MIRA INFORM REPORT
|
Report Date : |
10.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
HERO CYCLES LIMITED |
|
|
|
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Registered
Office : |
Hero Nagar, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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|
Date of
Incorporation : |
29.08.1966 |
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|
Com. Reg. No.: |
16-002667 |
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|
Capital
Investment / Paid-up Capital : |
Rs.398.213 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U35911PB1966PLC002667 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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|
|
PAN No.: [Permanent Account No.] |
AAACH4073P |
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|
Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturer and seller of bicycles. |
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|
No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (74) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 32000000 |
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|
|
Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a well-established company having excellent track. Management has filed Form 20B for FY14, whereas failed to file any
other financial information with the statutory authorities. As per available, trade relations are trustworthy. Business is active.
Payment terms are reported as regular and as per commitment. In view of experienced promoters, 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.
ECGC Country Risk Classification List – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating = AA+ |
|
Rating Explanation |
High degree of safety and very low credit risk. |
|
Date |
06.06.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating = A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
06.06.2014 |
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
31-03-2014.
INFORMATION DENIED
Management non-co-operative
Contact No.: 91-161-2539448
LOCATIONS
|
Registered Office / Factory / headquarter : |
Hero Nagar, |
|
Tel. No.: |
91-161-5026969, 2539448-52 |
|
Fax No.: |
91-161-2539478 / 2539474 |
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E-Mail : |
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Website : |
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Branch Office : |
Located At :
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DIRECTORS
AS ON 30.09.2014
|
Name : |
|
|
Designation : |
Chairman Cum Managing director |
|
Address : |
26-L, |
|
Date of Birth/Age : |
05.08.1928 |
|
Date of Appointment : |
29.08.1966 |
|
DIN No.: |
00002957 |
|
|
|
|
Name : |
Pankaj Munjal |
|
Designation : |
Managing director |
|
Address : |
B-5, Greater Kailash, |
|
Date of Birth/Age : |
15.12.1962 |
|
Date of Appointment : |
24.02.1998 |
|
DIN No.: |
00005330 |
|
|
|
|
Name : |
Shashi Kant Rai |
|
Designation : |
Managing director |
|
Address : |
256 –H, BRS Nagar, |
|
Date of Birth/Age : |
22.01.1944 |
|
Date of Appointment : |
13.01.1986 |
|
DIN No.: |
00002954 |
|
|
|
|
Name : |
M. A. Zahir |
|
Designation : |
Director |
|
Address : |
95, New Rajguru Nagar, |
|
Date of Birth/Age : |
18.12.1942 |
|
Date of Appointment : |
29.04.1982 |
|
DIN No.: |
00002973 |
|
|
|
|
Name : |
Sandeep Dinodia |
|
Designation : |
Director |
|
Address : |
A 9, Maharani Bagh, |
|
Date of Birth/Age : |
04.04.1962 |
|
Date of Appointment : |
18.12.2010 |
|
DIN No.: |
00005395 |
|
Name : |
Gagan Deep Kapoor |
|
Designation : |
Whole-time director |
|
Address : |
C-140, Raj Guru Nagar, |
|
Date of Birth/Age : |
04.05.1964 |
|
Date of Appointment : |
29.03.2013 |
|
DIN No.: |
06548908 |
KEY EXECUTIVES
|
Name : |
Bharat Goyal |
|
Designation : |
Chief Financial Officer and Secretary |
|
Address : |
7/2, Aashiana Complex, |
|
Date of Birth/Age : |
08.09.1959 |
|
Date of Appointment : |
24.05.2014 |
|
PAN No.: |
AAYPG0264C |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2014
|
Names of Shareholders |
No. of Shares |
|
Pankaj Munjal |
127995 |
|
|
843800 |
|
Pankaj Munjal |
1312000 |
|
Bhagyoday Investments Private Limited, |
2871300 |
|
Charu Munjal |
117312 |
|
Aditya Munjal |
87984 |
|
Abhishek Munjal |
87984 |
|
Sudershan Munjal |
197620 |
|
O P Munjal |
33995280 |
|
Tarun Vohra |
1 |
|
A K Dewan |
1 |
|
Ravish Khanna |
1 |
|
Pawan Puri |
1 |
|
Mohandar Singh Sodhi |
1 |
|
O P Munjal |
180000 |
|
|
|
|
Total |
39821280 |
Equity Share Break up (Percentage of Total Equity)
AS ON 30.09.2014
|
Category |
Percentage |
|
Bodies corporate |
92.79 |
|
Directors or relatives of Directors |
7.21 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and seller of bicycles. |
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Products : |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
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GENERAL INFORMATION
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Suppliers : |
Not Divulged |
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Customers : |
Not Divulged |
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No. of Employees : |
Information declined by the management. |
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Bankers : |
Corporation Bank, Feroze Gandhi Market, |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
B. D. Bansal and Company Chartered Accountants |
|
Address : |
34A, Court Road, |
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PAN No.: : |
AABFB0018J |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Enterprises which
are owned, or have significant influence of or are partners with Key
management personnel and their relatives : |
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|
|
|
Subsidiary : |
Munjal Hospitality Private Limited |
CAPITAL STRUCTURE
AS ON 30.09.2014
Authorised Capital :
Rs.400.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.398.213 Millions
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40,000,000 |
Equity Shares |
Rs.10/- each |
Rs.400.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
39,821,280 |
Equity Shares |
Rs.10/- each |
Rs.398.213
Millions |
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|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a)
Share Capital |
398.213 |
398.213 |
398.213 |
|
(b)
Reserves & Surplus |
10783.823 |
10247.661 |
9507.334 |
|
(c)
Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
11182.036 |
10645.874 |
9905.547 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a)
long-term borrowings |
487.615 |
622.242 |
118.375 |
|
(b)
Deferred tax liabilities (Net) |
61.376 |
132.056 |
135.176 |
|
(c)
Other long term liabilities |
100.473 |
426.206 |
394.947 |
|
(d)
long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current Liabilities (3) |
649.464 |
1180.504 |
648.498 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
918.249 |
4101.264 |
1301.159 |
|
(b)
Trade payables |
1493.188 |
2072.434 |
2229.045 |
|
(c)
Other current liabilities |
408.989 |
280.225 |
316.187 |
|
(d)
Short-term provisions |
109.762 |
101.496 |
365.901 |
|
Total Current Liabilities (4) |
2930.188 |
6555.419 |
4212.292 |
|
|
|
|
|
|
TOTAL |
14761.688 |
18381.797 |
14766.337 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
877.474 |
1253.111 |
1279.731 |
|
(ii)
Intangible Assets |
1.533 |
1.938 |
2.432 |
|
(iii)
Capital work-in-progress |
48.115 |
86.893 |
28.132 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b)
Non-current Investments |
5234.038 |
5037.197 |
5985.636 |
|
(c)
Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
5208.095 |
5133.987 |
604.392 |
|
(e)
Other Non-current assets |
12.935 |
14.058 |
11.969 |
|
Total Non-Current Assets |
11382.190 |
11527.184 |
7912.292 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
825.136 |
2662.696 |
2721.727 |
|
(b)
Inventories |
351.649 |
1059.119 |
1036.642 |
|
(c)
Trade receivables |
1052.115 |
2050.800 |
2223.212 |
|
(d)
Cash and cash equivalents |
206.779 |
348.400 |
129.739 |
|
(e)
Short-term loans and advances |
895.137 |
700.340 |
640.820 |
|
(f)
Other current assets |
48.682 |
33.258 |
101.905 |
|
Total Current Assets |
3379.498 |
6854.613 |
6854.045 |
|
|
|
|
|
|
TOTAL |
14761.688 |
18381.797 |
14766.337 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
SALES |
|
|
|
|
|
Income |
15637.449 |
20284.551 |
19504.334 |
|
|
Other Income |
469.107 |
407.240 |
960.908 |
|
|
TOTAL (A) |
16106.556 |
20691.791 |
20465.242 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
11118.200 |
14906.676 |
14584.663 |
|
|
Purchases of
Stock-in-Trade |
477.775 |
762.165 |
269.626 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(4.536) |
(35.735) |
(40.122) |
|
|
Employees benefits
expense |
676.333 |
671.541 |
652.647 |
|
|
Other expenses |
2442.236 |
2603.891 |
2407.571 |
|
|
Profit and Prior Items |
23.361 |
0.000 |
|
|
|
TOTAL (B) |
14733.369 |
18908.538 |
17874.385 |
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION (C) |
1373.187 |
1783.253 |
2590.857 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
351.958 |
454.444 |
186.650 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1021.229 |
1328.809 |
2404.207 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
102.247 |
134.518 |
168.014 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX (E-F) (G) |
918.982 |
1194.291 |
2236.193 |
|
|
|
|
|
|
|
Less |
TAX (H) |
271.775 |
361.505 |
612.317 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
(G-H) (I) |
647.207 |
832.786 |
1623.876 |
|
|
|
|
|
|
|
|
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
7154.500 |
6999.200 |
6228.200 |
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
Transfer to General
Reserve |
75.000 |
85.000 |
160.000 |
|
|
Dividend |
79.500 |
79.500 |
594.900 |
|
|
Tax on Dividend |
13.500 |
12.900 |
98.000 |
|
|
|
|
|
|
|
|
Balance Carried to the
B/S |
7605.800 |
7154.500 |
6999.200 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
90.717 |
11.404 |
Nil |
|
|
TOTAL EARNINGS |
90.717 |
11.404 |
Nil |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
18.46 |
21.00 |
40.96 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Net Profit Margin PAT/ Sales |
(%) |
4.14 |
4.11 |
8.33 |
|
|
|
|
|
|
|
PBIDT / Sales |
(%) |
8.78 |
8.79 |
13.28 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.69 |
9.01 |
25.55 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08 |
0.11 |
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.13 |
0.44 |
0.14 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.15 |
1.05 |
1.63 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
398.213 |
398.213 |
398.213 |
|
Reserves & Surplus |
9507.334 |
10247.661 |
10783.823 |
|
Net worth |
9905.547 |
10645.874 |
11182.036 |
|
|
|
|
|
|
long-term borrowings |
118.375 |
622.242 |
487.615 |
|
Short term borrowings |
1301.159 |
4101.264 |
918.249 |
|
Total borrowings |
1419.534 |
4723.506 |
1405.864 |
|
Debt/Equity ratio |
0.143 |
0.444 |
0.126 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
19504.334 |
20284.551 |
15637.449 |
|
|
|
4.000 |
(22.910) |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
19504.334 |
20284.551 |
15637.449 |
|
Profit |
1623.876 |
832.786 |
647.207 |
|
|
8.33% |
4.11% |
4.14% |
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 |
Yes |
|
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 |
Yes |
LITIGATION DETAILS
|
HIGH COURT OF PUNJAB AND HARYANA, CHANDIGARH |
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Case Details For Case CM-11830-C-2013 |
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Diary Number |
984515 |
District |
LUDHIANA |
|
Category |
- |
Main Case Detail |
RSA-4408-2013 |
|
Party Detail |
M/S JVM STEELS PRIVATE
LIMITED AND ANR V/S M/S HERO CYCLES LIMITED |
||
|
Advocate Name |
RAHUL RAMPAL |
List Type |
ORDINARY |
|
Status |
PENDING |
Next date |
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Case Listing Details |
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No Listing Data Available |
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Judgment Details For Case: CM-11830-C-2013 |
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Order Date |
Order Type |
Bench |
Judgment Link |
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No Judgment/Order Found. |
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Designed and Developed by National Informatics Centre Contents Published and Managed by Punjab and Haryana High
Court, Chandigarh. |
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Designed and Developed by National Informatics Centre
Contents Published and Managed by Punjab & Haryana High Court , Chandigarh. Disclaimer
Designed and Developed by National Informatics Centre
Contents Published and Managed by Punjab & Haryana High Court , Chandigarh. Disclaimer
UNSECURED LOAN
|
PARTICULARS |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
Long-term
Borrowings |
|
|
|
Deposits from directors |
4.600 |
5.250 |
|
Deposits from shareholders |
0.000 |
97.772 |
|
Intercorporate deposits |
296.195 |
290.245 |
|
Deposits from others |
186.820 |
246.975 |
|
Short-term
borrowings |
|
|
|
Non-convertible debentures banks |
0.000 |
200.000 |
|
Loans repayable on demand from banks |
350.000 |
896.258 |
|
Intercorporate deposits |
0.000 |
357.973 |
|
Total |
837.615 |
2094.473 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
90182676 |
10/11/2008 * |
1,600,000,000.00 |
STATE BANK OF INDIA |
MCLAU, FOUNTAIN CHOWK, LUDHIANA, Punjab - 141001, |
A52005022 |
* Date of charge modification
FIXED ASSETS
- Building
- Land
- Office Equipment
- Plant and machinery
- Furniture and fixtures
- Computer
- Vehicle
WEBSITE DETAILS
NEWS / ARTICLE
HERO CYCLES CALLS OFF
DEAL WITH GERMAN COMPANY MIFA
8 Oct, 2014,
The proposed
acquisition, Pankaj Munjal-owned Company’s first attempt to
venture out of India, was aimed at acquiring cutting-edge technology.
NEW DELHI: Hero Cycles, the world's largest bicycle maker by volume, has called off its proposed acquisition of Germany's leading cycle maker Mitteldeutsche Fahrradwerke AG (MIFA) citing non-fulfilment of a condition of the agreement by the company.
The two manufacturers had on August 22 entered into a definitive agreement,
under which the Delhi-based Hero Cycles was expected to invest about 19 million
euros (about Rs 160 crore), including working capital of 4 million euros, in
buying a little over 60% stake. The proposed acquisition, Pankaj Munjal-owned
company's first attempt to venture out of India, was aimed at acquiring
cutting-edge technology and entering the premium markets in Europe and
elsewhere.
"Hero Cycles and MIFA entered into binding agreement in August 2014 and
MIFA had to fulfil closing conditions for Hero Cycles to invest in the company
maximum of 15 million euros for shareholding in MIFA. However, MIFA could not
complete the closing conditions and has filed for insolvency," Rohit
Maheshwari, chief financial officer of Hero Cycles said.
He added: "Hero Cycles is the leader in bicycle segment for the last 60
years and has automotive technology and supplies to all majors. The European
strategy of Hero Cycles remains intact."
Failing to consummate the deal, MIFA has filed for bankruptcy in a local court.
"An essential element of the basic agreement, which was concluded on
August 22 with OPM Global, a subsidiary of the Indian bicycle manufacturer Hero
Cycles Limited to financially restructure MIFA could not be implemented despite
the covenants given," MIFA said.
"Despite intensive negotiations with those responsible at Hero it has so
far not been possible to achieve an ultimate solution in one part of the
agreement. For this reason, I have decided in view of my responsibility for the
MIFA employees to file an application with the district court," said
Stefan Weniger, the MD of MIFA said.
GERMAN FIRM HURLS
ESPIONAGE CHARGE AT HERO CYCLES
Mumbai Oct 09, 2014
It was supposed to be Hero Cycles' first-ever foreign acquisition. But less than two months after signing a contract to buy a 60 per cent stake in German bicycle manufacturer MIFA for Rs 160 crore, the Munjal family-promoted firm is facing charges of industrial espionage - an allegation it has termed baseless.
Hero Cycles had entered into the contract on August 24 this year but pulled out
of the deal as it "discovered MIFA did not meet the closing conditions
mentioned in the contract".
MIFA has, however, alleged that Hero, which is building a new factory in India,
violated the "duty of loyalty" mentioned in the contract by
"knowledge gained from secret production-related documents" shared by
MIFA during the process of due-diligence that extended for 14 months.
MIFA has also accused Hero of delaying the buyout process and, thereby, holding
back its planned investments. According to a document from MIFA to its
stakeholders, the company has alleged Hero acquired "MIFA's business
secrets through culpable conduct during the negotiations. Particularly,
competition-related economic interest in secrecy of MIFA were affected. Any
violation of these civil law standards is sufficient for a violation of '17 Abs
2 Nr 2 UWG' and constitutes industrial espionage".
Hero Cycles has shot back at MIFA, with Co-chairman & Managing Director
Pankaj Munjal writing a letter to Germany's Ambassador to New Delhi, Michael
Steiner, drawing the latter's attention to the "baseless" allegations
of MIFA made with "ulterior motives".
"Hero for the past 14 months worked with the MIFA operating team, along
with the owners, and concluded a definitive agreement. Consequently, MIFA and
its owners had to fulfil closing conditions. However, none of the closing
conditions were even initiated and, thus, reached to a point that these could
not be met in the agreed timelines," Munjal said.
Hero also accused the German company of keeping it in the dark over the
appointment of a new chief executive, Thomas Mayer, who took charge from
October 1. MIFA, with yearly revenues of ^100 million, filed for insolvency
towards the end of last month.
"On an ad-hoc basis, the CEO is changed without any discussion with Hero,
a breach not in line with the spirit of the agreements. With removal of key
people, again a breach, the company was clueless on the way forward. Hero's
opinion was not even considered for these key decisions, defying the basis of
the agreement we arrived at," Munjal added.
At the time of the acquisition, Hero had admitted that the buyout would give
the Indian company access to MIFA's German engineering expertise, allowing it
to introduce 'high-quality bikes' in the Indian market. While the closing of
the transaction was expected to be closed in about six months, the operational
integration between the two companies was to commence immediately.
Hero, the world's largest bicycle manufacturer, also looked to gain from MIFA's
critical Electronic Drive Unit technology, used in e-bikes. The Hero group is
also involved in manufacturing of electric bikes and is the largest player in
this segment.
Munjal had earlier said that the transaction was only a first step in Hero
Cycle's ambition to become a leading global cycle manufacturer, not only by
volume but by value.
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 records 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.61.93 |
|
|
1 |
Rs.96.37 |
|
Euro |
1 |
Rs.76.10 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
SNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
---- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
74 |
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.