MIRA
INFORM REPORT
|
Report Date : |
11.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
KARNATAKA SOAPS AND DETERGENTS LIMITED |
|
|
|
|
Formerly Known As : |
GOVERNMENT SOAP FACTORY AND SANDALWOOD OIL FACTORIES |
|
|
|
|
Registered Office : |
P.B. No. 5531, Poona – Bangalore High Way, B – 560086, Bangalore – 560
055, Karnataka |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
09.07.1980 |
|
|
|
|
Com. Reg. No.: |
003871 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U85110KA1980SGC003871 |
|
|
|
|
Legal Form : |
A Public Limited Company, owned by Karnataka State Government. |
|
|
|
|
Line of Business : |
Manufacturer and Exporter of Cosmetics, Talcum Powder, Soap Mysore
Sandal, Toile Soaps, Incense Sticks. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 1666455 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established Karnataka State Government company
having well known products. Trade relations are fair. Financial position is good.
Payments are usually correct. Lenders and creditors can feel comfortable when this company is backed
by State Government. It can be considered good for any normal business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
P.B. No. 5531, Poona – Bangalore High Way, B – 560086, Bangalore – 560
055, Karnataka, India. |
|
Tel. No.: |
91-80-23370469/ 23379914/ 23371103/ 04/ 05 |
|
Fax No.: |
91-80-23370498 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
|
Name : |
Mr. B H Anil Kumar, IAS |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
21.07.1962 |
|
Date of Appointment : |
05.04.2007 |
|
|
|
|
Name : |
Mr. K.M. Sivakumar, IAS |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
19.02.1952 |
|
Date of Appointment : |
25.05.2005 |
|
|
|
|
Name : |
Ms. Meera Saksena, IAS |
|
Designation : |
Director |
|
Date of Birth/Age : |
20.09.1951 |
|
Date of Appointment : |
10.11.2004 |
|
|
|
|
Name : |
Dr. Mithileshar Jha |
|
Designation : |
Director |
|
Date of Birth/Age : |
05.02.1954 |
|
Date of Appointment : |
13.09.2000 |
|
|
|
|
Name : |
Dr. Chandrashekaran |
|
Designation : |
Director |
|
Date of Birth/Age : |
15.11.1945 |
|
Date of Appointment : |
19.08.2002 |
|
|
|
|
Name : |
Dr. Modireddy |
|
Designation : |
Director |
|
Date of Birth/Age : |
08.12.1948 |
|
Date of Appointment : |
11.09.2007 |
|
|
|
|
Name : |
Mr. Dharpan Jain, IAS |
|
Designation : |
Director |
|
Date of Birth/Age : |
30.08.1977 |
|
Date of Appointment : |
11.09.2007 |
|
|
|
|
Name : |
Mr. Veerappa Parmeshwarappa Baligar |
|
Designation : |
Director |
|
Address : |
No.11, 5th C Creoss, 16th Main, 2nd
Stage, IAS Officers Colony, BTM Layout. Bangalore – 560 076, Karnataka,
India. |
|
Date of Birth/Age : |
06.11.1954 |
|
Date of Appointment : |
28.02.2008 |
|
|
|
|
Name : |
Dr. D.S. Ashwath |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. M. V. Thrinethra |
|
Designation : |
General Manager - Foreign Trade |
|
|
|
|
Name : |
Dr. Girish |
|
Designation : |
Export Manager |
|
|
|
|
Name : |
Mr. G.S. Bhatt |
|
Designation : |
Finance Manager |
|
|
|
|
Name : |
Mr. Bore Gowda |
|
Designation : |
Purchasing Manger |
|
|
|
|
Name : |
Mr. K.V. Patil |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Padmanabha Reddy K |
|
Designation : |
Production Manager |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
|
Names of Shareholders |
|
No. of Shares |
|
Governer of Karnataka |
|
318215 |
|
Mr. Mahendra Jain |
|
1 |
|
M S Ganapathy |
|
1 |
|
Mr. B H Anil Kumar, IAS |
|
2 |
|
I Rajeshwari |
|
1 |
|
N T Naik |
|
1 |
|
Total |
|
318221 |
|
|
|
|
|
Equity Share
Break-up (as on 26.09.2007) |
|
Percentage of
Holding |
|
Government (Central and State) |
|
100 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Cosmetics, Talcum Powder, Soap Mysore
Sandal, Toile Soaps, Incense Sticks. |
|
|
|
|
Products : |
Mysore
Sandal Soap Mysore
Sandal Talc |
|
|
|
|
Exports : |
|
|
Countries : |
Europe, Middle East, France |
GENERAL
INFORMATION
|
Bankers : |
Corporation Bank Rajajinagar, Bangalore – 560 010, Karnataka, India. |
|
|
|
|
|
|
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
Velichety and Company Chartered Accountants |
|
Address : |
Sri Veerabhadra Nilaya, 27/1, 2nd Cross, K H Road, RRMR
Extension, Bangalore – 560 027, Karnataka, India. |
|
|
|
|
Associates/Subsidiaries : |
NIL |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
350000 |
Equity Shares |
Rs.1000/- Each |
Rs.350.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
318221 |
Equity Shares |
Rs.1000/-
Each |
Rs.318.221Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
318.221 |
318.221 |
318.221 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
15.070 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
(5.327) |
(25.573) |
|
|
NETWORTH |
333.291 |
312.894 |
292.648 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
16.629 |
0.000 |
39.448 |
|
|
2] Unsecured Loans |
129.995 |
199.911 |
214.406 |
|
|
TOTAL BORROWING |
146.624 |
199.911 |
253.854 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
479.915 |
512.805 |
546.502 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
58.931 |
60.360 |
63.594 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
350.856
|
341.214 |
443.775 |
|
|
Sundry Debtors |
80.874
|
68.837 |
80.322 |
|
|
Cash & Bank Balances |
312.345
|
195.716 |
112.206 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
72.547
|
94.458 |
124.458 |
|
Total
Current Assets |
816.622
|
700.225 |
760.761 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
292.624
|
170.706 |
207.051 |
|
|
Provisions |
115.944
|
98.240 |
88.834 |
|
Total
Current Liabilities |
408.568
|
268.946 |
295.885 |
|
|
Net Current Assets |
408.054
|
431.279 |
464.876 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
12.930 |
21.166 |
18.032 |
|
|
|
|
|
|
|
|
TOTAL |
479.915 |
512.805 |
546.502 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
|
1195.803 |
1109.211 |
|
|
Other Income |
|
19.004 |
17.220 |
|
|
Total Income |
|
1214.807 |
1126.431 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
43.357 |
23.679 |
|
|
Provision for Taxation |
|
7.501 |
5.800 |
|
|
Profit/(Loss) After Tax |
|
35.856 |
17.879 |
|
|
|
|
|
|
|
|
Export Value |
|
51.969 |
35.717 |
|
|
|
|
|
|
|
|
Import Value |
|
77.136 |
95.292 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Financial Charges |
|
4.648 |
5.389 |
|
|
Depreciation & Amortization |
|
3.605 |
3.483 |
|
|
Other Expenditure |
|
1163.197 |
1093.880 |
|
Total Expenditure |
|
1171.450 |
1102.752 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
2.95
|
1.59 |
NA |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.63
|
2.13 |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.95
|
3.11 |
NA |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.08 |
NA |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.67
|
1.50 |
1.88 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.00
|
2.60 |
2.57 |
LOCAL AGENCY
FURTHER INFORMATION
|
Name of the company |
KARNATAKA SOAPS AND DETERGENTS LIMITED |
|
Presented By |
Corporation Bank Rajajinagar, Bangalore – 560 010, Karnataka, India. |
|
1) Date and description of instrument creating the change |
F.35 A dated
22.12.1990 F.35 dated 22.12.1990 F.35 BD dated
22.12.1990 Continuity letter
dated 22.12.1990 (all agreement
pertains to single charge) |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs.4.450 Millions |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Interest at 15%
p.a. Overdue interest
at 17% p.a. |
|
5) Name and Address and description of the person entitled to the charge. |
Corporation Bank Rajajinagar, Bangalore – 560 010, Karnataka, India. |
|
6) Date and brief description of instrument modifying the charge |
NA |
|
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. |
NA |
HISTORY
The
Government Soap Factory was established by the Maharaja of Mysore his Highness
Nalwadi Krishnaraja Wodeyar and Diwan Sir.M.Visvesvaraya during the year 1916.
The Sandalwood Oil Division, Mysore was established during the year 1916 and
Sandalwood Oil Division at Shimoga was established during the year 1944.
In 1980, Government of Karnataka integrated the Sandal oil factories at Mysore
and Shimoga and Government Soap Factory at Bangalore and formed subject, which
has been incorporated as a Company under Company's Act 1956.
BUSINESS
The Sharabha is a mythological creation from the Puranas.
It is illustrated as - the body of a lion with the head of an elephant. It
embodies the combined virtues of Wisdom, Courage and Strength. It was adopted
as the official emblem of KSDL to symbolize the philosophy of the Company.
Subject has a long-standing tradition of maintaining the highest quality
standards right from the selection of raw materials to processing and packaging
of the end product. It's full-fledged quality control and R and D Departments
single-mindedly pursue quality enhancement and keep pace with the changing
preference and perceptions of customers.
Subject is the true inheritor of India's golden sandalwood legacy. Having over
89 years of experience in this field. subject to-day is one of the largest
producers of Sandalwood oil and Sandal soap in the world, with a turn-over of
Rs.1250.000 Millions.
Subject's products are regularly exported to UAE, Bahrain, USA, Saudi Arabia,
Kuwait, South East Asian countries etc.
Subject's Bangalore-complex has production facilities for Fatty Acids, Toilet
Soaps and Detergents. The Soap plant has one of the largest production
facilities in the country with an installed capacity of 26,000 tones per annum.
A unique feature of Subjects Soap plant is its flexibility to process as many
as ten different varieties of soaps simultaneously.
Subject also undertakes orders for manufacture of soaps as per the customers'
specifications on mutual understanding.
Subject's product range includes
Toilet soaps, Incense sticks, coming in different and distinct fragrances like
Sandal, Jasmine, Rose etc. and range includes Talcum Powder, Detergent also.
Subject considers quality as one of the principal strategic objective to
guarantee growth and leadership in the markets of its operation. They strive to
offer superior quality Products and services.
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 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.45.12 |
|
UK Pound |
1 |
Rs.79.60 |
|
Euro |
1 |
Rs.63.83 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
56 |
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 |
|