MIRA
INFORM REPORT
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Report Date : |
09.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
BEHARI LAL AND COMPANY |
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Registered Office : |
66, Basti Nau, Jalandhar – 144002, Punjab |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
1957 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JLDB01358A |
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PAN No.: [Permanent
Account No.] |
AABFB4156B |
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Legal Form : |
Partnership Concern with an Unlimited Liability of the partners. |
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Line of Business : |
Manufacturer and Exporter of Sport Goods Like, Soccer Ball, Rugby
Ball, Football, Volley Ball, Net Ball |
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 7000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed concern having satisfactory
track records. 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. |
INFORMATION PARTED
BY
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Name : |
Mr. Mukesh Kumar |
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Designation : |
Partner |
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Contact No.: |
91-9815829206 |
LOCATIONS
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Registered Office : |
66, Basti Nau, Jalandhar – 144002, Punjab, India |
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Tel. No.: |
91-181-2252590 / 5191000 |
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Mobile No.: |
91-9815829206 |
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Fax No.: |
91-181-2258370 / 2650791 |
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E-Mail : |
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Area : |
3000sq.fts |
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Location : |
Owned |
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Factory : |
101, Nahaln Road, Basti Danishmandan, Jalandhar – 144002, Punjab |
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Area : |
2500sq.mtrs |
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Location : |
Owned |
PARTNERS
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Name : |
Mr. Mukesh Kumar |
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Designation : |
Partner |
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Date of Birth/Age : |
28 Years |
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Qualification : |
Graduate |
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Experience : |
7 Years |
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Name : |
Mr. Naresh Kumar |
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Designation : |
Partner |
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Date of Birth/Age : |
26 Years |
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Qualification : |
Graduate |
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Experience : |
5 Years |
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Name : |
Mr. Jit Raj |
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Designation : |
Partner |
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Date of Birth/Age : |
53 Years |
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Qualification : |
Under Graduate |
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Experience : |
24 Years |
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Name : |
Mr. Balbir Raj |
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Designation : |
Partner |
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Date of Birth/Age : |
51 Years |
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Qualification : |
Under Graduate |
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Experience : |
21 Years |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Sport Goods Like, Soccer Ball, Rugby
Ball, Football, Volley Ball, Net Ball |
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Products : |
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Exports : |
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Products : |
Sport Goods |
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Countries : |
·
UK, ·
Germany, ·
France, ·
Australia, ·
USA, ·
Hungary ·
Denmark etc. |
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Imports : |
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Products : |
Machinery and Raw Material |
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Countries : |
·
China ·
Korea |
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Terms : |
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Selling : |
L/C, Credit and Cash(30 Days) |
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Purchasing : |
L/C, Cash and Credit (30 Days) Advance. |
GENERAL INFORMATION
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Customers : |
Local Customers, End Users, Wholesalers and OEM’s |
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No. of Employees : |
100 |
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Bankers : |
Punjab National Bank, Jalandhar |
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Facilities : |
CC- Rs. 1.500 Millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Surinder Mahakan and Company Chartered Accountants |
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Address : |
Jalandhar |
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Associates/Subsidiaries : |
² Darshan ENT Basti Shaikh,
Jalandhar Line of Business:
Sport Goods ² Bassan
Enterprises ² Jupiter Tanning
Company. |
CAPITAL STRUCTURE
PARTNERS CAPITAL
ACCOUNT AS ON 31.03.2008
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PARTICULARS |
Rs.
In Million |
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Mr. Jeet Ram |
0.543 |
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Mr. Balbir Raj |
0.686 |
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Mr. Mukesh Kumar |
0.164 |
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Mr. Naresh Kumar |
0.182 |
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Total |
1.575 |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Partners Capital |
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1.575 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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0.000 |
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4] (Accumulated Losses) |
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0.000 |
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NETWORTH |
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1.575 |
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LOAN FUNDS |
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1] Secured Loans |
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2.326 |
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2] Unsecured Loans |
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2.263 |
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TOTAL BORROWING |
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4.589 |
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DEFERRED TAX LIABILITIES |
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0.000 |
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TOTAL |
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6.164 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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2.935 |
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Capital work-in-progress |
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0.000 |
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INVESTMENT |
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0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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3.049 |
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Sundry Debtors |
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3.083 |
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Cash & Bank Balances |
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2.605 |
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Other Current Assets |
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0.000 |
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Loans & Advances |
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0.559 |
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Total
Current Assets |
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9.296 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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6.067 |
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Provisions |
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0.000 |
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Total
Current Liabilities |
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6.067 |
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Net Current Assets |
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3.229 |
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MISCELLANEOUS EXPENSES |
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0.000 |
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TOTAL |
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6.164 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2008 |
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Sales Turnover |
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15.882 |
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Other Income |
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0.120 |
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Total Income |
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16.002 |
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Net Profit |
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0.145 |
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Expenditures : |
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Cost of Goods Sold |
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10.501 |
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Salaries, Wages, Bonus, etc. |
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0.249 |
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Interest |
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0.634 |
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Depreciation & Amortization |
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0.269 |
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Other Expenditure |
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4.204 |
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Total Expenditure |
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15.857 |
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KEY RATIOS
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PARTICULARS |
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31.03.2008 |
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PAT / Total Income |
(%) |
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- |
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Net Profit Margin (PBT/Sales) |
(%) |
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0.91 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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1.18 |
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Return on Investment (ROI) (PBT/Networth) |
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0.09 |
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Debt Equity Ratio (Total Liability/Networth) |
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6.76 |
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Current Ratio (Current Asset/Current Liability) |
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1.53 |
LOCAL AGENCY
FURTHER INFORMATION
Trade References:
²
Wast Sport, UK
²
Swam INC, USA
FIXED ASSETS
- Building
- Cycle
- Electric Power Press
- Leather Processing Machine
- Furniture And Fixture
- Machinery
- Measurement
- Press Machine
- Scooter
- Tools Equipments
- Weighing Machine
- Electric Meter
- Three Wheeler
- Land
- Car
- Generator
- Mobile Phone
- Computer
- Air Conditioner
- Fan
- Machinery Under Installation
- Electric Fitting
As Per Web Details
Concern Profile:
Concern has become
a well recognized and preferred name in the arena of sports good industry.
Since their establishment in the year 1957, they have been working on ethical
business principles of honesty and integrity. They are one of the most
distinguished manufacturers and exporters of Soccer Ball, Rugby Ball, Football, Volley Ball, Net
Ball, Australian Football, American Football, Inflatable Ball, Cricket Bat
& Accessories, Hockey and Hockey Accessories, Boxing and Martial Arts
Equipments, Soft Leather Products, Base Ball, Hurling Ball, Soccer Accessories,
etc.
Based on their
encompassing knowledge of product and industry expertise, they have been
able to offer advanced products that are as per changing trends of the global
market. As a member of Sports Goods Export Promotion Council (SGEPC), they cater
their products to the major brands like Sports World (UK), etc. Their sports goods
and clothes find huge acceptance and usage by sports enthusiasts, sportsmen,
beginners, children and every one exhibiting the passion for the sports.
Their Quality
Known for
providing quality sports products, they have achieved maximum degree of customer
satisfaction resulting in worldwide customer base. All the raw materials such
as P.U., PVC, Rubber Synthetics, Wood, Plastic, Chemicals are sourced from
reputed and experienced distributors and suppliers. Each product passes through
a series of stringent quality tests before being dispatched to the clients.
Over the years, they have been able to successfully serve numerous clients
owing to the high quality of their goods, their durability, smooth finish and
superior quality. They also lay complete emphasis on the packaging of their
products. Their packaging unit is well furnished with the latest machines to
deliver safe packaging of products
Their Infrastructure
They boast of an
excellent infrastructural base well equipped with advance technological setup.
Their in-house manufacturing unit is complacent with state of the art machinery
which work at low maintenance cost and high efficiency. Their production unit
caters to the market demand for quality products by maintaining a high standard
of performance. Their spacious warehouse and wide network of the suppliers and
distributors enable them to execute their business operations efficiently and
effectively.
Founder:
BELACO was founded by Mr. Behari Lal.
During the partition of India in the year 1947, he migrated from SIALKOT (now
in Pakistan) to the Sports City JALANDHAR. He started his life in new city as a
Football Maker and worked in the Sports factory for five years. His strong will
power and hardworking nature encouraged him to startup his own business, which
resulted in establishment of BELACO.
Foundation stone :
Foundation stone of Concern was laid down by Mr.Behari Lal with cooperation of his elder brother in the year 1953. The company was registred in the year 1957 under the partnership act, under the name of Behari Lal & Company. BELACO started its manufacturing activities with production of completely hand made leather Football, Volley ball, Hand Ball and Rugby Ball at manufacturing unit situated in Basti Nau .
Expension of Concern:
In the beginning the Company was manufacturing Leather Balls with the
help of a few numbers of workers and used to sell its product to the Indian
Market and Local Exporters. Gradually elder sons Mr. Jeet Raj Bassan and Mr.
Balbir Raj Bassan joined the business and expended the business by adding up
new products and labor force.
Diversification of Products:
Concern diversified its product range by adding rubber synthetic balls
,Cricket and Hockey equipments. BELACO added up major cities of India as their new
market. Mr. Jeet Raj Basssan, mainly took manufacturing charge and Mr Balbir
Raj Bassan took the marketing charge.
Business Expansion :
The Concern expanded its business by exporting Leather Footballs,
Volleyball and Rugby Balls in the year 1978 to Germany. in early 1980's company
felt the need of more manufacturing units to the maintain the balance of Export
and Local Supply, as result company established new units in Danishmandan. Mr.
Jagir Lal Basssan, the youngest son joined the family business after completing
his higher education. Combination of high education and business experience
helped company a lot to grow up rapidly which resulted in establishing own
Leather Tanneries situated in Leather Complex, Jalandhar.
Exports partners & Sister Concerns :
Their Export Partner countries are USA, CHILE, SOUTH AFRICA, AUSTRALIA,
UK, GERMANY, HUNGARY AND SOME OF OTHER European Countries. Concern Sister
Concerns companies are Bassan Enterprises and Jupiter Tanning Company.
Company's Motto:
They are in this parental business for the last 50 years and its their
customer the best according to their specific needs.
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.49.22 |
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UK Pound |
1 |
Rs.73.03 |
|
Euro |
1 |
Rs.63.14 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
8 |
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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 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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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 |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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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 |
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