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Manufacturing/MSE

Shri Laxmi Narayan Industries


India Ratings & Researchs (Ind-Ra)
NSIC Performance and Credit Rating
NSIC-Ind-Ra
Rating
Report SE 2B
High Performance Capability &
Report
date Financial Strength
Moderate
30November2015

Valid till
29 November2016

Index
NSIC - Performance and
Credit Rating
Fact Sheet & Business Profile
Organisation Structure
Process Flow Diagram
Management Profile
Strengths & Weaknesses
Business Profile
Future Plans & Marketing
Arrangement
Bank and Insurance Details
Financial Summary
Site Visit Information
Photographs of the Site

Page No
1
1
NSIC - Performance and Credit Rating
2
High
2
3
A
3 SE 2B indicates High
Highest
1
3 Performance Capability High
2
3 and Moderate Financial Moderate
3
Strength
Weak
4
4
Poor
5
4
5
6

Moderate
B

Low
C

Shri Laxmi Narayan Industries

Fact Sheet & Business Profile


Name of the company
Year of incorporation
Business
Legal status
Category of unit
Registered with
Registration number
Registered and administrative office
Manufacturing/service facilities
Industry
Chief executive
Branch offices
Total manpower (permanent and temporary)
also mentions the number of professional
employees (Like B.E., C.A., Doctor, etc.)
Installed capacity
Auditors Name
End use of the product
Raw material required
Plant and machinery used (When was It
purchased)
Certifications/awards
Source:Shri Laxmi Narayan Industries, Ind-Ra

Shri Laxmi Narayan Industries


November 2015

Shri Laxmi Narayan Industries


2010
Manufactures Stainless Ingots and Mild Steel Ingots.
Proprietorship
General
NA
60081201206
Narela road, Piomaniyari, Sonipat, State: Haryana
Narela road, Piomaniyari, Sonipat, State: Haryana
Steel Industry
Mr Vivek Aggarwal
NA
Total- 15
1.5 M.T
TU & CO.
Metal
Pig iron, coal(coke), Limestone
Ingot caster machine, water jet cutting machines,
forging presses.
NA

Management Profile
Proprietor
Name
Nature of involvement/role in the business
undergoing rating
Designation
Stake
Age
Education
Experience
Net worth
Details of other businesses of the key persons
(position, company name & nature of business)

Mr Vivek Aggarwal
Looks after overall business activities.
Proprietor
100.0%
36 years
PG
15 years
NA
NA

Source:Advance India Projects Ltd, Ind-Ra

Strengths & Weaknesses


Strengths

Weaknesses

More than 10 years of experience of the


proprietor in the same line of business.
Established relationship with suppliers.
Improvement in Net cash cycle days to
75days in FY15 (FY14: 81 days; FY13
113days).

Presence in a highly fragmented and


competitive market.
Volatility in the procurement of raw
material and power supply can result in
increased cost.
EBIDTA margins have been in declining
trend over the years FY13-FY15.
Deterioration in net financial leverage to
4.28 in FY15 (FY14: 3.54).

Business Profile
Product profile
Installed capacity
Competitive position
Supplier information

Customer information
Orders in hand

The company manufactures stainless ingots and mild steel ingots.


1.5 M.T
Moderate
Petropol India Limited
Rathi Steel
Aashiana Steel
Atoz
N.A
N.A.

Source:Shri Laxmi Narayan Industries, Ind-Ra

Future Plans & Marketing Arrangement

The company is planning to import machinery worth 20 Lakh from Germanyin order
to increase its sales.

Bank and Insurance Details


Bank Details (as on 31 March 2015)
Name and address of the bank
Canara Bank

Facilities enjoyed
Cash Credit

Limit/loan amount
INR2.5m

Rate of interest
n.a

Financial Summary
Key financials (INRm)
Revenues
Operating EBITDA
Op. EBITDA margin (%)
Gross interest expenses
PAT
Cash & equivalents
Short term debt
Long term debt
Total debt
Net cash cycle (days)
EBITDA interest coverage (gross) (x)
Net financial leverage (x)
Shri Laxmi Narayan Industries
November 2015

FY14

FY15

47.41
1.60
3.37
0.37
0.51
0.29
2.87
3.07
5.94
81
4.36
3.54

47.24
1.71
3.61
0.40
0.65
0.23
2.46
5.06
7.53
75
4.28
4.28

0.58

Debt-equity (x)

0.69

Note: The above financials table have been prepared from the audited financials provided to Ind-Ra by the entity
Source: Shri Laxmi Narayan Industries, Ind-Ra
50

47.41

47.24

FY14

FY15

45
40
35

34.01

30
25
20
15
10
5
0
FY13

Revenues The top line of Shri Laxmi Narayan Industries stands at INR47.24m in FY15. (FY14:
INR47.41m). The marginal decrease is due to slowdown in the overall steel industry and decline in the
prices of steel ingots in the market.

0.70

0.65

0.60
0.50

0.47

0.40
0.30
0.20
0.10
0.00
FY13

0.51
FY14

FY15

PAT The net profits of the entity has improved in FY15. The PAT stood at INR0.65m compared to
INR.51m in FY14.

6%
5.27%
5%
4%

3.37%

3.61%

3%
2%
1%
0%
FY13

FY14

FY15

ProfitabilityEBIDTA margin of the company stands at 3.61% in FY15 (FY14: 3.37%; FY13: 5.27%). Due
to its presence in a fragmented and highly competitive market the margins have remained low.

Shri Laxmi Narayan Industries


November 2015

6
4.77
5

4.36

4.28

FY14

FY15

4
3
2
1
0
FY13

Interest coverage The interest coverage deteriorated to 4.28 in FY15 (FY14: 4.36) due to increase in the

interest burden because of increased external liabilities.

7
6
5

4.28

4
3.11
3

3.54

2
1
0
FY13

FY14

FY 15

Leverage The net leverage of the company have been on a deteriorating trend. The Net leveragestands
at 4.28x in FY15 (FY14: 3.54x). The deterioration is due to increase in overall debt to INR7.53m in
FY15(FY14: INR5.94m) compared to marginal improvement in EBIDTA to INR1.71m in
FY15(FY14:INR1.60m).
0.8
0.7

0.69

0.64

0.6
0.5
0.4
0.3
0.2
0.1
0.0
FY13

0.58
FY14

FY 15

Debt-Equity The debt-equity ratio of the company deteriorated to .69 in FY15 (FY14:0.58). The ratio
deteriorated due to increase in overall debt to INR7.53m (FY14: INR5.94m).

Shri Laxmi Narayan Industries


November 2015

150
123
120
102
90
69
60

30

0
FY13

FY14

80

FY15

71

70
60
50
40
29

30
20
10 7
0
FY13

FY14

70

FY15
65

60
50

50
40
30
2016
10
0
FY13

FY14

FY15

Debtor, creditor and inventory days The overall working capital cycle improved in FY15 to 75days
(FY14: 81days). The creditor days improved to 65days in FY15(FY14: 50days). The inventory days
deteriorated to 71days in FY15 (FY14: 29days). The large inventory days were due to decrease in demand
and slowdown in steel industry.

Shri Laxmi Narayan Industries


November 2015

Site Visit Information


Address of the site visited
Size of the premises
Location (i.e. Industrial/commercial/
residential/other specify
Accessibility
Ownership
Locational advantage

Infrastructure development state


Building type
Ownership of office/factory/works
Owned by whom
Group companies located in the same
premises, if any
Number of employees at the location
Competitors located nearby, if any
Factory layout
Electricity units consumed
Features available at the site
Fire protection devices
First-aid-box
Sanitation status
Power-Backup
Name/sign board
Any other (please specify)

Narela Road, Piomaniyari, Sonipat, Haryana


2000 Sq. yards
Industrial
Manageable
Owned
(a)
Distance from railhead: 3 km
(b)
Distance from Highway:1 km
(c) Proximity to the consumption centre: NA
(d) Proximity to raw material source: NA
(e)
Proximity to centre supplying
manpower: NA
Developed
Permanent
Owned
Proprietor
No
15
No
Spacious
n.a
Factory
No
Yes
Yes
Yes
Yes
n.a

Office
No
Yes
Yes
Yes
Yes
n.a

Source: Shri Laxmi Narayan Industries, Ind-Ra

Photographs of Site

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Shri Laxmi Narayan Industries


November 2015