MIRA
INFORM REPORT
|
Report Date : |
25.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
BHARAT EXPLOSIVES LIMITED BHARAT PHARMA – A UNIT OF BHARAT EXPLOSIVES LIMITED |
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Registered
Office : |
9 Kmlalitpur, Jhansi Road, Lalitpur 284403, Uttar Pradesh |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
21.08.1962 |
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Com. Reg. No.: |
20-002895 |
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Capital
Investment / Paid-up Capital : |
Rs. 117.150 Millions |
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CIN No.: [Company Identification
No.] |
L65921UP1962PLC002895 |
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PAN No.: [Permanent Account No.] |
AAACV8495M |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer of Industrial Explosives, Sulphuric Acid, N G Based Explosives, Slurry/Emulsion Explosives |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (18) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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Litigation : |
-- |
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Comments : |
Subject is an established company having a moderate track record. The
latest financials are not made available with the government department. As per previous year’s record, there appears huge accumulated losses
recorded by the company. The external borrowing seems to be huge. However, trade relations are reported to be fair. Business is active.
Payments are unknown. The company can be considered for business dealings on a safe and
secured trade terms and condition. |
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 |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country’s growth, which has averaged more than 7% per
year since 1997. India’s diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India’s output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis – in large part because of strong domestic demand – and growth
exceeded 8% year-on-year in real terms. However, India’s economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government’s fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed legislative
work. India’s medium-term growth outlook is positive due to a young population
and corresponding low dependency ratio, healthy savings and investment rates,
and increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ 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.
LOCATIONS
|
Registered Office : |
9 Kmlalitpur, Jhansi Road, Lalitpur 284403, Uttar Pradesh, India |
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Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Corporate Office : |
Indra Prakash, 2nd Floor, Barakhamba Road, New Delhi 1 10001, India |
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Tel. No.: |
91- 011-23321832/ 23321832/ 23320785 |
|
Fax No.: |
91-11-23357580 |
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|
|
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Plant : |
Located at: · Jhansi in Uttar Pradesh · Sidhi in Madhya Pradesh |
DIRECTORS
As on: 30.09.2011
|
Name : |
Mr. Ramakant Ram |
|
Designation : |
Managing director |
|
Address : |
241, Amritpuri ‘B’ Gali No. 10, Garhi, New Delhi – 110065, India |
|
Date of Birth : |
20.02.1955 |
|
Date of Appointment : |
20.08.2009 |
|
DIN No.: |
00791154 |
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|
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|
Name : |
Mr. Ashish Aditya |
|
Designation : |
Director |
|
Address : |
C – 29/ F – 1, Block C, Dilshad Colony, New Delhi – 110095, India |
|
Date of Birth : |
30.06.1955 |
|
Date of Appointment : |
29.09.2007 |
|
DIN No.: |
01125517 |
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|
|
|
Name : |
Mr. Bhasker Neogi |
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Designation : |
Director |
|
Address : |
C 5 A – 11, Second Floor, Janakpuri, New Delhi – 110058, India |
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Date of Birth : |
12.03.1970 |
|
Date of Appointment : |
30.09.2011 |
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DIN No.: |
02209607 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.09.2011
SHAREHOLDING DETAILS FILE ATTACHED
As on: 30.09.2011
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage |
|
Bodies corporate |
90.91 |
|
Directors or relatives of Directors |
9.09 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Industrial Explosives, Sulphuric Acid, N G Based Explosives, Slurry/Emulsion Explosives |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
Lakshmi Vilas Bank Limited, 74/8, Janpath, New Delhi – 110001, India |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Vikas Bhatnagar and Company Chartered Accountant |
|
Address : |
2nd Floor, 545, Hanuman Mandir Road, Chirag, Delhi – 110017, India |
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Tel. No.: |
91-11-32528930/ 41834226 |
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PAN.: |
AADFV1157A |
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|
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Subsidiary Company : |
·
Bharat Pharma Limited CIN No.:U24232UP2006PLC031450 · Techno Blast India Limited |
CAPITAL STRUCTURE
As on: 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
18000000 |
Equity Shares |
Rs.10/- each |
Rs.180.000 Millions |
|
200000 |
Preference Shares |
Rs. 100/- each |
Rs. 20.000 Millions |
|
|
Total |
|
Rs.200.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11715000 |
Equity Shares |
Rs.10/- each |
Rs.117.150
Millions |
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|
|
|
|
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
117.150 |
117.150 |
117.150 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1.492 |
1.492 |
1.492 |
|
|
4] (Accumulated Losses) |
(230.578) |
(221.153) |
(211.593) |
|
|
NETWORTH |
(111.936) |
(102.511) |
(92.951) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
78.015 |
81.524 |
35.360 |
|
|
2] Unsecured Loans |
198.548 |
200.862 |
196.276 |
|
|
TOTAL BORROWING |
276.563 |
282.386 |
231.636 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
46.163 |
|
|
|
|
|
|
|
|
TOTAL |
164.627 |
179.875 |
184.848 |
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
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|
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FIXED ASSETS [Net Block] |
185.658 |
203.115 |
129.744 |
|
|
Capital work-in-progress |
0.000 |
0.371 |
96.990 |
|
|
|
|
|
|
|
|
INVESTMENT |
1.494 |
1.494 |
1.494 |
|
|
DEFERREX TAX ASSETS |
52.504 |
50.038 |
46.374 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2.221
|
2.553 |
1.524 |
|
|
Sundry Debtors |
31.109
|
27.190 |
24.985 |
|
|
Cash & Bank Balances |
18.001
|
18.825 |
14.732 |
|
|
Other Current Assets |
0.864
|
5.338 |
0.369 |
|
|
Loans & Advances |
30.573
|
29.499 |
27.604 |
|
Total
Current Assets |
82.768
|
83.405 |
69.214 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
122.181
|
119.520 |
122.172 |
|
|
Other Current Liabilities |
33.418
|
37.344 |
35.098 |
|
|
Provisions |
2.198
|
1.684 |
1.698 |
|
Total
Current Liabilities |
157.797
|
158.548 |
158.968 |
|
|
Net Current Assets |
(75.029)
|
(75.143) |
(89.754) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
164.627 |
179.875 |
184.848 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
29.111 |
|
29.680 |
|
|
|
Other Income |
17.735 |
19.963 |
|
|
|
|
TOTAL (A) |
46.846 |
33.763 |
29.680 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption materials changes inventories |
4.773 |
|
31.115 |
|
|
|
Employee related expenses |
7.546 |
5.833 |
|
|
|
|
Administrative selling other expenses |
26.437 |
16.445 |
|
|
|
|
Restructuring charges |
2.418 |
2.953 |
|
|
|
|
TOTAL (B) |
41.174 |
29.317 |
34.115 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5.672 |
4.446 |
(4.435) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.091 |
0.188 |
1.702 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
5.581 |
4.258 |
(6.137) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
17.470 |
17.483 |
13.673 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(11.889) |
(13.225) |
(19.810) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(2.464) |
(3.665) |
(9.116) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(9.425) |
(9.560) |
(28.728) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(221.153) |
(211.593) |
(182.867) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(230.578) |
(221.153) |
(211.593) |
|
|
|
|
|
|
|
|
|
|
TOTAL IMPORTS |
0.010 |
0.000 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(0.80) |
(0.82) |
(2.45) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(20.11)
|
(28.32) |
(96.79) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(25.38)
|
(39.17) |
(66.75) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(4.42)
|
(4.62) |
(9.96) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(10.62)
|
(0.13) |
(0.21) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
(2.47)
|
(2.75) |
(2.49) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.52
|
0.53 |
0.44 |
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 |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
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 |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
No |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
DETAILS OF
UNSECURED LOAN
(Rs. In Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
|
Fixed deposits unsecured |
1.459 |
1.549 |
|
Other debt unsecured |
187.461 |
189.686 |
|
Interest accrued due other debt unsecured |
9.628 |
9.627 |
|
Total |
198.548 |
200.862 |
|
|
|
|
OPERATIONAL
PERFORMANCE:
The Government of India banned and prohibited vide its Notification dated 21.01.2004 manufacture, possession, sale and use of Nitro Glycerin (NG) based explosives w.e.f. 01.04.2004. Pursuant to this ban by Government on the main product line of business, the company became a sick company and currently it has been registered as a sick Industrial Undertaking with Board for Industrial and Financial Restructure (BIFR) vide its order dated 18.01.2010.
In order to revive, the company has already diversified into Pharma and defense sector. In Pharma sector, the company has developed many new vendors. The company’s drug master file for two of its products is listed for USFDA approval and such approval is expected in a short time. The company is also exploring export possibility for its Pharma products to various countries in Europe and Asia.
The operations at Lalitpur plant proceeded satisfactorily during the year. In order to leverage the expertise in the area of manufacturing and handling explosives, the company is now focusing on defense sector. The company has developed some specialized products for defense applications and successfully supplied these products to HEMRL and other defense laboratories. Some of these newly developed products are expected to go into commercial production in the next 1-2 years’ time frame.
The company is running TBRL plant at Chandigarh on Go Co basis for the many years and the operations at Chandigarh during the current year was satisfactory.
The directors are hopeful of overcoming the present situation in the coming future. The Company has filed an application with BIFR and registered as case No.70/2007 and the DRS (Draft Rehabilitation Scheme) has been submitted to the Operating Agency (IFCI) for its approval, which is under their consideration.
ISO CERTIFICATION:
The Company is having ISO 9001:2000 Series Certifications and continues to have its possession.
FIXED ASSETS:
· Land and land improvements
· Building and building improvements
· Plant machinery
· Office equipments
· Furniture fixtures
· Motor vehicles
· Leasehold properties
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 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 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.54.43 |
|
|
1 |
Rs.83.20 |
|
Euro |
1 |
Rs.71.91 |
INFORMATION DETAILS
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
18 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.