MIRA
INFORM REPORT
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Report Date : |
05.07.2011 |
IDENTIFICATION DETAILS
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Name : |
STANDARD SURFACTANTS LIMITED |
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Registered Office : |
8/15, Arya Nagar, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
13.07.1989 |
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Com. Reg. No.: |
20-10950 |
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Capital
Investment / Paid-up Capital : |
Rs.71.126 Millions |
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CIN No.: [Company
Identification No.] |
L24243UP1989PLC010950 |
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Legal Form : |
A Public Limited
Liability Company. The company's shares are listed on Stock Exchange |
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Line of Business : |
Manufacture and Distribution of Surfactants Products. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (45) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 604000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having
satisfactory track. Financial position of the company is improving. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. The company can be considered good for normal 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, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
8/15, Arya Nagar, |
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Tel. No.: |
91-512-2531762 |
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Fax No.: |
91-512-2548585 |
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E-Mail : |
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Website : |
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Factory 1 : |
24 A & B, New Sector
Industrial Area, Mandideep – 462046. Distt: Raisen |
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Factory 2 : |
Rania
: Plot no.252,268, Village
Umran, Post Akbarpur, Rania. |
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Factory 3 : |
Plot No. 114, Gondpur, Indusrial Area, Paonta Sahib,
(Himachal Pradesh) |
DIRECTORS
As on 31.03.2010
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Name : |
Mr. Pawan Kumar Garg |
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Designation : |
Chairman and Director |
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Name : |
Mr. Atul Kumar Garg |
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Designation : |
Director |
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Qualifications : |
M. Com. |
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Name : |
Mr. Purshotamdas Garg |
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Designation : |
Director |
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Qualifications : |
F.C.A. |
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Name : |
Mr. Satya Prakash Tayal |
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Designation : |
Director |
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Qualifications : |
M. Com. L.L.B. |
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Name : |
Mr. Ankur Garg |
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Designation : |
Director |
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Qualifications : |
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Name : |
Mr. Subhash Chandra Chugh |
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Designation : |
Director |
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Name : |
Mr. Abhishek Mehrotra |
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Designation : |
Director |
SHAREHOLDING PATTERN
AS ON 31.03.2011
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding
of promoters and Promoter Group |
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1. Indian |
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Individuals / Hindu Undivided Family |
3414100 |
47.77 |
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Sub Total (A)
(1) |
3414100 |
47.77 |
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(B) Public
Shareholding |
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1. Institutions |
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Mutual Funds / UTI |
6400 |
0.09 |
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Financial Institutions / Banks |
749900 |
10.49 |
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Sub Total (B)
(1) |
756300 |
10.58 |
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2. Non
Institutions |
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Bodies Corporate |
99300 |
1.39 |
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Individual shareholders holding nominal share capital up to Rs. 0.100
million |
2129400 |
29.79 |
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Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
37600 |
0.53 |
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Non Residents |
710900 |
9.95 |
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Sub Total (B)
(2) |
2977200 |
41.65 |
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(B) = (B) (1) +
(B) (2) |
3733500 |
52.23 |
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Total (A) + (B) |
7147600 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacture and Distribution of Surfactants Products. |
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Products : |
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PRODUCTION STATUS As on 31.03.2010
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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(i) Chemicals and surface-Active Agents |
M.T. |
- |
19550 |
10426 |
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(ii) Detergents |
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- |
48000 |
5994 |
GENERAL INFORMATION
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No. of Employees
: |
Not Available |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Financial Institution : |
Industrial Development Bank of |
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Auditors : |
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Name : |
Mittal Gupta and Company Chartered Accountant |
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Address : |
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Associates/Subsidiaries : |
(i) Standard Sulphonators
(Private) Limited (ii) Industrial Enterprisers, (iii) Standard Ventures Limited (iv) Standard Ganpati Merchandise
(Private) Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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10,000,000 |
Equity Shares |
Rs. 10/ each |
Rs.100.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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7,147,600 |
Equity Shares (7147600 Equity Shares of Rs. 10/- each have been allotted to IDBI Bank for consideration otherwise than cash) |
Rs. 10/each |
Rs.71.476
millions |
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Less : Calls unpaid from other than Directors |
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Rs. (0.350)
million |
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Total |
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Rs.71.126 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
71.126 |
71.126 |
71.126 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
79.962 |
74.678 |
70.570 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
151.088 |
145.804 |
141.696 |
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LOAN FUNDS |
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1] Secured Loans |
76.785 |
92.301 |
101.137 |
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2] Unsecured Loans |
32.389 |
26.178 |
27.389 |
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TOTAL BORROWING |
109.174 |
118.479 |
128.526 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
260262 |
264.283 |
270.222 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
123.781 |
135.804 |
146.417 |
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Capital work-in-progress |
0.881 |
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 |
28.344
|
31.257 |
28.138
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Sundry Debtors |
88.907
|
127.456 |
102.280
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Cash & Bank Balances |
12.111
|
5.239 |
13.122
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Other Current Assets |
0.000 |
0.000 |
0.000
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Loans & Advances |
47.449
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55.138 |
32.692
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Total
Current Assets |
176.811
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219.090 |
176.232 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
17.498
|
32.514 |
21.587
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Sundry Creditors |
23.047
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56.289 |
29.491
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Provisions |
0.666
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1.808 |
1.349
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Total
Current Liabilities |
41.211
|
90.611 |
52.427 |
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Net Current Assets |
135.600
|
128.479 |
123.805 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
260.263 |
264.283 |
270.222 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Net Revenue |
423.417 |
658.673 |
436.211 |
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Other Income |
27.512 |
8.132 |
9.726 |
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TOTAL (A) |
450.929 |
666.805 |
445.937 |
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Less |
EXPENSES |
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Purchases |
164.185 |
186.155 |
131.527 |
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Raw Material Consumed |
187.420 |
355.412 |
208.017 |
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Manufacturing and Other Expenses |
68.507 |
94.048 |
66.711 |
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Prior Period Items |
0.092 |
0.317 |
0.414 |
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Increase / ( Decrease ) in Stock |
1.220 |
[0.444] |
[0.064] |
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TOTAL (B) |
421.424 |
635.488 |
406.605 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
29.505 |
31.317 |
39.332 |
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Less |
FINANCIAL
EXPENSES (D) |
10.029 |
12.617 |
16.329 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
19.476 |
18.700 |
23.003 |
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Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
13.114 |
13.912 |
13.449 |
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PROFIT BEFORE
TAX (E-F) (G) |
6.362 |
4.788 |
9.554 |
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Less |
TAX (I) |
1.078 |
0.680 |
0.450 |
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PROFIT AFTER TAX
(G-I) (J) |
5.284 |
4.108 |
9.104 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
38.302 |
34.194 |
25.090 |
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BALANCE CARRIED
TO THE B/S |
43.586 |
38.302 |
34.194 |
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IMPORTS |
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Purchase of Raw Materials |
3.301 |
5.061 |
3.797 |
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Purchase of Spares and Capital Goods |
0.779 |
0.917 |
0.000 |
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TOTAL IMPORTS |
4.080 |
5.978 |
3.797 |
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Earnings Per Share
(Rs.) |
0.74 |
0.58 |
1.31 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
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Sales Turnover |
67.080 |
98.060 |
132.930 |
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Total Expenditure |
59.530 |
89.330 |
126.250 |
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PBIDT (Excl
OI) |
7.550 |
8.730 |
6.680 |
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Other Income |
0.000 |
0.000 |
0.000 |
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Operating
Profit |
7.550 |
8.730 |
6.680 |
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Interest |
3.010 |
3.290 |
2.750 |
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Exceptional
Items |
0.000 |
0.000 |
0.000 |
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PBDT |
4.540 |
5.440 |
3.930 |
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Depreciation |
3.300 |
3.100 |
2.800 |
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Profit
Before Tax |
1.240 |
2.340 |
1.130 |
|
Tax |
0.200 |
0.600 |
0.100 |
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Reported PAT |
1.040 |
1.740 |
1.030 |
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Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
1.040 |
1.740 |
1.030 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.17
|
0.62 |
2.04
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Net Profit Margin (PBT/Sales) |
(%) |
1.50
|
0.73 |
2.19
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Return on Total Assets (PBT/Total Assets} |
(%) |
2.12
|
1.35 |
2.96
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Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
0.03 |
0.07
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Debt Equity Ratio (Total Liability/Networth) |
|
1.00
|
1.43 |
1.28
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Current Ratio (Current Asset/Current Liability) |
|
4.29
|
2.42 |
3.36
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LOCAL AGENCY FURTHER INFORMATION
OPERATIONAL REVIEW :
Sales decreased to
Rs.492.758 millions from Rs. 830.121 Millions in the previous year. However,
Profit before tax increased to Rs.6.362 Millions during the year from Rs.4.788
Millions in the previous year.
Interest expenses
for the year decreased 20.51% to Rs. 10.029 Millions from Rs.12.617 Millions in
the previous year.
Depreciation was
at Rs. 13.113 Millions as against Rs. 13.911 Millions in the previous year.
FUTURE PROSPECTS
Company continues
to focus on its core businesses. In meanwhile, Company has been appointed as
Del Credere
Associate cum
Consignment Stockist of Indian Oil Corporation (IOC) for Polyethylene and
Polypropylene. They are confident that in the current financial year, due to
improvement in productivity and product range, Profit before tax should also
increase.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT FOR THE YEAR 2009-10
Disclaimer
Readers are cautioned
that this discussion and analysis contains forward- looking statements that
involve risks and uncertainties. When used in this discussion, the words
"anticipate", "believe", "estimates",
"intend", "will", and "expected" and other
similar expressions as they relate to the company or its business are intended
to identify such forward-looking statements. The Company undertakes no
obligation to publicity update or revise any forward-looking statements,
whether as a result of new information, future events, or otherwise. Actual
results, performances or achievements, risks and opportunities could differ
materially from those expressed or implied in these forward- looking
statements. Readers are cautioned not to place undue reliance on these
forward-looking statements as these are relevant at a particular point of time
and adequate restrain should be applied in their use for any decision making or
formation of an opinion The following discussion and analysis should be read in
conjunction with the Company's Financial Statements included herein and the
notes thereto
Review of
Economic Scenario and impact of Union Budget-2010.
The Economic Survey
2009-10 presented by the Hon'ble Finance Minister to the Parliament has
projected an economic growth of 8.75 percent in 2009-10 and further states that
India is on its way to becoming world's fastest growing economy in four years.
The survey further states that in 2011-12, the country's economy would bounce
back to a high 9 percent growth. The expectations from the Union Budget 2010-11
centered on how the economy would attain fiscal consolidation, meet the
impending challenges of burgeoning inflation and the game plan to revitalize
the wanting agricultural sector in India.
Business Outlook
The company has chalked
out massive expansion/ diversification plan to build size and manufacture/
trade such product to become more competitive. These expansion plans will help
the company to create a foothold in the domestic market.
Fixed Assets:
- Trade Mark
- Goodwill
- Free
- Plant and Machinery
- Furniture and Fixtures
- Office Equipment
- Computers
- Vehicles
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.45 |
|
|
1 |
Rs.71.52 |
|
Euro |
1 |
Rs.64.62 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
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|
--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 |
|
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--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.