MIRA
INFORM REPORT
|
Report Date : |
02.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
BHATIA SILVER
HOUSE |
|
|
|
|
Registered Office : |
205 Dariba Kalan, Near Association Dharam Kanta,
Chandni Chowk, Delhi 110 006 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
1971 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELB00771B |
|
|
|
|
Legal Form : |
Partnership
concern with an unlimited liability of the partners. |
|
|
|
|
Line of Business : |
Manufacturer and Exporter of high Standard range of Gold Jewellery |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD
10000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular
|
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject
is a well established concern having satisfactory track. Trade relations are
fair. Payments are usually correct and as per commitments. The concern is
doing well. It can
be considered good for any normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
205 Dariba Kalan, Near Association Dharam Kanta,
Chandni Chowk, Delhi 110 006, India |
|
Tel. No.: |
91-11-23274192, 23251690, 23901333 |
|
Fax No.: |
91-11-23266180 |
|
E-Mail : |
|
|
Area : |
1,000 Sq. ft. approx |
|
Location : |
Prime Commercial – Owned |
PARTNERS
|
Name : |
Mr.
Vijay Bhatia |
|
Designation : |
Partner
|
|
Address : |
B-3/392
Paschim Vihar, New Delhi-110 063 Phone:
91-11-25263034 |
|
Date of Birth/Age : |
55
Years |
|
Qualification : |
Graduate |
|
Experience : |
30
Years |
|
|
|
|
Name : |
Mr.
Amit Bhatia |
|
Designation : |
Partner
|
|
Address : |
B-3/392
Paschim Vihar, New Delhi-110 063 Phone:
91-11-25263034 |
|
Date of Birth/Age : |
27
Years |
|
Qualification : |
Graduate |
|
Experience : |
8
Years |
|
|
|
|
Name : |
Mr.
Ramesh Bhatia |
|
Designation : |
Partner
|
|
Address : |
B-3/392
Paschim Vihar, New Delhi-110 063 Phone:
91-11-25263034 |
|
Date of Birth/Age : |
54
Years |
|
Qualification : |
Graduate |
|
Experience : |
25
Years |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of high Standard range of Gold Jewellery |
|
|
|
|
Products : |
·
Neckless Set ·
Pendant Set ·
Pendant Sikh Guru Nanak Dev ·
Chain Set Neckless Set ·
Om Pendant (Hindu) ·
White Gold Pandel Set ·
Chain Plain Necklaces Set ·
Ear Ring ·
Chains ·
Nose Pins ·
Bangles ·
Bracelets |
|
|
|
|
Exports to : |
Diamond, Diamond Jewellery, Gold of Indian
traditional models to UK |
|
|
|
|
Terms : |
|
|
Selling : |
50% TT Advance and remaining payment after
shipment. |
|
|
|
|
Purchasing : |
CAD & Credit: 10 days (purchasing terms on case to case basis) |
GENERAL
INFORMATION
|
Customers : |
Retail Customers |
|
|
|
|
No. of Employees : |
30 (including
its group Company) |
|
|
|
|
Bankers : |
Ř
Punjab National Bank, Chandni Chowk, Delhi-110006 Ř
Bank of India, Chandni Chowk Branch, Delhi-110006 |
|
|
|
|
|
|
|
Banking Relations : |
Satisfactory
|
|
|
|
|
Auditors : |
D S Rekhi & Associates Chartered Accountants N-24B, Jangpura Extension, New Delhi 110 014 |
|
|
|
|
Associates/Subsidiaries : |
Name of the Company : Bhatia Sons Jewellers
Private Limited Legal Status : Private Limited Liability Company Date of Incorporation : 31.05.1996 Line of Business : Manufacturers and Exporters of
Diamonds, Jewellery |
CAPITAL STRUCTURE
|
Capital
Investment : |
|
|
Owned : |
Rs.
2.500 Millions |
|
Borrowed : |
-- |
|
Total : |
Rs.
2.500 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
The
subject is a Non-Incorporated business entity and thus not obliged to file any
information on itself with any Official Authority (Registrar of Company) open
for public inspection. The above-mentioned information is obtained directly
from the subject itself but the subject could not substantiate it by providing
audited financial statements like Balance Sheet and Profit & Loss A/c.
|
Particulars |
|
31.03.2006 |
31.03.2005 |
|
Networth |
|
2.500 |
2.148 |
|
|
|
|
|
|
Sales Turnover |
|
60.000 |
55.000 |
|
|
|
|
|
|
Profit Before
Tax |
|
0.510 |
0.413 |
|
|
|
|
|
|
Profit After
Tax |
|
0.342 |
0.303 |
The
Projected Turnover for the financial year ending 31.03.2007 shall be to the
tune of Rs.70.000 Million approx as claimed by the subject.
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
0.57 |
0.55 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
|
0.85 |
0.75 |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
|
13.68 |
14.08 |
LOCAL AGENCY
FURTHER INFORMATION
Subject does not import and purchases gold, silver
and diamonds from the domestic market
The subject products are IS 1417 Hall Marketing of
Gold Jewellery.
Subject reportedly exports.
Financials of
Bhatia Sons Jewellers Private Limited
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
1.182 |
0.882 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
3.816 |
3.674 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
4.998 |
4.556 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
0.000 |
0.026 |
|
|
2] Unsecured Loans |
|
3.783 |
4.005 |
|
|
TOTAL BORROWING |
|
3.783 |
4.031 |
|
|
DEFERRED TAX LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
8.781 |
8.587 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
0.212 |
0.254 |
|
|
Capital work-in-progress |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
0.005 |
0.003 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
8.109 |
8.186 |
|
|
Sundry Debtors |
|
0.352 |
0.182 |
|
|
Cash & Bank Balances |
|
0.286 |
0.107 |
|
|
Other Current Assets |
|
0.014 |
0.017 |
|
|
Loans & Advances |
|
0.000 |
0.000 |
|
Total Current Assets |
|
8.761 |
8.492 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
0.197 |
0.166 |
|
|
Provisions |
|
|
|
|
Total Current Liabilities |
|
0.197 |
0.166 |
|
|
Net Current Assets |
|
8.564 |
8.326 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.004 |
|
|
|
|
|
|
|
|
TOTAL |
|
8.781 |
8.587 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
|
15.052 |
12.601 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
|
0.228 |
0.201 |
|
Provision
for Taxation |
|
0.085 |
0.103 |
|
Profit/(Loss)
After Tax |
|
0.143 |
0.098 |
|
|
|
|
|
|
Total
Expenditure |
|
14.762 |
12.320 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
|
0.95 |
0.78 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
|
1.51 |
1.60 |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
2.54 |
2.30 |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
|
0.05 |
0.04 |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
|
0.80 |
0.92 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
|
44.47 |
51.16 |
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
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.84 |
|
UK
Pound |
1 |
Rs.85.55 |
|
Euro |
1 |
Rs.57.28 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
56 |
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome financial
difficulties seems comparatively below average/normal. |
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|