MIRA
INFORM REPORT
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Report Date : |
20.10.2008 |
IDENTIFICATION DETAILS
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Name : |
BUSINESS ALGORITHMS PRIVATE LIMITED |
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Registered Office : |
39 – Shankar Nagar, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
24.08.1994 |
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Com. Reg. No.: |
11-080566 |
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CIN No.: [Company
Identification No.] |
U72900MH1994PTC080566 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NGPB00855B |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Dealer and Distributor for Compaq Laptops and Accessories, Dealer and
Distributor for Microtech, Okaya Batteries. |
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 34000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade relations are fair. Payments are usually correct and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
INFORMATION PARTED BY
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Name : |
Mr. Sudhir Budhay |
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Designation : |
Director |
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Contact No.: |
Mobile no.91-9923408811 |
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Date : |
18.10.2008 |
LOCATIONS
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Registered Office : |
39 – Shankar Nagar, |
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Tel. No.: |
91-712-2546800/2529122/2503545/2536665 |
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Mobile No.: |
91-9923408811 (Mr. Sudhir) |
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Fax No.: |
91-712-2536665/2520546 |
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E-Mail : |
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Website : |
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Area : |
1300 sq ft |
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Location : |
Owned |
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Tel. No.: |
91-712-2433703 |
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Fax No.: |
91-712-2457563 |
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Area : |
1000 sq ft |
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Location : |
Owned |
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Khamla Show Room: |
Shop No 30, “Shree Ganesh Apartments” Ring Road, Khamla Sq, |
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Tel. No.: |
91-712-2282042 |
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Area : |
1630 sq ft |
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Location : |
Owned |
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Service Centre : |
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Tel. No.: |
91-712-2430545 |
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E-Mail : |
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Area : |
1400 sq ft |
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Location : |
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Wadi Ofiice : |
Shop No.39, 44, 45, 46, Chawla Complex, National High Way No. 6, Wadi,
Nagpur – 440 028, Maharashtra, India |
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Tel./ Fax No.: |
91-7174-221939 |
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Branches : |
X – 72, Swpna Complex, Opposite Fire brigade, Bajaj Nagar, MIDC,
Waluj, |
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Tel. No.: |
91-240-2554532 |
DIRECTORS
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Name : |
Mr. Sudhir Budhay |
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Designation : |
Director |
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Address : |
39 – Shankar Nagar, |
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Date of Birth/Age : |
01.09.1959 |
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Qualification : |
B.E. (Mechanical) |
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Date of Appointment : |
24.08.1994 |
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Name : |
Mrs. Reeta S. Budhay |
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Designation : |
Director |
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Address : |
39 – Shankar Nagar, |
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Date of Birth/Age : |
26.01.1962 |
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Qualification : |
B.E. (Mechanical) |
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Date of Appointment : |
24.08.1994 |
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Name : |
Mrs. Leela Deshpande |
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Designation : |
Director |
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Address : |
103, Govind Apartments, Shankar Nagar, |
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Date of Birth/Age : |
18.05.1932 |
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Qualification : |
P.H.D. |
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Date of Appointment : |
28.01.1999 |
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Name : |
Ms. Rasika S. Budhay |
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Designation : |
Director |
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Address : |
39 – Shankar Nagar, |
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Date of Birth/Age : |
06.11.1985 |
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Qualification : |
B.E. (Electronics) |
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Date of Appointment : |
15.11.2003 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2005
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Names of Shareholders |
No. of Shares |
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Mr. Sudhir Budhay |
1000 |
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Mrs. Reeta S. Budhay |
1000 |
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Ms. Rasika S. Budhay |
150 |
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Ms. Saee Budhay |
150 |
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Mrs. Leela Deshpande |
20 |
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Mrs. Sushma Budhay |
10 |
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Total |
2330 |
As on 29.09.2007
Equity share breakup (percentage of total equity)
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Category |
Percentage |
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Directors or relatives of directors |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Dealer and Distributor for Compaq Laptops and Accessories, Dealer and
Distributor for Microtech, Okaya Batteries. |
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Agencies Held : |
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Imports : |
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Products : |
Hot water showers |
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Countries : |
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Terms : |
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Selling : |
Credit 30/ 60 days |
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Purchasing : |
Credit 30 days |
GENERAL INFORMATION
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Suppliers : |
Ø
Apricot Systems
Inc. Ø
Cyber Peripherals
Private Limited Ø
Tech Pacific India
Limited Ø
Galaxy Infotech (Private)
Limited Ø
Redington ( Ø
Unilogic Systems
Private Limited Ø
Data – Tronics Ø
Pasekon Computers Ø
Uttam Agencies |
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Customers : |
Wholesalers and Retailers |
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No. of Employees : |
70 (In office + In showroom) |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
C.N. Patel and Company Chartered Accountants |
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Address : |
Gani Charitable |
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Associates/Subsidiaries : |
Computer Strore |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000 |
Equity Shares |
Rs.100/- Each |
Rs.1.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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2330 |
Equity Shares |
Rs.100/- Each |
Rs.0.233
Million |
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[all figures are in
Rupees Millions]
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Particulars |
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31.03.2008 |
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Expected Sales (2008-09) : Rs.600.000 Millions
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
0.233 |
0.233 |
0.233 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
6.659 |
4.591 |
3.037 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
6.892 |
4.824 |
3.270 |
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LOAN FUNDS |
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1] Secured Loans |
8.397 |
3.402 |
0.877 |
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2] Unsecured Loans |
5.881 |
4.801 |
4.516 |
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TOTAL BORROWING |
14.278 |
8.203 |
5.393 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
21.170 |
13.027 |
8.663 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
5.019 |
4.742 |
2.814 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.272 |
0.260 |
0.206 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
13.536
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11.107 |
6.312 |
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Sundry Debtors |
23.240
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14.434 |
7.727 |
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Cash & Bank Balances |
8.952
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8.071 |
0.195 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
4.758
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1.988 |
1.885 |
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Total
Current Assets |
50.486
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35.600 |
16.119 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
28.587
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22.542 |
7.588 |
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Provisions |
6.020
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5.033 |
2.888 |
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Total
Current Liabilities |
34.607
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27.575 |
10.476 |
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Net Current Assets |
15.879
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8.025 |
5.643 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
21.170 |
13.027 |
8.663 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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295.387 |
230.328 |
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Other Income |
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3.793 |
7.034 |
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Total Income |
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299.180 |
237.362 |
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Profit/(Loss) Before Tax |
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5.077 |
2.565 |
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Provision for Taxation |
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1.933 |
0.972 |
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Profit/(Loss) After Tax |
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3.144 |
1.593 |
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Total Expenditure |
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294.103 |
234.797 |
KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
1.05
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0.67 |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
1.72
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1.11 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
9.15
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6.36 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
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0.74
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0.53 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
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1.46
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1.29 |
1.54 |
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Current Ratio (Current Asset/Current Liability) |
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7.09
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7.42 |
4.85 |
LOCAL AGENCY FURTHER INFORMATION
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Name of the company |
BUSINESS ALGORITHMS PRIVATE LIMITED |
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Presented By |
State Bank of |
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1) Date and description of instrument creating the change |
Dated 02.07.1996. Form C.1 –
Agreement of Loan for over all limit. Form C.2 – Agreement
of Hypothecation of goods and assets. Form C.4 –
Agreement of Guarantee for overall limit. Form C.5 – Letter
regarding the grant of individual limits. (All Agreement
executed for single charge) |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.1.300 Millions |
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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 |
Hypothecation of Stock
of computers, Book debts and Receivables. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest at the
rate of minimum 19.25%. The Margin is 25% of stock of computers and
peripherals and 40% of Book debts. |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of |
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6) Date and brief description of instrument modifying the charge |
28.04.2005 1) Supplemental Agreement
of Loan for increase in the overall limit. 2) Supplemental
Agreement Hypothecation of goods and assets for increase in the overall
limit. 3) Supplemental
Deed of Guarantee for increase in overall limit. 4) Letter
regarding the Grant of individual limits within the overall limit. (All Agreement
executed for single charge) As and by way of
First Modification. |
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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. |
At the request of
the Borrower, the Bank has enhanced Cash Credit Limit by Rs.2.700 Millions
from Rs.1.300 Millions to Rs.4.000 Millions. To secure the due
repayment of the above cash credit limit and for interest and other charges
thereon, first charge and hypothecation on: Hypothecation of
entire assets of the unit including stock, book debts, bill receivables, bill
in course of collection etc. Rate of Interest
2% above SBAR i.e. 12.25% with monthly rests. Margin – Stocks –
33-1/3%. Book debts –
33-1/3% with cover period of 30 days. Other Terms and
conditions as per loaning Documents. The total charge
modified from Rs.1.300 Millions to Rs.4.000 Millions. |
TRADE REFERENCES:
- NGDA Private
Limited,
- Pankaj
Traders,
WEBSITE DETAILS:
HISTORY:
Subject was established in April 1988 by two technocrats, Mr. Sudhir Budhay and Mrs. Reeta Budhay both B.E. by qualifications. The business which was started with an investment of Rs Sixty Thousand in a car garage of their house with one table and even without a telephone of their own, slowly but steadily has grown into a multi location business which has touched 25 Cr. At the end of their 18th year of operation. Algorithms means a “Step By Step method of solving problem” and since they are committed to provide I.T. Solutions to any business needs, they have named their company as Business Algorithms.
Subject popularly known by their trade name B.Algo started their first Computer
Super store in Oct. 1994. This was the only computer store in central India.It
was widely appreciated by most of the national computer magazines like Data
Quest, Computer Today etc…. Today the company owns two ultra modern show rooms,
one with 1500 sq.ft. of floor space ant 78 ft frontage and the other 500 sq.ft.
at
B.Algo also has a presence in Corporate and Govt. Segment. As a commercial partner
of HP thro’ their sister concern, they are ready to provide complete solution
to customer right from Server, storage, Networking and printing, Imaging.
B.Algo is also diversified in 2001 towards distribution of other Products like
U.P.S. from Microtek Digital Inverter, Okaya Batteries to name a few specially
in Vidarbha, Marathwada, Chattisgadh and MP. In 2004 B.Algo has stepped forward
and signed National Distribution with Beebul Engg SDN BHD of Malaysia for
Splash Hot Water Shower. B.Algo is also first to promote Battery Life Enhancer
and Battery Reverter from Elixir West Bengal in order to battery life and save
the environment. It also helps customers to get best value for their investment
in bettery both by saving cost and also enhancing back up time.
The
B.Algo has well documented Serice Policy Guide Lines and full proof call
management software. Service Manager and Call coordinator constantly supervise
the call status on hourly basis and take corrective action on escalated calls.
Also Marketing policy Guide Lines and Administrative Policy Guide Lines are
well documented which helps smooth functioning on day to day basis. They have
well implemented “ Just in Time” inventory module. Effective logistics and
finance control are one the keys to their growth.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.48.68 |
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|
1 |
Rs.84.37 |
|
Euro |
1 |
Rs.65.70 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
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 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
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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 |
|
--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
|