MIRA INFORM REPORT

 

 

Report Date :

02.08.2007

 

IDENTIFICATION DETAILS

 

Name :

BHALLAS CARPETS

 

 

Registered Office :

45, Park Street, Kolkata – 700 016, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

1953

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALB01613D

 

 

Legal Form :

Partnership concern with an unlimited liability of the partners.

 

 

Line of Business :

Manufacturers, Exporters, Importer and Retailers of Woollen and Synthetic Carpets and Floor Covering

 

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 21080

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well – established but small concern in its filed. Trade relations are fair. 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/Head Office :

45, Park Street, Kolkata – 700 016, West Bengal

Tel. No.:

91-33- 22267885 / 30282109

Fax No.:

91-33-30282108 / 2249 9249

E-Mail :

bhalla@cal2.vsnl.net.in

Website :

http://www.bhallainternational.com

Area :

510 Sq. fts

Location :

Owned

 

 

Factory 1 :

Power House Road, Bhadohi 221 401, Uttar Pradesh

Area :

5000 Sq. fts

Location :

Owned

 

PARTNERS

 

Name :

Mr. D. S. Bhalla

Designation :

Partner

Date of Birth/Age :

82 years

Experience :

50 years

 

 

Name :

Mrs. Usha Bhalla

Designation :

Partner

Date of Birth/Age :

74 years

Experience :

40 years

 

 

Name :

Mr. Sharad Bhalla

Designation :

Partner

Date of Birth/Age :

29 years

Experience :

6 years

 

 

Name :

Mr. Dhruv Bhalla

Designation :

Partner

Date of Birth/Age :

27 years

Experience :

6 years

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

Mr. D. S. Bhalla

Mrs. Usha Bhalla

Mr. Sharad Bhalla

Mr. Dhruv Bhalla

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers, Exporters, Importer and Retailers of Woollen and Synthetic Carpets and Floor Covering

 

 

Terms :

 

Selling :

Cash / CAD

 

 

Purchasing :

Cash / Credit / L/C / Sight / CAD

 

GENERAL INFORMATION

 

Suppliers :

Indian –

Overseas –

v      SPN Carpets, Panipat

v      Deco Home, Kolkata

v      Ganapati Traders, Kolkata

v      Other Various Suppliers of Kolkata

v      Oriental Weavers International

v      Balta Industries, Belgium

v      Kate International, Thailand

v      Standard Carpet International

v      Carpet Raya, Sdn Bhd

v      The United Agencies (PTE) Limited

v      Associated Weavers

 

 

Customers :

Indian –

Overseas –

v      ITC Hotels

v      Taj Group of Hotels

v      and Many other local customer of Kolkata

v      JANSONS Carpet Manufacturing, Bangalore

v      Electric and Furnishing Mart Khajan Carpet

v      Furnishwell

v      and many other customer of outside West Bengal

v      Different customers of USA, Spain, UK.

 

 

No. of Employees :

4

 

 

Bankers :

v      Standard Chartered Bank, 41, Chowringhee Road, Kolkata -  700 071

v      ABN Amro Bank, 7, Camac Street, Kolkata – 700 017

v      Allahabad Bank, Park Street, Kolkata – 700 016

 

 

Facilities :

--

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

M//s. Narendra Kochar & Company

Chartered Accountant

Address:

86, Canning Street, Kolkata – 700 001, India

 

 

Associates/Subsidiaries :

Ganapati Traders

45, Park Street, Kolkata – 16

Activities - Trading of Woolen & Synthetic Carpets

Annual Sales – Rs. 1.200 Millions

 

CAPITAL STRUCTURE

 

Capital Investment :

 

Owned :

Rs. 5.270 Millions

Borrowed :

--

Total :

Rs. 5.270 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

5.274

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

0.000

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

5.274

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

0.000

2] Unsecured Loans

 

 

0.000

TOTAL BORROWING

 

 

0.000

DEFERRED TAX LIABILITIES

 

 

0.000

 

 

 

 

TOTAL

 

 

5.274

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

0.473

Capital work-in-progress

 

 

0.000

 

 

 

 

INVESTMENT

 

 

1.802

DEFERREX TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 
 

 

 

Sundry Debtors

 
 

2.869

 

Cash & Bank Balances

 
 

1.530

 

Other Current Assets

 
 

1.381

 

Loans & Advances

 
 

0.073

 

Deposit

 
 

0.050

Total Current Assets

 

 
5.903

Less : CURRENT LIABILITIES & PROVISIONS

 

 
 

 

Current Liabilities

 
 

2.904

 

Provisions

 
 

0.000

Total Current Liabilities

 

 
2.904

Net Current Assets

 

 
2.999

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

5.274

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Total Income

15.932

12.434

12.076

 

 

 

 

Profit/(Loss) Before Tax

1.414

1.355

1.174

Provision for Taxation

0.000

0.719

0.642

Profit/(Loss) After Tax

1.414

0.636

0.532

 

 

 

 

Expenditures :

 

 

 

 

Administrative Expenses

0.000

NA

NA

 

Salaries, Wages, Bonus, etc.

0.099

NA

NA

 

Payment to Auditors

0.014

NA

NA

 

Interest

0.030

NA

NA

 

Depreciation & Amortization

0.088

NA

NA

 

Other Expenditure

2.234

NA

NA

Total Expenditure

2.466

NA

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

PAT / Total Income

(%)
8.87
5.11

4.40

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
8.87
10.89

9.72

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
22.17

NA

NA

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.26

NA

NA

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.55

NA

NA

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.03

NA

NA

 

Expected sales 2008 Rs. 20.000 millions

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Percentage of Purchase

Percentage of Sales

India 40%,                    Overseas 60%

India 80%                 Overseas 20%

 

 

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 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.40.55

UK Pound

1

Rs.82.06

Euro

1

Rs.55.35

 

 

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

5

--PROFITABILIRY

1~10

5

--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

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

 

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

 

 

 

 

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