MIRA
INFORM REPORT
|
Report Date : |
04.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
B. T.
ENGINEERING WORKS |
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Registered Office : |
5 NH,
125, Railway Road, N I T, Faridabad-121001, Haryana |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
1993 |
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PAN No. : |
ARFPS0873D |
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Legal Form : |
Sole
Proprietory Concern |
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Line of Business : |
Manufacturing
of Sheet Metal Components and Precision Turn Components. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
10000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a small manufacturer of Sheet metal components. Trade relations are fair.
Payments are usually correct and as per commitments. The
concern can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office : |
5 NH,
125, Railway Road, N I T, Faridabad-121001, Haryana, India |
|
Tel. No. : |
91-129-5545155
/ 4054283 |
|
Mobile No. : |
91-9811921284
[Mr. Bhagwan Singh] |
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Telefax No.: |
91-129-2414487 |
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Fax No.: |
91-129-4054284/2422401 |
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E-Mail : |
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Area : |
2520
sq. ft. |
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Location : |
Owned
[Residential] |
SOLE PROPRIETOR
|
Name : |
Mr.
Bhagwan Singh |
|
Designation : |
Proprietor |
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Address : |
H. No.
125, N. H. – 5, N.I.T., Railway Road, Faridabad – 121004, Haryana, India |
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Tel. No. : |
91-123-4054283 |
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E-mail : |
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Date of Birth/Age : |
1939 |
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Qualification : |
Graduate
from Technical Institute Bachelor of Technology [Mechanical Engineering] |
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Experience : |
22
years |
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Previous Employment : |
Metal
Bon Limited – Technician Head [Tool room department] Period
– 1963 to 1992 |
KEY EXECUTIVES
|
Name
: |
Mr.
Raman Preet Singh |
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Designation
: |
Chief
Executive Officer Head
Human Resource Development Head Manufacturing / Works |
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Mobile
: |
91-9811921284 |
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Appointed
to Present Position
: |
1999 |
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Started
with Subject : |
1997 |
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Education
: |
Graduated
from Technical Institute |
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Related
Experience Since : |
1997 |
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Name
: |
Mr.
Gagan Preet Singh |
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Designation
: |
Head
Administration Head
Purchase / Materials Head
Marketing |
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Mobile
: |
91-9811821283 |
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Education
: |
Graduated
from University Bachelor of Commerce |
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|
|
|
Name
: |
Mr.
Mukesh Kapoor |
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Designation
: |
Head
Finance Head Information
Technology |
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Qualification
: |
Chartered
Accountant |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
of Sheet Metal Components and Precision Turn Components. |
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|
|
|
Products : |
Sheet Metals Cover Assembly End Cap Oill Well Cover Thrust Plates Bearing Covers Dust Covers Shells Top and Bottom Caps Lock Washers Fuel Filters Insulating Packings Air Filters Control Arms Selector Arms Turned Components Valve Seats Fork Head Assembly Oil Seals Clutch Plates Pillar Sets Welding Components Filter Elements Capacitor Clamps Cover Assembly Fabrication Bolts Heads Base Plates Major Assy. Fork Heads |
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Imports from : |
Korea |
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Terms : |
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Selling : |
L/C,
Cash, Credit (30 Days) |
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Purchasing : |
L/C,
Cash, Credit (30 Days) and Sight |
PRODUCTION
STATUS
|
Particulars |
Unit |
Actual Production |
|
Top & Bottom Caps |
Pieces Per Year |
2401162 |
GENERAL
INFORMATION
|
Suppliers : |
Rama
Industrial Corporation, India Sanjeev
Industrial Corporation, India Rakesh
Steels, India Vindal
Steels, India Jyoti
Industrial Corporation, India |
|
|
|
|
Customers : |
Transportation
Industry Elofic Industries Limited, India 60% of Sales Super Seals India Limited, India 15% of Sales PICL India Private Limited, India 15% of Sales U.T. Pumps & Systems Private Limited, India Escorts Limited India |
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No. of Employees : |
51 |
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|
|
|
Bankers : |
Vijay
Bank Plot
No. R – 4, NH 5, N.I.T., Faridabad – 121004, India Tel.
No. : 91-129-2412935 Fax
No. : 91-129-2422251 |
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Facilities : |
Cash
Credit Loan – Rs.1.100 millions |
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Banking Relations : |
Satisfactory |
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Auditors : |
Neeraj
Naresh Chartered
Accountants , 1996,
1st Floor, Sector – 16, Faridabad – 121001, Haryana, India |
CAPITAL STRUCTURE
|
Capital
Investment : |
|
|
Owned : |
Rs.
0.667 million |
|
Borrowed : |
-- |
|
Total : |
Rs.
0.667 million |
FINANCIAL DATA
[all figures are in Rupees
Millions]
Projected
Turnover for Current Year (2006-2007): Over 15.000 millions
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
0.667 |
0.404 |
0.307 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
0.667 |
0.404 |
0.307 |
|
|
LOAN FUNDS |
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|
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|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.167 |
0.151 |
0.097 |
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TOTAL BORROWING |
0.167 |
0.151 |
0.097 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
0.834 |
0.555 |
0.404 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
0.780 |
0.615 |
0.205 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.641
|
0.104 |
0.126 |
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Sundry Debtors |
1.720
|
1.191 |
1.107 |
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|
Cash & Bank Balances |
0.078
|
0.054 |
0.016 |
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Other Current Assets |
0.006
|
0.044 |
0.000 |
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Loans & Advances |
0.030
|
0.088 |
0.000 |
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Total Current Assets |
2.475
|
1.481 |
1.249 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
2.421
|
1.541 |
1.050 |
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Provisions |
0.000
|
0.000 |
0.000 |
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Total Current Liabilities |
2.421
|
1.541 |
1.050 |
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Net Current Assets |
0.054
|
[0.060] |
0.199 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
0.834 |
0.555 |
0.404 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
5.425 |
3.733 |
2.525 |
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|
|
|
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Profit/(Loss)
Before Tax |
0.202 |
0.148 |
0.083 |
|
Provision
for Taxation |
0.000 |
0.000 |
0.000 |
|
Profit/(Loss)
After Tax |
0.202 |
0.148 |
0.083 |
|
|
|
|
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Total
Expenditure |
5.223 |
3.585 |
2.442 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Growth |
(%) |
45.33
|
47.84 |
-- |
|
|
|
|
|
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Net
Profit Growth |
(%) |
36.49
|
78.31 |
-- |
|
|
|
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|
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|
Quick
Ratio |
|
0.76
|
0.89 |
1.07 |
|
|
|
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Current
Ratio |
|
1.02
|
0.96 |
1.19 |
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Current
Liabilities to Net Worth |
(%) |
362.97
|
381.44 |
342.02 |
|
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Current
Liabilities to Inventory |
(%) |
377.69
|
1481.73 |
833.33 |
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Total
Liabilities to Net Worth |
(%) |
388.01
|
418.81 |
373.62 |
|
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Fixed
Assets to Net Worth |
(%) |
116.94
|
152.23 |
66.78 |
|
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|
Collection
Period [Days] |
|
116
|
117 |
158 |
|
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Sales
to Inventory [Times] |
|
8
|
36 |
20 |
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Assets
to Sales |
(%) |
60.00
|
56.15 |
57.58 |
|
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Sales
to Net Working Capital [Times] |
|
100.46
|
-- |
12.69 |
|
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|
Accounts
Payable to Sales |
(%) |
26.54
|
18.06 |
27.41 |
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Return
on Sales [Profit Margin] |
(%) |
3.72
|
3.96 |
3.29 |
|
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Return
on Assets |
(%) |
6.21
|
7.06 |
5.71 |
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Return
on Net Worth [Return on Equity] |
(%) |
30.28
|
36.63 |
27.04 |
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|
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Fixed
Assets Turnover Ratio |
|
6.96
|
6.07 |
12.32 |
|
|
|
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|
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Return
on capital Employed |
|
18.09
|
16.64 |
16.78 |
|
|
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Operating
Profit Ratio |
|
5.86
|
5.95 |
4.83 |
|
|
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|
Interest
Coverage Ratio |
|
2.89
|
3.06 |
3.13 |
|
|
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Debt
Equity Ratio |
|
1.64
|
2.32 |
1.37 |
|
|
|
|
|
|
|
Account
Payable Days |
|
118
|
93 |
136 |
LOCAL AGENCY
FURTHER INFORMATION
Background
:
B. T.
Engineering works was established in the year 1993 by Mr. Bhagwan Singh. Mr. Raman Preet Singh joined the business
managing the operations in 1997 and is the Chief Executive Officer looking
after the day to day affairs.
The
subject was doing job work till 1999 for U. T. Limited. Now the subject is engaged in the business
of manufacturing and supply of sheet metal components, precision turn
components to the Automobile and Engineering Industries. The main products include Sheet Metal,
Turned Components, Welding Components and Fabrication.
Salient
Features :
> The
revenue of the subject has increased y-o-y basis during the period under
study. It increased from Rs. 2.525
millions in FY 2004 to Rs. 3.733 millions in FY 2004, a growth of 47.84%. The revenue increased further in FY 2006 to
Rs. 5.425 millions, a growth of 45.33%.
> The
gross margins have declined marginally in FY 2006 over FY 2005 on account of
increase in purchase costs.
> The
Net Profit of the company increased y-o-y during the period under study. It increased from Rs. 0.083 millions in FY
2004 to Rs. 0.148 millions in FY 2005 mainly due to less than proportionate
increase in general operating expenses vis a vis increase in sales. The Net Profit further increased to Rs.
0.202 in FY 2006.
> The
current Ratio of the subject is below the industry standard. The subject had negative working capital in
FY 2005.
> The
interest coverage ratio is better than the Industry Standard
> The
collection period of the entity has decreased over the period under study. However the same is much higher when
compared with the standard selling terms.
The major customers comprise of Elofic Industries Limited [around 60%].
> The
credit terms with regards to goods purchased is much higher than the Standard
Purchase Terms.
> The
Debt Equity Ratio is better than the industry standard.
> The
Return on Net Worth and Return on Capital employed are better than the industry
average.
Subject
has received an ISO 9001:2000 certificate as on 18.09.2004.
We visited the office of the concern where following observations were carried on:
Subject is located in a Residential Area on the Ground and 1st Floor
Items such as Telephone, Computers, Printer, Modem, Power Back Up, UPS, Signage and Name Plate could be seen at the concern’s office.
Website
Details:
Profile
They started their journey in the year 1993, as a quality conscious
manufacturer and exporter of Sheet
Metal Components, Precision Turned Components, Auto Parts, Dies, Jigs, Fixtures
and Tractor Parts under the banner of B.T. Engineering Works. After thirteen years of hardship,
today, their company is firmly standing with big parallel units of the same
field. Their success is attributed to the sheer business acumen and exquisite
labour of their agile workers.
Sheet Metals
Cover Assembly, End Cap, Oil Well Cover, Thrust
Plates, Bearing Covers, Dust Covers, Shells, Top and Bottom Caps, Lock Washers,
Fuel Filters, Insulating Packing's, Air Filters, Control Arms, Selector Arms
Turned Components
Valve Seats, Fork Head Assembly, Oil Seals,
Clutch Plates, Pillar Sets
Welding Components
Filter Elements, Capacitor Clamps, Cover Assembly
Fabrication
Bolts Heads, Base Plates, Major Assy. Fork Heads
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.44.33 |
|
UK
Pound |
1 |
Rs.87.49 |
|
Euro |
1 |
Rs.58.88 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
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/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 |
|