.04.2011

DIN No.:

01424285

 

 

Name :

Mrs. Purinmaben K. Patel

Designation :

Director

Address :

52-B, Embassy Apartment, 46 Nepean SEA Road, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

14.04.1938

Date of Appointment :

01.06.1994

DIN No.:

01997445

 

 

KEY EXECUTIVES

 

Name :

Mr. Sandeep

Designation :

Import Export Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2011

 

Names of Shareholders

 

No. of Shares

Kanubhai Patel -HUF

 

1800

Purinmaben K. Patel

 

800

Bipico Benefit Trust, India

 

7450

Pramit Patel

 

3490

Tushar Patel and Kanubhai Patel

 

5615

Purinmaben K. Patel and Kanubhai Patel

 

3640

Kinnary Patel and Pramit Patel

 

500

Pramit Patel HUF Throu Karta

 

1585

Meha P Patel Throu Guardian Pramit Patel

 

10

Master Mihir P. Patel Through Guardian Pramit Patel

 

10

Total

 

24900

 

 

LIST OF ALLOTTEES AS ON 15.03.2012

 

Names of Shareholders

 

No. of Shares

Kanubhai Patel

 

2160

Purinmaben K. Patel

 

4440

Pramit Patel / Kinnary Patel

 

4921

Tushar Patel

 

7489

Kinnary Patel / Pramit Patel

 

1133

Pramit Patel

 

2143

Meha P Patel

 

77

Mihir P Patel

 

77

Bipico Benefit Trust, India 

 

7500

Total

 

29940

 

 

AS ON 30.09.2011

 

Category

Percentage

Directors or relatives of Directors

70.00

Other top fifty shareholders

30.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Export of Cutting Tools

 

 

Exports :

 

Products :

Cutting Tools

Countries :

  • European Countries
  • Saudi Arabia
  • United State of America
  • Singapore
  • United Arab Emirates

 

 

Imports :

 

Products :

Raw Materials

Countries :

  • China
  • European Countries

 

 

Terms :

 

Selling :

Cash, Credit 

 

 

Purchasing :

Cash, Credit 

 

 

GENERAL INFORMATION

 

No. of Employees :

100 (Approximately)

 

 

Bankers :

  • Bank Of Baroda, Jawahar Road, Bilimora - 396321, Gujarat, India
  • Citi bank, Fort

 

 

Facilities :

 

SECURED LOAN

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

From Bank of Baroda:

 

 

Buyers' Credit

(Secured against milling machine)

11.798

0.000

Cash Credit Account

(Secured against hypothecation of stocks, book debts, plant and machinery and against personal guarantees provided by the Directors)

43.619

40.420

Term Loan

(Secured against hypothecation of new Milling Machine acquired from the Loan)

8.326

13.874

Kotak Mahindra Prime Limited (Secured against vehicle)

0.798

2.032

TOTAL

64.541

56.326

 

 

 

UNSECURED LOAN

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

Directors

126.638

116.369

Shareholders (Relatives of Directors)

158.142

145.176

TOTAL

284.780

261.545

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Dalal and Shah

Chartered Accountant

Address :

The Regency, Office No.11, 1st Floor, National Library Road, Bandra West, Mumbai – 400050, Maharashtra, India

 

 

Name :

Rajendra and Company

Chartered Accountant

Address :

Mumbai, Maharashtra, India

 

 

Associates :

BIPICO Sagen and Workzeug Gmbh

Address: Germany

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

25000

Equity Shares

Rs.100/- each

Rs.2.500 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

17450

Equity Shares

Rs.100/- each

Rs.1.745 Millions

7500

Equity Shares

Rs.100/- each

Rs.0.750 Million

 

 

 

 

 

Note: Of the above, 6780 equity shares of face value Rs. 100/- each, were issued to foreign collaborators against supply of machineries without payment being received in cash.


 

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

2.495

2.495

2.495

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

33.942

33.962

32.807

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

36.437

36.457

35.302

LOAN FUNDS

 

 

 

1] Secured Loans

64.541

56.326

63.348

2] Unsecured Loans

284.780

261.545

255.072

TOTAL BORROWING

349.321

317.871

318.420

DEFERRED TAX LIABILITIES

12.337

11.214

10.892

 

 

 

 

TOTAL

398.095

365.542

364.614

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

155.561

128.542

122.072

Capital work-in-progress

0.000

0.000

5.038

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

176.631

180.137

201.408

 

Sundry Debtors

75.837

62.616

49.497

 

Cash & Bank Balances

11.996

10.245

7.131

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

21.674

20.837

11.371

Total Current Assets

286.138

273.835

269.407

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

33.712

25.069

19.601

 

Other Current Liabilities

2.646

3.575

3.340

 

Provisions

7.246

8.191

8.962

Total Current Liabilities

43.604

36.835

31.903

Net Current Assets

242.534

237.000

237.504

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

398.095

365.542

364.614

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

326.458

252.287

222.696

 

 

Other Income

2.512

0.725

1.310

 

 

TOTAL                                     (A)

328.970

253.012

224.006

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                     (B)

NA

NA

NA

 

 

 

 

 

Less

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

48.992

44.524

46.746

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

32.378

29.969

32.382

 

 

 

 

 

 

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

16.614

14.555

14.364

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

15.515

13.051

11.684

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

1.099

1.504

2.680

 

 

 

 

 

Less

TAX                                                                  (I)

1.206

0.414

1.515

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                 (J)

(0.107)

1.090

1.165

 

 

 

 

 

Add/

Less

PRIOR PERIOD ADJUSTMENT

 

0.000

(0.175)

(0.063)

 

 

 

 

 

Add/

Less

EXCESS/ (SHORT) PROVISIONS OF TAX

0.291

0.531

(0.162)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

16.536

15.481

13.374

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

0.100

0.100

0.000

 

 

Dividend

0.174

0.249

0.000

 

 

Tax on Dividend

0.029

0.041

0.000

 

 

Provision for Dividend Reserve

0.000

0.000

(0.998)

 

 

Tax on Proposed Dividend Reserve

0.000

0.000

(0.169)

 

BALANCE CARRIED TO THE B/S

16.416

16.536

15.481

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

NA

57.319

69.515

 

TOTAL EARNINGS

NA

57.319

69.515

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

NA

79.168

117.318

 

 

Tools

NA

1.332

0.345

 

 

Chemicals

NA

0.207

0.189

 

 

Capital Goods

NA

13.570

14.092

 

TOTAL IMPORTS

NA

94.277

131.944

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

(0.03)

0.43

0.52

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

0.34

0.59

1.20

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

0.25

0.37

0.68

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.03

0.04

0.07

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

10.78

9.73

9.92

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

6.56

7.43

8.44

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

SUNDRY CREDITORS DETAILS:

 

PARTICULARS

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

Rs. In Millions

31.03.2009

Sundry Creditors
33.712

25.069

19.601

 

 

Sr. No.

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

Yes

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

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

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

Yes

25]

Conduct of the banking account

----------------------

26]

Buyer visit details

No

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

PERFORMANCE

 

The total revenue of the Company during the year ended 31st March 2011 stood at Rs.326.458 millions  (Previous year 252.287 millions ) which shows a growth of 30% over the year ended 31st March 2010 and incurred a loss of Rs. (0.107) million  as compared to its previous years profit of Rs. 1.090 millions  . During the year the Company has incurred a loss due to increase in the cost of raw material and fixed administrative expenses.

 


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.52.78

UK Pound

1

Rs.85.16

Euro

1

Rs.67.79

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

SDA


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

--

--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

YES

--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.