MIRA INFORM REPORT

3decades

MIRA INFORM REPORT

Report No. :	509836
Report Date :	21.05.2018

IDENTIFICATION DETAILS

Name :	KNORR-BREMSE SYSTEMS FOR COMMERCIAL VEHICLES INDIA PRIVATE LIMITED

Registered Office :	Survey No. 276, Hissa No. 1, Village Mann, Hinjewadi, Phase-II, Tal. Mulshi Pune – 411057, Maharashtra
Tel. No.:	91-20-66746816

Country :	India

Financials (as on) :	31.03.2017

Date of Incorporation :	21.02.2003

Com. Reg. No.:	11-021545

Capital Investment / Paid-up Capital :	INR 1329.716 Million

CIN No.: [Company Identification No.]	U34300PN2003PTC021545

IEC No.: [Import-Export Code No.]	Not Divulged

TAN No.: [Tax Deduction & Collection Account No.]	Not Available

PAN No.: [Permanent Account No.]	AACCK1395D

GSTN : [Goods & Service Tax Registration No.]	Not Divulged

Legal Form :	Private Limited Liability Company.

Line of Business :	Manufacturer of braking systems for commercial vehicles. (Registered activity)

No. of Employees :	Information declined by the management

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is a subsidiary of “Knorr-Bremse Asia Pacific (Holding) Limited, Hong Kong and was incorporated in the year 2003. The company has sound financial base, healthy capital structure along with average debt balance sheet. Rating takes into consideration strong managerial and financial support received to the company from its holding entity. Further, the company also derives strength from its long standing track records of business operations and market position. However, rating strength is partially offset due to continuously losses incurred by the company which has reported negative reserves position. Trade relations are reported as fair. Business is active. Payments are slow but correct. 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.

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

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 31-03-2018.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 21.05.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION DENIED BY

Name :	Mr. Ajankiya
Designation :	Accounts Manager
Contact No.:	91-9766383388
Date :	18.05.2018

91-20-66746816 / 66746800 / 66746899 (RINGING)

LOCATIONS

Registered Office :	Survey No. 276, Hissa No. 1, Village Mann, Hinjewadi, Phase-II, Tal. Mulshi Pune – 411057, Maharashtra, India
Tel. No.:	91-20-66746816 / 66746800 / 39147099 / 66746800
Fax No.:	91-20-66746899
E-Mail :	sandesh.maniyar@knorr-bremse.com kbcvs@knorr-bremse.com v.narayanan@knorr-bremse.com
Website :	www.knorr-bremse.com

DIRECTORS

As on 31.03.2017

Name :	Thomas Lippert
Designation :	Director
Address :	Flat F 71/F Tower 1, The Harbour Side 1, Austin Road, West Tsim Sha Tsui Kowloon Nil, Hong Kong
Date of Birth/Age :	27.11.1966
Date of Appointment :	26.12.2011
DIN No.:	05157151

Name :	Paramjit Singh Chadha
Designation :	Director
Address :	H No. 3/35-M, DLF Phase 2, Block M, Gurgaon – 122002, Haryana, India
Date of Appointment :	01.12.2016
DIN No.:	06972549

Name :	Wolfgang Johann Krinner
Designation :	Additional Director
Address :	Rothschwaigestrasse 66 Muenchen 80997 De
Date of Appointment :	28.05.2016
DIN No.:	07530183

KEY EXECUTIVES

Name :	Mr. Vipul Parakh
Designation :	Company Secretary
Address :	B-802, Sispal Vihar, Sohna Road, Sector – 49, Near South City- 2, Islampur Gurugram – 122018, Haryana, India
Date of Appointment :	10.10.2017
PAN No.:	AHQPP5861K

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2017

Names of Shareholders		No. of Shares
Knorr-Bremse Asia Pacific (Holding) Limited, Hongkong		132971579
Knorr-Bremse AG, Germany		1

Total		132971580

Equity Share Break up (Percentage of Total Equity)

As on 17.01.2018

Category	Percentage
Promoter - Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of braking systems for commercial vehicles. (Registered activity)

Products :

Item Code No.	Product Description
86072100	Air Brakes and Parts Thereof

Item Code No.	Product Description
29301	Air Braking System – (Used in production of Commercial vehicle)

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

Customers :

Reference :	Not Divulged
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

No. of Employees :

Information declined by the management

Bankers :

Bank Name	Not Divulged
Branch	--
Person Name (With Designation)	--
Contact Number	--
Name of Account Holder	--
Account Number	--
Account Since (Date/Year of Account Opening)	--
Average Balance Maintained (If Possible)	--
Credit Facilities Enjoyed (If any)	--
Account Operation	--
Remarks (If any)	--

Facilities :

Secured Loan	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
Long-term Borrowings
Rupee term loans from others	450.000	450.000

Total	450.000	450.000

Auditors :
Name :	BBSR and Company Chartered Accountants
Address :	703, 7th Floor, Godrej Castlemaine, Next to Ruby Clinic, Bund Garden Road, Pune – 411001, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAKFB4397F

Memberships :	Not Available

Collaborators :	Not Available

The holding company.:	Knorr-Bremse Asia Pacific (Holding) Limited, Hong Kong (KBAP)

Ultimate holding company.:	Stella Vermögensverwaltungs GmbH, Germany

Subsidiary of ultimate holding company.:	Knorr-Bremse AG, Germany (KB AG)

Subsidiary of the Company.:	Knorr Bremse India CVS Exports Private Limited, India

Fellow Subsidiaries.:	Knorr-Bremse SfC Limited, Truck GB Knorr-Bremse Systemy pro uzitkova yozidla CR, s.r.o Knorr-Bremse Fekrendszerek Kft Knorr Bremse Sistemi per Autoveicoli Commerciali S.p.A. Knorr-Bremse Systeme fur Nutzfahrzeuge GmbH Knorr-Bremse Systeme fur Schienenfahrzeuge GmbH Knorr Bremse Systemes Pour Vehicules Utilitaries France S.A. Hasse and Wrede GmbH Bendix Commercial Vehicles Systems Bendix Spicer Foundation Brakes LLC Knorr-Bremse Kama Systems for Commercial Vehiles LLC Knorr-Bremse Sistemas para Veículos Comerciais Brasil Limited. Knorr-Bremse Brake Equipment (Shanghai) Co., Limited. Knorr-Bremse Braking Systems, Dalian, China Knorr-Bremse Media GmbH New York Air Brake Corp Knorr-Bremse CAFF Braking Knorr-Bremse IT Services GmbH Knorr-Bremse Commercial Vehcile Systems Japan Limited Knorr-Bremse Technology Centre India Private Limited Knorr-Bremse India Private Limited. Knorr-Bremse Asia Pacific Limited Trust controlled by management: Knorr Bremse Systems For Commercial Vehicles India Private Limited - Group Gratuity Scheme

CAPITAL STRUCTURE

As on 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount

150000000	Equity Shares	INR 10/- each	INR 1500.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

132971580	Equity Shares	INR 10/- each	INR 1329.716 Million

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015

I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1329.716	1329.716	600.000
(b) Reserves & Surplus	(976.616)	(847.048)	(781.999)
(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)	353.100	482.668	(181.999)

(3) Non-Current Liabilities
(a) long-term borrowings	450.000	450.000	1153.230
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	16.642	16.627	12.195
Total Non-current Liabilities (3)	466.642	466.627	1165.425

(4) Current Liabilities
(a) Short term borrowings	186.043	0.985	234.379
(b) Trade payables	517.079	695.979	334.762
(c) Other current liabilities	363.187	249.200	99.057
(d) Short-term provisions	12.067	14.372	9.001
Total Current Liabilities (4)	1078.376	960.536	677.199

TOTAL	1898.118	1909.831	1660.625

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1068.020	1088.285	1057.935
(ii) Intangible Assets	0.313	0.462	1.093
(iii) Capital work-in-progress	35.922	15.590	3.692
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.100	0.100	0.100
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	167.075	142.747	143.199
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1271.430	1247.184	1206.019

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	295.343	318.129	178.534
(c) Trade receivables	215.186	244.245	205.984
(d) Cash and cash equivalents	22.397	43.550	26.345
(e) Short-term loans and advances	93.762	56.723	43.743
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	626.688	662.647	454.606

TOTAL	1898.118	1909.831	1660.625

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Income	1841.953	1886.947	1205.416
	Other Income	123.043	53.223	52.463
	TOTAL	1964.996	1940.170	1257.879

Less	EXPENSES
	Cost of Materials Consumed	1408.107	1446.880	873.902
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	15.910	(85.690	20.509
	Employees benefits expense	191.719	155.215	158.815
	Other expenses	355.657	324.696	282.825
	TOTAL	1971.393	1841.101	1336.051

	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	(6.397)	99.069	(78.172)

Less	FINANCIAL EXPENSES	43.622	86.895	94.131

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(50.019)	12.174	(172.303)

Less/ Add	DEPRECIATION/ AMORTISATION	79.549	77.223	65.129

	PROFIT/ (LOSS) BEFORE TAX	(129.568)	(65.049)	(237.432)

Less	TAX	0.000	0.000	0.000

	PROFIT/ (LOSS) AFTER TAX	(129.568)	(65.049)	(237.432)

	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	40.020	54.115	124.772
	Engineering Services	204.412	280.707	12.886
	TOTAL EARNINGS	244.432	334.822	137.658

	IMPORTS
	Raw Materials	581.805	499.681	273.875
	Capital Goods	5.709	0.000	313.731
	TOTAL IMPORTS	587.514	499.681	587.606

	Earnings / (Loss) Per Share (INR)	(0.97)	(0.95)	(3.96)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	NA	NA	NA
Net cash flows from (used in) operations	(69.602)	378.450	(118.231)
Net cash flows from (used in) operating activities	(75.066)	367.419	(122.211)

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	42.64	47.25	62.37

Account Receivables Turnover (Income / Sundry Debtors)	8.56	7.73	5.85

Average Payment Days (Sundry Creditors / Purchases * 365 Days)	134.03	175.57	139.82

Inventory Turnover (Operating Income / Inventories)	(0.02)	0.31	(0.44)

Asset Turnover (Operating Income / Net Fixed Assets)	(0.01)	0.09	(0.07)

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.81	0.74	1.10

Debt Equity Ratio (Total Liability / Networth)	1.80	0.93	(7.62)

Current Liabilities to Networth (Current Liabilities / Net Worth)	3.05	1.99	(3.72)

Fixed Assets to Networth (Net Fixed Assets / Networth)	3.13	2.29	(5.84)

Interest Coverage Ratio (PBIT / Financial Charges)	(0.15)	1.14	(0.83)

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	(7.03)	(3.45)	(19.70)

Return on Total Assets ((PAT / Total Assets) * 100)	%	(6.83)	(3.41)	(14.30)

Return on Investment (ROI) ((PAT / Networth) * 100)	%	(36.69)	(13.48)	130.46

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	0.58	0.69	0.67

Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.31	0.36	0.41

G-Score Ratio Financial (Networth / Total Assets)	0.19	0.25	-0.11

G-Score Ratio Debt (Debts / Equity Capital)	0.48	0.34	2.31

G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	0.58	0.69	0.67

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Share Capital	600.000	1329.716	1329.716
Reserves & Surplus	(781.999)	(847.048)	(976.616)
Net worth	(181.999)	482.668	353.100

Long Term borrowings	1153.230	450.000	450.000
Short Term borrowings	234.379	0.985	186.043
Total borrowings	1387.609	450.985	636.043
Debt/Equity ratio	(7.624)	0.934	1.801

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	1205.416	1886.947	1841.953
		56.539	(2.384)

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	1205.416	1886.947	1841.953
Profit / (Loss)	(237.432)	(65.049)	(129.568)
	(19.70%)	(3.45%)	(7.03%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

STATE OF COMPANY’S AFFAIRS AND FUTURE OUTLOOK

During the year, the Company has incurred a loss of INR 129.568 Million. The Directors are continuously looking for avenues for future growth and are hopeful that the Company will perform better in the coming years.

UNSECURED LOAN

Unsecured Loan	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
Long-term Borrowings
Rupee term loans from others	185.945	0.986
Rupee term loans from others	0.098	0.000

Total	186.043	0.985

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS	31.03.2017	31.03.2016
Estimated amount of contracts remaining to be executed on capital account and not provided for	5.333	38.985
Other commitments	289.765	340.879

FIXED ASSETS

Land
Buildings
Plant and equipment
Furniture and fixtures
Vehicles
Office equipment
Computer equipments

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 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	INR
US Dollar	1	INR 67.95
UK Pound	1	INR 91.88
Euro	1	INR 80.27

INFORMATION DETAILS

Information Gathered by :	RUB

Analysis Done by :	PRS

Report Prepared by :	KJL

SCORE FACTORS

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

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.