MIRA INFORM REPORT

 

 

Report Date :

09.03.2013

 

IDENTIFICATION DETAILS

 

Name :

Danfoss Industries PRIVATE LIMITED

 

 

Registered Office :

243, old Mahabalipuram Road, Sholinganallur Road, Sholinganallur, Chennai – 6000119, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

09.02.1999

 

 

Com. Reg. No.:

041877

 

 

Capital Investment / Paid-up Capital :

Rs.220.000 Millions

 

 

CIN No.:

[Company Identification No.]

U29199TN1999PTC041877

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is engaged in the business of trading of refrigerating and air-conditioning control related components, heating and ventilating systems, electronic drives, compressors, thermostats etc.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 1895760

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. There appears some dip in the profitability of the company during current year. However, 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 :

243, old Mahabalipuram Road, Sholinganallur Road, Sholinganallur, Chennai – 6000119, Tamilnadu, India 

Tel. No.:

91-44-66501555

E-Mail :

venkat@danfoss.com

 

 

DIRECTORS

 

AS ON 28.09.2012

 

Name :

Mr. Ole Moller Jensen

Designation :

Director

Address :

Ahornvej 11 Sonderborg Denmark DK 6400

Date of Birth/Age :

19.07.1955

Date of Appointment :

12.04.2010

PAN No.:

03130495

 

 

Name :

Mr. Hariharan Krishnan

Designation :

Director

Address :

Plot No. 05, No.31, Rukmini Street, Rapas Flats, No.6, Besent Nagar, Chennai, India

Date of Birth/Age :

15.04.1960

Date of Appointment :

08.11.2007

PAN No.:

01890223

 

 

Name :

Mr. Troels H Petersen

Designation :

Director

Address :

20, Damgade, Sonderborg, Denmark – 6400

Date of Birth/Age :

27.03.1965

Date of Appointment :

23.06.2009

PAN No.:

02540584

 

 

Name :

Mr. Kjeld Stark

Designation :

Director

Address :

74, Kongvej Sonderborg, Denmark – 6400

Date of Birth/Age :

26.01.1959

Date of Appointment :

23.06.2009

Date of Ceasing :

09.11.2010

PAN No.:

02680217

 

 

Name :

Mr. Noel Ryan

Designation :

Director

Address :

109, Hongglao Golf Villa, 555, Hongxu Road, Shanghai – 200336

Date of Birth/Age :

30.11.1961

Date of Appointment :

18.03.2012

PAN No.:

00863312

 

 

Name :

Mr. Ole Albertsen

Designation :

Director

Address :

55 Lovely Beach Road, 2nd Avenue Panaiyur, Chennai – 600028, India

Date of Birth/Age :

19.04.1970

Date of Appointment :

18.03.2012

PAN No.:

05262228

 

 

KEY EXECUTIVES

 

Name :

Mr. Sundaram Venkateswaran

Designation :

Director

Address :

B/12, Mahalaxmi Flats, 87, Choolaimedu High Road, Chennai – 600094, India

Date of Birth/Age :

12.08.1965

Date of Appointment :

01.04.2006

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 28.09.2012

 

Names of Shareholders

 

No. of Shares

Danfoss International A/S, Denmark

 

21999999

 

 

1

Total

 

22000000

 

 

AS ON 28.09.2012

 

Names of Shareholders

 

No. of Shares

Danfoss International A/S, Denmark

 

21999999

Danfoss A/S, Denmark

 

1

Total

 

22000000

 

LIST OF ALLOTTEES AS ON 10.01.2013

 

Names of Shareholders

 

No. of Shares

Danfoss International A/S, Denmark

 

21948000

Total

 

21948000

 

AS ON 28.09.2012

 

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 :

Subject is engaged in the business of trading of refrigerating and air-conditioning control related components, heating and ventilating systems, electronic drives, compressors, thermostats etc.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Not Available

 

 

Facilities :

 

UNSECURED LOAN

 

Rs. In Millions

31.03.2012

Rs. In Millions

31.03.2011

Unsecured Loans from Banks

Short Term

 

300.100

 

0.000

TOTAL

300.100

0.000

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

B S R and Associates,

Chartered Accountant

 

 

Ultimate holding company

Danfoss A/s, Denmark

 

 

Holding company

Danfoss International A/s, Denmark

 

 

Fellow subsidiaries:

·         Danfoss Drives A/S, Denmark

·         Danfoss Inc. USA - Drives Division

·         Danfoss Industries Pte Ltd, Singapore

·         Danfoss Industries SDN Bhd, Malaysia

·         Danfoss GmbH, Germany

·         Danfoss Industrieautomatik GmbH, Germany

·         Danfoss Compressors d.o.o, Slovenia

·         Danfoss Commercial Compressors, France

·         Danfoss Commercial Compressors, USA

·         Danfoss (Australia) Pty Ltd, Australia

·         Danfoss (Tianjin) Ltd, China

·         Danfoss China Ltd., China

·         SOCLA S.A.R.L, France

·         Danfoss (Thailand) Ltd, Thailand

·         Danfoss Industries, Taiwan

·         Danfoss Shanghai Automation Controls

·         Danfoss Industries, Brazil

·         Danfoss Industries Limited, Hong Kong

·         Danfoss Inc, Philippines

·         USCCA Scroll Technologies, LCC

·         Danfoss Inc. Baltimore

·         Danfoss Drives USDDE, Lovespark, USA

·         Danfoss Drives A/s, Graasten

·         Danfoss Saginomiya Sp. z o.o., Poland

·         Danfoss Electronic Drives, Illinois

·         Danfoss Co. Ltd., Taipei

·         Danfoss Ltd, Korea

·         Danfoss Maneurop

·         Danfoss Drives, USA

·         Danfoss Industries S.A. de C.V.,

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

22000000

Equity Shares

Rs.10/-

Rs.220.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

22000000

Equity Shares

Rs.10/-

Rs.220.000 Millions

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

220.000

220.000

220.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

253.940

207.220

101.808

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

473.940

427.220

321.808

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

300.110

             18.850

0.000

TOTAL BORROWING

300.110

18.850

0.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

774.050

446.070

321.808

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

203.160

104.910

77.753

Capital work-in-progress

50.860

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

21.510

25.660

17.991

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

472.510

377.360

256.560

0

Sundry Debtors

575.500

482.030

357.515

 

Cash & Bank Balances

265.840

8.050

89.930

 

Other Current Assets

7.900

0.000

0.000

 

Loans & Advances

162.020

98.450

54.277

Total Current Assets

1483.770

965.890

758.282

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

796.270

484.820

493.836

 

Other Current Liabilities

34.020

30.170

23.704

 

Provisions

154.960

135.400

13.678

Total Current Liabilities

985.250

650.390

531.218

Net Current Assets

498.520

315.500

227.064

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

774.050

446.070

321.808

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

2647.080

2410.370

1912.800

 

 

Other Income

152.200

69.820

25.990

 

 

TOTAL                                    

2799.280

2480.190

1938.790

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                    

NA

NA

NA

 

 

 

 

 

 

PROFIT BEFORE TAX

68.860

128.010

44.000

 

 

 

 

 

Less

TAX                                                                 

22.140

22.600

2.950

 

 

 

 

 

 

PROFIT AFTER TAX

46.720

105.410

41.050

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

146.460

41.050

0.000

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

193.180

146.460

41.050

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

1.67

4.25

2.12

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

2.60

5.31

2.30

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

4.08

11.95

5.26

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.15

0.30

0.14

 

 

 

 

 

Debt Equity Ratio

(Debt/Networth)

 

0.63

0.04

NA

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.50

1.48

1.43

 

 

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

No

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

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

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

No

 

BUSINESS

 

Their net revenue increased to INR 2647.08 Mio a growth rate of 9.8% compared to previous year. Their Profit before tax amounted to INR 68.86 Mio (2.6.% of revenue) as against INR 128.01 Mio (5.31% of revenue) in the previous year. The decrease in the in the profitability is attributed to higher fixed expenses on account of strategic activities in the company. The net profit after tax was INR 46.72 Mio (1.76% of revenue) as against INR 105.41 Mio (4.37% on revenue) in the previous year.

 

Though there is a strong focus on manufacturing, the value of manufactured goods declined by 18% due to outsourcing of the Condensing Units activity and low demand in the market due to recession.

 


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.54.40

UK Pound

1

Rs.81.57

Euro

1

Rs.71.24

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 


 

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

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

45

 

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.