Shri Ganesh Industries

NSIC - ONICRA RATING REPORT
M/s SHRI GANESH INDUSTRIES

SUJANGARH, RAJASTHAN
NSIC - ONICRA RATING- SE 3C
MODERATE PERFORMANCE CAPABILITY & LOW FINANCIAL STRENGTH
Report Date: 15th July 2015

Valid Till: 14th July 2016
NSIC- ONICRA-Performance and Credit Rating
M/s Shri Ganesh Industries, Rajasthan
Executive Summary
M/s Shri Ganesh Industries was established in the year 1978 as a proprietorship unit and started its operations in the
same year. The unit is engaged in processing of pulses. The unit is located in residential area at owned premises.
FINANCIAL SUMMARY:
Particulars
Turnover
EBITDA
PAT
Net Worth
Total Debt
Unit
FY13
FY14
Growth %
Lac
Lac
Lac
Lac
Lac
1,597.14
26.88
7.84
13.33
145.77
1,325.97
23.20
7.30
10.55
131.65
-16.98
-13.68
-6.86
-20.86
-9.69
The turnover of the unit stood at 1325.97 Lac in FY14 and has decreased by 16.98% in the FY14. The EBITDA of the unit
has decreased by 13.68% in the FY14. The PAT of the unit has decreased by 6.86% in the FY14. The EBITDA margin of the
unit has been low and PAT margin of the unit has been low in FY14. The net worth of the unit has decreased by 20.86%
in the FY14.
ONICRA Credit Rating Agency of India Limited
Page 2
Table of Contents
1.1 RATING OF THE SSI UNIT....................................................................................................................................................6
1.1.1 SCOPE OF THE REPORT...........................................................................................................................................................6
2.1 KEY RATING DRIVERS.........................................................................................................................................................7
3.1 UNIT SNAPSHOT M/S SHRI GANESH INDUSTRIES...................................................................................................8
3.1.1 BRIEF ABOUT THE UNIT..........................................................................................................................................................8
3.2 MANAGEMENT PROFILE....................................................................................................................................................9
3.3 BUSINESS DESCRIPTION.....................................................................................................................................................9
3.3.1 PRODUCTS PROFILE...............................................................................................................................................................9
3.3.2 MANUFACTURING FACILITIES................................................................................................................................................9
3.4 CUSTOMER & SUPPLIER PROFILE................................................................................................................................10
3.4.1 CUSTOMER PROFILE.............................................................................................................................................................10
3.4.2 SUPPLIER PROFILE...............................................................................................................................................................10
3.5 BANKING FACILITY............................................................................................................................................................11
3.6 INSURANCE............................................................................................................................................................................11
3.7 QUALITY CERTIFICATE....................................................................................................................................................11
3.8 ASSOCIATE CONCERN.......................................................................................................................................................11
4.1 KEY FINANCIAL DATA.......................................................................................................................................................12
4.1.1 PAST FINANCIAL PERFORMANCE-KEY INDICATORS............................................................................................................13
4.2. GRAPHICAL INTERPRETATION.....................................................................................................................................14
DISCLAIMER...............................................................................................................................................................................16
Page 3
Foreword
The Small Scale Industry (SSI) performance and credit rating is a relatively new concept in which the rating agencies
give an opinion regarding the general creditworthiness of the SSI and its performance. It includes an objective
assessment of the SSI unit on a scale of operating performance, infrastructure facilities, viability of systems, buyers &
vendors satisfaction, financial resources, creditworthiness, existing working capital arrangements, management style,
motivational/ commitment levels and lifestyle of the proprietor.
Traditionally, an SSI faces the constraints on various ends, especially sourcing of adequate and timely financing. To
overcome these difficulties, Government of India under the Ministry of Small Scale Industry, has signed a
memorandum of understanding with ONICRA CREDIT RATING AGENCY OF INDIA LIMITED to provide the Performance
and Credit Rating for SSI units.
As a successful individual entrepreneur or a bunch/ group of individuals run most of the SSI units, a different approach
is required to assess these units. The Ministry of Finance, Government of India, acknowledged ONICRA as pioneers of
individual credit rating in the Economic survey of India way back in 1993-94 itself.
The first & foremost advantage of the performance & credit rating is that an SSI unit gets an independent, experienced
and trusted third party opinion on the capability and creditworthiness of the unit. Moreover, it helps the unit to
improve upon the identified areas of weakness.
Page 4
NSIC-ONICRA Rating Scale

Rating Scale of the SSI Units on Performance and Credit Parameters under the NSIC Scheme of Rating of the SSI units is
as mentioned below:
SE 1A
Highest Performance capability & High Financial strength-Prospects of performance are the highest and
the entity has high capacity to meet its financial obligations.
SE 1B
Highest Performance capability & Moderate Financial strength-Prospects of performance are the highest
and the entity has moderate capacity to meet its financial obligations.
SE 1C
Highest Performance capability & Low Financial strength-Prospects of performance are the highest and
the entity has low capacity to meet its financial obligations.
SE 2A
High Performance capability & High Financial strength-Prospects of performance are high and the entity
has high capacity to meet its financial obligations.
SE 2B
High Performance capability & Moderate Financial strength-Prospects of performance are high and the
entity has moderate capacity to meet its financial obligations.
SE 2C
High Performance capability & Low Financial strength-Prospects of performance are high and the entity
has low capacity to meet its financial obligations.
SE 3A
Moderate Performance capability & High Financial strength-Prospects of performance are moderate and
the entity has high capacity to meet its financial obligations.
SE 3B
Moderate Performance capability & Moderate Financial strength-Prospects of performance are moderate
and the entity has moderate capacity to meet its financial obligations.
SE 3C
Moderate Performance capability & Low Financial strength-Prospects of performance are moderate and
the entity has low capacity to meet its financial obligations.
SE 4A
Weak Performance capability & High Financial strength-Prospects of performance are weak and the
entity has high capacity to meet its financial obligations.
SE 4B
Weak Performance capability & Moderate Financial strength-Prospects of performance are weak and the
SE 4C
Weak Performance capability & Low Financial strength-Prospects of performance are weak and the
entity has low capacity to meet its financial obligations.
SE 5A
Poor Performance capability & High Financial strength-Prospects of performance are poor and the entity
has high capacity to meet its financial obligations.
SE 5B
Poor Performance capability & Moderate Financial strength-Prospects of performance are poor and the
SE 5C
Poor Performance capability & Low Financial strength-Prospects of performance are poor and the entity
has low capacity to meet its financial obligations.
Page 5
1.1 Rating of the SSI Unit

The analysis of the SSI Unit is done based on our operating performance and financial strength rating grid as
considered for this purpose. We have evaluated its score as per the parameters therein.
Financial Strength
Performance
Capability
High
Moderate
Low
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
The Score is SE 3C which indicates Moderate Performance Capability & Low Financial strength.
1.1.1 Scope of the Report

This report includes an objective assessment of M/s Shri Ganesh Industries on a scale of operating performance,
infrastructure facilities, financial resources, creditworthiness, capital structure & existing working capital
arrangements and management style.
The report pertains to the period from 1st April 2012 to 31st March 2014
The report is valid from 15th July 2015 to 14th July 2016
Page 6
2.1 Key Rating Drivers

STRENGTHS (KEY DRIVERS)
Qualified promoter having 25 years of experience in the same line of business
Satisfactory return on owner's fund in FYs under study
Adequate liquidity position of the unit as reflected by satisfactory current ratio of 2.00 times in FY14
WEAKNESS (KEY ISSUES)
Weak inventory management system as the unit has manual record keeping system
The unit cannot indemnify its losses through insurance coverage
The turnover of the unit has decreased by 16.98% in FY14
Low return on capital employed at 9.73% in FY14
High financial risk as reflected by high gearing ratio in FYs under study
Page 7
3.1 Unit Snapshot M/s Shri Ganesh Industries

Year of Establishment
1978
SSI Details
SSI No : 17/1002751/PMT/SSI
Date: 24/10/1978
DIC : Churu
State: Rajasthan
Constitution
Proprietorship
Line of Business
Processing of Pulses
Industry
Food & Beverages
Works & Office
Near Ramgarhia Dharamshala, Sujangarh, Churu, Rajasthan- 331507
Contact Details
Tel: +(91)1568-220133/ 1568-220942

Mo: +(91)9414086670/ 9414465704
Name of the Proprietor
E-Mail:- gauravagarwal282@yahoo.in
Mr. Madan Mohan Manglunia
Entrepreneurs Category
General
Number of Employees
Details of the Auditor
08 (Casual)
04 (Casual)
Name of the Auditor: C.A. Prahlad Jhuria
Membership No: 013628
Location: Sikar, Rajasthan
Contact No: +(91)- 9829090101
3.1.1 Brief about the unit

M/s Shri Ganesh Industries was established in the year 1978 as a proprietorship unit and started its operations in the
same year. The unit is engaged in processing of pulses. The unit is located in residential area at owned premises.
The unit registered a PAT of 7.30 Lac on a Turnover of 1325.97 Lac in the FY14.
Page 8
3.2 Management Profile

Name of the Person
Designation
Age
Qualification
(In Years)
Mr. Madan Mohan
Proprietor
55
B.Com
Experience
Stake in Business
(In Years)
(%)
25
100.00
Manglunia
3.3 Business Description

3.3.1 Products Profile
S No.
Particulars
1.
Pulses
% of Revenue
100.00
3.3.2 Manufacturing Facilities

3.3.2.1 Raw Materials
S No.
Name of the Raw Material
1.
Raw Pulses
2.
Oil
3.3.2.2 Machinery & Equipments

S. No.
Machinery & Equipment
1.
Dryer
2.
De stoner
3.
Lift Elevator
4.
Polisher
Page 9
3.3.2.3 Production Process
Cleaning of Raw Material
Applying of Oil
Mixing with Water
Drying
Processing
Removing of Outer Cover
Final Product
3.4 Customer & Supplier Profile

3.4.1 Customer Profile
Name of the Customers
Location
Product
Length of Relationship
% of Revenue
Sankhala Sriram
Delhi
Pulses
10 Years
N.A.
Ram Chandra Mohan Lal
Rajasthan
Pulses
10 Years
N.A.
Ramesh Kumar Mahesh Kumar
Rajasthan
Pulses
8 Years
N.A.
Phool Kumari Chaurasiya
Rajasthan
Pulses
8 Years
N.A.
N.A.: Not Available
3.4.2 Supplier Profile

Name of the Suppliers
Location
Product
Length of Relationship
% of
Purchase
Dhaka Brothers
Rajasthan
Raw Pulses
8 Years
N.A.
Shri Hanuman Oil Mill
Rajasthan
Raw Pulses
8 Years
N.A.
Chetan Lal Bega Ram
Rajasthan
Raw Pulses
8 Years
N.A.
N.A.: Not Available
Page 10
3.5 Banking Facility

The unit shares its banking relation with 'State Bank of Bikaner And Jaipur', Near Tehsil Bhawan, Sujangarh,
Churu from whom it avails the following facility:
Nature of Facility
Year of Sanction
Amount Sanctioned
Rate of Interest
Cash Credit
2007
(In Lac)
25.00
(Per Annum)
12.60%
3.6 Insurance
Not Available
3.7 Quality Certificate

Not Available
3.8 Associate Concern

Name of the Concern
Constitution
Line of Business
Name of the Promoter
Shri Ganesh Agro Industries
Partnership
Processing of Pulses
Mr. Madan Mohan Manglulia
Page 11
4.1 Key Financial Data

For the year ended
FY13
FY14
Audited
Turnover
Lac
1597.14
1,325.97
Purchases
Lac
1509.87
1,232.17
Cost of Goods Sold
Lac
1544.00
1,275.28
EBITDA
Lac
26.88
23.20
Depreciation
Lac
2.34
2.00
Interest & Finance Cost
Lac
15.57
12.91
PAT
Lac
7.84
7.30
Liabilities
Net worth
Lac
13.33
10.55
Long Term Debt
Lac
121.33
106.63
Short Term Debt
Lac
24.43
25.02
Payables
Lac
35.20
75.58
Other Liabilities & Provisions
Lac
0.00
0.23
Deferred Tax Liability
Lac
0.00
0.00
Total Liabilities
Lac
194.30
218.01
Assets
Net Fixed Assets
Lac
17.35
15.91
Investments
Lac
0.00
0.00
Inventory
Lac
116.36
104.92
Total Receivables
Lac
43.38
83.34
(Includes debtors > 6 months)
Lac
0.00
0.00
Cash & Bank Balances
Lac
2.57
2.72
Other Current Assets
Lac
14.64
11.11
Non Current Assets
Lac
0.00
0.00
Total Assets
Lac
194.30
218.01
Key Ratios
EBITDA Margin
%
1.68
1.75
PAT Margin
%
0.49
0.55
Return on Capital Employed
%
12.63
9.73
Return on Owner's Fund
%
58.84
69.25
Average Cost of Borrowing
%
***
9.31
Interest Coverage Ratio
Times
1.73
1.80
Adj. Gearing(Total Debt/Owner's Fund)
Times
10.94
12.48
Current Ratio
Times
2.97
2.00
Inventory Days
Days
28
32
Debtor Days
Days
***
17
Creditor Days
Days
***
16
Operating Cycle
Days
***
33
*The average cost of borrowings. debtor days and creditor days for the FY13 is not shown as the opening balance of
debt fund, debtors and creditors was not available.
Page 12
4.1.1 Past Financial Performance-Key Indicators

1)
The turnover of the unit has decreased by 16.98% in the FY14 due to decrease in production.
2)
The EBITDA margin has been low in the FYs under study. It has increased in the FY14 and stood at 1.75%.
3)
The PAT margin has been low in the FYs under study. It has increased in the FY14 and stood at 0.55%.
4)
The return on capital employed of the unit has been moderate in FY13 & low in FY14. It has decreased in the
FY14 and stood at 9.73%.
5)
The return on owners fund of the unit has been satisfactory in FYs under study. It has increased in the FY14 and
stood at 69.25%.
6)
The debt to owner's fund of the unit has been above the limit in FYs under study.
7)
The current ratio of the unit has been high in FY13 & satisfactory in FY14, indicating sufficient current assets to
meet its short term liabilities in FY14.
Page 13
4.2. Graphical Interpretation

Returns
EBIDTA Margin vs PAT Margin

80
1.75
1.68
1.8
69.25
70
1.6
58.84
60
1.4
50
1.2
1
40
0.8
30
0.6
0.4
20
0.55
0.49
12.63
9.73
10
0.2
0
FY13
FY13
FY14
EBITDA Margin
PAT Margin
Total Debt - Owner's Fund

14
12
10.94
160
140
1.8
120
100
80
6
4
2
0
FY13
Total Debt
1.80
1.73
1.6
1.4
1.2
1
60
0.8
40
0.6
20
0.4
0.2
FY14
Net worth
Return on Owner's Fund
12.48
10
FY14
Return on Capital Employed
0
FY13
Adj. Gearing(Total Debt/Owner's Fund)
FY14
Turnover Ratios
Current Ratio
35
3.5
3
2.97
32
30
25
2.5
2.00
2
20
1.5
15
10
0.5
17
16
0
FY13
FY14
Current Ratio
FY14
Debtor Days Creditor Days Inventory Days
Page 14
Financial Parameters
Interpretation
Profitability Analysis
The EBITDA margin has been low in the FYs under study. It has
increased in the FY14 and stood at 1.75%.
The PAT margin has been low in the FYs under study It has increased
in the FY14 and stood at 0.55%.
The return on capital employed of the unit has been moderate in the
FY13 & low in FY14. It has decreased in the FY14 and stood at 9.73%.
The return on owners fund of the unit has been satisfactory in FYs
under study and stood at 69.25% in FY14.
Leverage Analysis
The total debt-owners fund ratio has been above the comfortable
range in the FY14 indicating high dependence on external borrowings
to fund its operations. It stood at 12.48 times in the FY14.
Interest Coverage
Analysis
Liquidity Analysis
The interest coverage ratio of the unit has been low in the FYs under
study. It has increased in the FY14 and stood at 1.80 times.
The current ratio of the unit has been high in FY13 & satisfactory in
FY14. It stood at 2.00 times in the FY14.
About 51.91% of the current assets have been tied up in the closing
stock, 41.24% in debtors, 1.35% in cash & bank balance and the
remaining 5.50% in other current assets in the FY14.
Working Capital Analysis
The debtor days of the unit have been low in the FY14 indicating that
the customers are paying to the unit within short time frame.
The creditor days of the unit have been low in the FY14 indicating that
the suppliers are being paid within short time frame.
Low operating cycle of the unit indicating efficient working capital

management in FY14.
Page 15
Disclaimer
This report has been prepared by ONICRA Credit Rating Agency of India Limited strictly for the purpose
of getting MSME units rated under Performance and Credit Rating Scheme of NSIC-ONICRA. The said
report, a copy of which is submitted to NSIC, is prepared on the basis of documents produced,
information given and explanation provided to ONICRA by the Unit as well as information available in
the public domain. This report is a proprietary of ONICRA Credit Rating Agency of India Limited and no
part of this report may either be reproduced or copied in any form or any manner whatsoever without
the written consent of the unit rated and ONICRA Credit Rating Agency of India Limited.
This rating is to be used solely for the purpose for which it has been assigned and for no other purpose.
This rating is only a onetime exercise and is not kept under surveillance by ONICRA. This rating is valid
for one year from the report date, subject to no significant changes/ events occurring during this period
that could significantly affect the business or financial parameters of the organization. It is
recommended that review of the rating be sought again in case there are significant changes.
Rating does not constitute an audit of the organisation by ONICRA nor has the information based on
which the rating has been assigned or that contained in the report been validated by ONICRA. It is not a
recommendation to enter into or to preclude a relationship with the organisation.
ONICRA reserves the right to disclose the rating and the rating report to the Government and / or
Regulatory Authorities/ Courts of Law if required to do so. It is especially stated that ONICRA, its
Directors, employees and others associated with the rating assignment do not have any financial
liability whatsoever including but not limited to attorneys or consultants fees to the users of this rating
or rating report.
It must be distinctly understood that though utmost care has been taken to prepare this report, ONICRA
Credit Rating Agency of India Limited accepts no liability whatsoever for any direct or consequential
outcome based on this report.
None of the Analysts/ Member of Rating Committee of ONICRA are having any personal relationship
with the Rated organization.
You may reach us at ratingdesk@onicra.com
Page 16
ONICRA CREDIT RATING AGENCY OF INDIA LIMITED

HARYANA
Gurgaon
Corporate & Rating office
Building No. 21-22, 5thFloor
Udyog Vihar Phase-IV,
Gurgaon-122015
India
TELANGANA
Hyderabad
7-1-28/12/1; 4th Floor,
Serenity Plaza, Shyam Karan
Road,
Near Andhra Bank, Ameerpet
Branch, Hyderabad -500016
India
GUJARAT
Ahmedabad
603, Aniket, Above Metro
Showroom, Opp. Jain
Derasar, CG Road, Navrang
Pura,
Ahmedabad-380009
India
KARNATAKA
WEST BENGAL
Kolkata
3 D&F, 3rd Floor, Jindal Tower
Block-A, 21/1A/3, Darga
Road
Kolkata - 700017
India
UTTARAKHAND
Noida
B10, Sector 59
Noida 201301
India
Lucknow
239, Tej Kumar Plaza,
Hazratganj
Lucknow-226001
India
Bengaluru
N-705, 7th Floor, North Block,
Manipal Centre
47, Dickenson Road
Bengaluru 560042
India
TAMIL NADU
Chennai
25, Ranganathan Garden,
Ground Floor, 15th
Main Road,
Annagar West,
Chennai-600040
India
MAHARASHTRA
Mumbai
520, 5th Floor
Nirmal Corporate Centre,
Nirmal Life Style,
LBS Marg, Mulund (West)
Mumbai 400080
India
Page 17

Shri Ganesh Industries

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Shri Ganesh Industries

Uploaded by

Copyright:

Available Formats

NSIC - ONICRA RATING REPORT

M/s SHRI GANESH INDUSTRIES

Report Date: 15th July 2015

NSIC- ONICRA-Performance and Credit Rating

M/s Shri Ganesh Industries, Rajasthan

ONICRA Credit Rating Agency of India Limited

NSIC- ONICRA-Performance and Credit Rating

M/s Shri Ganesh Industries, Rajasthan

ONICRA Credit Rating Agency of India Limited

NSIC- ONICRA-Performance and Credit Rating

M/s Shri Ganesh Industries, Rajasthan

ONICRA Credit Rating Agency of India Limited

NSIC- ONICRA-Performance and Credit Rating

M/s Shri Ganesh Industries, Rajasthan

NSIC-ONICRA Rating Scale

ONICRA Credit Rating Agency of India Limited

NSIC- ONICRA-Performance and Credit Rating

M/s Shri Ganesh Industries, Rajasthan

1.1 Rating of the SSI Unit

1.1.1 Scope of the Report

ONICRA Credit Rating Agency of India Limited

NSIC- ONICRA-Performance and Credit Rating

M/s Shri Ganesh Industries, Rajasthan

2.1 Key Rating Drivers

Satisfactory return on owner's fund in FYs under study

WEAKNESS (KEY ISSUES)

The unit cannot indemnify its losses through insurance coverage

The turnover of the unit has decreased by 16.98% in FY14

Low return on capital employed at 9.73% in FY14

ONICRA Credit Rating Agency of India Limited

NSIC- ONICRA-Performance and Credit Rating

M/s Shri Ganesh Industries, Rajasthan

3.1 Unit Snapshot M/s Shri Ganesh Industries

Food & Beverages

Works & Office

Near Ramgarhia Dharamshala, Sujangarh, Churu, Rajasthan- 331507

Tel: +(91)1568-220133/ 1568-220942

Name of the Proprietor

3.1.1 Brief about the unit

ONICRA Credit Rating Agency of India Limited

NSIC- ONICRA-Performance and Credit Rating

M/s Shri Ganesh Industries, Rajasthan

3.2 Management Profile

3.3 Business Description

3.3.2 Manufacturing Facilities

Name of the Raw Material

3.3.2.2 Machinery & Equipments

Machinery & Equipment

ONICRA Credit Rating Agency of India Limited

NSIC- ONICRA-Performance and Credit Rating

M/s Shri Ganesh Industries, Rajasthan

3.3.2.3 Production Process

Cleaning of Raw Material

Mixing with Water

Removing of Outer Cover

3.4 Customer & Supplier Profile

Ram Chandra Mohan Lal

Ramesh Kumar Mahesh Kumar

Phool Kumari Chaurasiya

N.A.: Not Available

3.4.2 Supplier Profile

Shri Hanuman Oil Mill

Chetan Lal Bega Ram

N.A.: Not Available