MIRA
INFORM REPORT
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Report Date : |
10.08.2007 |
IDENTIFICATION DETAILS
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Name : |
SONAL ADHESIVES LIMITED |
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Registered Office : |
Plot No. 28/A Village – Dheku, Takai Adosi Road, Off Khopoli Pen Road
Khalapur, Raigad-400004, Maharashtra |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
18.11.1991 |
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Com. Reg. No.: |
064045 |
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CIN No.: [Company
Identification No.] |
L02004MH1991PLC064045 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS39375A |
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PAN No.: [Permanent
Account No.] |
AAACS6289A |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacture and distribution of BOPP self – adhesive tape |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 306000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow and Delayed |
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Litigation : |
Clear |
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Comments : |
Subject is having moderate track of performance and financial status.
The company is not faring well. It’s payment are reported as slow and
delayed. The company can be considered for any business dealings on safe and
secured trade terms and conditions only. |
LOCATIONS
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Registered Office : |
Plot No. 28/A Village – Dheku, Takai Adosi Road, Off Khopoli Pen Road
Khalapur, Raigad-400004, Maharashtra |
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Tel. No.: |
91-2192-262620 / 1 |
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E-Mail : |
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Corporate Office: |
2nd Laxmi Industrial Estate, New link Road, Andheri ( W),
Mumbai-400053, |
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Tel No: |
91-22-26366872 |
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Fax No: |
91-22-26366842 |
DIRECTORS
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Name : |
Mr.Mohan L Arora |
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Designation : |
Managing Director |
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Name : |
MR.Jaspal Singh Bhasin |
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Designation : |
Director |
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Name : |
Mr.Mona Arora |
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Designation : |
Director |
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Name : |
Mr.SPS Narula |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr.Mohan L Arora |
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Designation : |
Chairman |
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Address: |
2NE, Laxmi I E New Link Road, Andheri(w0, Mumbai - 400053 |
BUSINESS DETAILS
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Line of Business : |
Manufacture and distribution of BOPP self – adhesive tape |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
40 |
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Bankers: |
NA |
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Banking
Relations : |
Unknown |
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Auditors : |
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Name : |
S.G. Kabra and Company Chartered Accountant |
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Associates/Subsidiaries : |
NA |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
60.600 |
60.600 |
60.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
15.900 |
11.300 |
13.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
76.500 |
71.900 |
148.000 |
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LOAN FUNDS |
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1] Secured Loans |
18.000 |
8.900 |
4.100 |
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2] Unsecured Loans |
9.900 |
12.200 |
12.200 |
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TOTAL BORROWING |
27.900 |
21.100 |
16.300 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
104.400 |
93.000 |
90.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
31.700 |
27.900 |
29.500 |
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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 |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
31.000 |
19.000 |
9.300 |
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Sundry Debtors |
32.500 |
39.800 |
29.100 |
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Cash & Bank Balances |
2.100 |
1.000 |
0.800 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
28.700 |
18.700 |
30.900 |
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Total
Current Assets |
94.300
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70.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
22.100 |
14.100 |
10.300 |
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Provisions |
0.000 |
0.000 |
0.000 |
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Total
Current Liabilities |
22.100
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14.100 |
10.300 |
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Net Current Assets |
72.200
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64.400 |
59.800 |
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MISCELLANEOUS EXPENSES |
0.500 |
0.700 |
1.000 |
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TOTAL |
104.400 |
93.000 |
90.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
132.400 |
50.600 |
39.700 |
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Other Income |
1.000 |
0.300 |
2.300 |
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Total Income |
132.700 |
51.600 |
35.700 |
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Profit/(Loss) Before Tax |
5.000 |
0.500 |
0.100 |
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Provision for Taxation |
0.400 |
0.100 |
0.00 |
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Profit/(Loss) After Tax |
4.600 |
0.400 |
0.100 |
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Expenditures : |
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Raw Material Consumed |
97.200 |
34.300 |
17.300 |
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Power & Fuel |
3.500 |
2.400 |
2.300 |
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Depreciation & Amortization |
1.800 |
1.700 |
1.600 |
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Other Expenditure |
2.37 |
0.85 |
1.36 |
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Total Expenditure |
247.57 |
91.85 |
58.46 |
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SUMMARISED RESULTS
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PARTICULARS |
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31.03.2007 ( FULL YEAR) |
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Sales
Turnover |
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287.900 |
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Other
Income |
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0.000 |
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Total
Income |
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287.900 |
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Total
Expenditure |
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278.300 |
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Operating
Profit |
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9.600 |
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Interest |
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2.800 |
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Gross
Profit |
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6.800 |
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Depreciation |
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2.000 |
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Tax |
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0.500 |
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Reported
PAT |
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4.300 |
QUARTERLY
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PARTICULARS |
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30.06.2007 (1st
Quarter) |
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Sales
Turnover |
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56.700 |
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Other
Income |
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0.00 |
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Total
Income |
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56.700 |
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Total
Expenditure |
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54.00 |
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Operating
Profit |
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2.700 |
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Interest |
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1.200 |
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Gross
Profit |
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1.500 |
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Depreciation |
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0.500 |
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Tax |
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0.00 |
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Reported
PAT |
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1.00 |
KEY RATIOS
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Year |
31.03.2006 |
31.03.05 |
31.03.2004 |
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Debt – Equity
Ratio |
0.33 |
0.26 |
0.15 |
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Long Term
Debt-Equity Ratio |
0.15 |
0.17 |
0.08 |
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Current Ratio |
2.74 |
3.97 |
2.91 |
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TURNOVER RATIOS |
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Fixed Assets |
2.94 |
1.19 |
0.94 |
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Inventory |
5.30 |
3.58 |
3.28 |
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Debtors |
3.66 |
1.47 |
1.18 |
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Interest Cover
Ratio |
4.33 |
1.83 |
1.13 |
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Operating Profit
Margins(%) |
6.27 |
5.53 |
6.30 |
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Profit Before
Interest and Tax Margin ( %) |
4.91 |
2.17 |
2.27 |
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Cash Profit
Margin(%) |
4.83 |
4.15 |
4.28 |
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Adjusted Net
Profit Margin (%) |
3.47 |
0.79 |
0.25 |
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Return On
Capital Employed (%) |
6.63 |
1.21 |
1.07 |
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Return on
Networth(%) |
6.20 |
0.55 |
0.14 |
STOCK PRICES
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Face Value: |
Rs.10.00 |
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High |
Rs.8.50 |
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Low |
Rs.8.50 |
LOCAL AGENCY FURTHER INFORMATION
DIRECTOR REPORTS:
OPERATIONS:
During the year under review, the income from operations of the Company has
been increased from Rs.49.172 Rs.121.409 millions. The Operating Profit i.e.
Profit before Interest, Depreciation and Tax has been registered at Rs.7.597
millions. The net profit has been registered at Rs.4.574 millions against
Rs.0.434 millions of the previous year. The net profit of Rs.4.574 millions has
been carried forward to the Balance Sheet.
DIVIDEND:
In view of the ploughing back of the profit for the betterment of the
working of the Company, your Directors have decided to skip the dividend.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.40.67 |
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1 |
Rs.82.12 |
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Euro |
1 |
Rs.55.6 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
4 |
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PAID-UP CAPITAL |
1~10 |
2 |
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OPERATING SCALE |
1~10 |
2 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
2 |
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--PROFITABILIRY |
1~10 |
2 |
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--LIQUIDITY |
1~10 |
2 |
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--LEVERAGE |
1~10 |
2 |
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--RESERVES |
1~10 |
2 |
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--CREDIT LINES |
1~10 |
2 |
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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 |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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20 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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