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MIRA
INFORM REPORT
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Report Date : |
07.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BRUSHMAN INDIA LIMITED |
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Registered Office : |
B-95/3, Phase I, Naraina
Industrial Area, New Delhi - 110028 |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
25.01.1993 |
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Com. Reg. No.: |
55-51862 |
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CIN No.: |
L74899DL1993PLC051862 |
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TAN No.: (Tax Deduction & Collection Account No.) |
DELB06540C DELB07419G |
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PAN No.: (Permanent Account No.) |
AAACB0378D |
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Legal Form : |
A Public Limited Liability
Company. The Company's Shares are
Listed on the in Delhi Stock Exchange. |
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Line of Business : |
Subject is engaged in
manufacturing of paintbrushes. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
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 1300000 |
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Status : |
Good |
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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 company having
satisfactory track. Trade relations are fair. Business is active. General
financial position is good. Payments are reported as usually made as per
commitments.
The company can be considered good for normal business
dealings. |
LOCATIONS
|
Registered Office/ Factory : |
B-95/3, Phase I, Naraina
Industrial Area, New Delhi - 110 028, India. |
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Tel. No.: |
91-11-5791710/ 5792544/ 5/
5892452/ 5891453 |
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Fax No.: |
91-11-5798187 |
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E-Mail : |
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Website : |
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Distribution Network: |
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Branches : |
Located at :
Tel No.: 91-22-26041323/ 24560259
Tel.
No. 91-44-8271056 Telefax
: 91-44-8278048
180, II
Main Road, Charmarajpet, Near Bata Showroom, Bangalore - 560 018, Karnataka,
India Tel.
No. 91-80-6604326 / 4325 |
DIRECTORS
|
Name : |
Mr. Kapil Kumar |
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Designation : |
Managing Director |
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Name : |
Ms. Rohit Sood |
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Designation : |
Director |
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Name : |
Ms. Rittu Kumar |
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Designation : |
Director |
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Name : |
Ms. Komal Gulati |
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Designation : |
Director |
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Name : |
Mr. Anuj Chowdhry |
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Designation : |
Director |
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Name : |
Mr. R. N. Suri |
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Designation : |
Director |
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Name : |
Mr. Dinesh Gulati |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Ms. Preeti Gupta |
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Designation : |
Company Secretary |
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Name : |
Mr. Pankaj Sharma |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Line of Business : |
Subject is engaged in
manufacturing of paintbrushes. |
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Products : |
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GENERAL
INFORMATION
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No. of Employees : |
300 |
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Bankers : |
Canara Bank, New Delhi |
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Banking Relations
: |
Unknown |
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Auditors : |
Saxena and Saxena Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000
Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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10975000 |
Equity Shares |
Rs.10 each |
Rs.109.750 millions |
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(As on 31.03.2008)
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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10875000 |
Equity Shares |
Rs.10 each |
Rs.108.750 millions |
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FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
108.500 |
108.500 |
108.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
153.900 |
113.600 |
71.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
262.400 |
222.100 |
179.500 |
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LOAN FUNDS |
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1] Secured Loans |
522.200 |
361.200 |
69.000 |
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2] Unsecured Loans |
60.100 |
10.000 |
15.200 |
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TOTAL BORROWING
|
582.300 |
371.200 |
84.200 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL
|
844.700 |
593.300 |
263.700 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
274.800 |
101.400 |
64.000 |
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Capital work-in-progress
|
20.600 |
94.800 |
2.000 |
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INVESTMENT
|
20.700 |
18.200 |
9.200 |
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DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
|
364.000
|
241.600 |
82.000 |
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Sundry Debtors
|
210.200
|
159.900 |
90.400 |
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Cash & Bank Balances
|
4.200
|
7.100 |
1.700 |
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Other Current Assets
|
0.000 |
0.000 |
0.000 |
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Loans & Advances
|
128.700
|
67.200 |
41.100 |
Total Current Assets
|
707.100
|
475.800 |
215.200 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
135.100
|
76.300 |
27.400 |
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Provisions
|
45.100
|
22.200 |
2.400 |
Total Current Liabilities
|
180.200
|
98.500 |
29.800 |
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Net Current Assets
|
526.900
|
377.300 |
185.400 |
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MISCELLANEOUS EXPENSES
|
1.700 |
1.600 |
3.100 |
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TOTAL
|
844.700 |
593.300 |
263.700 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
718.300 |
514.100 |
257.100 |
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Other Income |
1.600 |
0.100 |
0.500 |
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Total Income |
718.900 |
514.200 |
257.600 |
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Profit/(Loss) Before Tax |
64.100 |
67.900 |
9.300 |
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Provision for Taxation |
13.000 |
25.000 |
3.700 |
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Profit/(Loss) After Tax |
51.100 |
42.900 |
5.600 |
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Expenditures : |
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Raw Material Consumed |
424.200 |
315.500 |
214.700 |
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Power & Fuel |
3.200 |
2.000 |
0.700 |
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Manufacturing Expenses |
11.800 |
7.000 |
3.500 |
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Employees Cost |
60.400 |
34.100 |
11.900 |
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Selling and Administrative Expenses |
101.200 |
83.100 |
19.800 |
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Miscellaneous Expenses |
3.500 |
3.800 |
1.800 |
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Interests and Financial Charge |
67.800 |
26.500 |
11.400 |
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Increase/(Decrease) in Finished Goods |
(28.100) |
(31.500) |
(18.400) |
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Depreciation & Amortization |
10.800 |
5.800 |
2.900 |
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Total Expenditure |
654.800 |
446.300 |
248.300 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2008 1st Quarter |
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Sales Turnover |
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|
210.700 |
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Other Income |
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|
0.000 |
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Total Income |
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|
210.700 |
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Total Expenditure |
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|
163.300 |
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Operating Profile |
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|
47.400 |
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Interests |
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|
23.700 |
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Gross Profit |
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|
23.700 |
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Depreciation |
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|
3.500 |
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Tax |
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|
0.700 |
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Reported PAT |
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|
15.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Debt-Equity Ratio |
|
1.97
|
1.13 |
0.70
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Long Term Debt-Equity Shares |
|
1.01
|
0.52 |
0.31
|
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Current Ratio |
|
1.60
|
1.83 |
2.30
|
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TURNOVER RATIOS |
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Fixed Assets |
|
3.45
|
5.45 |
4.25
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Inventory |
|
2.37
|
3.18 |
3.61
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Debtors |
|
3.88
|
4.11 |
3.52
|
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Interests Cover Ratio |
|
1.95
|
3.56 |
1.82
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Operating Profit Margin (%) |
|
19.87
|
19.49 |
9.18
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Profit Before Interests and Tax Margin (%) |
|
18.36
|
18.36 |
8.05
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Cash Profit Margin (%) |
|
8.62
|
9.47 |
3.31
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Adjusted Net Profit Margin (%) |
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7.11
|
8.34 |
2.18
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Return On Capital Employed (%) |
|
18.39
|
22.15 |
10.64
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Return On Net Worth (%) |
|
21.09
|
21.36 |
4.84
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LOCAL AGENCY FURTHER INFORMATION
AS PER
WEBSITE
HISTORY
Subject one of the leading manufacturers of paintbrushes, is the
only listed company in the country in its category. The company prides itself
for being the manufacturer of the largest variety of branded paintbrushes in
India. The company has the most sound distribution network, unmatched by any
other product in the category. Today, a national network of 2200 distributors
and 1000 sub-dealers market the Brushman product.
Subjects
are characterized by their superior quality, vast variety and reasonable price
range that differentiate them from competing brands. As a matter of pride, the
product was adjudged the best in terms of its quality when it was awarded the
"INTERNATIONAL DIAMOND STAR OF QUALITY" in 1996, followed by the
"EXCELLENCE AWARD" conferred by the Institute of Economic Studies
(India) for maintaining the highest quality standards.
The company diversified its operations in 1996 and entered into a
distribution agreement with Denman International Limited, U.K., for
distributing the Denman range of hair care products in India, Sri Lanka and
Nepal. With a reputed consumer brand product now in hand, a strong
salon/distribution network was established. Company can proudly claim that
their existing distributors are the Most Powerful people in the salon/ cosmetic
business.
To further augment its product portfolio, company entered into a
strategic tie-up with Keune Hair cosmetics, a Dutch company, which has over 83
years of experience in hair care products. Keune hair products are exclusively
developed for professional use, and are launched in the market only after they
undergo a thorough research for best ingredients and compositions in the most
advanced laboratories in Europe.
BUSINESS
Subject is the leading manufacturer
of the largest variety of branded paintbrushes in India.
The company has the most sound
distribution network.
Today, a national network of 2200
distributors and 1000 sub-dealers market the company's products.
The company was awarded the
"International Diamond Star of Quality" in 1996, followed by the
"Excellence Award" conferred by the Institute of Economic Studies
(India) for maintaining the highest quality standards.
The company has entered into a
distribution agreement with Denman International Limited, UK for distributing
the Denman range of hair care products in India, Sri Lanka and Nepal.
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.47.46 |
|
UK Pound |
1 |
Rs.64.46 |
|
Euro |
1 |
Rs.83.37 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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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 |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
53 |
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 |
|