MIRA
INFORM REPORT
|
Report Date : |
21.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
BHALLA CHEMICAL WORKS PRVATE LIMITED |
|
|
|
|
Registered Office : |
M – 237, Greater Kailash, Part – 2, New Delhi – 2468286 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
10.02.1977 |
|
|
|
|
Com. Reg. No.: |
008493 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U74899DL1977PTC008493 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELB00431E |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturers and Exporters of Frits, Zirconium oxides and Zirconium
Compounds |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 247492 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having fine track. Available
information indicates high financial responsibility of the company. Trade
relations are fair. Payments are reported as usually correct and as pr
commitments. The company can be considered good for normal business dealings. |
LOCATIONS
|
Registered Office : |
M – 237, Greater Kailash, Part – 2, New Delhi – 2468286 |
|
Tel. No.: |
91-11-29225583 |
|
Fax No.: |
91-11-29217161 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
6600sq.fts |
|
Location : |
Owned |
|
|
|
|
Factory : |
Daultabad Road, Gurgaon – 122 001, Haryana, India. |
|
Tel. No.: |
91-124-2321442 / 2320957 / 2367468 / 2367475 |
|
Fax No.: |
91-124-2320987 |
|
E-Mail : |
|
|
Area : |
162000 q.fts |
|
Location : |
Owned |
DIRECTORS
|
Name : |
Mr. Virinder Singh Bhalla |
|
Designation : |
Director |
|
Address : |
M-237, Greater Kailash II, New Delhi – 110 048, India |
|
Date of Birth/Age : |
13.02.1937 |
|
Qualification : |
Ceramist From U. K. |
|
Date of Appointment : |
10.02.1977 |
|
|
|
|
Name : |
Mrs. Shashi Bhalla |
|
Designation : |
Director |
|
Address : |
M-237, Greater Kailash II, New Delhi – 110 048, India |
|
Date of Birth/Age : |
15-11-1939 |
|
Qualification : |
Graduate |
|
Date of Appointment : |
10.02.1977 |
|
|
|
|
Name : |
Mr. Sameer Bhalla |
|
Designation : |
Director |
|
Address : |
M-237, Greater Kailash II, New Delhi – 110 048, India |
|
Date of Birth/Age : |
30-07-1974 |
|
Qualification : |
MBA from UK |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Mr. Bhalla Virender Singh |
|
998 |
|
Mr. Shashi Bhalla |
|
1435 |
|
Mr. Sameer Bhalla |
|
565 |
|
Category |
|
Percentage of
Holding |
|
Directors or relatives of directors |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Exporters of Frits, Zirconium oxides and Zirconium
Compounds |
|
|
|
|
Products : |
˜ Zirconium Carbonate BZC ˜ Zirconium Oxide BZ-1, BZ-2 & BZ-3 ˜ Zirconium Hydroxide (Dry Powder) |
|
|
|
|
Exports |
|
|
Products : |
Zirconium compounds |
|
Countries : |
USA, UK, Germany, France, Belgium, Spain, South Africa,
South America, |
|
|
|
|
Imports |
|
|
Products : |
zircon sand |
|
Countries : |
Australia and South Africa |
|
|
|
|
Terms : |
|
|
Selling : |
Credit or D/A (120 days) terms |
|
|
|
|
Purchasing : |
Credit or D/A (120 days) terms |
|
|
|
GENERAL
INFORMATION
|
No. of Employees : |
175 (25 Office, 150 Factory) |
|
|
|
|
Bankers : |
˛ Corporation Bank M-3 & 4 Greater Kailash I, New Delhi – 110048, India ˛ Standard Chartered Grindays Bank 10, Sansad Marg, New Delhi – 110 001 ˛
Small
Industries Development Bank of India 15, Ashok Marg,
Lucknow – 226001, Uttar Pradesh E-Mail: satisk@sidbi.in |
|
|
|
|
|
|
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
Arahant Jain and Company Chartered Accountants |
|
Address : |
A – 162, Shri Balaji Bhawan, Shakkarpur, New Delhi – 110092 |
|
|
|
|
Collaboration : |
Daichi Kigenso Kagak Goygo Company Limited, Japan and
exporting 60% to USA, UK, Germany, France, Belgium, Spain, South Africa,
South America, etc. |
|
|
|
|
Associates : |
˜ Ceramills Glaze & Zirconium Company Daulatabad Road, Gurgaon – 122 001, Haryana Line of Business :Manufacturers of zirconium opacifier |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000 |
Equity Shares |
Rs.100/- each |
Rs.0.500 million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3000 |
Equity Shares |
Rs.100/-
each |
Rs.0.300
million |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
0.300 |
0.300 |
0.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
61.573 |
62.217 |
60.362 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
61.873 |
62.517 |
60.662 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
27.497 |
39.090 |
39.802 |
|
|
2] Unsecured Loans |
1.105 |
0.400 |
0.400 |
|
|
TOTAL BORROWING |
28.602 |
39.490 |
68.092 |
|
|
DEFERRED TAX LIABILITIES |
|
|
2.601 |
|
|
|
|
|
|
|
|
TOTAL |
90.475 |
102.007 |
103.465 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
21.780 |
18.132 |
13.450 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
40.000 |
40.000 |
40.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
26.377
|
24.901 |
25.524 |
|
|
Sundry Debtors |
4.705
|
6.461 |
10.449 |
|
|
Cash & Bank Balances |
15.497
|
31.071 |
31.626 |
|
|
Other Current Assets |
2.202
|
2.888 |
1.567 |
|
|
Loans & Advances |
9.765
|
7.080 |
3.098 |
|
Total
Current Assets |
58.546
|
72.401 |
72.264 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
29.102
|
27.053 |
21.517 |
|
|
Provisions |
0.749
|
1.473 |
0.732 |
|
Total
Current Liabilities |
29.851
|
28.526 |
22.249 |
|
|
Net Current Assets |
28.695
|
43.875 |
50.015 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
90.475 |
102.007 |
103.465 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover |
102.194 |
119.094 |
86.493 |
|
Other Income |
12.990 |
11.830 |
50.094 |
|
Total Income |
115.184 |
130.924 |
136.587 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
0.643 |
0.489 |
0.241 |
|
Provision for Taxation |
0.042 |
0.000 |
0.000 |
|
Profit/(Loss) After Tax |
0.601 |
0.489 |
0.241 |
|
|
|
|
|
|
FOB Value of Exports |
72.705 |
86.444 |
52.981 |
|
|
|
|
|
|
CIF value of Import |
38.438 |
37.324 |
24.933 |
|
|
|
|
|
|
Expenditures : |
|
|
|
|
Total Expenditure |
110.793 |
125.070 |
131.397 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
0.52
|
0.37 |
0.17 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.62
|
0.41 |
0.27 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.80
|
0.54 |
0.28 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.48
|
0.45 |
0.36 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.96
|
2.53 |
3.24 |
LOCAL AGENCY
FURTHER INFORMATION
It is in trade terms with:
˜ Alpha Chemie, Mumbai
˜ Amantech Chemicals, Vapi, Gujarat
˜ Indian Rare Earths Limited, Mumbai
Form 8:
|
Name of the company |
BHALLA CHEMICAL WORKS PRVATE LIMITED |
|
Presented
By |
Corporation Bank,
Greater Kailash – 2, New Delhi |
|
1) Date and description of instrument creating the change |
Charged created
on 01.03.2000 and registered on 30.03.2000. Previously modified on 24.01.2002
and registered on 22.02.2002 finally modified on 12.03.2003 for increase in
limit from Rs.43.288 millions to Rs.46.288 millions and modification
registered on 14.07.2003 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs.37.961
millions |
|
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 |
Equitable
mortgage of house property No. 980.00 sector – 4, Urban Estate, Gurgaon,
Haryana |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
The above
property is charged to the bank to secure the various credit facilities
extended to the company |
|
5) Name and Address and description of the person entitled to the charge. |
Corporation Bank Greater Kailash –
2, New Delhi |
|
6) Date and brief description of instrument modifying the charge |
Continuity letter
dated 07.10.2005 |
|
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. |
The amount
secured by EMT of house property No. 980.00 sector – 4, Urban Estate,
Gurgaon, Haryana, measuring 500sq,yards stands enhanced from Rs.46.288 millions
to Rs.70.000 millions to cover various credit limits sanction to the company.
Other terms and conditions remains the same |
|
Corporate
identity number (CIN) Foreign company registration number |
U74899DL1977PTC008493 |
|
Name of the Company
|
BHALLA CHEMICAL WORKS PRVATE LIMITED |
|
Address |
M – 237, Greater Kailash, Part – 2, New Delhi – 2468286 |
|
This form is for |
Creation of
charges |
|
Type of Charge |
Hypothecation |
|
Particulars of
the charge holder |
Small Industries Development
Bank of India 15, Ashok Marg,
Lucknow – 226001, Uttar Pradesh E-Mail: satisk@sidbi.in |
|
Amount secured by
the charge |
Rs.2.200 millions |
|
Brief of the
principal terms and conditions |
Rate of interest
10%p.a. The entire loan
of Rs.2.200 millions shall be repaid over a period of 5 years and 6 months
including a moratorium of 6 months from the date of first disbursement of
SIDBI term loan in 59 monthly installments of Rs.0.037 million each and last
60th installment of Rs.0.017 million. The date of payment of the
principal installments shall be 1st day of each month. the borrower
shall raise promoter’s contribution of Rs.0.899 million from interest
accurate etc. |
|
Date of
Instrument creating charge |
24.08.2006 |
As Per Web Details Attached
Company Profile:
Subject situated near New Delhi in India has been manufacturing
specialty products for the Indian and Global Ceramic Industry for over three decades.
The Company manufactures various grades of High purity Zirconium
Chemicals like Zirconium Oxides and Zirconium Carbonates for applications in
Advance Ceramics, Catalysts, Paint Dryers and Paper Coatings
Subject owns and operates 3 plants engaged in the manufacture of the
respective products including Ceramills Glaze & Zirconium Company a sister
concern which manufactures Zirconium Silicate Opacifiers. The company employs
approximately 300 workers and Staff in its plants and is backed by a team of dedicated
technicians who provide assistance and technical information to customers on
all the products. The company continuously endeavors to develop new products to
meet the individual customer requirements for which it has an active on going
Research and Development program and is a ISO 9001:2000 certified
company.
Due to large production capacity, and consistent quality, Subject is a
global supplier of Zirconium Derivatives and has substantial supplies to almost
every country where there is a demand for Zirconium. Sales are done directly
and where required the company also supplies material through distributors and
trading houses with whom it has long standing relationships. Due to its
excellent sales performance, the company has been awarded the certificate of
"Export House"
Subject an ISO 9001:2000 certified Company since 2001 and before that ISO
9002 Company since 1998. The Company has complete testing facilities with
strong technical support to back the products it sells. Moreover, customer
specific testing is carried out where required. Due to its strong technical
background, Subject undertakes joint development programmed with its customers
to developed grades of Ziconia's for specific Applications.
Product Identification & Tracebility All finished goods
are traced back to the raw materials used. Due to batch process system,
monitoring of process is very efficient.
Vendor Development Raw materials are
procured only from approved vendors whose products are tested for quality.
Vendors are regularly rated for performance.
Certificate of Analysis All products are
accompanied by analysis certificates. As per customer requirement they also
provide certificates of their products from approved labs.
Quality policy Continuous up
gradation of the quality system, innovation and customer satisfaction.
SALES
& MARKETING
Key Areas of
Supply
Due to large
production capacity, and consistent quality, Subject is a global supplier of Zirconium
Derivatives and has substantial supplies to almost every country where there is
a demand for Zirconium. Sales are done directly and where required the company
also supplies material through distributors and trading houses with whom it has
long standing relationships. Due to its excellent sales performance, the
company has been awarded the certificate of "Export House"
- Subject is a Global Supplier of Zirconium
Derivatives .
- Government Recognised Export House .
- Large Production Capacity ensures short
lead times for Execution of Orders.
- Wide Product Range ensures that all
customer requirements are met.
- Customer Specific Products are also
developed Jointly.
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.39.34 |
|
UK Pound |
1 |
Rs.80.72 |
|
Euro |
1 |
Rs.57.71 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
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 |
|