MIRA
INFORM REPORT
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Report Date : |
21.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHARDA SOLVENT LIMITED |
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Registered Office : |
Dwarka Sadan, 6 Press Complex, M P Nagar, Bhopal – 462 011, Madhya Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
01.06.1992 |
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Com. Reg. No.: |
7125 |
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CIN No.: [Company
Identification No.] |
L26921MP1992PLC007125 |
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Legal Form : |
Public limited liability company. Company’s shares are listed on the
Stock Exchange. |
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Line of Business : |
Manufacturer and Exporter of Soybean Meals. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 1200000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow by Average 40 days |
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Litigation : |
Clear |
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Comments : |
Subject is an established listed company having moderate track. Trade relations are fair. Payments are reported as slow but correct. The company can be considered for normal business dealings at usual
trade terms and conditions with slight caution. |
LOCATIONS
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Registered Office : |
Dwarka Sadan, 6 Press Complex, M P Nagar, Bhopal – 462 011, Madhya
Pradesh, India |
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E-Mail : |
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Corporate Office : |
53/8, Kanchan Bagh, Indore – 452 001, Madhya Pradesh, India |
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Tel. No.: |
91-731-524197, 518426 |
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Factory : |
Village Banskhedi AB Road, Corp, Shivpuri, MPAR Bazar, Shivpuri – 473
551, Madhya Pradesh, India |
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Tel. No.: |
91-731-524197 / 518426 |
DIRECTORS
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Name : |
Mr. Vijay Khetawal |
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Designation : |
Director |
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Name : |
Mr. Ravi Sawla |
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Designation : |
Director |
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Name : |
Mr. R C Agarwal |
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Designation : |
Director |
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Name : |
Mr. Nipun Garg |
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Designation : |
Whole Time Director |
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Name : |
Mr. Mahendra Garg |
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Designation : |
Executive Director |
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Name : |
Mr. Sudhir Agarwal |
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Designation : |
Director |
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Name : |
Mr. O P Garg |
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Designation : |
Director |
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Name : |
Mr. Manoj Garg |
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Designation : |
Director |
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Name : |
Mr. Ravi Sethi |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Rajeev Bais |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Soybean Meals. |
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Exports : |
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Products : |
Indian Soybean meals |
GENERAL
INFORMATION
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No. of Employees : |
About 400 |
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Bankers : |
State Bank of India, Shivpuri |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Krishna Gupta and Company Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5050000 |
Equity Shares |
Rs.10/- each |
Rs.50.500
millions |
FINANCIAL DATA
[all figures are in Rupees 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 |
50.500 |
50.500 |
50.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
193.100 |
172.600 |
150.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
243.600 |
223.100 |
201.400 |
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LOAN FUNDS |
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1] Secured Loans |
609.700 |
392.300 |
380.100 |
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2] Unsecured Loans |
274.500 |
253.300 |
144.200 |
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TOTAL BORROWING |
884.200 |
645.600 |
524.300 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1127.800 |
868.700 |
725.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
234.000 |
246.600 |
263.000 |
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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 |
527.900
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423.500 |
314.400 |
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Sundry Debtors |
405.100
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324.700 |
185.300 |
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Cash & Bank Balances |
41.800
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16.500 |
35.900 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
133.100
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85.700 |
59.000 |
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Total
Current Assets |
1107.900
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850.400 |
594.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
201.100
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218.200 |
125.400 |
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Provisions |
13.000
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10.100 |
6.500 |
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Total
Current Liabilities |
214.100
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228.300 |
131.900 |
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Net Current Assets |
893.800
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622.100 |
462.700 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1127.800 |
868.700 |
725.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
4244.500 |
4120.800 |
3529.200 |
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Other Income |
7.900 |
100.000 |
47.300 |
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Total Income |
4252.400 |
4220.800 |
3576.500 |
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Profit/(Loss) Before Tax |
32.000 |
24.900 |
28.100 |
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Provision for Taxation |
11.400 |
3.200 |
63.200 |
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Profit/(Loss) After Tax |
20.600 |
21.700 |
(35.100) |
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Expenditures : |
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Manufacturing Expenses |
134.400 |
67.800 |
63.800 |
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Administrative Expenses |
180.900 |
168.800 |
91.600 |
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Raw Material Consumed |
3714.100 |
3837.800 |
3289.300 |
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Employee Cost |
7.700 |
7.800 |
8.300 |
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Increase/(Decrease) in Finished Goods |
6.000 |
(21.900) |
0.600 |
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Interest |
58.700 |
47.200 |
24.400 |
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Miscellaneous Expenses |
1.400 |
1.200 |
1.600 |
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Power & Fuel |
97.700 |
67.900 |
50.800 |
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Depreciation & Amortization |
19.500 |
19.300 |
18.000 |
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Total Expenditure |
4220.400 |
4195.900 |
3548.400 |
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KEY RATIOS
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity
Ratio |
3.28 |
2.76 |
2.33 |
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Long
Term Debt-Equity Ratio |
1.83 |
1.18 |
0.47 |
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Current
Ratio |
1.75 |
1.41 |
1.14 |
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TURNOVER
RATIOS |
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Fixed
Assets |
10.92 |
10.74 |
9.82 |
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Inventory |
8.92 |
11.17 |
8.92 |
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Debtors |
11.63 |
16.16 |
27.76 |
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Interest
Cover Ratio |
1.55 |
1.53 |
2.15 |
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Operating
Profit Margin(%) |
2.6 |
2.22 |
2 |
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Profit
Before Interest And Tax Margin(%) |
2.14 |
1.75 |
1.49 |
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Cash
Profit Margin(%) |
0.94 |
0.99 |
-0.48 |
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Adjusted
Net Profit Margin(%) |
0.49 |
0.53 |
-0.99 |
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Return
On Capital Employed(%) |
9.09 |
9.04 |
7.16 |
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Return
On Net Worth(%) |
8.83 |
10.22 |
-15.94 |
LOCAL AGENCY
FURTHER INFORMATION
OPERATIONS:
The Company's overall performance was satisfactory during the year. The Total Turnover
and Other Income of the Company during the year was 4252.454 Millions compared
to Rs 4220.773 Millions for the previous year showing a growth of 0.75%
Benefiting from the improved manufacturing activity, the profit before
Interest, Depreciation and Tax increased from 85.168 Millions in FY 05-06 to
10141.700 Millions in FY 06-07. The company has transferred Rs. 20.500 Millions
to the General Reserves in the year under review.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry
structure and outlook
The company is engaged in the business of edible oils and fats.
Eligible oil industry in India is a predominantly retail demand driven
industry. The industry has been flourishing lately given the constant expansion
in retail segment coupled with increased earnings. Interestingly, the industry
is making a marked shift from what was once a Palm oil dominated to soya oil.
This fact is very much prevalent in India Oil Statistic.
The soya products industry, worth over Rs.800 millions (USS 22.2 million), has
been growing at around 10% and includes products like soya milk, nuggets, flour
and texturised soya foods and snacks. Several large units have corne up due to
their enormous export potential
The Soya Processing Industry continues to have tremendous potential. The
Government of Madhya Pradesh is taking special steps to encourage Soya Industry
in Madhya Pradesh. Soya processing units will be given facilities provided to
industries under the thrust sector. To encourage value addition, units
producing proteins and oil from de-oiled cakes will be given special
facilities. The inventory holding restriction will be removed.
Net
Profit
The Net Profit Before tax has
been increased to Rs. 31.969 Millions as compared to Rs. 24.970 Millions in F.Y
05-06.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.43.72 |
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UK Pound |
1 |
Rs.81.45 |
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Euro |
1 |
Rs.64.47 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
3 |
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OPERATING SCALE |
1~10 |
4 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
4 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
4 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
4 |
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--CREDIT LINES |
1~10 |
4 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
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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36 |
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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