MIRA INFORM REPORT

 

 

 

Report Date :

30.05.2008

 

IDENTIFICATION DETAILS

 

Name :

BIPINCHANDRA AND COMPANY

 

 

Registered Office :

1009, Prasad Chambers, Opera House, Mumbai-400004, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Year of Establishment :

1994

 

 

Legal Form :

Partnership Concern With an Unlimited Liability of the Partner

 

 

Line of Business :

Manufacturer, Exporter and Importer of Diamonds

 

 

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 19000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed concern meeting its local commitments timeously. Trade relations are fair. Business is active.

 

The concern can be considered good for normal business dealings.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Pankaj Mehta

Designation :

Account Manager

Contact No.:

91-9967711755

Date :

23.05.2008

 

 

LOCATIONS

 

Registered Office :

1009, Prasad Chambers, Opera House, Mumbai-400004, Maharashtra, India

Tel. No.:

91-22-23635981 / 82/ 83

Mobile No.:

91-9967711755

Fax No.:

91-23634905

E-Mail :

bipin@bipinchandra.com , jinesh@bipinchandra.com

Website :

http://www.geocities.com/bipinchandral

Area :

645 sq ft (Owned)

 

 

PARTNERS

 

Name :

Mr. Bipin B. Jhaveri

Designation :

Partner

Date of Birth/Age :

60 Years

Qualification :

H.S.C.

 

 

Name :

Mrs. Sunita Bipin Jhaveri

Designation :

Partner

Date of Birth/Age :

57 Years

Qualification :

S.S.C

 

 

Name :

Mr. Jinesh Bipin Jhaveri

Designation :

Partner

Date of Birth/Age :

35 Years

Qualification :

B.Com

 

 

KEY EXECUTIVES

 

Name :

Mr. Pankaj Mehta

Designation :

Account Manager

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Diamonds

 

 

 

 

Exports :

 

Products :

Cutt and Polish Diamonds

Countries :
  • U.S.A
  • Canada
  • Hon Kong
  • Switzerland

 

 

Imports :

 

Products :

Rough Diamonds

Countries :
  • Belgium
  • Dubai
  • Israel

 

 

Terms :

 

Selling :

Credit (90 to 120 Days), DA

 

 

Purchasing :

Credit ( 90 to 120 Days)

 

 

GENERAL INFORMATION

 

Customers :
  • Wholesalers
  • Retailers

 

 

No. of Employees :

12

 

 

Bankers :
  • Oriental Bank of Commerce, Opera House Branch
  • Bank of Baroda, Opera House Branch
  • Standard Chartered Bank, Fort, Mumbai – 400001

 

 

Facilities :

Cash Credit Rs. 15.000 Millions

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Ramesh and Rajni and Compony

Chartered Accountant

Address :

Opera House

 

 

CAPITAL STRUCTURE

 

 

Capital Investment :

 

Owned :

Rs. 0.010 Million

Borrowed :

Rs. 49.574 Millions

Total :

Rs. 49.584 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

31.03.2007

PARTNER’S FIXED CAPITAL ACCOUNT

 

 

0.010

PARTNER’S CAPITAL ACCOUNT

 

 

49.574

RESERVES AND SURPLUS

 

 

0.000

 (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

49.584

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

0.000

2] Unsecured Loans

 

 

0.611

TOTAL BORROWING

 

 

0.611

DEFERRED TAX LIABILITIES

 

 

0.059

 

 

 

 

TOTAL

 

 

50.254

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

9.597

Capital work-in-progress

 

 

0.00

 

 

 

 

INVESTMENT

 

 

0.000

DEFERREX TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

 

31.275

 

Sundry Debtors
 

 

34.773

 

Cash & Bank Balances
 

 

0.995

 

Prepaid Expenses
 

 

0.112

 

Loans & Advances
 

 

6.640

Total Current Assets
 

 

73.795

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

 

32.384

 

Provisions
 

 

0.754

Total Current Liabilities
 

 

33.138

Net Current Assets
 

 

40.657

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

50.254

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

 

31.03.2007

 

 

 

 

Sales Turnover

 

 

99.717

Other Income

 

 

0.000

Total Income

 

 

99.717

 

 

 

 

Profit/(Loss) Before Tax

 

 

2.102

Provision for Taxation

 

 

0.858

Profit/(Loss) After Tax

 

 

1.244

 

 

 

 

Expenditures :

 

 

 

 

Manufacturing Expenses

 

 

12.593

 

Administration and Sales Expenses

 

 

4.411

 

Raw Material Consumed

 

 

52.048

 

Interest

 

 

0.189

 

Depreciation & Amortization

 

 

1.279

 

Other Expenditure

 

 

27.095

Total Expenditure

 

 

97.615

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

 

31.03.2007

PAT / Total Income

(%)
 

 

1.24

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

 

2.10

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

 

2.52

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

 

0.04

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

 

0.68

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

 

2.22

 

STOCK PRICES

 

Face Value

Rs.

High

Rs.

Low

Rs.

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Trade References :

 

 

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.42.77

UK Pound

1

Rs.84.33

Euro

1

Rs.66.65

 

 

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

6

--PROFITABILIRY

1~10

4

--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

NO

--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.

 

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