MIRA INFORM REPORT

 

 

Report Date :

01.08.2012

 

IDENTIFICATION DETAILS

 

Name :

BHAVAM ENGINEERING

 

 

Registered Office :

No 15/65A, Devan Mission, Sidco Industrial Estate, Ambattur Industrial Estate, Chennai – 600 058, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Year of Establishment:

2005

 

 

Capital Investment / Paid-up Capital :

Not Divulged

 

 

Legal Form :

Sole Proprietory Concern

 

 

Line of Business :

Manufacturer, Trader and Importer of Fabrication engineers

 

 

No. of Employees :

20 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established proprietory concern having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The concern can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

RBI DEFAILTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

 

 

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION PARTED BY (General Details)

 

Name :

Mr. Tamil Selvan

Designation :

Executive

Contact No.:

91-9840757352

Date :

30.07.2012

 

 

LOCATIONS

 

Registered Office :

No 15/65A, Devan Mission, Sidco Industrial Estate, Ambattur Industrial Estate, Chennai – 600 058, Tamilnadu, India

Tel. No.:

91-44-26193082 / 26193152

Mobile No.:

91-9840757350 (Mr. V. Alagusundararaj)

E-Mail :

venuraju@eth.net

 

 

SOLE PROPRIETOR

 

Name :

Mr. Venu Raju

Designation :

Proprietor

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Trader and Importer of Fabrication engineers

 

 

Products :

·        Pvc fabrication

·        Heavy Fabricated Parts

·        Process Pipelinies

·        Fabricated Machine Parts

·        Weld Yoke

·        Automatic Fabricator

·        Powder Coating Booths

·        Recovery systems

·        Jumbo Booths

·        Manual /Automatic

·        Filter Cartridge I Mono Cyclone / Multi cyclone For Large Parts

·        Liquid Paint Booths Manual Dry Type

·        Manual Water curtain / No Pump Type

·        Automatic Booth

·        Side Draft Booth

·        Down Draft Booth

·        Plastic Painting Plants

·        Conveyor Systems

·        Air Handling & Supply Units

·        Paint Sludge Removal Systems

·        Ducting Systems

·        Automotive Refinishing Booths For Cars 1 Buses

·        Ovens Batch Type

·        Conveyor Type A- Zone

·        Camel back Straight through

·        Heating Medium Electric, HSD, LDO ,FO, LPG, NG

·        Oven Application Area - Powder Coating / Liquid painting / Tea leaf Drying / Coir Drying / Fabric Coating I PTFE Coating

·        Foundry Mould 1 Core Curing I Drying Ovens

·        Spray booths - liquid water wash side draught

·        Special type of powder booth with special combination recovery and feed back system.

 

 

Terms :

 

Selling :

Credit 30 days

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

20 (Approximately)

 

 

Bankers :

·        State Bank of India

·        Axis Bank

·        ICICI Bank

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

Not Available

 

 

Sister Concern:

·        Hexagon Technologies India

Add: AC 12 4th Floor, 2nd Avenue, Anna Nagar, Chennai – 600 040, Tamilnadu, India

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Capital Investment :

 

Owned :

Not Divulged

Borrowed :

--

Total :

Not Divulged

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Particulars

 

 

 

31.03.2012

Sales Turnover (Approximately)

 

 

100.000

 

The above information has been parted by Mr. Tamil Selvan.

 

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry Records.

 


 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last One year

Yes

12]

Profitability for last three years

No

13]

Reasons for variation <> 20%

----

14]

Estimation for coming financial year

No

15]

Capital in the business

No

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

No

21]

Market information

----

22]

Litigations that the firm / promoter involved in

----

23]

Banking Details

Yes

24]

Banking facility details

No

25]

Conduct of the banking account

----

26]

Buyer visit details

----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

No

29]

Last accounts filed at ROC

No

30]

Major Shareholders, if available

No

31]

PAN of Proprietor/Partner/Director, if available

No

32]

Passport No of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

 

Profile:

 

This is a proprietorship firm. The proprietor is Mr. Venu Raju. The firm was started in the year 2005. This firm is the manufacturing facility for Hexagon Technologies India. Hexagon Technologies India is engaged in the import of Powder coating equipments. They offer high quality reliable electrostatic powder coating equipments from ITW Gema Switzerland and CNC dot marking machines from Techno mark France. Their in-house manufacturing facility is Bhavam Engineering. Bhavam Engineering is their sister concern and their factory, fitted with the latest CNC sheet metal fabrication machines, presses, rolling machines, profile bending machines, MIG, TIG, spot welding and roll forming machines. They cater to all the projects of Hexagon and from other clients. They also design, manufacture and sell complete lines for powder and liquid paint systems, with technical support from OMT of Germany. Their manufacturing range includes booths for powder and liquid application, pretreatment plants and high energy savings ovens for all applications. Their design center and drawing office is equipped with the latest software including industry leading applications such as AutoCAD, Solid Edge. They also actively encourage their clients to exchange drawings and technical details with them to aid swift transfer of information. These products ensure complete compatibility with the clients systems saving money and time in the process. Bhavam has highly experienced design team and &n offer the buyer unequalled resource to ensure that the project is deal with efficiency. The team will conduct a full site survey, liaise closely with the engineering requirements, prepare detailed CAD designs and produce the right solutions on time without the client's budget. The in house fabrication delivers a comprehensive service combined the controlled costs resulting in Tailored solutions for every project.

 

The firm offers turnkey solutions for powder coating plants. The positive aspects of powder coating make it different from any other painting process.

 

·        High paint film quality with extreme corrosion protection and scratch and impact resistance.

 

·        Environmentally safe, no exhaust air problems and no paint sludge accumulation

 

·        Easily automated

 

·        Coating process is practically free of losses, due to recovery of powder overspray

 

·        Exceptionally economical, even with smaller line capacities

 

·        Both manual and automatic coatings are absolutely trouble free, since no paint runs or drips are produced in powder coating. Coating thickness of 40 to80 microns can be achieved in one coat, and even significantly larger thickness with appropriate preheating of work pieces.

 

New powder booths and custom system concepts make it possible for users who have relatively high frequency of color change, to achieve economical operation with the great flexibility. Bhavam Engineering has several alternate options to select from and can therefore recommend the best system for each individual application such as powder booths with filter recovery, with cyclone separation or compatible systems using both processes in combination. Bhavam Engineering plans and builds complete turnkey paint systems, all from a single source. In the process their project engineers, designers and control specialists work with state of the art technologies based on experience obtained from hundreds of installations. They develop new designs in small teams therefore one always has the assurance of receiving the latest technology without coordination problems, and with only one responsible contact partner to handle all aspects relating to one's new paint facility. All in all they are the manufacturing unit of Hexagon Technologies and 60th of them work in tandem to produce the best solutions for the powder coating industry.

 

The factory employs 20 people and their revenue is about 500.000 million INR or (9, 00,000 US $ per annum). Since they are situated in the Government Industrial Estate subsidies applicable to the Small sector units are available to them. Their corporate office is the same as Hexagon Technologies India. Correspondence, phone and other communication is centralized. A medium sized manufacturing facility running in tandem with Hexagon. Their turnover and other assets are valued at 100.000 million INR. However caution advised in all financial dealings with them.

 

The factory is equipped with the following machinery:

 

·        Booth with Mono Cyclone

·        Manual Cartridge Filter Booth

·        Open Type Manual Cartridge Booth

·        Air handling Units

·        Powder Sieving Units

·        Paint Sludge removal systems

·        Electric Linear drive reciprocators

·        Powder transfer system

·        Powder Management systems

·        Machineries at the factory

·        CNC Press brake and axis from - Durma Turkey

·        CNC Shearing Machines Variable rake - Durma Turkey

·        Profile bending machine - Birlik Turkey

·        Circular Shearing machine 3-roll bending machine - Birlik Turkey

·        Beading and Seaming machine - Birlik Turkey

·        Roll former- RAS Reinhardt Germany

·        Hydraulic Punch - Unipunch

·        Power Press - Mankoo

·        Spot Welding machine - Technique

·        MIG welding - Migatronic Denmark

·        TIG welding - Migatronic Denmark

·        Welding machine -3- Kempps Finland

·        Pedestal Drilling machine-1

 

 


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.55.80

UK Pound

1

Rs.87.66

Euro

1

Rs.68.45

 

 

INFORMATION DETAILS

 

Report Prepared by :

NID

 


 

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

No

--LITIGATION

YES/NO

No

--OTHER ADVERSE INFORMATION

YES/NO

No

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

No

--EXPORT ACTIVITIES

YES/NO

No

--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

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

 

NB

New Business

-

 

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.