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SMERA-D&B-NSIC

MICRO & SMALL ENTERPRISES RATING

Rating and Site Inspection Report

Shree Govind International

To verify the rating, please scan the QR Code

SMERA MSE 3

Financial Strength:

Good

Operating Performance:

Average

Date of Report:

April 03, 2018

Valid Till:

April 02, 2019

D-U-N-S® Number

67-547-5567

III

Contents Rating of Shree Govind International .............................................................................................. 1

SWOT Analysis ................................................................................................................................. 2

Company Fact Sheet ........................................................................................................................ 3

Business Profile ................................................................................................................................ 5

Ownership & Management ............................................................................................................. 9

Financial Profile .............................................................................................................................. 10

Banking Facilities ........................................................................................................................... 16

Site Visit Report ............................................................................................................................. 17

Photographs ................................................................................................................................... 18

Benefits to the MSE ....................................................................................................................... 19

*is for non-mandatory fields.

Shree Govind International Rating Valid Till: April 02, 2019 Page 1

Rating Symbol Definition

SMERA MSE 1 Highest credit worthiness in relation to other MSEs

SMERA MSE 2 High credit worthiness in relation to other MSEs

SMERA MSE 3 Good credit worthiness in relation to other MSEs

SMERA MSE 4 Above average credit worthiness in relation to other MSEs

SMERA MSE 5 Average credit worthiness in relation to other MSEs

SMERA MSE 6 Below average credit worthiness in relation to other MSEs

SMERA MSE 7 Weak credit worthiness in relation to other MSEs

SMERA MSE 8 Poor credit worthiness in relation to other MSEs

Operating Performance Categories

Highest

High

Average

Weak

Poor

To verify the rating, please scan the QR Code

Rating of Shree Govind International



SWOT Analysis

Strengths

The entity has experienced management with more than 5 years of experience in

managing the business affairs.

Moderate working capital management marked by collection, payable and inventory

holding period of 89, 148 and 18 days respectively in FY2017.

Profit margin is in increasing trend for the period under study, net profit margin stands at

1.98 % for FY2017.

Return on capital employed stands at 11.14 % growth for FY2017 which shows the

moderate financial position of the company.

Comfortable liquidity position marked by current ratio of 1.47 times in FY2017.

Interest coverage ratio stands at 2.78 times as on March 31, 2017 which represents the

company’s efficiency level to meet its debt obligations.

Threats

Chemical industry is highly fragmented with intense rivalry amongst companies.

Small chemical companies are depends upon supplies of raw materials from large

companies.

Weakness

Concentrated Customer base, more than 80% of Sales to 2 Customers.

High debt equity ratio stands at 5.30 times in FY2017 which includes secured and

unsecured long term loans from banks and others.

The company has generated negative cash flow in FY2017 which indicate that the business is

unable to generate enough cash to maintain its operations.

Opportunities

Indian Chemical industry is expected to double its share in global chemical industry to 5-6%

by 2021 registering growth of 8-9% in the next decade.

External demand and specialty chemicals have also contributed strongly to the growth of

the industry.



Unit Name Shree Govind International

Official Address of Enterprise

Address Line 1 F-1, Shankeshwar Industrial Park, Above Indusind Bank

Address Line 2 Plot No. 20, Phase-1, GIDC estate, Vatva,

City Ahmadabad

State Gujarat

PIN code 382445

Factory Address of Enterprise

Address Line 1 91/22, C-1, B/S Bank of India,

Address Line 2 GIDC estate, Vatva

City Ahmadabad

State Gujarat

PIN code 382445

Type of Organization Proprietary Concern

Year of Establishment 2012

Commencement of operations June 29, 2012

Contact No (079) 29706447

Email Id [email protected]

UAM / EM No GJ01A0075400

Number of employees

Permanent 7

Contractual 00

Website www.govindinternational.com

Statutory auditor Vipul Murarka & Co.

Address Line 1 406, Aatish Annexl,

Address Line 2 Off C.G. road,

City Ahmadabad

State Gujarat

PIN code 380006

Adverse comment, if any, of the statutory auditor None

Comments on statutory compliance The unit is compliant

Company Fact Sheet

mailto:[email protected]

http://www.govindinternational.com/



Registration/Memberships/Certificates Registration/Membership/Consent No.

VAT/ GST No. 24AVHPK5400G1ZZ

PAN No. AVHPK5400G

Aadhaar No. 741336361678



Future Project(s)

As per the details provided by the management, there are no ongoing or future projects for the enterprise.

Business Description

Line of Business Engaged in the Manufacturing of dyes, pigments & basic chemical elements

Products/Services Profile Manufacturing of dyes, pigments & basic chemical elements

Industry Chemicals

Industry Prospects Good

Sub- Industry Chemicals

Degree of Competition High

Business Profile



Customer Profile

Customer 1

Name Bhagwati Chemicals

Address Line 1 5631 GIDC Estate,

Address Line 2 Vatva,

City Ahmadabad

Office no* (079) 25834688

Mobile Number* Details are not available with SMERA

Terms of credit * Open Account for 30 Days

Length of relationship (years) * 1

Share of sales (percentage) * 50

Customer 2

Name Alliance Organics LLP

Address Line 1 3rd floor, Kamdhenu Industrial Estate,

Address Line 2 Mindspace, Malad (West),

City Mumbai

Office no* (022) 28725721

Mobile Number* (91) 9867606489




Customer 3

Name Binal Enterprise

Address Line 1 Kanchigam Road,

Address Line 2 Industrial Estate,

City Vapi

Office no* (0260) 2461008







Supplier Profile

Supplier 1

Name Kiri Industries

Address Line 1 7th floor, Hasubhai Chamber,

Address Line 2 Opposite town hall, Ellisbridge,

City Ahmadabad

Office no* (079) 26574371


Credit terms * Advance

Raw material procured * HSVS Chemicals


Share of purchase (percentage) * Details are not available with SMERA

Supplier 2

Name Astha Impex

Address Line 1 3/F, Sueryarath,

Address Line 2 Panchwati,

City Ahmadabad

Office no* (079) 26449467


Credit terms * Open Account for 30 Days

Raw material procured * Chemicals



Supplier 3

Name National Colour Chem

Address Line 1 Plot No. C-1/269, Phase 2,

Address Line 2 GIDC Estate, Vatva,

City Ahmadabad

Office no* (079) 29700947


Credit terms * Open Account for 60 Days

Raw material procured * Dyes





Manufacturing Facilities FY 2017

Capacity Installed per annum (Tons) 2500

Capacity Utilized per annum (Tons) 2500

Capacity expansion planned per annum (Tons) 00

Market Composition FY 2015 FY 2016 FY 2017

Domestic (%) 100 100 100

Exports (%) 0 0 0

Total (%) 100 100 100

Purchase Composition FY 2015 FY 2016 FY 2017

Domestic (%) 100 100 100

Imports (%) 15 10 20

Total (%) 100 100 100



Details of the Proprietor/ Partner/ Director -1

Designation Proprietor

Name Mr. Ankit Khandelwal

Address Line 1 F-1, Shankeshwar Industrial Park,

Address Line 2 Plot No. 20, Phase-1, GIDC estate, Vatva,

City Ahmadabad

Mobile Number (91) 8306170989

Year of birth 1989

Appointed to present position 2012

Employed with Unit since 2012

Highest Educational Qualification * B.Com.

Specialization * Accounting

Permanent Account Number* AVHPK5400G

Share Holding Pattern / Profit / Loss Sharing Ratio as on March 31, 2017

Name of Proprietor/ Partner / Shareholders

Relation With The Promoter Profit/Loss Sharing Ratio (%)

Mr. Ankit Khandelwal Self 100

Total 100.00

Details of Key Management Personnel

All the departments are handled by the Proprietor.

Organization Structure, Control & Systems

Head of Organization Mr. Ankit Khandelwal

Second Tier Management No

Decision Making Powers Proprietor

Reporting System or MIS In Place

Type of Reporting System Tally

Frequency of MIS/ Reporting Daily

Associates/ Group Companies

As per information provided by the management there are no group related companies.

Ownership & Management



Current Financial Performance (Rs Lakhs except Debt – Equity Ratio)

Net Sales 783.40

OPBDIT 19.35

Current Order Book 2200 (till March 2018)

Debtors 191.14

Creditor 313.07

Capital 36.70

Debt 194.33

Debt- Equity ratio. 5.30

Declaration

The financial profile given in this report is based on audited financial results of the unit rated.

Details of Chartered Accountant (CA)

Name CA Vipul Murarka

Membership no. 149499

Firm registration no 139600W

Financial Profile



Profit & Loss Account (In Rupees Lakhs)

Financial Year 31/Mar/17 31/Mar/16 31/Mar/15

Months Covered By P/L 12 12 12

Income 783.40 1169.85 334.26

Domestic Sales 783.40 1169.85 334.26

Export 0.00 0.00 0.00

Other Revenue 0.00 0.00 0.00

Cost of Sales (759.28) (1142.23) (313.87)

Employee Cost (1.27) (3.02) (6.00)

Rent / Repairs and Maintenance (0.43) (0.16) (0.04)

Electricity Cost (0.24) (0.11) 0.00

Job Work Charges 0.00 0.00 0.00

Other Direct Expenses (1.10) (12.41) (7.71)

Raw Material Consumption Cost (756.24) (1126.53) (300.12)

Gross Profit (Loss) 24.12 27.62 20.39

Other Operating Income 0.29 0.55 0.00

Depreciation/Amortization (1.36) (1.57) (1.79)

General Operating Expenses (5.06) (13.61) (12.68)

Directors / Partners Remuneration 0.00 0.00 0.00

Financial Lease Payment 0.00 0.00 0.00

Other (5.06) (13.61) (12.68)

Net Operating Profit (Loss) After Depreciation and Before Interest 17.99 12.99 5.92

Non Operating Income 7.75 4.71 4.27

Non Operating Expenses 0.00 0.00 0.00

Finance Expenses (10.19) (2.83) (0.84)

Interest to Third Parties (8.76) (1.69) (0.67)

Interest to Related Parties 0.00 (0.06) 0.00

Interest on Partners Capital 0.00 0.00 0.00

Commission & Charges (1.43) (1.08) (0.17)

Net Profit(Loss) Before Tax & Extraordinary Items 15.55 14.87 9.35

Plus (Minus) Extraordinary Items 0.00 0.00 0.00

Net Profit Before Taxation & After Extraordinary Items 15.55 14.87 9.35

Income Tax 0.00 0.00 0.00

Current Tax 0.00 0.00 0.00

Deferred Tax (Liability) / Reversal 0.00 0.00 0.00

Net Profit(Loss) After Tax 15.55 14.87 9.35

The above financials are taken from the audited accounts of the company.



Balance Sheet (In Rupees Lakhs)


Current Assets

Cash & Bank 75.60 95.42 48.62

Inventory / Work-in-Progress 38.75 24.47 0.00

Accounts Receivable 191.14 425.84 53.11

Accounts Receivable ( upto 6 months) 191.14 425.84 53.11

Advances to Directors / Shareholders / Relatives / Friends / Group Entities / Related Entities 0.00 0.00 0.00

Advance to suppliers 74.90 0.00 44.84

Short term Deposits 6.75 0.00 0.00

Margin Money 0.00 0.00 0.00

Other Current Assets 73.25 69.82 0.60

Total Current Assets 460.39 615.55 147.17

Fixed Assets

Land & Buildings 63.40 0.00 0.00

Plant & Machinery 0.00 0.00 0.00

Other Fixed Assets 0.26 0.12 0.00

Vehicles/Construction Equipments 7.32 8.61 10.13

Windmills 0.00 0.00 0.00

Less: Asset Revaluation 0.00 0.00 0.00

Less: Accumulated Depreciation 0.00 0.00 0.00

Assets Under Construction 0.00 0.00 0.00

Total Fixed Assets 70.98 8.73 10.13

Investments

Investment in Subsidiaries / Affiliates 0.00 0.00 0.00

Investment in Quoted Instruments 13.14 0.00 0.00

Investment in Properties 0.00 0.00 0.00

Other Investments 0.49 20.00 25.40

Total Investments 13.63 20.00 25.40

Other Assets (Non-Current)

Long Term Advances to Directors / Shareholders / Relatives / Friends / Group Entities / Related Entities 0.00 0.00 0.00

Advance for Capital Assets 0.00 0.00 0.00

Security Deposits 0.00 0.00 0.00

Other Non-Current Assets 0.00 0.00 0.00

Total Other Assets 0.00 0.00 0.00

Intangibles

Goodwill 0.00 0.00 0.00

Preliminary Expenses 0.00 0.00 0.00

Deferred Tax Assets 0.00 0.00 0.00

Asset Revaluation 0.00 0.00 0.00

Software 0.00 0.00 0.00

Patents & Copyrights 0.00 0.00 0.00



Other Intangibles 0.00 0.00 0.00

Total Intangibles 0.00 0.00 0.00

Total Assets 545.00 644.28 182.70

Current Liabilities

Accounts Payable 313.07 612.19 169.91

Short term Secured Loans from Banks / Financial Institutions 0.00 0.00 0.00

Short term Unsecured Loans from Banks / Financial Institutions 0.00 0.00 0.00

Short term loans from Directors / Shareholders / Relatives / Friends / Group Entities / Related Entities 0.00 0.00 0.00

Short term Unsecured Loans from Others 0.00 0.00 0.00

Advances from Customers 0.00 0.00 0.00

Creditors for Capital Goods 0.00 0.00 0.00

Proposed Dividend payable 0.00 0.00 0.00

Cheques issued but not cleared 0.00 0.00 0.00

Other Current Liabilities 0.90 0.65 0.35

Total Current Liabilities 313.97 612.84 170.26

Non-Current Liabilities

Total Current Liabilities 194.33 72.26 8.38

Secured Loans from Banks / Financial Institutions 66.84 19.11 7.53

Unsecured Loans from Banks / Financial Institutions 26.02 0.00 0.00

Loans from Directors / Shareholders / Relatives / Friends / Group Entities / Related Entities 57.25 0.00 0.00

Unsecured Loans from Others 44.22 53.15 0.85

Proposed Dividend 0.00 0.00 0.00

Deferred Tax Liability 0.00 0.00 0.00

Sales Tax Deferral Loan 0.00 0.00 0.00

Deposits 0.00 0.00 0.00

Other Non-Current Liabilities 0.00 0.00 0.00

Total Non-Current Liabilities 194.33 72.26 8.38

Equity 0.00 0.00 0.00

Capital 36.70 (40.82) 4.06

Preference Capital 0.00 0.00 0.00

Share Premium 0.00 0.00 0.00

Capital Reserves 0.00 0.00 0.00

General Reserves 0.00 0.00 0.00

Retained Earnings (Loss) 0.00 0.00 0.00

Revaluation Surplus (Deficit) 0.00 0.00 0.00

Share Application Money 0.00 0.00 0.00

Capital Subsidy 0.00 0.00 0.00

Other Equity 0.00 0.00 0.00

Total Equity 36.70 (40.82) 4.06

Total Liabilities 545.00 644.28 182.70



Financial Ratios


Growth Ratios

Sales Growth (%) (33.03) 249.98 -

Net Profit Growth (%) 4.57 59.04 -

Turnover Ratios

Collection Period (Days) 89 133 58

Account Payable (Days) 148 194 207

Inventory Holding period (Days) 18 8 -

Gross Working Capital (Related to operation) to sales (Days) 215 192 161

Sales to Net Working Capital (Times) 5.35 431.68 (14.48)

Assets to Sales (%) 69.57 55.07 54.66

Fixed Assets Turnover Ratio 11.04 134.00 33.00

Profitability Ratios

Gross Profit Margin (%) 3.08 2.36 6.10

Operating Profit Margin (%) 2.30 1.11 1.77

Net Profit Margin (%) 1.98 1.27 2.80

Return on Assets (%) 2.85 2.31 5.12

Return on Net Worth (Return on Equity) (%) 42.37 (36.43) 230.30

Return on Capital Employed (%) 11.14 56.30 81.91

Liquidity Ratios

Quick Ratio 1.34 0.96 0.86

Current Ratio 1.47 1.00 0.86

Gearing & Solvency Ratios

Fixed Assets to Tangible Net Worth (%) 193.41 (21.39) 249.51

Current Liabilities to Tangible Net Worth (%) 855.50 (1501.32) 4193.60

Total Liabilities to Tangible Net Worth (%) 1385.01 (1678.34) 4400.00

Total Debt to Equity Ratio 5.30 (1.77) 2.06

Long Term Debt Equity Ratio 5.30 (1.77) 2.06

Interest Coverage Ratio 2.78 9.50 14.96

Debt / NCA 11.49 4.40 0.75

DSCR (If Applicable) 2.21 8.32 11.51



Cash Flow statement from operations (In Rupees Lakhs)

Financial Year 31/Mar/17 31/Mar/16

Months 12 12

NET PROFIT BEFORE TAX AND EXTRAORDINARY ITEMS 15.55 14.87

Adjustments for:

Prior Year Adjustments 0.00 0.00

Depreciation 1.36 1.57

Non-Operating Income (7.75) (4.71)

Non-Operating Expenses 0.00 0.00

Interest Expense 10.19 2.83

Subtotal 3.80 (0.31)

OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 19.35 14.56

Adjustment for:

Accounts Receivables 234.70 (372.73)

Other Receivables (Inclusive of Taxes) (85.08) (24.38)

Inventories (14.28) (24.47)

Trade Payables (299.12) 442.28

Other Payables 0.25 0.30

Extraordinary Items 0.00 0.00

Net Cash from Operating Activities (144.18) 35.56



Bank 1

Name Indusind Bank

Branch Vatva Branch

IFSC INDB0001030

Bank Account Number Details are not available with SMERA

Address Line 1 Ground floor, Shop No. 1-4,

Address Line 2 Sankeshwar Industrial park, plot no. 22, GIDC Vatva,

City Ahmadabad

PIN code 382445

Contact Number 29704422

E-Mail ID * Details are not available with SMERA

Term Loan (in lakhs) ₹ 00

Interest Rate (%) Not Applicable

Working Capital Loan (in lakhs) ₹ 00


Non Fund Based Limits (in lakhs) ₹ 00

Banker's feedback Not able to Contact

Bank 2

Name Kotak Mahindra Bank

Branch Vatva Branch

IFSC KKBK0000837

Bank Account Number Details are not available with SMERA

Address Line 1 Shop No. 10-12, Karnavati Industrial Estate No. 2,

Address Line 2 Ramol Cross Road, GIDC phase – 4 , Vatva,

City Ahmadabad

PIN code 382445

Contact Number (079) 65051562

E-Mail ID * Details are not available with SMERA

Term Loan (in lakhs) ₹ 00


Working Capital Loan (in lakhs) ₹ 00


Non-Fund Based Limits (in lakhs) ₹ 00

Banker's feedback Not able to Contact

Banking Facilities



Address line 1 F-1, Shankeshwar Industrial Park,

Above Indusind Bank,

Address line 2 Plot No. 20, Phase-1, GIDC estate, Vatva,

City Ahmadabad

State Gujarat

PIN code 382445

Date of Site Visit March 20, 2018

Name of Site Visit Officer Mr. Ravi Panchal

Unit’s official contacted

Name Mr. Ankit Khandelwal

Designation Proprietor

Mobile No (91) 8306170989

Email id [email protected]

Size of Premises OfficePremises - 600 Squre Feet

Factory Premises - 6000 Squre Feet

Site Details/Type Industrial Area

Fire extinguisher Yes

Power installed (KW/ HP) 35 KW

Power Back-Up Yes

Signage/Name Plate Yes

Environmental clearance Not Applicable

If Yes, provide Certificate/Registration Number None

Site Lay Out Details are not available with SMERA

Installed capacity 2500 Tons

Utilized Capacity 2500 Tons

Name of the Raw material being used NA Sheets, Cyanuric chloride, Sodium Sulfate

Source of raw material Domestic & Import

Kind of Building RCC Construction

On Floor 1st Floor

Total Floors in the Building Ground + 2 Floor

Type of Occupation Rented

Owner’s Name Mr. Ramesh Gulabben

Site Visit Report




Plant Site - 1

Plant Site - 2

Photographs



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SMERA Micro & Small Enterprises Ratings (MSE Ratings) are based on the data and information (Data) provided by the MSE and obtained by SMERA from sources it considers reliable. Although reasonable care has been taken to verify the Data, SMERA, makes no representation or warranty, expressed or implied with respect to the accuracy, adequacy or completeness of any Data relied upon. SMERA is not responsible for any errors or omissions or for the results obtained from the use of the Rating or the Rating Report and especially states that it has no financial liability, whatsoever, for any direct, indirect or consequential loss of any kind arising from the use of its Ratings. A SMERA MSE Rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion or a substitute for investor's independent assessment of whether to buy, sell or hold any security.


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averagesgidyes.com/11.pdfopportunities indian chemical industry is expected to double its share in...

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