MIRA
INFORM REPORT
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Report Date : |
18.07.2007 |
IDENTIFICATION DETAILS
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Name : |
HERO PAINTS PRIVATE LIMITED |
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Registered Office : |
11, Transport Centre, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
06.02.1996 |
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Com. Reg. No.: |
55 - 076076 |
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CIN No.: [Company
Identification No.] |
U24222DL1996PTC076076 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELH02189F |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer, Exporter, Importer and Suppliers of Superlative
automotive and industrial paints and ancillaries. |
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 54000 |
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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 records. 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 : |
11, Transport Centre, |
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Tel. No.: |
91-11-28313601 |
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Fax No.: |
91-11-28311493 |
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E-mail: |
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Website : |
DIRECTORS
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Name : |
Mr. Krishan Lal Chhabra |
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Designation : |
Director |
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Address : |
25/42 Punjabi Bagh, |
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Date of Birth/Age : |
22.09.1926 |
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Date of Appointment : |
06.02.1996 |
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Name : |
Mr. Santosh Kumar Chhabra |
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Designation : |
Director |
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Address : |
H-122, Ashok Vihar Phase-I, |
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Date of Birth/Age : |
15.08.1945 |
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Date of Appointment : |
06.02.1996 |
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Name : |
Mr. Harish Kumar Chhabra |
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Designation : |
Director |
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Address : |
25/42 Punjabi Bagh New |
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Date of Birth/Age : |
24.12.1951 |
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Date of Appointment : |
06.02.1996 |
KEY EXECUTIVES
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Name : |
Bindal Anubha and Associates |
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Designation : |
Company Secretary |
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Address : |
1E / 15, Jhandewalan Extension, |
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Tel No.: |
91-11-23529799 |
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Mobile No.: |
91-9810348749 |
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E-mail: |
MAJOR SHAREHOLDERS
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Names of Shareholders |
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No. of Shares |
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Krishan Lal Chhabra |
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79500 |
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Santosh Kumar Chhabra |
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99900 |
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Hari Chander Chhabra |
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100000 |
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Category |
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Percentage
of Holding |
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Director or relatives of directors |
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100.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter, Importer and Suppliers of Superlative automotive
and industrial paints and ancillaries |
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Products : |
Automotive Finishes
Industrial Coatings
Wood Coatings
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GENERAL INFORMATION
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Bankers : |
State Bank of Punjabi Bagh, |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
K.S. Gupta and Company Chartered Accountant |
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Address : |
A-59 A, 1st Floor, Lajpat Nagar- II, New |
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Tel No.: |
91 – 11-41720804, 41720805 |
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Fax No.: |
91 – 11-41720805 |
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E-mail: |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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500000 |
Equity Shares |
Rs.10.00 each |
Rs.5.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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430040 |
Equity Shares |
Rs.10.00
each |
Rs.4.300
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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4.300 |
4.300 |
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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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9.334 |
8.150 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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13.634 |
12.450 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
0.000 |
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2] Unsecured Loans |
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3.654 |
3.654 |
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TOTAL BORROWING |
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3.654 |
3.654 |
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DEFERRED TAX LIABILITIES |
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0.084 |
0.000 |
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TOTAL |
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17.372 |
16.104 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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3.923 |
4.068 |
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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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12.743 |
12.633 |
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Sundry Debtors |
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5.114 |
4.595 |
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Cash & Bank Balances |
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2.356 |
2.108 |
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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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0.528 |
0.118 |
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Total
Current Assets |
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20.741 |
19.454 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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6.946 |
7.421 |
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Provisions |
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0.346 |
0.000 |
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Total
Current Liabilities |
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7.292 |
7.421 |
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Net Current Assets |
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13.449 |
12.033 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.003 |
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TOTAL |
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17.372 |
16.104 |
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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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47.716 |
46.607 |
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Other Income |
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4.468 |
4.235 |
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Total Income |
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52.184 |
50.842 |
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Profit/(Loss) Before Tax |
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1.838 |
0.833 |
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Provision for Taxation |
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0.654 |
0.205 |
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Profit/(Loss) After Tax |
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1.184 |
0.628 |
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Expenditures : |
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Total Expenses |
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51.209 |
49.330 |
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Depreciation |
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0.452 |
0.527 |
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Total Expenditure |
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51.661 |
49.857 |
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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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2.27 |
1.24 |
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Net Profit Margin (PBT/Sales) |
(%) |
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3.85 |
1.79 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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7.45 |
3.54 |
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Return on Investment (ROI) (PBT/Networth) |
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0.13 |
0.07 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.80 |
0.89 |
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Current Ratio (Current Asset/Current Liability) |
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2.84 |
2.62 |
LOCAL AGENCY FURTHER INFORMATION
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Name of the company |
HERO PAINTS PRIVATE
LIMITED |
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Presented By |
Company and State
Bank of |
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1) Date and description of instrument creating the change |
General Agreement for grant of Small Scale Industries Advanced and Hypothecation
of movables Book debts and other assets dated 04.09.2001 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs:0.500 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 |
All present and
future goods book debts movable and other assets of the borrower
including documents of title to the
goods such as outstanding monies receivables, claims, bills, invoice,
documents, contracts, engagements, securities, investments and rights and the
present machinery listed in the annexure and all future machinery being or in
the possession of the borrower shall be hypothecated to the bank by way of
First charge. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The above is to
secure DD bills. Rate of Interest@13.50%
p.a as may be determined by the Bank from time to time. |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Punjabi Bagh, |
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6) Date and brief description of instrument modifying the charge |
-- |
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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. |
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As Per Web Site:
Providing
different shades to automotive/industrial paints and ancillaries......
Profile
Paints
are the main attracting source for any vehicle, building, etc. The company is a
reputed manufacturer, exporter and supplier of
unmatched automotive and industrial coatings, and wood coatings
such as nitro cellulose paints/primer
Surfacer, wood strainers, polyurethane paints/primer Surfacer, polyester putty,
body filler white, fast drying enamel, glass paints (stoving), hammertone
paints, zinc etch primer, synthetic putty, etc. The company is
also engaged in the import of additives, resins and solvents. Established
in 1998, they are manufacturing auto refineries based on poly-urethane,
nitrocellulose, acrylics and melamines, thinners, paint remover, stoving
finishes, wood strainers and specialty products under the brand names of
'Hero", 'Super Hero", "HPL", "Guru" and
"Kalson". Apart from the regular products, they are also
manufacturing products on demand, e.g. Epoxies, Silicon, Chlorinated Rubber,
etc.
They
are backed up by an excellent facility, situated in Bahadurgarh, Haryana. The
company is fully equipped with the latest technological machineries and highly
qualified workforce to deliver an array of unparalleled solutions. The company
is a regular member of Indian Small Scale Paint Association (ISPA), IPA and
IPCA and its export markets are centered in Europe,
Organizational
Setup
1)
Mr. Krishan Lal Chhabra (Chairman)
2)
Mr. Santosh Kumar Chhabra (Director)
3)
Mr. Harish Chander Chhabra (Director).
The
Company is a noteworthy manufacturer, exporter, importer and supplier of
superlative automotive and industrial paints and ancillaries
Their
Business Ethics
The
company is an organization that strictly follows the principles of honesty,
integrity and transparency. Their objective is to supply unparalleled products
at the most reasonable prices and their endeavor is to treat their clients as
future business partners.
Quality
and Infrastructure
They
are a quality driven organization and strictly adhere to stringent quality
control measures that help us to gain a dignified reputation in both the
domestic and international arena. Their company boasts of they’ll-equipped
quality control and development laboratories that are capable of foiling every
attempt of quality degradation. The finest quality of raw pigments, binders,
additives, solvents, etc. is used as raw material to deliver the desirable
quality in their products. They are backed up by a highly experienced
workforce, having decades of experience in the similar sphere of business.
Sophisticated manufacturing and testing equipments like sand mill, ball mill,
attractors, high speed stirrers, etc. are employed by the company to offer
world class quality. Their effective packaging further prevents the goods from
any sort of contamination and damage. Every finished item is strictly inspected
by the quality inspectors in their well equipped testing facility that ensures
the movement of only excellent products.
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
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Indian Rupees |
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US Dollar |
1 |
Rs.40.36 |
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1 |
Rs.82.23 |
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Euro |
1 |
Rs.55.65 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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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 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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