MIRA INFORM REPORT

 

 

Report Date :

13.06.2007

 

IDENTIFICATION DETAILS

 

Name :

BALARK CHEMICALS

 

 

Registered Office :

31, Rajsukh Complex, Opp. Gujrat Vidyapith, Ashram Road, Ahmedabad – 380014, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

1994

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

AHMB00901F

 

 

PAN No.:

[Permanent Account No.]

AABFB7947C

 

 

Legal Form :

Partnership Concern with an Unlimited Liability of the partners.

 

 

Line of Business :

Manufacturer, Trader, Exporter and Importer of Pigment Raw Materials, Chlorine, Caustic Soda, Cotton Bales Paints etc.

 

 

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

 

Maximum Credit Limit :

USD 10000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed concern having satisfactory track. Partners are reported experienced and respectable businessmen. Trade relations are reported as fair. Business is active. 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 :

31, Rajsukh Complex, Opp. Gujrat Vidyapith, Ashram Road, Ahmedabad – 380014, Gujarat

Tel. No.:

91-79-30089006 / 9

Mobile No.:

91-9824001010 (Mr. Rupesh Patel)

Fax No.:

91-79-30087007

Area :

2000sq.fts

Location :

Owned

 

 

 

 

PARTNERS

 

Name :

Mr. Bipin Patel

Designation :

Partner

Qualification :

M.S.C.

Experience :

15 Years

 

 

Name :

Mr. Rupesh Patel

Designation :

Partner

Date of Birth/Age :

24.09.1971

Qualification :

M.S.C.

Experience :

15 Years

 

 

Name :

Mr. Ankit Patel

Designation :

Partner

Qualification :

B.Com

Experience :

15 Years

 

 

Name :

Mr. Dharmesh Patel

Designation :

Partner

Qualification :

B.Com

Experience :

15 Years

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Trader, Exporter and Importer of Pigment Raw Materials, Chlorine, Caustic Soda, Cotton Bales Paints

 

 

Products :

Pigment raw materials like –

  • Liquid Chlorine
  • Caustic Soda Lye
  • Aluminum Chloride
  • Cotton Bales
  • Anticorrosive Paints

 

 

Exports :

 

Products :

Raw Cotton, Cotton West

Countries :

Hong Kong, China

 

 

Imports :

 

Products :

Chemical, Ceramic

Countries :

China

 

 

Terms :

 

Selling :

Credit (90 days)

 

 

Purchasing :

Cash

 

 

 

GENERAL INFORMATION

 

Customers :

Wholesalers

 

 

No. of Employees :

15

 

 

Bankers :

City Bank

City Bank Panchvati, Ahmedabad – 380014, Gujarat

 

 

 

 

 

Banking Relations :

Satisfactory

 

 

Associates/Subsidiaries :

Dev Chemical

33 / 34, Rajsukh Complex, Ahmedabad – 380009, Gujarat

Line of Business: Chemical Services

 

Prime Marketing

D / 12, Dhanjay Apartment, Main Nagar, Gujarat – 380014

Line of Business: Chemical Services

 

 

CAPITAL STRUCTURE

 

 

Capital Investment :

 

Owned :

Rs.25.000 millions

Borrowed :

-

Total :

Rs.25.000 millions

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Particulars

 

 

 

31.03.2007

Sales Turnover

 

 

90.000

 

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Company Details:

Subject is one of India's distinguished company engaged as a manufacturer, exporter, importer and trading company of Pigment raw materials like Liquid Chlorine, Caustic Soda Lye, Caustic Soda Flakes, Aluminum Chloride, Cotton bales, Anticorrosive Paint, etc. The success mantra of the company has been following the principles of “sincerity, quality and management” thereby supplying high quality and competitive products to the customers. Uncompromising and total commitment to quality & customers has resulted in tremendous growth which made them a leading dealer in industrial chemicals and dyes. Their sister concerns Ramdev Resins Pvt. Ltd. and Shree Bhagvati Oil Mill & Ginning Factory are the reputed names in the field of Anticorrosive Paint industrial colors and cotton bales.

 

Infrastructure


They possess a state-of-the-art production house equipped with all kind of tools and machines. Their laboratories have sophisticated analytical and performance testing equipments to ensure that their products meet the performance level needed by their customers. Considerable research is carried out, both in the development of existing products as well as into new chemical products. Their experts are focused into bringing forth authentic and pure Pigments.

 

Quality


Their main concern is quality consistency and excellent after sales services. All the raw materials are inspected and regularly checked for any kind of flaws. Their team of experts maintains a strict vigil on the manufacturing process to ensure that Pigment raw materials like Liquid Chlorine, Caustic Soda Lye, Caustic Soda Flakes, Aluminum Chloride, Cotton bales; Anticorrosive Paint, etc. are without any defects. The quality control department is continuously checking all the aspects of quality at different levels of production.

Clients


They possess a dedicated and strong client base which is spread all over the globe. Their entry into this field has rewarded them with a long-standing association with their clients.

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.40.73

UK Pound

1

Rs.80.43

Euro

1

Rs.54.44

 

 

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

6

--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

 

 

--BANK CHARGES

YES/NO

NO

--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

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions