MIRA INFORM REPORT

 

 

Report Date :

31.10.2007

 

IDENTIFICATION DETAILS

 

Name :

BASANT METAL WORKS

 

 

Registered Office :

Behind Renu Cold Storage, Focal Point Extension., Jalandhar-144012, Punjab

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

1959

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

JLDB00031D

 

 

PAN No.:

[Permanent Account No.]

AAAFB7028B

 

 

Legal Form :

Partnership Concern with an Unlimited Liability of the Partners.

 

 

Line of Business :

Manufactures and Exporters of Truck and Trailers Spare Parts and Suspension assembly and SG Casting Parts.

 

 

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 2400

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is well-established and reputed concern having satisfactory track. Partners 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 concern can be considered normal for business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office :

Behind Renu Cold Storage, Focal Point Extension, Jalandhar-144012

Tel. No.:

91-181-6577880/ 81

Mobile No.:

91-9814179776

Fax No.:

91-181-2601602

E-Mail :

basantmetal@basantmetal.com

Area :

4000 Sq. ft

Location :

Owned

 

 

Factory 1 :

Behind Renu Cold Storage, Focal Point Extension, Jalandhar-144012

Tel. No.:

91-181-6577880/ 81

Fax No.:

91-181-2601602

E-Mail :

basantmetal@basantmetal.com

Area :

305 Sq. yds

Location :

Owned

 

 

 

 

PARTNERS

 

Name :

Mr. Lokesh Jain

Designation :

Partner

Date of Birth/Age :

30 years

Qualification :

Graduate

Experience :

7 years

 

 

Name :

Mr. Ravi Kant Jain

Designation :

Partner

Date of Birth/Age :

65 years

Qualification :

Graduate

Experience :

36 years

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacture and Exporters of Truck and Trailers Spare Parts and Suspension Assembly and SG Casting Parts.

 

 

Exports :

 

Products :

Suspension Assembly

Countries :
  • UAE
  • U.K.
  • USA
  • South Africa

 

 

Terms :

 

Selling :

Credit/Cash, Cash

 

 

Purchasing :

Credit (60 days),Cash, Sight

 

 

 

GENERAL INFORMATION

 

Customers :
  • Local Customers
  • End Users

 

 

No. of Employees :

56 (in Office 8, In factory 50)

 

 

Bankers :

Canara Bank, Jalandhar

 

 

Facilities:

Limit Rs10.000 Millions

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Ravi Puneet Jain and Company

Chartered Accountants

Address :

Nehru Garden, Jalandhar

 

 

CAPITAL STRUCTURE

 

 

Capital Investment :

 

Owned :

Rs.6.000 Millions

Borrowed :

-

Total :

Rs.6.000 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Particulars

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

47.500

38.700

38.000

 

 

 

 

Net Profit

3.550

3.320

3.180

 

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Trade References

 

 

 

Website Details Attached

 

On setting as a manufacturer of automotive components in1959, subject has its wings spread for success since

 then. Worlds leading supplier of automotive components, subject specializes in manufacturing &  exporting all  kinds  of products varying  from Truck  Trailer parts viz  Chassis brackets, Shackles, Wheel  hubs, Teeth's & yoke's, fly  wheel ring  gears and  other automotive  components.Over the years the company have expended in suspensions for tata, leyland, mitsubishi  canter,  iveco - cargo,  jeep etc. and  in export  items like, merecedes, bedford, austin, fuso, hino,     hendrikson, reyco, navistar, ford,volvo, cheverolet, freehauf etc.

 

The subject manufactures high-class ferrous castings and forging of automotive components as
per o.e. standards.

 

Recognized as a dominant player in International & National market, Basant Metal has the success credited to the constant & able invigilation  of the owner, Mr. Ravikant  Jain.Ever since the  endowment; the company  manufactures & exports  wide  range  of  automotive components according  to the international standards  & specification  to match the world  market  Focused  on  the precision  of quality  at  each step, right  from  the  selection  of raw  material  to  the  making  of  the  products; at  Basant  Metal each product undergoes stringent quality proof tests to determine the durability  of the products that are rolled out. subject there is  a deep-rooted  belief  of  soaring above the competition & single- minded dedication towards the client. On the crest of success with professional expertise and  thoroughness in every operation, are unlimited Commitment is towards ever assured quality.

Subject Works their strength is their satisfied customers because they count the heads to give real claims for the success achieved.

 

 

 

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.39.51

UK Pound

1

Rs.81.16

Euro

1

Rs.56.76

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

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

6

--LEVERAGE

1~10

6

--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

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

50

 

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

 

 

 

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