MIRA
INFORM REPORT
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Report Date : |
20.08.2007 |
IDENTIFICATION DETAILS
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Name : |
BHUNIT ENGINEERING COMPANY PRIVATE LIMITED |
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Registered Office : |
38/78, Punjabi Bagh, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
29.08.1995 |
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Com. Reg. No.: |
55-072043 |
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CIN No.: [Company
Identification No.] |
U27101DL1995PTC072043 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELB04416G |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of Casting Components. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 36000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
38/78, Punjabi Bagh, |
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E-Mail : |
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Website : |
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Factory: |
73, New Okhla Industrial Complex, Phase – II, DSIDC Scheme – I, |
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Tel. No.: |
91-11-26384102 |
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Fax No.: |
91-11-26384641 |
DIRECTORS
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Name : |
Mr. Devender Kumar Rana |
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Designation : |
Executive Director |
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Address : |
House No. 38, Road No. 78, West Punjabi Bagh, |
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Date of Birth/Age : |
11.11.1951 |
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Mobile No.: |
91-9810023730 |
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E-Mail: |
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Date of Appointment : |
29.08.1995 |
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Name : |
Mr. Bhupesh Rana |
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Designation : |
Director |
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Address : |
38/78, Punjabi Bagh, |
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Date of Birth/Age : |
06.08.1978 |
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Mobile No.: |
91-9810063686 |
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E-Mail: |
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Date of Appointment : |
29.03.2007 |
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Other Directorship: |
B P Casting Private Limited |
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Name : |
Mrs. Rekha Rana |
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Designation : |
Director |
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Address : |
House No. 38, Road No. 78, West Punjabi Bagh, |
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Date of Birth/Age : |
28.06.1955 |
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Date of Appointment : |
29.08.1995 |
KEY EXECUTIVES
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Name : |
Kanwal Goyal |
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Designation : |
Company Secretary |
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Address : |
J-1, 2nd Floor, Kailash Colony, |
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Mobile No.: |
91-11-41720699 |
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E-Mail: |
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Name : |
Mr. Devendra Sharma |
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Designation : |
Group General
Manager |
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Mobile No.: |
91 -9811184449 |
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E-Mail: |
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Name : |
Anthony Monterio |
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Designation : |
European
Associate |
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Tel. No.: |
44-07870782708 |
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E-Mail: |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Devender Rana |
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64994 |
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Mrs. Rekha Rana |
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100000 |
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Mr. Bhupesh Rana |
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75000 |
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Mr. Devender Rana HUF |
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10000 |
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Others |
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6 |
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Total |
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250000 |
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Category |
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Percentage
of Holding |
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Directors or relatives of directors |
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54.00 |
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Other top 50 shareholders (other than those listed above) |
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46.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Casting Components. |
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Products : |
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PRODUCTION STATUS
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Particulars |
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Unit |
Installed
Capacity |
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Casting Components |
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MT |
3000 MT Per
Annum |
GENERAL INFORMATION
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Bankers : |
Bankers State Bank of Okhla Industrial Estate, Financial
Institutions Intec Securities Limited 701, 57, |
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Facilities : |
- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
AKG and Company Chartered Accountants |
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Address : |
J-1, Kailash Colony, |
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Associates/Subsidiaries : |
B P Casting Private Limited CIN No.: U27310DL1984PTC018835 |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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250000 |
Equity Shares |
Rs. 10.00 each |
Rs. 2.500 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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250000 |
Equity Shares |
Rs. 10.00 each |
Rs. 2.500 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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2.500 |
2.500 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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6.648 |
3.678 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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9.148 |
6.178 |
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LOAN FUNDS |
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1] Secured Loans |
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12.926 |
0.596 |
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2] Unsecured Loans |
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9.557 |
8.535 |
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TOTAL BORROWING |
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22.483 |
9.131 |
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DEFERRED TAX LIABILITIES |
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1.850 |
1.200 |
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TOTAL |
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33.481 |
16.509 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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25.795 |
16.938 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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13.707 |
1.970 |
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Sundry Debtors |
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4.270 |
0.968 |
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Cash & Bank Balances |
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1.380 |
0.581 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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2.186 |
1.504 |
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Total
Current Assets |
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21.543 |
5.023 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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13.338 |
5.253 |
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Provisions |
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0.530 |
0.214 |
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Total
Current Liabilities |
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13.868 |
5.467 |
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Net Current Assets |
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7.675 |
(0.444) |
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MISCELLANEOUS EXPENSES |
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0.011 |
0.015 |
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TOTAL |
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33.481 |
16.509 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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101.088 |
51.691 |
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Other Income |
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0.102 |
0.007 |
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Total Income |
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101.190 |
51.698 |
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Profit/(Loss) Before Tax |
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4.172 |
2.527 |
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Provision for Taxation |
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1.202 |
1.413 |
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Profit/(Loss) After Tax |
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2.970 |
1.114 |
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Expenditures : |
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Material Consumed |
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69.090 |
37.995 |
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Manufacturing and Operating Expenses |
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19.580 |
7.913 |
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Personnel Expenses |
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2.846 |
1.140 |
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Selling, General and Administration Expenses |
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2.178 |
1.281 |
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Preliminary Expenses |
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0.004 |
0.002 |
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Financial Charges |
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1.514 |
0.184 |
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Depreciation |
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1.806 |
0.656 |
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Total Expenditure |
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97.018 |
49.171 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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2.94 |
2.15 |
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Net Profit Margin (PBT/Sales) |
(%) |
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4.13 |
4.89 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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8.81 |
1.15 |
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Return on Investment (ROI) (PBT/Networth) |
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0.46 |
0.41 |
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Debt Equity Ratio (Total Liability/Networth) |
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3.97 |
2.36 |
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Current Ratio (Current Asset/Current Liability) |
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1.55 |
0.92 |
LOCAL AGENCY FURTHER INFORMATION
Form 8
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Name of the company |
BHUNIT ENGINEERING COMPANY PRIVATE LIMITED |
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Presented By |
Mr. Devender Rana
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1) Date and description of instrument creating the change |
Guarantee
Agreement dated 27.03.2002 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 5.400
millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Factory, Land and
building at Village Deoli, District Palwal, Haryana, Part of Khasra No.
24/5/3, 20/24/2, 20/23/2, 20/25/1, 20/16/2, 17/1/2, 21/21, 20/25/2 area
measuring 17450 Sq. yards. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Guarantee to
declare all undoubtedness and liabilities of Bronalloy Metallurgical Corporation with interest
due to Bank, State Bank of |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Okhla Industrial Estate, |
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6) Date and brief description of instrument modifying the charge |
Not Applicable |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
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Name of the company |
BHUNIT ENGINEERING COMPANY PRIVATE LIMITED |
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Presented By |
Intec Securities
Limited |
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1) Date and description of instrument creating the change |
Agreement
Creating Charge dated 10.11.2005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 1.803
millions (Rs. 18,02,977.00) |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Cummins make D G
Set 380 KUA (Silent) supplied by Sudhir Genset Limited |
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4) Gist of the terms and conditions and extent and operation of the charge. |
30 EMIs of Rs.
0.072 million (Rs. 71,743.00) each |
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5) Name and Address and description of the person entitled to the charge. |
Intec Securities
Limited 701, |
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6) Date and brief description of instrument modifying the charge |
Not Applicable |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
Website details attached:
Subject deals in manufacturing of aluminium cast components on the most sophisticated machines totally controlled by PLC’s. They have developed capabilities to design and manufacture permanent moulds with the capability of producing casting from 10 Gms. to 100 Kgs.
The unit produces castings of Aluminium Alloys conforming to National and
International standards such as ISI, BS, DIN, JIS etc. Casting is produced for
various industries such as Switchgear, Transformer, Automotive, Engineering,
Railways, and Electrical etc.
The Company is ISO 9001:2000 certified by BSI
(UK). As customer satisfaction is the crucial differentiating
factor, they are determined to retain their competitive edge through new
advance technology and outstanding service support.
Their parent company Bronalloy
Metallurgical Corporation was promoted by Mr. Devender Rana a
technocrat in 1976 to produce and supply high quality non ferrous castings. The
company catered to various types of industries.
This memorable journey through the years has earned us a reputation as a
leading and dependable foundry of Aluminium Die Casting Components. They have
continuously strived to bring in the best quality into their products.
Beside on the time tested system they have launched a new company in March 2003
by the name of M/S Bhunit Engineering Co. Pvt. Ltd. for
manufacturing of aluminium cast components on the most sophisticated machines
totally controlled by PLC’s. They have developed capabilities to design and
manufacture permanent moulds.
Their team of well managed sincere and dedicated engineers and workmen is
always working towards a common goal of their customer's satisfaction. As
“Quality Signifies Process” they adhere to the strict quality norms right from
the receipt of raw material till the final dispatch.
The Company is ISO 9001:2000 certified by BSI
(UK). As customer satisfaction is the crucial differentiating
factor, they are determined to retain their competitive edge through new
advance technology and outstanding service support.
Annual capacity
Company has an installed casting capacity of 3000 MT/annum on actual weight of
castings.
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Turnover |
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2004-05 |
US$ 0.8 Million |
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2005-06 |
US$ 2.54 Million |
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2006-07 |
US$ 5.93 Million |
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2007-08 (Projected) |
US$ 11 Million |
INFRASTRUCTURE
Foundry Equipment
v 3 no’s, Skelner Furnaces having capacity of melting 2000 Kgs of aluminium alloy per hour.
v
6 nos. Electric Holding Furnaces with capacity of
500 Kgs aluminium with complete automated temperature control.
v
2 nos. Electric Melting cum holding furnaces with
capacity of 250 Kgs each with complete automated temperature control
v
Hydraulically operated gravity
die casting machines with PLC control (16 nos.)
Machining
Components can be machined as per customer's requirement both on CNC'S as well as on conventional machines as per customer requirements.
Heat Treatment
In house heat treatment facilities both for solution treatment and precipitation treatment are available. Castings having diameter up-to 1100mm can be accommodated in the solution treatment furnace which is fully automatic and temperature is measured at 3 different locations to have uniform temperature in the furnace. The size of precipitation furnace is 2m/2m/2m and is also fully automatic.
Tool Designing and Manufacturing
v Moulding dies are designed using CAD/CAM software
v In addition they have regular tie-up with vendors to produce precision dies by using solid model of castings provided by them.
PROCESS ASPECTS
Density Index reflects the quality of the melt
as it helps in determination of Hydrogen content, oxides and inclusions in the
melt. Lower the density index purer is the melt.
Image Analyzer helps to photograph the melt
samples for microstructure, grain refinement and porosity etc.
Physical Inspection of 100% castings by experts
to check surface defects.
Chemical Composition checking of raw material by
Spectrometer to ensure proper alloy composition.
Die Penetration test where so ever required to check
invisible surface cracks at selected portion of the castings
Pressure Testing of 100% casting to check
leakage whosesoever required.
QUALITY
QUALITY POLICY
They are committed to manufacture and supply aluminium cast components to achieve total customer satisfaction. They are also committed to improvement of their products by reducing rejection and by continual improvement of the products through process control and employees participation.
QUALITY OBJECTIVES
Reduce
rejection
Reduce
breakdown
Enhance
customer satisfaction
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. 41.57 |
|
|
1 |
Rs. 82.14 |
|
Euro |
1 |
Rs. 55.74 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
6 |
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--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 |
|
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|