MIRA INFORM REPORT

 

 

Report Date :

12.01.2013

 

IDENTIFICATION DETAILS

 

Name :

BEKAERT MUKAND WIRE INDUSTRIES PRIVATE LIMITED (w.e.f. 19.05.2011)

 

 

Formerly Known As :

MUKAND BEKAERT WIRE INDUSTRIES PRIVATE LIMITED

 

 

Registered Office :

B-21, Lonand Industrial Area (MIDC), Lonand, Taluka Khandala, Lonand Satara, Satara-415521, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

24.08.2007

 

 

Com. Reg. No.:

11-130605

 

 

Capital Investment / Paid-up Capital :

Rs. 950.000 millions

 

 

CIN No.:

[Company Identification No.]

U27104PN2007PTC130605

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNEM12289E

 

 

PAN No.:

[Permanent Account No.]

AAFCM1972K

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

The company had made an entry in Domestic and Export market For Stainless Steel Wires

 

 

No. of Employees :

Information denied by management

 

 

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 1900000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of ‘Bekaert Holdings B.V., Netherlands’ with effect from March 31, 2011. It is an established company having a moderate track record.

 

The management of the company has not filed its financials with the government department for the year 2012.

 

As per previous year’s record, there appear huge accumulated losses recorded by the company. It has incurred loss from its operations. Reserves are also not maintained.

 

However, trade relations are reported as fair. Business is active. Payment terms are slow.

 

The company can be considered for business dealings with great caution.

 

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

 

 

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.

 

 

INFORMATION DECLINED

 

MANAGEMENT NON – CO-OPERATIVE (Tel. No.: 91-20-66276600)

 

 

LOCATIONS

 

Registered Office :

B-21, Lonand Industrial Area (MIDC), Lonand, Taluka Khandala, Lonand Satara, Satara-415521, Maharashtra, India

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

nileshjagtap@bekaert.com

mitil.birla@mukandbekaert.com

Arnold.camelbeke@bekaert.com

 

 

DIRECTORS

 

As on 30.09.2011

 

Name :

Mr. Arvind Madhav Kulkarni

Designation :

Director

Address :

504, Swastic Apartments, Khopat, Thane – 400601, Maharashtra, India

Date of Birth/Age :

19.08.1951

Date of Appointment :

24.08.2007

DIN No.:

01656086

 

 

Name :

Mr. Bruno Rene Cluydts

Designation :

Director

Address :

Leieriggestraat 44, Gent, 9051, Belguim

Date of Birth/Age :

13.11.1960

Date of Appointment :

15.11.2007

DIN No.:

01741987

 

 

Name :

Mr. Henri Jean Velge

Designation :

Director

Address :

Route Gouvernementale 75, Brussels, 1150, Belguim

Date of Birth/Age :

10.10.1956

Date of Appointment :

15.11.2007

DIN No.:

01792002

 

 

Name :

Mr. Kevin Mansell

Designation :

Director

Address :

Apartment No.501, Building No.A1, Brahma Suncity, Vadgaonsheri, Pune – 411014, Maharashtra, India

Date of Birth/Age :

06.06.1960

Date of Appointment :

15.12.2008

DIN No.:

02423271

 

 

KEY EXECUTIVES

 

Name :

Mr. Mitil Kumar Birla

Designation :

Secretary

Address :

B-103, Lunkad Heritage ll, Near Dutta Mandir, Viman Nagar, Pune – 411014, Maharashtra, India

Date of Birth/Age :

16.04.1979

Date of Appointment :

25.08.2008

Pan No:

AJOPB2698G

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2011

 

Names of Shareholders

 

No. of Shares

Mukund Limited, India

 

13000000

Bekaert Holding B.V., Netherland

 

81999999

Bekaert Investments NV, Belgium

 

1

TOTAL

 

95000000

 

Allottees as 31.03.2012

 

Names of Allottees

 

No. of Shares

Bekaert Holding B.V., Netharland

 

95000000

TOTAL

 

95000000

 

 

Equity Share Break up (Percentage of Total Equity)

 

As on 30.09.2011

 

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

86.32

Bodies corporate

13.68

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The company had made an entry in Domestic and Export market For Stainless Steel Wires

 

 

GENERAL INFORMATION

 

No. of Employees :

Information denied by management

 

 

Bankers / Financial Institution :

Bekaert Holding BV, J. C. van Markenstraat, 19, Assen - 9403, Netherlands

 

 

Facilities :

Secured Loan

31.03.2011

(Rs. in Millions)

31.03.2010

(Rs. in Millions)

Foreign currency loans others secured

752.332

681.711

Total

752.332

681.711

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountant

Address :

706, B-Wing, 7th Floor, ICC Trade Tower, International Convention Centre, Senapati Bapat Road, Pune – 411016, Maharashtra

PAN.:

AABFD07919A

 

 

Holding Company :

Bekaert Holdings B.V., Netherlands

 

 

Companies in which Key Managerial Personnel or their relatives have control / significant influence:

·         Bekaert Industries Private Limited, India

·         Leon Bekaert S.P.A., Italy

·         Bekaert Hlohovec, a.s., Slovakia

·         Industrias Del Ubierna, S.A., Spain

·         Bekaert France SAS, France

·         Bekaert Limited

·         Bekaert Petrovice S.R.O., Czech Republic

·         Belgo Bekaert Arames Ltda, Brazil

 

 

Investing Company :

·         Mukand Limited, India

 

 

Fellow Subsidiaries and Associates :

·         N V Bekaert SA., Belgium

·         Bekaert (China) Technology and Research and Development Company Limited

·         Bekaert Corporation, USA

·         Bekaert Gmbh, Germany

·         Bekaert A/S, Denmark

·         Bekaert Coördinatiecentrum N.V., Belgium

·         Bekaert Svenska AB, Sweden

·         Bekaert (Schweiz) AG, Switzerland

·         Bekaert Investments NV, Belgium

·         Bekaert International Americas

·         Bekaert Singapore Pte Limited

 

 

CAPITAL STRUCTURE

 

After 30.09.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

225000000

Equity Shares

Rs.10/- each

Rs. 2250.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

190000000

Equity Shares

Rs.10/- each

Rs. 1900.000 Millions

 

 

 

 

 

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

95000000

Equity Shares

Rs.10/- each

Rs. 950.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

95000000

Equity Shares

Rs.10/- each

Rs. 950.000 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

950.000

500.000

360.000

2] Share Application Money

0.000

0.000

8.700

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

(473.256)

(145.393)

(30.935)

NETWORTH

476.744

354.607

337.775

LOAN FUNDS

 

 

 

1] Secured Loans

752.332

681.711

459.776

2] Unsecured Loans

334.700

241.585

0.000

TOTAL BORROWING

1087.032

923.296

459.776

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1563.776

1277.903

797.541

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1022.852

1052.897

12.125

Capital work-in-progress

9.447

0.826

777.340

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

252.599
106.636

13.694

 

Sundry Debtors

178.325
61.818

0.073

 

Cash & Bank Balances

68.722
31.959

234.548

 

Other Current Assets

0.000
0.000

0.000

 

Loans & Advances

231.616
126.063

70.909

Total Current Assets

731.262
326.476

319.224

Less : CURRENT LIABILITIES & PROVISIONS

 
 

 

 

Sundry Creditors

175.499
91.847

303.380

 

Other Current Liabilities

21.715
8.803

6.408

 

Provisions

2.571
1.646

1.360

Total Current Liabilities

199.785
102.296

311.148

Net Current Assets

531.477
224.180

8.076

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1563.776

1277.903

797.541

 

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

NA

100.798

--

 

 

Other Income

NA

2.086

--

 

 

TOTAL                                     (A)

NA

102.884

--

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Material Finished Goods and Semi Finished Goods

NA

86.496

4.844

 

 

Employee Costs

NA

13.230

0.556

 

 

Operating and Other Expenses

NA

73.800

24.543

 

 

TOTAL                                     (B)

NA

173.526

29.943

 

 

 

 

 

Less

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

NA

(70.642)

(29.943)

 

 

 

 

 

Less

INTEREST                                                         (D)

NA

22.914

0.000

 

 

 

 

 

 

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

NA

(93.956)

(29.943)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

NA

20.347

0.494

 

 

 

 

 

 

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

(327.862)

(113.903)

(30.437)

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

0.555

0.498

 

 

 

 

 

 

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

(327.862)

(114.458)

(30.935)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(145.393)

(30.935)

--

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(473.255)

(145.393)

(30.935)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

500.368

70.127

NA

NA

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

NA

--

12.418

 

 

Capital Goods

NA

62.631

235.049

 

 

Stores, Spares Loose Tools and Packing material

NA

19.243

10.381

 

TOTAL IMPORTS

NA

81.874

257.848

 

 

 

 

 

 

Earnings Per Share (Rs.)

(3.45)

(2.29)

(0.62)

 


 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

NA
(111.25)

NA

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)

NA
(113.00)

NA

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(18.69)
(8.26)

(9.19)

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.69)
(0.32)

(0.09)

 

 

 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 

2.70
2.89

2.28

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

3.66
3.19

1.03

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS:

 

Particulars

31.03.2011

31.03.2010

31.03.2009

 

(Rs. In Millions)

 

 

 

 

Creditors due small micro enterprises

175.499
91.847

303.380

Creditors due others

0.000
0.000

0.000

 

 

 

 

Total

175.499
91.847

303.380

 

 

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

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

No

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

 

 

CHANGE IN NAME OF THE COMPANY

 

The name of the Company has been changed to Bekaert Mukand Wire Industries Private Limited on May 19, 2011 subsequent to Bekaert Holdings B.V., Netherlands becoming the holding company w.e.f. March 31, 2011.

 

 

BUSINESS SCENARIO

 

The Company is new entrant to stainless steel wire market, being first full year of operations. In order to penetrate the market share in existing competitive stainless steel wire business, the Company has sold 3986 tons of stainless steel wire, hereby utilizing 67% capacity.

 

 

UNSECURED LOAN

 

Unsecured Loan

31.03.2011

(Rs. in Millions)

31.03.2010

(Rs. in Millions)

Loans directors unsecured

334.700

241.585

Total

 334.700

241.585

 

 

FIXED ASSETS:

 

  • Leasehold Land
  • Building
  • Plant and Machinery
  • Furniture and Fixture
  • Office equipment
  • Computer

 

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.54.54

UK Pound

1

Rs.88.05

Euro

1

Rs.72.29

 

 

INFORMATION DETAILS

 

Information Gathered by :

JML

 

 

Report Prepared by :

MRI

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

-

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

-

--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

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.