MIRA INFORM REPORT

 

 

Report Date :

29.03.2007

 

IDENTIFICATION DETAILS

 

Name :

BLUE CIRCLE CORPORATION

 

 

Registered Office :

34, Empire Bldg., 1st Floor, 146 Dr. D N Road, Fort, Mumbai – 400001. Maharashtra.

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

1991

 

 

IEC No.:

0391007165

 

 

Legal Form :

A Sole Proprietory Concern

 

 

Line of Business :

Exporter  of fine Chemicals and Intermediates.

 

 

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 :

 

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established concern having satisfactory track. Trade relations are fair. Financed position is satisfactory. 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 :

34, Empire Bldg., 1st Floor, 146, Dr. D N Road Fort, Mumbai – 400001. Maharashtra. India.

Tel. No.:

91-22-22075307/22071691

Mobile No.:

91-9820002315

Fax No.:

91-22-22070294

E-Mail :

info@bluecircle.net.in

Website :

http://www.bluecirclespeciality.com

Area :

300 Sq.Ft.

Location :

Rented

 

 

SOLE PROPRIETOR

 

Name :

Mr. Akshay B. Arora

Designation :

Sole Proprietor

Address :

Plot No. 126, J Lane Sector-8, Vashi, Navi Mumbai.

Date of Birth/Age :

44 Yrs.

Qualification :

M.Sc.

Experience :

20 Yrs.

 

 

 

BUSINESS DETAILS

 

Line of Business :

Exporter

 

 

Products :

Pharma Intermediates

X – Ray Contrast Media Intermediates

Custom Synthesis Manufactured by Sister Concerns

 

 

Exports :

 

Products :

Media intermediates

Countries :

Italy – Bracco Imaging

Sweden – Cambrex Group

Israel – Teva Pharmacuticals Limited

 

 

Terms :

 

Selling :

Credit (60 days)

 

 

Purchasing :

Credit (30 days)

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

4

 

 

Bankers :

Citi Bank N. A.

Corporate Branch – Fort, Mumbai

( Bill discounting facility  Rs. 8..000 Millions)

 

Canara Bank

Turbhe Branch, Vashi, Navi Mumbai.

(Overdraft facility Rs. 3.500 Millions)

 

Banking Relations :

---

 

 

Associates/Subsidiaries :

Jet Chemicals Private Limited (JCPL)

3/2, Mile Stone, Village Varap, Kalyan – Murbad Road, Shahad – 421103. Dist – Thane. India

Tel. No. - 91-251-2280283

Fax. No. – 91-251-2280567

 

Blue Circle Speciality Chemicals Private Limited (BCSCPL)

W- 116, MIDC Phase – II, Dombivli – 421203. Dist – Thane India.

Tel NO. – 91-251-2870823

Fax No. – 91-251-2871941

 

Blue Circle Organics Private Limited (BCOPL)

Plot No. C – 4, B – 12, E – 2, MIDC Ambernath .

Tel No. – 91-251-2610736

Fax No. – 91-251-2610736

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

CAPITAL STRUCTURE

 

 

Capital Investment :

 

Owned :

Rs.120.000 Millions

Borrowed :

Rs. 11.500 Millions

Total :

Rs.131.500 Millions

 

                                                      ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

31.03.2007

(Projected)

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

28.309

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

0.000

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

28.309

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

3.217

2] Unsecured Loans

 

 

0.000

TOTAL BORROWING

 

 

3.217

DEFERRED TAX LIABILITIES

 

 

 

NET PROFIT

 

 

2.204

TOTAL

 

 

33.730

 

 

 

 

FIXED ASSETS [Net Block]

 

 

1.950

Capital work-in-progress

 

 

21.182

 

 

 

 

INVESTMENT

 

 

10.598

DEFERREX TAX ASSETS

 

 

0.000

 

 

 

 

TOTAL

 

 

33.730

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

 

31.03.2007

(Projected)

Sales Turnover

 

 

75.871

Other Income

 

 

7.111

Total Income

 

 

82.982

 

 

 

 

Profit/(Loss) Before Tax

 

 

2.249

Provision for Taxation

 

 

0.000

Profit/(Loss) After Tax

 

 

2.249

 

 

 

 

Expenditures :

 

 

 

 

Direct Expenses

 

 

9.446

 

Indirect Expenses

 

 

5.496

Total Expenditure

 

 

14.942

 

KEY RATIOS

 

PARTICULARS

 

 

 

 

31.03.2007

(Projected)

PAT / Total Income

(%)
 

 

2.71

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

 

2.96

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

 

115.33

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

 

0.07

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

 

0.11

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

 

---

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

 

Trade References  :

 

1) U.S. Vitamins limited

2) Nicholas Piramal Private Limited

3) Zandu Chemicals Limited

 

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.43.59

UK Pound

1

Rs.85.53

Euro

1

Rs.58.14

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

54

 

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