Swami Plast Industries Reportswamiplast.com/Swami_Plast_Industries_Report.pdf · parameters of the organization / project. ... SSI Registration Number 041910015/PMT/SSI Category

NSIC – D&B – SMERA Rating Report

Date of Report : 28th January, 2014 * Valid Till : 27th January, 2015 Legal Form : Proprietorship Concern

* This rating is a one-time exercise and does not envisage automatic surveillance. This rating is valid for a period of one year; subject to however, no significant changes / events occur during that period which could materially affect the business and financial parameters of the organization / project. SMERA recommends that the user of the rating may seek a review of the rating, if the rated entity experiences significant changes / events in the business. Recommended for review in next financial year.

NSIC – D&B – SMERA Rating : SE 3B (Moderate Performance Capability and Moderate Financial Strength)

RATING INDICATORS

Financial Strength

High Moderate Low

Performance Capability

Highest SE 1A SE 1B SE 1C

High SE 2A SE 2B SE 2C

Moderate SE 3A SE 3B SE 3C

Weak SE 4A SE 4B SE 4C

Poor SE 5A SE 5B SE 5C

SWAMI PLAST INDUSTRIES

Plot No. 748/2, GIDC Industrial Estate, Makarpura,

Vadodara – 390 010 Gujarat India


1

SNAPSHOT

D&B D-U-N-S® Number 92-334-6709

Entity Name SWAMI PLAST INDUSTRIES

Administrative Office & Factory Address

Plot No. 748/2, GIDC Industrial Estate, Makarpura, Vadodara – 390 010 Gujarat India

Telephone (91) (265) (6533125) (91) (265) (3049125)

Telex (91) (265) (2646015)

Website www.swamiplast.com

Email ID [email protected] [email protected]

Line of Business Manufacturing of plastic Packaging Machinery & Plastic Packaging Material.

Chief Executive Mr. Sanjay Shukla Proprietor

NSIC - D&B - SMERA Rating SE 3B (Moderate Performance Capability and Moderate Financial Strength)

SSI Registration Number 041910015/PMT/SSI

Category of Promoter General

Establishment Date 17/Apr/1997

Total Employees 07

Sales Territory Domestic


2

COMPANY PROFILE BACKGROUND Swami Plast Industries (hereafter referred as subject) was established in the 1997 as a

proprietorship concern by Mr. Sanjay Shukla.

OPERATIONS Subject is engaged in manufacturing of plastic Packaging Machinery & Plastic Packaging Material.


3

FINANCIAL SNAPSHOT

COMPARATIVE FIGURES (`̀̀̀ IN THOUSANDS)

Statement End Date 31/Mar/2011 31/Mar/2012 31/Mar/2013

Current Assets 2,025 3,476 2,884

Current Liabilities 1,846 3,037 2,465

Working Capital 179 439 419

Other Tangible Assets 1,000 887 1,355

Non-Current Liabilities 257 132 314

Tangible Net Worth 922 1,194 1,460

Secured Loans 1,512 2,022 1,973

Unsecured Loans 0 31 0

Cash & Bank 9 349 140

Accounts Receivable 520 1,556 1,227

Fixed Assets 988 863 1,264

Accounts Payable 534 889 715

Inventory 1,453 1,414 1,437

Income 3,611 5,538 7,324

Net Profit(Loss) 295 544 511


4

SALIENT FEATURES

STRENGTHS RISK FACTORS

• Subject is in this line of business from last

16 years.

• Revenue has increased during the period

under study.

• Net operating profit margin and net profit

margin have declined in FY 2013 over FY

2012.

• Current ratio is stands at 1.17 as on

31/Mar/2013.

OTHER INFORMATION

• As per sales tax return, subject has earned revenue of ` 7,727 (in thousands) for the period from

April to December, 2013.

• Gross profit margin has remained stable in FY 2013 over FY 2012.

• Collection days stand at 63 for FY 2013.

• Payable days stand at 52 for FY 2013.

• Interest coverage ratio stands at 2.69 for FY 2013.

• Tangible net worth and capital employed have increased during the period under study.

� Fixed assets have increased in FY 2013 over FY 2012 mainly on account of addition made to

plant & machinery.

• Details related to pollution control norms for air & water is not available with SMERA.

• As informed by management, subject has taken insurance cover for Building, Stock and plant &

machinery.


5

FINANCIAL TREND

3,611

5,538

7,32453.36

32.25

0.00

10.00

20.00

30.00

40.00

50.00

60.00

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2011 2012 2013

Percentage

`̀̀̀('000)

Sales

Sales Sales Growth

295

54451184.41

-6.07

-20.00-10.000.0010.0020.0030.0040.0050.0060.0070.0080.0090.00

0

100

200

300

400

500

600

2011 2012 2013

Percentage

`̀̀̀('000)

Profit

Profit Profit Growth

8.17

9.82

6.98

11.27

13.81

11.26

21.27 19.8420.18

0.00

5.00

10.00

15.00

20.00

25.00

2011 2012 2013

Percentage

Profit Margins

Net Profit Margin Operating Profit Margin

Gross Profit Margin


6

1,512 2,022 1,973

0 31 0

922 1,194 1,460

0%

20%

40%

60%

80%

100%

2011 2012 2013

`̀̀̀('000)

Capital Employed Pattern

Tangible Net Worth Unsecured Loan Secured Loan

0.28 0.11 0.22

1.641.72

1.35

0.00

0.50

1.00

1.50

2.00

2011 2012 2013

Tim

es

Capital Structure

Debt-Equity Ratio

Total Borrowing to Tangible Networth Ratio

32.00

45.56

35.00

16.72

23.56 24.03

0.00

10.00

20.00

30.00

40.00

50.00

2011 2012 2013

Percentage

Returns

Return on Net worth Return on Capital Employed

1.10

1.14

1.17

0.31

0.680.59

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2011 2012 2013

Tim

es

Liquidity

Current Ratio Quick Ratio

1,512 2,0531,973

4.043.57

2.69

0.00

1.00

2.00

3.00

4.00

5.00

0

500

1,000

1,500

2,000

2,500

2011 2012 2013

Tim

es

`̀̀̀('000)

Total Borrowing Vs Interest Coverage Ratio

Total Borrowing Interest Coverage Ratio

205229

144

53

105

62

0

83

51

147

93 72

0

50

100

150

200

250

2011 2012 2013

In D

ays

Working Capital Management

Gross Current Assets Days Collection Days

Payable Days Inventroy Days


7

FISCAL BALANCE SHEET (`̀̀̀ IN THOUSANDS)

Date 31/Mar/2011 31/Mar/2012 31/Mar/2013

Assets

Current Assets

Cash & Bank 9 349 140

Inventory / Work-in-Progress 1,453 1,414 1,437

Accounts Receivable 520 1,556 1,227

Other Current Assets 43 157 80

Total Current Assets 2,025 3,476 2,884

Fixed Assets

Land & Buildings 460 414 373

Plant & Equipment 438 373 775

Other Fixed Assets 90 76 116

Total Fixed Assets 988 863 1,264

Investments

Other Investments 12 24 91

Total Investments 12 24 91

Total Assets 3,025 4,363 4,239


8

Liabilities

Current Liabilities

Accounts Payable 534 889 715

Secured Loans from Banks / Financial Institutions

1,255 1,890 1,659

Due to Relatives / Friends / Group Entities / Related Entities

0 31 0

Advances from Customers 57 227 56

Other Current Liabilities 0 0 35

Total Current Liabilities 1,846 3,037 2,465

Non-Current Liabilities

Secured Loans from Banks / Financial Institutions

257 132 314

Total Non-Current Liabilities 257 132 314

Equity

Capital 922 1,194 1,460

Total Equity 922 1,194 1,460

Total Liabilities 3,025 4,363 4,239


9

PROFIT & LOSS ACCOUNT (`̀̀̀ IN THOUSANDS)

Financial Year 2011 2012 2013

Months Covered By P/L 12 12 12

Income 3,611 5,538 7,324

Cost of Sales (2,843) (4,439) (5,846)

Employee Cost (138) (271) (449)

Rent / Repairs and Maintenance (5) (5) (7)

Electricity Charges (123) (189) (159)

Job Work Charges 0 0 (110)

Other Direct Expenses (165) (45) (40)

Raw Material Consumption Cost (2,412) (3,929) (5,081)

Gross Profit (Loss) 768 1,099 1,478

Depreciation/Amortization (131) (125) (195)

General Operating Expenses (230) (209) (458)

Net Operating Profit (Loss) After Depreciation and Before Interest

407 765 825

Finance Expenses (112) (221) (314)

Net Profit(Loss) 295 544 511

Above financials are taken from CA certified accounts of the subject.


10

FINANCIAL RATIOS

Financial Year 2011 2012 2013

Growth Ratios

Sales Growth (%) - 53.36 32.25

Net Profit Growth (%) - 84.41 (6.07)

Turnover Ratios

Collection Period (Days) 53 105 63

Account Payable (Days) 69 84 52

Inventory Holding period (Days) 147 94 72

Gross Working Capital (Related to operation) to sales (Days)

205 230 144

Sales to Net Working Capital (Times) 20.17 12.62 17.48

Assets to Sales (%) 83.77 78.78 57.88

Fixed Assets Turnover Ratio 3.65 6.42 5.79

Profitability Ratios

Gross Profit Margin (%) 21.27 19.84 20.18

Operating Profit Margin (%) 11.27 13.81 11.26

Net Profit Margin (%) 8.17 9.82 6.98

Return on Assets (%) 9.75 12.47 12.05

Return on Net Worth (Return on Equity) (%) 32.00 45.56 35.00

Return on Capital Employed (%) 16.72 23.56 24.03

Liquidity Ratios

Quick Ratio 0.31 0.68 0.59

Current Ratio 1.10 1.14 1.17

Gearing & Solvency Ratios

Fixed Assets to Tangible Net Worth (%) 107.16 72.28 86.58

Current Liabilities to Tangible Net Worth (%) 200.22 254.36 168.84

Total Liabilities to Tangible Net Worth (%) 228.09 265.41 190.34

Total Borrowing to Tangible Net Worth Ratio 1.64 1.72 1.35

Debt Equity Ratio 0.28 0.11 0.22

Interest Coverage Ratio 4.04 3.57 2.69

Debt / NCA 3.55 3.07 2.79


11

AUDITOR

V.J. Amin & Co, (Chartered Accountants) 506, Gayatri Chambers, R C Dutt Road, Alkapuri, Vadodara – 390 007 Gujarat India


12

BANK Information in this report may not represent the full extent of subject’s bank relationships.

Name of the Bank Bank of India

Branch Mahatma Gandhi Road Branch, Gujarat

Dealing Since 2005

CREDIT FACILITIES As informed by management, Subject enjoys the following credit facilities from the bank as on

20/Mar/2012

(` in Lakhs)

Facilities Availed * Amount

Sanctioned Amount

Disbursed Amount

Outstanding

Cash Credit 12.00 12.00 9.22

Over Draft against FD 6.98 6.98 0.35

Machinery Loan 4.00 4.00 1.80

Total 22.98 21.25 11.37

* Above credit facilities were sanctioned on 26/Jun/2012.

BANK STATEMENT ANALYSIS

Note: No independent confirmation was obtainable from the banker.

Months

no.50270410000006

(Date; Amount in `̀̀̀) % Utilisation

Inward Cheque Returns

(in No's)

Overdrawings

(in days)

Penal Interest

(in `̀̀̀)

May, 2013 30/05 9,360.00 77 0 0 0

Jun, 2013 30/06 9360 91 0 0 0

Jul, 2013 30/07 9360 89 0 0 0

Aug, 2013 30/08 9360 94 0 0 0

Sept, 2013 30/09 9360 80 0 0 0

Oct, 2013 30/10 9360 88 0 0 0

Total 87 0 0 0


13

INSURANCE � As informed by management, Subject has taken insurance cover for building, stock and plant &

machinery.


14

CAPITAL DETAILS

Proprietor’s Capital ` 1,460 (in Thousands) as on 31/Mar/2013

PROPRIETOR’S DETAILS

Name Sanjay Shukla

Year of Birth 1968

Current Designation Proprietor

Appointed to Present Position 1997

Started with Subject 1997

Educational Qualification DME

Experience in Similar Industry Since

1997

Active in Daily Operations Yes

Founder of Subject Yes

Residential Address

17, Mangal Murti Society, Opposite Mother School, Gotri Road, Vadodara – 390 021 Gujarat India

Permanent Account Number ALUPS5896F

Aadhaar Card Number 7611 1639 5710

Mobile Number (91) (9825063425)

Email ID [email protected]

Net Worth ` 14.60 (in lakhs) as on 31/Mar/2013


15

DEPARTMENTAL HEADS

Executive Name Position Held Educational Qualification

Year of Joining

Years of Experience

Sanjay M Shukla Head Administration DME 1997 17

Kavita Patel Head Accountant M. Com 2011 05

Rakesh Patanwadia Head Praduction DME 2005 10

Vasant Joshi Head Marketing MBA 2012 02

Chirag Patel Head Sales B.com 1997 20

SALES MIX

Particulars Sales Mix (%)

FY 2011 FY 2012 FY 2013

Manufacturing 100.00 100.00 97.01

Job Work 0.00 0.00 2.99

Total 100.00 100.00 100.00


16

PRODUCT CONTRIBUTION TO TOTAL SALES

Product Name Product Contribution To Total Sales (%)

FY 2011 FY 2012 FY 2013

Packaging Machinery 30.00 30.00 30.00

Packaging Material 70.00 70.00 70.00

Total 100.00 100.00 100.00

PRODUCTION DETAILS (IN NOS) FY 2013

Product Description Actual Output Production Capacity % Utilized

Packaging Machinery 36 48 75.00

Packaging Material 1,20,000 1,50,000 80.00

FY 2012



Packaging Material 70,000 1,40,000 50.00

FY 2011



Packaging Material 50,000 1,00,000 50.00


17

PURCHASES

Particulars FY 2011 FY 2012 FY 2013

(%) (%) (%)

Domestic 100 100 100

PURCHASING TERMS

Domestic Open account 30 days

SUPPLIERS

Suppliers Name and Location Materials Purchased

Length of Relationship (Years)

% Share in Purchases

Time Techno Plast Limited, Bombay

Plastic 03 20

Dimple Bag & Synthetics Private Limited, Halol

Pet Sheet 04 20

Shree Yogeshwar Trading Co, Vadodara

Pet Sheet 04 15

Spearepet Private Limited, Hyderabad

L.D. Sheet 03 10

Harsh Trading Co, Daman

PUC Sheet 02 10


18

SALES

Particulars FY 2011 FY 2012 FY 2013

(%) (%) (%)

Domestic 100 100 100

SELLING TERMS

Domestic Open account 30 to 60 days

CUSTOMERS Subject maintains around 30 to 70 accounts / customers. MAJOR CUSTOMER TYPES

� Manufacturer(S)

� Pharmaceticual Industrial

MAJOR CUSTOMERS

Customer Name and Location Length of

Relationship (Years) % Share in Sales

P C Orthopads, Vadodara

15 03

Aavid Thermalloy India Private Limited, Vadodara

03 15

Aakar Scientific Instruments Private Limited, Vadodara

07 02

Prime Components, Vadodara

04 02

Agni Fiber Boards Private Limited, Vadodara

08 03


19

LIST OF ORDERS IN HAND (` in Lakhs)

Name of the Customer Product Description Quantity (in Units)

Order Value

Dr. Virendra Sunderlal Machine 1 3.00

Aavid Thermalloy India Private Limited Plastic Packing Material

1,000 0.4

Rediant Parenterala Limited 20,000 0.38

Total 21,001 3.78

Above orders will be executed till 31/Jan/2014

EMPLOYEE(s) DETAILS

Particulars Current Year Previous year

Total Employees 08 07

Permanent Employees 03 03

Production Workers 05 04


20

CIBIL DEFAULTERS LIST As observed from the CIBIL Defaulters list that is publicly available, the subject is not enlisted as a defaulter. AWARDS / REGISTRATIONS / MEMBERSHIPS / CERTIFICATES

Certificates Membership/Registration/Consent No. Date of Expiry

VAT 24191602288 V -

CST 24691602288 C -

PAN ALUPS5896F -

VADODARA MUNICIPAL CORPORATION

B‐33/2267 31/Mar/2014

POLLUTION (AIR) Details are not available with SMERA

POLLUTION (WATER)

• Subject has a membership of V.C.C.I. (Vanuatu Chamber of Commerce and Industry)


21

SITE VISIT (CONDUCTED ON 04/JAN/2014)

Address

Plot No. 748/2, GIDC Industrial Estate, Makarpura, Vadodara – 390 010 Gujarat India

Size of Premise Land - 5,000 Sq. ft. Building – 3,000 Sq. ft.

Site Details Type Industrial Area

Site Location Side Road

Location Used As Administrative Office & Factory Address

Kind of Buildings RCC Construction

Is unit using any Asbestos Roof No

On Floor Ground Floor

Total Floors in Building Ground Floor

Type of Occupation Owned

Owner’s Name Subject

Does Group Companies share the Office No

Is the office furnished Yes

Any Fire Extinguishers Yes

No. of people working at this location 07

Any child labour involved No

Does Proprietor sit at the site location Yes

Were Proprietor present at the time of interview

Yes

Are there any competitors around No

Are there any nameplates outside the premises Yes

Major Raw Material / Purchases Pet Sheet, LD Sketch, PUC Sheet etc.

Power Load Available 3 HP

No. of shifts that the unit is operating Single shift per day

Site equipped with following facilities:

Telephone Yes

Fax No

Internet Yes

Printer Yes

Modem Yes

Power Back up Yes

UPS Yes

Security Guards Yes

Signage, Name Plates Yes

Name of the Executive contacted Mr. Sanjay Shukla, Proprietor


22

ONGOING / FUTURE EXPANSION PROJECTS � As informed by management, subject does not have any ongoing expansion projects as on date.


23

GLOSSARY OF KEY RATIOS AND THEIR COMPUTATION

Ratios Description

Growth Ratios % change in variable in the current year over the previous (base) year

Sales Growth % change in sales in the current year over the previous year

Net Profit Growth % change in net profit in the current year over the previous year

Turnover Ratios

Collection Period (Days) Collection Days is calculated by dividing the days in a year by the debtors' turnover. The collection period represents the number of days’ worth of credit sales that is blocked with the debtors (accounts receivable). It is computed as follows: Collection Period = (Accounts receivable + Bills Receivable) X 365

Credit Sales

Account Payable (Days) Account Payable Days is a measure of the average time a company takes to pay vendors Account Payable Days = (Accounts payable + Bills Payable) X 365

Credit Purchases

Sales to Inventory (Times) Sales to Inventory is a measure of number of times inventory is converted into sales Sales to Inventory (Times) = Sales Inventory

Assets to Sales Total Assets / Sales

Sales to Net Working Capital Sales /Net Working Capital Wherein Net Working Capital = Current Assets – Current Liabilities

Fixed Assets Turnover Ratio Sales / Fixed Assets

Profitability Ratios

Gross Profit/ Loss Margin Measure of profit or loss earned / incurred after charging all direct expenses from sales Gross Profit / Loss (%) = Gross Profit / Loss X100 Sales

Operating Profit Margin Measure of profit or loss earned / incurred after charging all direct expenses plus indirect expenses from sales and other operating income pertaining to core business activities Operating Profit /Loss (%) = Operating Profit / Loss X 100 Sales


24

Net Profit Margin Measure of net profit or loss earned / incurred after considering all incomes and expenses including taxes Net Profit /Loss (%) = Net Profit /Loss X 100 Sales

Return on Assets Net Profit (Loss) after Tax / Total Assets X 100

Return on Net Worth Net Profit (Loss) after Tax / Tangible Networth X 100

Return on Capital Employed Net profit + Interest / Capital Employed X 100

Liquidity Ratios

Current Ratio This ratio measures the short term liquidity of the enterprise and its ability to meet short-term debt obligation usually during the next 12 months Current Ratio = Current Assets / Current Liabilities

Quick Ratio Quick Ratio (QR) is the ratio between quick current assets (QA) and CL. QA refers to those current assets that can be converted into cash immediately without significant value dilution. QA includes cash and bank balances, short-term marketable securities and sundry debtors. Inventory and prepaid expenses are excluded since these cannot be turned into cash as and when required Quick Ratio = Quick Assets / Current Liabilities

Gearing and Solvency Ratios

Fixed Asset to Tangible Networth

Fixed Assets / Tangible Networth

Current Liability to Tangible Networth

Current Liability / Tangible Networth

Total Liabilities to Tangible Networth

Total Liabilities / Tangible Networth

Total Borrowings to Tangible Networth

(All short term and long Term Secured and Unsecured Loan) / Tangible Networth

Debt Equity Ratio This ratio shows the relative proportion of debt and equity in financing the assets of a firm. Debt includes long-term borrowings and equity includes net worth (paid-up equity capital and reserves and surplus) and preference capital. Debt - Equity Ratio = Long Term Debt / Tangible Networth

Interest Coverage Ratio This ratio is used to determine how easily a company can pay interest on outstanding debt. The interest coverage ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) of one period by the company's interest expenses of the same period Earnings before interest and taxes / Interest Expenses

Tangible Networth Shareholders Fund (Equity Capital plus Preference Capital plus


25

Reserves Less Intangibles Less Deferred Tax Asset)

Capital Employed Tangible Networth plus Secured Loans plus Unsecured loans plus Deferred Sales Tax Loan plus Deferred Tax Liability

For the purpose of deriving rating, combination of above mentioned ratios would be used and calculations of these ratios may change based on nature of entities and at the discretion of SMERA Analyst.


26

CURRENCY: All amounts in this report are in local currency unless otherwise stated. ------------------------------------------------------------------------------------------------------------------------------------

RIGHTS TO THE REPORT ARE WITH SMERA RATINGS LIMITED (SMERA). THIS REPORT MAY NOT BE REPRODUCED IN WHOLE OR IN

PART IN ANY FORM OR MANNER WHATSOEVER. ------------------------------------------------------------------------------------------------------------------------------------ The NSIC – D&B – SMERA Rating shall be read with the NSIC – D&B – SMERA Rating Report on the subject issued by SMERA. All information contained in the NSIC – D&B – SMERA Rating Report is obtained by SMERA from the subject and third party sources, and is believed to be accurate and reliable. Although reasonable care has been taken to ensure that the information in the Rating Report is true, such information is provided “as is” without any warranty of any kind and SMERA, in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information SMERA is not responsible for any errors in transmission and specifically states that SMERA shall have no financial liability whatsoever to the users of the Rating Report. The rating does not constitute an audit and SMERA’s work is significantly different from that of an audit and accordingly, cannot be relied upon to provide the same level of assurance as an audit. Please note that the NSIC – D&B – SMERA Rating Report is not a recommendation to purchase, sell or hold any securities and investors should take their own decision. In providing this Rating, SMERA does not underwrite the risks of any third party or that of the subject. SMERA is not liable to the Company or any third party in respect of any matter specified in the Rating Report. SMERA may revise, suspend or withdraw the rating at any time in the future as a result of information changes in circumstances or unavailability of information. The NSIC – D&B – SMERA Rating Report is not intended for distribution/ publication/ reproduction in any form without SMERA’s prior written approval.

-- End of Report --

Documents

Swami Plast Industries Reportswamiplast.com/Swami_Plast_Industries_Report.pdf · parameters of the organization / project. ... SSI Registration Number 041910015/PMT/SSI Category