MIRA INFORM REPORT

Report Date :

06.03.2013

IDENTIFICATION DETAILS

Name :	DUPLEX INDUSTRIES LIMITED (w.e.f. 28.06.2011)
Formerly Known As :	DUPLEX INDUSTRIES PRIVATE LIMITED (w.e.f. 23.05.2011) DUPLEX WIRES PRIVATE LIMITED
Registered Office :	CTS No.712/A, S. No.140, Flat No.2, Prachi Residency, Bhelkenagar, Kothrud, Pune – 411 038, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.09.1990
Com. Reg. No.:	11-058307
Capital Investment / Paid-up Capital :	Rs.200.000 millions
CIN No.: [Company Identification No.]	U31300MH1990PLC058307
TAN No.: [Tax Deduction & Collection Account No.]	PNED00954C PNED01623G
PAN No.: [Permanent Account No.]	AAACD6322M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is manufacturing bare copper wires, copper wires coated with tin / silver, solder plated copper wires which is mainly used in electronics and electrical industry.
No. of Employees :	Information declined by the Management

RATING & COMMENTS

MIRA’s Rating :

B (35)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 2778000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Latest financials i.e. 2011-12 are missing with the Government Department. From the previous year financials there seems huge external borrowings recorded by the company, which deteriorates the liquidity position of the company. However, there also seems a growth in the turnover and profitability of the company during the year 2011. Trade relations are reported as fair. Business is active. Payments are unknown. The company can be considered for business dealings with some 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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loan: BB+ (Revised from BBB)
Rating Explanation	The inadequate credit quality it carry high credit risk.
Date	February, 2012

Rating Agency Name	ICRA
Rating	Fund Based: A4+ (Revised from A3+)
Rating Explanation	The risk prone credit quality it carry high credit risk.
Date	February, 2012

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-cooperative

(Contact No.: 91-20-25382562)

LOCATIONS

Registered Office/ Head Office :	CTS No.712/A, S. No.140, Flat No.2, Prachi Residency, Bhelkenagar, Kothrud, Pune – 411 038, Maharashtra, India
Tel. No.:	91-20-25382561/ 62
Fax No.:	91-20-25396306
E-Mail :	nvgopal@vsnl.com csadityak@gmail.com ishwar@duplexwires.com duplexwires@vsnl.net info@duplexindustries.com
Website:	www.duplexindustries.com
Area :	1800 sq. ft.
Location :	Owned
Factory 1 :	A-3, MIDC, Kurkumbh, Taluka Daund, District Pune – 413 802, Maharashtra, India
Tel. No.:	91-2117-235271/ 235471 91-20-24393244/ 24391357
Fax No.:	91-2117-235471
E-Mail :	duplexwires@vsnl.net
Area :	2000 sq. mt.
Location :	Leased
Factory 2 :	S.No.37/1/2 Gala No 2, Waghdara, Khadi Road, Silvassa – 396 191, Dadra and Nagar Haveli, India
Factory 3 :	Khasara No.372/1, Village Nariyal, Near Canter Union, Parwanoo, District Solan 173 220, Himachal Pradesh, India
Factory 4 :	Khasara No.753-754, Sector 2, Parwanoo, District Solan – 173 220, Himachal Pradesh, India

DIRECTORS

As on 29.09.2012

Name :	Mr. Anil Anand Satpute
Designation :	Managing Director
Address :	Plot No.74, Lane No.3, Natraj Co-operative Housing Society, Karve Nagar, Pune – 411 014, Maharashtra, India
Date of Birth/Age :	08.02.1971
Qualification :	B.E. (Mech.) M.B.A. Marketing
Date of Appointment :	23.06.1994
DIN No.:	01726531
PAN No.:	ACEPS8365E
Name :	Mr. Anand Vishnu Satpute
Designation :	Whole Time Director
Address :	Plot No.74, Lane No.3, Natraj Co-operative Housing Society, Karve Nagar, Pune – 411 014, Maharashtra, India
Date of Birth/Age :	03.12.1936
Qualification :	B.Sc. (Chemistry)
Date of Appointment :	26.09.1990
DIN No.:	01715857
PAN No.:	AFHPS4749G
Name :	Mr. Shrikrishna Vishnu Satpute
Designation :	Additional Director
Address :	664, Dattawadi, Pune – 411 030, Maharashtra, India
Date of Birth/Age :	17.03.1951
Date of Appointment :	17.03.2012
DIN No.:	05287134

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Anand Vishnu Satpute	286444
Anil Anand Satpute	12169111
Kanchan Anil Satpute	844145
Duplex Ventures Private Limited	3700000
Varad Constructions Private Limited	3000000
Rajendra Desai	75
Ashok Deosthali	76
Shashikant Awati	76
Prakash Patil	73
Total	20000000

As on 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	33.50
Directors or relatives of directors	66.50
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is manufacturing bare copper wires, copper wires coated with tin / silver, solder plated copper wires which is mainly used in electronics and electrical industry.

Products :

• Bare Copper Wires
• Plated wires
• Enamelled Copper Wires
• Paper Cover Wires and strips
• Bunched Copper Wires
• Copper strips and Bus Bars

Item Code No. (ITC Code)	Product Description
7408	Copper Wire

PRODUCTION STATUS (AS ON 31.03.2011):

Particulars	2010-2011
Actual Production	14945 M.T.

GENERAL INFORMATION

No. of Employees :

Information declined by the Management

Bankers :

· State Bank of India, 1548A, Commercial Branch, Tilak Road, Pune – 411 030, Maharashtra, India

· The Shamrao Vitthal Co-operative Bank Limited, Deccan Gymkhana, Branch Nandita, Jungli Maharaj Road, Pune – 411 004, Maharashtra, India

· Janata Sahakari Bank Limited, Bajirao Road Branch, Pune – 411 002, Maharashtra, India

Facilities :

Secured Loans	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Foreign currency loans banks secured	86.928	0.000
Working capital loans banks secured	709.133	330.885
Loans taken for vehicles secured	2.125	3.612
Total	798.186	334.497

Banking Relations :

--

Auditors :

Name :

Utgikar Avinash Jeevan

Chartered Accountants

Address:

2, Dyanda Apartment, Near Dyanprabhodini, 517, Sadashiv Peth, Pune, Maharashtra, India

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

AAGPU7227B

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs. 10/- each	Rs.400.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs. 10/- each	Rs.200.000 millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
21000000	Equity Shares	Rs. 10/- each	Rs.210.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs. 10/- each	Rs.200.000 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		200.000	86.219	69.326
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		494.478	268.053	123.780
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		694.478	354.272	193.106
LOAN FUNDS
1] Secured Loans		798.186	334.497	200.519
2] Unsecured Loans		267.837	17.284	63.226
TOTAL BORROWING		1066.023	351.781	263.745
DEFERRED TAX LIABILITIES		9.281	9.206	0.143
TOTAL		1769.782	715.259	456.994
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		130.021	54.284	29.484
Capital work-in-progress		27.826	2.938	0.000
INVESTMENT		17.010	2.010	1.710
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	489.638	175.564	123.869
	Sundry Debtors	2101.138	686.618	775.425
	Cash & Bank Balances	77.946	55.033	7.557
	Other Current Assets	78.685	81.985	60.846
	Loans & Advances	370.762	119.153	19.634
Total Current Assets		3118.169	1118.353	987.331
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1174.069	293.124	407.635
	Other Current Liabilities	343.275	158.176	122.515
	Provisions	5.900	11.026	31.381
Total Current Liabilities		1523.244	462.326	561.531
Net Current Assets		1594.925	656.027	425.800
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1769.782	715.259	456.994

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	6359.172	3058.225	2392.104
		Other Income	84.256	(17.033)	0.507
		TOTAL (A)	6443.428	3041.192	2392.611
Less	EXPENSES
		Consumption materials changes inventories	5794.514	2756.594	2228.205
		Manufacturing service costs	47.369	19.914
		Employee related expenses	10.228	7.230
		Administrative selling other expenses	65.339	52.813
		TOTAL (B)	5917.450	2836.551	2228.205
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		525.978	204.641	164.406
Less	INTEREST FINANCIAL EXPENSES (D)		113.088	64.740	52.118
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		412.890	139.901	112.288
Less/ Add	DEPRECIATION/ AMORTISATION (F)		21.993	17.052	4.844
	PROFIT BEFORE TAX (E-F) (G)		390.897	122.849	107.444
Less	TAX (H)		71.156	29.256	20.872
	PROFIT AFTER TAX (G-H) (I)		313.741	93.593	86.572
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		217.373	123.780	NA
	BALANCE CARRIED TO THE B/S		531.114	217.373	NA
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	3575.687	846.459	819.605
	TOTAL EARNINGS		3575.687	846.459	819.605
	IMPORTS
		Raw Materials	2105.403	408.513	1564.479
	TOTAL IMPORTS		2105.403	408.513	1564.479
	Basic and Diluted Earnings Per Share (Rs.)		15.69	13.50	32.25

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.87	3.08	3.62
Net Profit Margin (PBT/Sales)	(%)	6.15	4.01	4.49
Return on Total Assets (PBT/Total Assets}	(%)	12.03	10.48	10.57
Return on Investment (ROI) (PBT/Networth)		0.56	0.35	0.56
Debt Equity Ratio (Total Debt/Networth)		1.53	0.99	1.37
Current Ratio (Current Asset/Current Liability)		2.05	2.42	1.76

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors
- Creditors due small micro enterprises	0.000	0.000	0.000
- Creditors due others	1174.069	293.124	407.635
Total	1174.069	293.124	407.635

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	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	No
16) Details of sister concerns	No
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	Yes
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	Yes

Unsecured Loans	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks unsecured	206.917	4.397
Deferred sales tax loan unsecured	6.036	6.346
Other debt unsecured	54.884	6.541
Total	267.837	17.284

Note:

The registered office of the company has been shifted from Plot No.74, Lane No.3, Natraj Co-Operative Housing, Karve Nagar, Pune – 411 052, Maharashtra to the present address w.e.f. 02.04.2011.

REVIEW OF OPERATIONS:

During the year the Company has achieved a turnover of Rs.6359.100 millions as compared to previous year figure of Rs.3058.200 millions. The Company is confident of performing with higher consistency and at a higher pace of growth in the ensuing financial year.

EXPORTS

The Company has achieved the export sales of Rs.3575.500 millions during the year as compared to previous year figure of Rs.846.400 millions. Company has been analyzing the Exposure of Exports looking at the overall scenario in the international market of Liquidity. This has helped the company to keep a low profile in Exports despite having sufficient demand from overseas Customers. Company will be more focused in the growth of their exports in the coming financial year.

FIXED ASSETS:

· Land

· Building

· Computer

· Furniture and Fixture

· Office Equipment

· Plant and machinery

· Electrical Fittings

· Lab Equipments

· Mobile

· Vehicles

· Technical Knowhow

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 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.54.65
UK Pound	1	Rs.82.65
Euro	1	Rs.71.21

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	SMN

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	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		35

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.