MIRA
INFORM REPORT
|
Report Date : |
29.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
SCHMETZ INDIA PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
E-218, 2nd
Floor, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
13.02.1997 |
|
|
|
|
Com. Reg. No.: |
11-105834 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.243.585 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U74999MH1997PTC105834 |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAFCS7536M |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer of High Quality Needles for all Kinds of Textile and
Non-Textile Joining Processes. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (49) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4980000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. The company can be considered normal 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.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
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 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ 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.
LOCATIONS
|
Registered Office : |
E-218, 2nd Floor, International Infotech Park, Above Vashi Railway
Station, Vashi, Navi Mumbai- 400 703, Maharashtra, India |
|
Tel. No.: |
91-22-56733014 |
|
Fax No.: |
91-22-55910095 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Branches : |
Located At: ·
Bangalore ·
Chennai ·
Delhi ·
Kolkata |
DIRECTORS
As on 26.09.2011
|
Name : |
Mr. Ajay Bakhtawar Kothary |
|
Designation : |
Managing director |
|
Address : |
137, Sector-2, Gandhidham, Kutch-370201, Gujarat, India |
|
Date of Birth/Age : |
24.03.1946 |
|
Qualification : |
MBA |
|
Experience : |
34 Years |
|
Date of Appointment : |
13.02.1997 |
|
DIN No.: |
00017761 |
|
|
|
|
Name : |
Mr. Rajan Jagdish Jain |
|
Designation : |
Director |
|
Address : |
62 Toh Tuck Road, # 08-05, The High Gate, Singapore 596724 |
|
Date of Birth/Age : |
22.05.1954 |
|
Date of Appointment : |
04.03.1997 |
|
DIN No.: |
02356777 |
|
|
|
|
Name : |
Mr. Alexander Mesdaghi |
|
Designation : |
Director |
|
Address : |
Zur Kornkammar 7, 50933 Cologne, Germany |
|
Date of Birth/Age : |
28.09.1960 |
|
Date of Appointment : |
05.05.1997 |
|
DIN No.: |
02453656 |
|
|
|
|
Name : |
Mr. Peter Nikolaus August Armin Schmetz |
|
Designation : |
Managing director |
|
Address : |
Auf Dem Fuchsberg 9, 52134, Herzogenrath, Germany |
|
Date of Birth/Age : |
24.03.1946 |
|
Date of Appointment : |
05.05.1997 |
|
DIN No.: |
02538339 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 26.09.2011
|
Names of Shareholders |
|
No. of Shares |
|
Ferd Schmetz GmbH Bicherouxstr, 53-59, D-52134, Herzogenrath, Germany |
|
24114935 |
|
Ferd Schmetz GmbH and Schmetz Capital Management GmbH Bicherouxstr, 53-59, D-52134, Herzogenrath, Germany |
|
243585 |
|
Total |
|
24358520 |
Equity Share Break up (Percentage of Total Equity)
As on 26.09.2011
|
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 : |
Manufacturer of High Quality Needles for all Kinds of Textile and
Non-Textile Joining Processes. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||
|
|
|
|||||||||
|
Bankers : |
Not Available |
|||||||||
|
|
|
|||||||||
|
Facilities : |
Footnotes (A) Term Loan
from DEG Germany GL 1448 (secured by way of legal mortgage of immovable properties
at Bangalore and guaranteed by the Holding Company and to be secured by
movable assets situated at Bangalore) (B) Term Loan
from DEG Germany GL 1448 (secured by way of legal mortgage of immovable properties
at Bangalore and guaranteed by the Holding Company and to be secured by
movable assets situated at Bangalore) |
|
Banking
Relations : |
-- |
|
|
|
|
Financial Institution: |
DEG - Deutsche Investitions- und Investitionsgesellschaft mbH,
Portfoliomanagement Asia, Kaemmergasse 22, Colgone - 50676, Germany |
|
|
|
|
Auditors : |
|
|
Name : |
Lodha and Company Chartered Accountants |
|
Address : |
6, Karim Chambers, 40, Ambalal Doshi Marg, Mumbai – 400023,
Maharashtra, India |
|
PAN No.: |
AABFL1893K |
|
|
|
|
Holding Company: |
Ferd. Schmetz GmbH Germany |
|
|
|
|
Fellow
Subsidiary: |
·
Schmetz Innovations Centre GmbH Germany ·
PSS FZE Sharjah ·
F+L Bachmann AG Switzerland |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
24358520 |
Equity Shares |
Rs.10/- each |
Rs.243.585 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 |
243.585 |
243.585 |
243.585 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1001.515 |
917.598 |
1006.406 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1245.100 |
1161.183 |
1249.991 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
229.536 |
256.410 |
286.272 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
229.536 |
256.410 |
286.272 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
46.365 |
46.366 |
|
|
|
|
|
|
|
|
TOTAL |
1474.636 |
1463.958 |
1582.629 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
866.475 |
897.429 |
888.596 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
442.374
|
440.857 |
556.792 |
|
|
Sundry Debtors |
293.353
|
238.702 |
149.445 |
|
|
Cash & Bank Balances |
36.235
|
28.060 |
74.261 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
33.736
|
32.566 |
46.248 |
|
Total
Current Assets |
805.698
|
740.185 |
826.746 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
141.997
|
118.350 |
62.761 |
|
|
Other Current Liabilities |
46.529
|
47.905 |
55.897 |
|
|
Provisions |
9.011
|
7.401 |
14.055 |
|
Total
Current Liabilities |
197.537
|
173.656 |
132.713 |
|
|
Net Current Assets |
608.161
|
566.529 |
694.033 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1474.636 |
1463.958 |
1582.629 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
688.790 |
488.535 |
395.669 |
|
|
|
Other Income |
8.650 |
23.770 |
9.846 |
|
|
|
TOTAL (A) |
697.440 |
512.305 |
405.515 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of Goods Traded in |
|
74.836 |
79.853 |
|
|
|
Cost of Materials and Manufacturing Expenses |
|
263.714 |
313.677 |
|
|
|
Salaries, Wages and Employee Benefits |
|
86.788 |
89.436 |
|
|
|
Selling and Other Expenses |
|
31.226 |
32.064 |
|
|
|
Increase/ Decrease in Stocks |
|
68.848 |
(86.879) |
|
|
|
TOTAL (B) |
|
525.412 |
428.151 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
659.860 (Including Finance
Expenses, Depreciation and Other Expenses) |
(13.107) |
(22.636) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
23.034 |
27.304 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
(36.141) |
(49.940) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
52.645 |
63.214 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
37.580 |
(88.786) |
(113.154) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
N.A |
0.022 |
(0.318) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
N.A |
(88.808) |
(112.836) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
N.A |
970.135 |
1082.521 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
N.A |
881.327 |
970.134 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
587.370 |
389.835 |
303.609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw Materials |
|
12.635 |
100.171 |
|
|
|
Stores & Spares |
|
40.196 |
143.316 |
|
|
|
Capital Goods |
|
58.790 |
127.704 |
|
|
|
Goods Traded in |
|
64.842 |
69.970 |
|
|
|
Unpacked Semi finished Needles |
|
67.195 |
18.619 |
|
|
|
Packing Material |
|
31.116 |
39.706 |
|
|
TOTAL IMPORTS |
N.A |
274.774 |
499.486 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
N.A |
(3.65) |
(4.61) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
N.A
|
(17.33) |
(27.83) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.46
|
(7.40) |
(28.60) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.25
|
(5.42) |
(6.60) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03
|
(0.08) |
(0.09) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.34
|
0.37 |
0.33 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.08
|
4.26 |
6.23 |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
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 |
No |
|
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 |
No |
ACTIVITIES AND
OPERATIONS
The turnover achieved
during the year was of Rs.688.79 Million and the other income was of Rs.8.65
Million. The company had earned a net profit before taxes of Rs.37.58 Million.
Operation During the year, the Company has successfully come out from the
previous year global recession. The enhancement of the product range undertaken
earlier has been successfully implemented.
FOREIGN EXCHANGE EARNINGS AND OUTGO
During the year
the Company had earned Rs.587.37 Million on account of Export Sales. The
Company had spent Rs.20.47 Million on account of Travelling, Sales Commission,
Lease Rental, Interest and Foreign Technicians Remuneration, Interest on Loan,
Repairs and bank Charges. The Company had spent Rs.372.68 Million on account of
Import of raw materials, stores, spares, capital goods etc.
OVERVIEW OF THE
COMPANY:
The Company was
incorporated in 1997 under the Companies Act 1956 as Schmetz India Private
Limited with registration number CIN U74999MH1997PTC105834. The Company
commenced production at its Kandla facility in April 1998 and at Bangalore
facility in January 2008. The Company is primarily engaged in Manufacturing of
Sewing Machine Needles having facilities at Kandla and Bangalore and trading of
Needles at Mumbai. The Company is wholly owned subsidiary of Ferd. Schmetz GmbH
Germany.
FIXED ASSETS:
·
Land
·
Buildings
·
Plant and Machinery
·
Furniture, Fixtures and
Equipments
·
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.52.70 |
|
|
1 |
Rs.85.71 |
|
Euro |
1 |
Rs.68.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
49 |
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 |
||
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.