MIRA
INFORM REPORT
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Report Date : |
07.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
BHAWANI INDUSTRIES LIMITED |
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Registered Office : |
G. T. Road, Village Ajnali, Mandi Gobindgarh 147301, Punjab |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
23.02.1999 |
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Com. Reg. No.: |
022272 |
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CIN No.: [Company
Identification No.] |
U00000PB1999PLC022272 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTLB10048D |
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PAN No.: [Permanent
Account No.] |
AABCB5105H |
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Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer, Exporter and Importer of Steel Products. |
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 1033000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade relations are fair. General financial position is
satisfactory. Payments are reported
as slow but correct. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
G. T. Road, Village Ajnali, Mandi Gobindgarh 147301, Punjab, India |
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Tel. No.: |
91-1765-252811/12 |
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Mobile No.: |
91-9313153045 / 9356058280 |
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Fax No.: |
91-1765-251485 |
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E-Mail : |
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Website : |
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Area : |
43 acres |
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Location : |
Owned |
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Office : |
609, Padma Towers, 22 Rajindra Place, New Delhi |
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Tel. No.: |
91-11-65293252 |
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Area : |
3000 Sq. fts. |
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Location : |
Rented |
DIRECTORS
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Name : |
Mr. Jayprakash Goyal |
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Designation : |
Director |
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Date of Birth/Age : |
51 Years |
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Qualification : |
Graduate |
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Name : |
Mr. Sarwan Goyal |
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Designation : |
Director |
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Date of Birth/Age : |
46 Years |
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Qualification : |
Graduate |
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Name : |
Mr. Rajaram Goyal |
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Designation : |
Director |
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Date of Birth/Age : |
53 Years |
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Qualification : |
Graduate |
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Name : |
Mr. Amit Goyal |
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Designation : |
Director |
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Date of Birth/Age : |
28 Years |
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Qualification : |
Mech Engg. + MBA |
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Name : |
Mr. Sushil Singla |
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Designation : |
Director |
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Date of Birth/Age : |
40 Years |
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Qualification : |
C. A. |
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Name : |
Mr. Ankush Agarwal |
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Designation : |
Director |
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Date of Birth/Age : |
45 Years |
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Qualification : |
Mechanical Engineer. |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter and Importer of Steel Products. |
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Products : |
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Exports : |
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Products : |
ERW pipes and Galvanized Pipes |
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Countries : |
Ø Middle East Ø Nepal Ø Dubai Ø Kuwait |
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Imports : |
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Products : |
Raw material like steel scraps etc. |
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Countries : |
Ø Canada Ø UK Ø Dubai Ø Kuwait Ø Middle East |
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Terms : |
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Selling : |
L/C, Cash and Credit |
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Purchasing : |
L/C, Cash and Credit |
GENERAL
INFORMATION
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Customers : |
Ø Wholesalers Ø Retailers Ø Manufacturers |
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No. of Employees : |
1200 |
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Bankers : |
State Bank of India, G. T. Road Branch Punjab National Bank, Bhagwati Complex, LCB Branch, Ludhiana |
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Facilities : |
C/C Rs. 550.000 Millions, Loan Funds Rs. 200.000 Millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Dutta Singla and Company Chartered Accountants |
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Address : |
Mandi Gobingarh, Punjab, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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20000000 |
Equity Shares |
Rs. 10/- each |
Rs. 200.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7950500 |
Equity Shares |
Rs. 10/- each |
Rs. 79.505
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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79.505 |
80.305 |
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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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178.975 |
151.868 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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258.480 |
232.173 |
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LOAN FUNDS |
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1] Secured Loans |
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622.166 |
437.899 |
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2] Unsecured Loans |
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64.188 |
76.594 |
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TOTAL BORROWING |
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686.354 |
514.493 |
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DEFERRED TAX LIABILITIES |
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21.325 |
15.055 |
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TOTAL |
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966.159 |
761.721 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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300.775 |
274.533 |
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Capital work-in-progress |
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3.225 |
7.754 |
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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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313.151 |
321.742 |
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Sundry Debtors |
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288.869 |
105.465 |
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Cash & Bank Balances |
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29.189 |
36.644 |
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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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91.980 |
113.658 |
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Total
Current Assets |
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723.189 |
577.509 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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63.215 |
100.685 |
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Total
Current Liabilities |
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63.215 |
100.685 |
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Net Current Assets |
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659.974 |
476.824 |
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MISCELLANEOUS EXPENSES |
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2.185 |
2.610 |
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TOTAL |
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966.159 |
761.721 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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2277.891 |
1324.860 |
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Other Income |
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6.700 |
4.930 |
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Total Income |
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2284.591 |
1329.790 |
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Profit/(Loss) Before Tax |
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39.883 |
39.649 |
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Provision for Taxation |
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12.246 |
12.757 |
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Profit/(Loss) After Tax |
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27.637 |
26.892 |
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Expenditures : |
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Cost of Material |
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1842.316 |
1184.154 |
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Manufacturing Expenses |
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304.896 |
97.695 |
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Personnel Expenses |
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18.861 |
7.068 |
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Administrative and Selling Expenses |
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15.193 |
13.267 |
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Financial Expenses |
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60.735 |
20.648 |
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Excise Duty |
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10.253 |
11.448 |
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Depreciation & Amortization |
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23.424 |
7.789 |
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Total Expenditure |
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2275.678 |
1342.069 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
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1.20 |
2.02 |
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Net Profit Margin (PBT/Sales) |
(%) |
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1.75 |
2.99 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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3.89 |
4.65 |
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Return on Investment (ROI) (PBT/Networth) |
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0.15 |
0.17 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.89 |
2.64 |
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Current Ratio (Current Asset/Current Liability) |
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11.44 |
5.73 |
LOCAL AGENCY
FURTHER INFORMATION
TRADE REFERENCES
- Tata Steels
- Reliance Industries
- ISGEC
- Reliance SEZ
- TATA Steel Limited
- Gujarat Water Supply
- ThyssenKrupp Industries India
- Bharat Sanchar Nigam Limited
- Steel Authority of India Limited
- ALSTOM Projects India Limited
- Indian Railways & Rail Coach
Factory
- Public Health Engineering Department.
They
are an ISO 9001:2000 certified companies engaged in steel
production. Subject was incepted in the year 2000 and within a very short span
of time, it turned itself into a distinguished manufacturer and
exporter in its arena. As a composite steel plant, they cater to steel
requirements of engineering, automotive, hand tools, structural, construction
and allied industries. The product range of their company includes Steel
Billets/ Blooms, Carbon & Alloy Steels, Engineering Castings, Hot Rolled
Strips/ Flats/ Sections, ERW Galvanized & Black Tubes, etc. They
export their ERW Galvanized Pipes & Black Tubes, Steel Castings, Metal
Rolls, etc. to various Gulf, African and European countries and other parts of
the globe. At the domestic level, they have a dominating presence in the steel
industry and cater to some of the most reputed clients such as Reliance SEZ,
TATA Steel Limited, etc.
At
Bhawani Industries Limited, they have a state-of-the-art manufacturing facility
to produce international quality products with extensive process control and
quality checks at every manufacturing step. Their strong emphasis on cutting
edge manufacturing process and full proof quality assurance enable us to design
and develop unequalled quality products and deliver cost effective solutions to
their valued clients. Their focus always remains to win the trust of their
customers, and they welcome every opportunity to serve you in a better way.
They import premium quality HMS Scrap, Steel Scrap, Scaffolding, etc.
from authentic sources. In addition, they manufacture a range of Customized
Products like Pipes & Tubes, Engineering Castings, Scaffoldings, etc. as
per specifications and designs of their clients. Their company specializes in
the production of Castings, Metal Cast Rolls and Pipes & Tubes.
Their Memberships, Awards & Certifications
- ISO 9001:2000
- ITID's 'Quality Excellence Award'
- International Tube Association
- Government Recognized Star Export House
- Engineering Export Promotion Council
(EEPC)
- Indo German Chamber of Commerce
- Confederation of Indian Industry (CII)
- PHD Chamber of Commerce and Industry.
Their Quality
At Bhawani Industries Limited, all their activities are governed by a
Quality Management System. The manufacturing practice has been technology
driven, and to stay at the forefront of innovation, they continuously invest in
R&D activities. The quality policy they maintain ensures high level of quality
by inspection of incoming raw material (steel scrap, MS billets, MS steel
strips, etc. all conforming to IS stanards) and mandatory quality checks
throughout the manufacturing process. A highly qualified team of experts looks
after these operations at their most advanced quality and testing facility. The
quality control unit of their company houses the following facilities-
- Latest spectrometer for instant and
accurate chemical analysis of metal
- Physical testing facilities like
ultimate tensile test, bend test, hardness test and impact test at
physical lab
- Metallography and chemical testing at
metallurgical laboratory
- All non-destructive testing equipment
such as ultrasonic machine, magnetic particle inspection and DP testing
- Immersion pyrometer with digital temp.
reading for measuring liquid steel temperature.
Their Infrastructure
The manufacturing unit of their company is an integrated steel plant
spread over a massive area of 40 acres. The plant has been divided into four
key business divisions forming a customer-vendor operational model in which the
material flow is streamlined in such a fashion that the production of one
division can be sold as finished product or can be processed further in the
subsequent division, adding more value. All the units at their factory are well
equipped with ultra modern facilities and latest technology. Some of them are-
- Modern steel melting shop with
facilities like induction melting furnace, ladle refining furnace,
billet-bloom caster
- An advanced foundry with all the
auxiliary and testing equipment
- Hot rolling mill with 450 mm. 3
Hi-automatic mill, oil fired 5 MT/hour continuous reheating furnace, multi
roll straightening and shearing machine, etc.
- Unit for pipe & tube production
with 2 sets of slitting machines, 5 lines of ERW pipe mills, 2 galvanizing
plants, effluent treatment plant, threading and end facing machines, 3
sets of hydro testing machine, dedicated physical and chemical testing
lab, etc.
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. 39.29 |
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UK Pound |
1 |
Rs. 81.91 |
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Euro |
1 |
Rs. 56.96 |
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 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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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 |
|
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. |
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 |
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