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NSIC – D&B – SMERA Rating Report
Date of Report : 21st November, 2011 * 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 financials 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 4B
(Weak Performance Capability and Moderate Financial Strength)
NEW ENTERPRISE 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
ROHAN INDUSTRIES
H-119, Mega Centre, Magarpatta, Hadapsar,
Pune – 411 028 Maharashtra
India
ROHAN INDUSTRIES
1
SNAPSHOT
D&B D-U-N-S® Number 65-058-1577
Entity Name ROHAN INDUSTRIES
Administrative Office Address
H - 119, Mega Centre, Magarpatta, Hadapsar, Pune – 411 028 Maharashtra India
Telephone (91) (20) (26810545)
Factory Address
Gat No. 1553, Shikrapur, Tal. Shirur, Pune – 412 205 Maharashtra India
Email ID [email protected]
Line of Business Manufacturing of HDPE Plastic Blow Moulding Bottles and Automobile Injection Moulding Components
Chief Executive Mr. Rohan Pawar, Proprietor
NSIC - D&B - SMERA Rating SE 4B (Weak Performance Capability and Moderate Financial Strength)
Entrepreneur’s Memorandum Number
270251109300 /Part – II
Category of Promoter General
Establishment Date 03/Mar/2009
Commencement of Production 09/Apr/2009
Total Employees 16
Sales Territory Domestic
ROHAN INDUSTRIES
2
COMPANY PROFILE BACKGROUND
Rohan Industries (hereafter referred as subject) was established in the year 2009 as a proprietorship
concern by Mr. Rohan Pawar.
OPERATIONS Subject is engaged in manufacturing of HDPE plastic blow moulding bottles and automobile
injection moulding components.
PRODUCTS
� Bottles
� Jerry Can
� Containers
� Automobile Injection Moulding Components
ROHAN INDUSTRIES
3
FINANCIAL SNAPSHOT
FIGURES (`̀̀̀ IN THOUSANDS)
Statement End Date 31/Mar/2009 31/Mar/2010
Current Assets 82 385
Current Liabilities 5 78
Working Capital 77 307
Other Tangible Assets 996 1,073
Non-Current Liabilities 0 150
Tangible Net Worth 1,073 1,230
Unsecured Loans 0 150
Cash & Bank 16 37
Accounts Receivable 41 323
Fixed Assets 446 1,073
Income 455 2,645
Net Profit 36 212
ROHAN INDUSTRIES
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SALIENT FEATURES
• Subject is a newly established entity and has started its operations on 09/Apr/2009.
• Mr. Rohan Pawar, Proprietor of the subject has limited experience in this line of business.
• Subject has earned revenue of ` 455 (in thousands) in FY 2009 and ` 2,645 (in thousands) in FY
2010. Further, as per provisional financials, subject has earned revenue of ` 3,491 (in thousands)
for FY 2011.
• Subject has earned gross profit of ` 153 (in thousands) in FY 2009 and ` 643 (in thousands) in
FY 2010.
• Subject has earned net profit of ` 36 (in thousands) in FY 2009 and ` 212 (in thousands) in FY
2010.
• Current ratio stands at 4.94 as on 31/Mar/2010.
• Collection days stand at 45 for FY 2010. Around 20% each of sale are made to Evergreen Micro
Nutrients and Dharti Agro Chemicals Private Limited.
• Around 50% of Polypropylene and 20% of Polymer purchases are made from Haldia
Petrochemicals Limited and Shanti Polymers respectively and around 30% of HDPE blow
Moulding work is outsourced from Rex Polyextrusion Limited.
• Subject has been sanctioned a cash credit limit of ` 10 (in lakhs) and term loan of ` 90 (in lakhs)
from Indian Overseas Bank after 31/Mar/2010.
• Fixed assets have increased in FY 2010 over FY 2009 on account additions made to plant &
machinery.
• As informed by management, subject has taken adequate insurance cover for plant &
machinery and stock.
• Tangible net worth and capital employed have increased in FY 2010 over FY 2009.
ROHAN INDUSTRIES
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• As informed by management, pollution control norms for air and water are not applicable to
the subject.
ROHAN INDUSTRIES
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FINANCIAL TREND
455
2,645
0
500
1,000
1,500
2,000
2,500
3,000
2009 2010
`
`
` ` ('000)
Sales
Sales
36
212
0
50
100
150
200
250
2009 2010
`
`
` ` ('000)
Profit
Profit
7.91 8.02
8.79 8.09
33.63
24.31
0.00 5.00
10.00 15.00 20.00 25.00 30.00 35.00 40.00
2009 2010
Percentage
Profit Margins
Net Profit Margin
Operating Profit Margin
Gross Profit Margin
ROHAN INDUSTRIES
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1,073 1,230
1,073
1,380
0
200
400
600
800
1,000
1,200
1,400
1,600
2009 2010
`
`
` ` ('000)
Tangible Networth Vs Capital Employed
Tangible Net worth Capital Employed
0 150
1,073 1,230
0%
20%
40%
60%
80%
100%
2009 2010
`
`
` ` ('000)
Capital Employed Pattern
Tangible Net Worth Unsecured Loan
3.36
17.24
3.73
15.51
0.00
4.00
8.00
12.00
16.00
20.00
2009 2010
Percentage
Returns
Return on Net worth
Return on Capital Employed
16.40
4.94
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
2009 2010
Tim
es
Liquidity
Current Ratio
ROHAN INDUSTRIES
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FISCAL BALANCE SHEET (`̀̀̀ IN THOUSANDS)
Date 31/Mar/2009 31/Mar/2010
Assets
Current Assets
Cash & Bank 16 37
Accounts Receivable * 41 323
Other Current Assets 25 25
Total Current Assets 82 385
Fixed Assets
Plant & Equipment 405 1,038
Other Fixed Assets 41 35
Total Fixed Assets 446 1,073
Other Assets
Advance for Capital Assets 550 0
Total Other Assets 550 0
Total Assets 1,078 1,458
Liabilities
Current Liabilities
Other Current Liabilities 5 78
Total Current Liabilities 5 78
Non-Current Liabilities
Due to Relatives / Friends / Group / Related Entities
0 150
Total Non-Current Liabilities 0 150
Equity
Capital 1,073 1,230
Total Equity 1,073 1,230
Total Liabilities 1,078 1,458
ROHAN INDUSTRIES
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PROFIT & LOSS ACCOUNT (`̀̀̀ IN THOUSANDS)
Financial Year 2009 2010
Months Covered By P/L 01 12
UNAUDITED AUDITED
Income 455 2,645
Cost of Sales (302) (2,002)
Employee Cost (67) (645)
Rent / Repairs and Maintenance (17) (52)
Electricity Charges (22) (310)
Job Work Charges (101) (297)
Other Direct Expenses (10) (177)
Raw Material Consumption Cost (85) (521)
Gross Profit (Loss) 153 643
Depreciation/Amortization (59) (208)
General Operating Expenses (54) (221)
Net Operating Profit (Loss) After Depreciation and Before Interest
40 214
Finance Expenses (4) (2)
Net Profit(Loss) 36 212
ABOVE FINANCIALS ARE CERTIFIED / AUDITED BY: Diwakar B. Dahotre & Co., (Chartered Accountants), 3, Gaurav Apartments, Opp. Sangam Press, Behind Walchand House, Kothrud Post Box No. 1905, Pune – 411 038 Maharashtra India
ROHAN INDUSTRIES
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FINANCIAL RATIOS
Financial Year 2009 2010
Turnover Ratios
Collection Period (Days) 03 45
Sales to Net Working Capital (Times) 5.91 8.62
Assets to Sales (%) 236.92 55.12
Fixed Assets Turnover Ratio 1.02 2.47
Profitability Ratios
Gross Profit Margin (%) 33.63 24.31
Operating Profit Margin (%) 8.79 8.09
Net Profit Margin (%) 7.91 8.02
Return on Assets (%) 3.34 14.54
Return on Net Worth (Return on Equity) (%) 3.36 17.24
Return on Capital Employed (%) 3.73 15.51
Liquidity Ratios
Current Ratio 16.40 4.94
Gearing & Solvency Ratios
Fixed Assets to Tangible Net Worth (%) 41.57 87.24
Current Liabilities to Tangible Net Worth (%) 0.47 6.34
Total Liabilities to Tangible Net Worth (%) 0.47 18.54
Total Borrowing to Tangible Net Worth Ratio - 0.12
Debt Equity Ratio - 0.12
ROHAN INDUSTRIES
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BANK
Information in this report may not represent the full extent of subject's bank relationships.
Name of the Bank Indian Overseas Bank
Branch Dahanukar Colony Branch
Dealing Since March, 2011
CREDIT FACILITIES As informed by management, subject enjoys the following credit facilities from the bank, (` in Lakhs)
Facilities Availed * Amount Sanctioned Amount Disbursed
Cash Credit 10.00 10.00
Term Loan 90.00 90.00
Total 100.00 100.00
* Above credit facilities were sanctioned on March, 2011. � No independent confirmation was obtained from banker. INSURANCE � As informed by management, subject has taken adequate insurance cover for plant &
machinery and stock.
ROHAN INDUSTRIES
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CAPITAL DETAILS
Proprietor’s Capital ` 1,230 (in thousands) as on 31/Mar/2010
PROPRIETOR’S DETAILS
Name Rohan Pawar
Year of Birth 1985
Current Designation
Proprietor, Head Human Resource, Finance and Marketing
Appointed to Present Position 2009
Started with Subject 2009
Educational Qualification B.E. (Mechanical)
Experience in Similar Industry since
2009
Active in Daily Operations Yes
Founder of Subject Yes
Residential Address
D-902, Citadel Empress, B. T. Kawade Road, Ghorpadi, Pune – 412 001 Maharashtra India
Permanent Account Number AMKPP3487C
Mobile Number (91) (9890199977) (91) (9923599335)
Email ID [email protected]
Net Worth ` 12.30 (in lakhs) as on 31/Mar/2010
OTHER DIRECTORSHIPS / PARTNERSHIPS / PROPRIETORSHIPS/HUF
Entity Employed Position Held
Stanmax Agro Industries Partner
MANAGEMENT / EMPLOYMENT HISTORY
Period Entity Employed Last Position Held
2008 to 2009 Nitiraj Plastics and Engineering Private Limited Factory Manager
ROHAN INDUSTRIES
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DEPARTMENTAL HEADS
Executive Name Position Held Educational Qualification
Year of Joining
Mahesh Nimaje Head Administration M. Com. 2010
Rajesh Dalvi Head Purchases DMR 2009
Waghmare Somil Head Manufacturing DME 2010
ROHAN INDUSTRIES
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PRODUCT CONTRIBUTION TO TOTAL SALES
Product Name Product Contribution To Total Sales (%)
FY 2009 FY 2010 FY 2011
HDPE Bottles N.A.
70 70
Automobile Injection Moulding Components 30 30
Total - 100.00 100.00
PROCESS FLOW CHART
Final Product
Printing
Pinch-Off Cutting
Bottle Production
Input Raw Material
ROHAN INDUSTRIES
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SEASON Peak period - January to October PRODUCTION DETAILS (IN NUMBER) FY 2011
Product Description Actual Output Production Capacity % Utilized
HDPE Plastic Blow Moulding Bottles and Automobile Injection Moulding Components
3,100,000 4,000,000 78
FY 2010
Product Description Actual Output Production Capacity % Utilized
HDPE Plastic Blow Moulding Bottles and Automobile Injection Moulding Components
900,000 1,200,000 75
ROHAN INDUSTRIES
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PURCHASES
Particulars FY 2009 FY 2010 FY 2011
(%) (%) (%)
Domestic 100 100 100
PURCHASING TERMS
Domestic Open account 10 days
SUPPLIERS
Suppliers Name and Location Materials Purchased
Length of Relationship (Years)
% Share in Purchases
Haldia Petrochemicals Limited, West Bengal
Polypropylene 02 50
Rex Polyextrusion Limited, Pune
HDPE Blow Moulding
01 30
Shanti Polymers, Pune
Polymer 02 20
ROHAN INDUSTRIES
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SALES
Particulars FY 2009 FY 2010 FY 2011
(%) (%) (%)
Domestic 100 100 100
SELLING TERMS
Domestic Open account 60 days
CUSTOMERS
Subject maintains around 20 to 35 accounts / customers. MAJOR CUSTOMER TYPES
Manufacturers MAJOR CUSTOMERS
Customer Name and Location Length of
Relationship (Years) % Share in Sales
Evergreen Micro Nutrients, Pune
02 20
Dharti Agro Chemicals Private Limited, Nagpur
02 20
New Era Adhesive Industries, Jalgaon
02 10
Shivraj Industries, Pune
02 05
Omkar Agro Chemicals Private Limited, Pune
02 05
ROHAN INDUSTRIES
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LIST OF ORDERS IN HAND
(` in Lakhs)
Name of the Customer Product Description Order Value
Jayadeep Plastics PD Containers 50.00
B. G. Chitale & Co. Food Containers 5.00
Evergreen Micro Nutrients
HDPE Bottles
50.00
Dharti Agro Chemicals Private Limited 12.00
Arya Polymers 25.00
Surya Fertilizers & Chemicals 5.00
Sunshine Chemical Private Limited 10.00
Swaraj Agro Chemical Private Limited 15.00
Sunshine Agri Private Limited 3.50
Total 175.50
EMPLOYEE(s) DETAILS
Particulars 2011 2010
Total Employees 16 10
Permanent Employees 16 10
Production Workers 13 08
GROUP / RELATED ENTITY
Entity Name Line of Business
Key Financials for FY 2010 (`̀̀̀ in thousands)
Net Sales Net Profit Total Debt
Total Networth
Stanmax Agro Industries
Manufacturing of Agriculture Pesticides
Operations are not yet started
ROHAN INDUSTRIES
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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
Entrepreneur’s Memorandum Number
270251109300 /Part – II 31/Dec/2018
VAT 27560795816V -
CST 27560795816C -
PAN AMKPP3487C -
� As informed by management, pollution control norms for air and water are not applicable to
the subject.
� Subject is a member of Plastics Manufacturers' Association and The Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA)'s.
Subject received below mentioned awards: 1. Best supplier of the year 2010 by Evergreen Seamless Pipes Tubes Private Limited. 2. Best vendor of the year 2010 by Dharti Agro Chemicals Private Limited. 3. Quality cautious award 2011 by Omkar Agro Chemicals Private Limited. 4. Best supplier of the year 2011 by Evergreen Micro Nutrients.
ROHAN INDUSTRIES
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SITE VISIT (CONDUCTED ON 17/OCT /2011)
Address
Gat No. 1553, Shikrapur, Tal. Shirur, Pune – 412 205 Maharashtra India
Size of Premise Land - 10,000 Sq. ft. Building – 4,500 Sq. ft.
Site Details Type Industrial Area
Site Location Main Road
Location Used As Factory
Kind of Buildings RCC Construction
Is unit using any Asbestos Roof No
On Floor Ground Floor
Type of Occupation Rented
Does Group Companies share the Office Yes
Is the office furnished Yes
Any Fire Extinguishers Yes
No. of people working at this location 16
Any child labour involved No
Does Proprietor sit at the site location Yes
Was 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 HDPE Blow Moulding, Polypropylene, Injection Moulding
Power Load Available 150 HP
No. of shifts that the unit is operating Single Shift Per Day
ROHAN INDUSTRIES
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Site equipped with following facilities:
Telephone No
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. Rohan Pawar, Proprietor
ONGOING / FUTURE EXPANSION PROJECTS
� Details in respect of ongoing / future expansion projects, if any are not available with SMERA, if any.
ROHAN INDUSTRIES
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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 Fixed Assets / Sales
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
ROHAN INDUSTRIES
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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 EBIT / 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
ROHAN INDUSTRIES
24
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.
ROHAN INDUSTRIES
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CURRENCY: All amounts in this report are in local currency unless otherwise stated. ------------------------------------------------------------------------------------------------------------------------------------ RIGHTS TO THE REPORT ARE WITH SME RATING AGENCY OF INDIA 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.
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