MIRA
INFORM REPORT
|
Report Date : |
02.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
SARO RUBBER AND ALLIED PRODUCTS LIMITED |
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Registered
Office : |
19-2-217, |
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Country : |
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Financials (as
on) : |
30.06.2010 |
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Date of
Incorporation : |
15.12.1993 |
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Com. Reg. No.: |
01-16737 |
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CIN No.: [Company Identification
No.] |
U25199AP1993PLC016737 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDS03123B |
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|
Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturer of Rubber Sheets for Footwear, Hawai Slippers and
Insoles. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 440000 |
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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 an established company having satisfactory track. 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 normal for 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 – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
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 |
INFORMATION PARTED BY
|
Name : |
Mr. Srinivas |
|
Designation : |
Accountants |
|
Contact No.: |
91-40-24465253 |
|
Date : |
01.03.2011 |
LOCATIONS
|
Registered Office / Factory: |
19-2-217, |
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Tel. No.: |
91-40-24462655 |
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Fax No.: |
91-40-24465254 |
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E-Mail : |
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|
Area : |
3500 sq. ft. (Approximately) |
|
Location : |
Owned |
DIRECTORS
As on 31.12.2010
|
Name : |
Mr. Mirza Mushtaq Ahmed |
|
Designation : |
Managing Director |
|
Address : |
19-2-217, Mir Alam, Tank Road, Hyderabad-500 064, |
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Date of Birth/Age : |
31.03.1963 |
|
Date of Appointment : |
15.12.1993 |
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Name : |
Mr. Mirza Zeeshan Ahmed |
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Designation : |
Director |
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Address : |
19-2-217, Mir Alam, Tank Road, Hyderabad-500 064, |
|
Date of Birth/Age : |
03.09.1970 |
|
Date of Appointment : |
04.11.1994 |
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|
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Name : |
Mr. Mirza Hassan Ahmed |
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Designation : |
Director |
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Address : |
19-2-217, Mir Alam, Tank Road, Hyderabad-500 064, |
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Date of Birth/Age : |
01.11.1964 |
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Date of Appointment : |
26.05.2008 |
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|
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|
Name : |
Mr. Mohd Quadir Abrar Ul |
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Designation : |
Director |
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Address : |
19-2-217, Mir Alam, Tank Road, Hyderabad-500 064, |
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Date of Birth/Age : |
06.09.1974 |
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Date of Appointment : |
10.07.2008 |
KEY EXECUTIVES
|
Name : |
Mr. Srinivas |
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Designation : |
Accountants |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Names of Shareholders |
|
No. of Shares |
|
Mirza Mushtaq Ahmed |
|
300470 |
|
Mirza Zeeshan Ahmed |
|
256460 |
|
Mirza Hassan Ahmed |
|
329640 |
|
Mirza Mohsin Ahmed |
|
261940 |
|
Mirza Taj Ahmed |
|
276880 |
|
Mohammadi Begum |
|
500770 |
|
Amina Mushtaq |
|
171500 |
|
Amtul Majeed Ruhi hasan |
|
153000 |
|
Mirza Parvez Baig |
|
9000 |
|
Mirza Naveed Baig |
|
8000 |
|
Mirza Javeed Baig |
|
8000 |
|
Ahmed Jameel |
|
5000 |
|
Arshad Jameel |
|
5000 |
|
Mohd Rafi |
|
5000 |
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B M Kaji |
|
7490 |
|
B Panuwals |
|
3350 |
|
A Ramchander |
|
3500 |
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Abdul Samad Siddiqui |
|
20000 |
|
Syeda Asra Mohsin |
|
147500 |
|
Sofia Taj |
|
147500 |
|
Fareena Zeeshan |
|
80000 |
|
Saro Rubber Works |
|
500000 |
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Total |
|
3200000 |
As on 31.12.2010
|
Category |
Percentage |
|
Directors or relatives of Directors |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of rubber Sheets for Footwear, Hawai Slippers and
Insoles. |
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Products : |
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Imports : |
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Products : |
Raw Material |
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Countries : |
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Terms : |
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Selling : |
Cash and Credit (30 to 60 to 90 days) |
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Purchasing : |
Cash and Credit (30 to 60 to 90 days) |
PRODUCTION STATUS (AS ON 30.06.2009)
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Particulars |
Unit |
Installed
Capacity |
|
Sheets |
P.A. |
1.200 millions |
GENERAL INFORMATION
|
Customers : |
·
End Users ·
OEM’s |
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No. of Employees : |
80 (Approximately) |
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Bankers : |
State Bank of |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Ankit and Company Chartered Accountant |
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Address : |
4-3-338, |
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Associates : |
Saro Power and Infrastructure Limited |
CAPITAL STRUCTURE
As on 31.12.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4000000 |
Equity Shares |
Rs.10/- Each |
Rs.40.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3200000 |
Equity Shares |
Rs. 10 each |
Rs.32.000
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
32.000 |
32.000 |
32.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
77.535 |
96.994 |
89.159 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
109.535 |
128.994 |
121.159 |
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|
LOAN FUNDS |
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|
1] Secured Loans |
24.665 |
21.473 |
30.665 |
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2] Unsecured Loans |
21.755 |
25.945 |
30.770 |
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TOTAL BORROWING |
46.420 |
47.418 |
61.435 |
|
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
|
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TOTAL |
155.955 |
176.412 |
182.594 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
71.158 |
92.477 |
95.713 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
34.180 |
34.180 |
34.180 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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|
Inventories |
30.120
|
18.454
|
17.978 |
|
|
Sundry Debtors |
50.005
|
31.089
|
34.858 |
|
|
Cash & Bank Balances |
0.805
|
0.289
|
0312 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
20.244
|
14.226
|
11.423 |
|
Total
Current Assets |
101.174
|
64.058
|
64.571 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
47.601
|
11.817
|
7.205 |
|
|
Other Current Liabilities |
0.000
|
0.000
|
0.000 |
|
|
Provisions |
3.201
|
2.731
|
4.910 |
|
Total
Current Liabilities |
50.802
|
14.548
|
12.115 |
|
|
Net Current Assets |
50.372
|
49.510
|
52.456 |
|
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|
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|
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MISCELLANEOUS EXPENSES |
0.245 |
0.245 |
0.245 |
|
|
|
|
|
|
|
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TOTAL |
155.955 |
176.412 |
182.594 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
|
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SALES |
|
|
|
|
|
|
|
Income |
215.856 |
235.892 |
161.519 |
|
|
|
Other Income |
1.078 |
0.527 |
0.978 |
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|
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TOTAL (A) |
216.934 |
236.419 |
162.497 |
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|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
183.660 |
196.912 |
129.470 |
|
|
|
Salaries, wages and Benefits to Employees |
10.868 |
9.122 |
6.082 |
|
|
|
Administrative Expenses |
13.089 |
10.461 |
10.214 |
|
|
|
Increase/(Decrease) in Finished Goods |
(4.285) |
1.655 |
0.313 |
|
|
|
TOTAL (B) |
203.332 |
218.150 |
146.079 |
|
|
|
|
|
|
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|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
13.602 |
18.269 |
16.418 |
|
|
|
|
|
|
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|
Less |
FINANCIAL
EXPENSES (D) |
2.527 |
2.325 |
2.470 |
|
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|
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|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
11.075 |
15.944 |
13.948 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
7.904 |
7.653 |
8.869 |
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|
PROFIT BEFORE TAX
(E-F) (G) |
3.171 |
8.291 |
5.079 |
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Less |
TAX (H) |
0.000 |
0.000 |
0.000 |
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PROFIT AFTER TAX
(G-H) (I) |
3.171 |
8.291 |
5.079 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
90.894 |
83.577 |
79.554 |
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|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
0.320 |
0.320 |
0.320 |
|
|
|
Dividend Tax |
0.054 |
0.054 |
0.054 |
|
|
|
General Reserve |
0.600 |
0.600 |
0.600 |
|
|
BALANCE CARRIED
TO THE B/S |
5.892 |
0.974 |
83.659 |
|
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|
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|
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|
Earnings Per
Share (Rs.) |
0.99 |
2.59 |
- |
|
Expected Sales (2010-2011) : Rs.300.000 Millions
KEY RATIOS
|
PARTICULARS |
|
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
PAT / Total Income |
(%) |
1.46
|
3.50
|
3.12 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.47
|
3.51
|
3.14 |
|
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|
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.84
|
5.29
|
3.16 |
|
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|
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.03
|
0.06
|
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.89
|
0.48
|
0.60 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.99
|
4.40
|
5.32 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
30.06.2010 (Rs. in millions) |
30.06.2009 (Rs. in millions) |
30.06.2008 (Rs. in millions) |
|
Sundry Creditors |
47.601
|
11.817
|
7.205 |
|
Creditors for Capital Goods |
0.000
|
0.000
|
0.643 |
Trade Reference:
·
Baquai Rubber, Mumbai
·
Sarang Enterprises, Mumbai
FIXED ASSETS:
- Land
- Building
- Plant and
Machinery
- Electrical
Installation
- Furniture and
Fixture
- Office
Equipment
- Vehicles
- Fork Lift
- Tools and
Dies
- Capital Work
In Progress
FORM 8
|
Corporate
identity number of the company |
U25199AP1993PLC016737 |
|
Name of the
company |
SARO RUBBER AND ALLIED PRODUCTS LIMITED |
|
Address of the registered
office or of the principal place of
business in |
19-2-217, |
|
This form is for |
Modification of
charge |
|
Type of charge |
|
|
Particular of
charge holder |
State Bank of Email: sb.palle@sbi.co.in |
|
Nature of
instrument creating charge |
enhancement of
Rs. 3.000 millions in SME Care facility letter of
arrangement |
|
Date of
instrument Creating the charge |
05.02.2010 |
|
Amount secured by
the charge |
Rs. 21.500
millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of interest Interest 8% fixed
on Rs. 3.000 millions Terms of repayment Rs. 3.000
millions paid in 12 equal monthly installment from 28-2-2010 Margin raw material 25% stock in progress
25% finished Goods
25% Book Debts 40% Extent and operation of the charge Enhancment of Rs.
3.000 millions in SME Care Facility by
SBI |
|
Short particulars
of the property charged (Including location of the property) |
All immovable and
movable asset charge earlier remain same |
|
Particulars of
the present modification |
Earlier limit
with SBI Cash Credit 18.500 millions and now limit is Rs. 21.500 millions Cash Credit
18.500 millions SME Care 3.000 millions |
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.45.12 |
|
|
1 |
Rs.73.43 |
|
Euro |
1 |
Rs.62.32 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--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 |
|
|
|
--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 |
NO |
|
--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.