NSIC – D&B – SMERA Rating Report Date of Report : 31/Aug/2010 * Legal Form : Partnership Firm * 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 3B 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 BUBBLE ELECTRONICS J.R. Building, 2 nd Floor, 192, Aarey Road, Goregaon (East), Mumbai – 400 063 Maharashtra India
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NSIC – D&B – SMERA Rating Report
Date of Report : 31/Aug/2010 * Legal Form : Partnership Firm
* 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 3B
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
BUBBLE ELECTRONICS
J.R. Building, 2nd Floor, 192, Aarey Road, Goregaon (East),
Mumbai – 400 063 Maharashtra
India
BUBBLE ELECTRONICS
1
I N D E X
1. SNAPSHOT .......................................................................................................................................2
2. SALIENT FEATURES ......................................................................................................................4
3. AUDITOR ........................................................................................................................................ 10
4. BANK ................................................................................................................................................ 10
5. INSURANCE ................................................................................................................................... 10
6. PROFIT/LOSS SHARING RATIO .............................................................................................. 10
7. PARTNERS DETAILS ................................................................................................................... 11
8. OPERATIONS ................................................................................................................................. 12
9. EMPLOYEE(s) DETAILS ............................................................................................................... 13
10. LOCATION DETAILS ................................................................................................................... 14
11. CIBIL DEFAULTERS LIST ........................................................................................................... 14
12. AWARDS / REGISTRATIONS / MEMBERSHIPS / CERTIFICATES.................................. 14
13. SITE VISIT COMMENTS CONDUCTED ON HEAD OFFICE & FACTORY .................... 15
BUBBLE ELECTRONICS
2
SNAPSHOT
D&B D-U-N-S® Number 65-051-2663
Entity Name BUBBLE ELECTRONICS
Head Office and Works Address
J.R. Building, 2nd Floor, 192, Aarey Road, Goregaon (East), Mumbai – 400 063 Maharashtra India
Telephone (91) (22) (29276539)
Email [email protected]
Line of Business
Assembly of electronic products, design of test panels and provide consultancy services for development of electronic products. (This will appear as a Line of Business in the Rating Certificate)
Chief Executive
Mrs. Saroj D. Daga, Partner (The above captioned name will be appearing in the Rating Certificate)
NSIC - D&B - SMERA Rating SE 3B
Entrepreneurs Memorandum Numbers
27221100737
Establishment Date 16/Dec/1986
Date of Commencement of Production
01/Jan/1994
Total Employees 03
Category of Promoters General
Last Income Tax Filing Date 19/Jul/2010
Last Financial Statement Date 31/Mar/2010
BUBBLE ELECTRONICS
3
COMPARATIVES – FINANCIAL SNAPSHOT IN INDIAN RUPEES (IN THOUSANDS)
Statement End Date 31/Mar/2008 31/Mar/2009 31/Mar/2010
Current Assets 187 212 260
Current Liabilities 191 195 180
Working Capital (4) 17 80
Other Tangible Assets 50 49 53
Tangible Networth 46 66 133
Cash & Bank 54 58 142
Accounts Receivable 99 137 86
Fixed Assets 6 5 9
Accounts Payable 74 97 147
Inventory 19 15 31
Income 433 633 578
Net Profit 2 22 18
BUBBLE ELECTRONICS
4
BACKGROUND Bubble Electronics (hereinafter referred to be as the subject) was established on 16/Dec/1986 as a partnership firm by Mr. M. R. Daga, Mr. D. M. Daga (H.U.F.) and Mrs. Saroj D. Daga At present the management of the subject is vested in the hands of Mr. D. M. Daga (H.U.F.) and Mrs. Saroj D. Daga, partners of the firm. SALIENT FEATURES
STRENGTHS RISK FACTORS
� The gross profit margin has increased
during the period under study.
� The tangible networth and the capital
employed have increased during the
period under study.
� The current ratio and the quick ratio of the
subject were above the industry standard
as on 31/Mar/2010.
� The collection days of the subject were in
tune with the management policy FY
2010.
� Supplier Concentration Risk - Around
60% of total purchases are made from
Guddy Electronics.
� Customer Concentration Risk - Around
40% of total sales are made to Technocrats
Security Systems Private Limited.
OTHER INFORMATION � The revenue of the subject has shown uneven trend during the period under study.
� The operating profit margin and the net profit margin have shown an uneven trend during the
period under study.
� The return on networth and the return on capital employed have shown an uneven trend
during the period under study.
� The payable days of the subject were liberal than the industry standard for FY 2010.
� Banker’s confidential letter was not available for verification.
BUBBLE ELECTRONICS
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FINANCIAL TREND
Sales
433
633578
46.19
(8.69)
0
140
280
420
560
700
2008 2009 2010
INR
('000)
(60.00)
(30.00)
0.00
30.00
60.00
90.00
Perc
enta
ge
Sales Sales Growth
Profit
18
22
2
(18.18)
1000.00
0
5
10
15
20
25
2008 2009 2010
INR
('000)
(1000.00)
(500.00)
0.00
500.00
1000.00
1500.00
Perc
enta
ge
Profit Profit Growth
Profit Margins
0.463.48 3.110.69
3.63 3.11
30.62
27.3322.40
0.00
7.00
14.00
21.00
28.00
35.00
2008 2009 2010
Perc
enta
ge
Net Profit MarginOperating Profit MarginGross Profit Margin
BUBBLE ELECTRONICS
6
Tangible Networth Vs Capital Employed
46
66
133
46
66
133
0
30
60
90
120
150
2008 2009 2010
INR
('000)
Tangible Net worth Capital Employed
Capital Employed Pattern
46 66 133
0%
20%
40%
60%
80%
100%
2008 2009 2010
INR
('000)
Tangible Net Worth
Returns
4.35
33.33
13.53
6.52
34.85
13.53
0.00
8.00
16.00
24.00
32.00
40.00
2008 2009 2010
Perc
enta
ge
Return on Net worthReturn on Capital Employed
Liquidity
0.981.09
1.44
0.88
1.01
1.27
0.00
0.30
0.60
0.90
1.20
1.50
2008 2009 2010
Tim
es
Current Ratio Quick Ratio
BUBBLE ELECTRONICS
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FISCAL BALANCE SHEET (FIGURES IN THOUSANDS OF INDIAN RUPEES)
Date 31/Mar/2008 31/Mar/2009 31/Mar/2010
Assets
Current Assets
Cash & Bank 54 58 142
Inventory / Work-in-Progress 19 15 31
Accounts Receivable 99 137 86
Other Current Assets 15 2 1
Total Current Assets 187 212 260
Fixed Assets
Plant & Equipment 4 4 5
Computer 2 1 4
Total Fixed Assets 6 5 9
Investments
Other Investments 44 44 44
Total Investments 44 44 44
Total Assets 237 261 313
Liabilities
Current Liabilities
Accounts Payable 74 97 147
Advances from Customers 65 0 8
Other Current Liabilities 52 98 25
Total Current Liabilities 191 195 180
Equity
Capital 46 66 133
Total Equity 46 66 133
Total Liabilities 237 261 313
BUBBLE ELECTRONICS
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PROFIT & LOSS ACCOUNT (FIGURES IN THOUSANDS OF INDIAN RUPEES)
Financial Year 2008 2009 2010
Months covered by P/L 12 12 12
Income 433 633 578
Cost of Sales (336) (460) (401)
Employee cost (43) (43) (42)
Electricity Charges (1) (2) (5)
Job Work charges 0 0 (5)
Other Direct Expenses 0 (15) (20)
Raw Material consumption cost (292) (400) (329)
Gross Profit 97 173 177
Depreciation/Amortization (4) (2) (3)
General operating expenses (90) (148) (156)
Net Operating Profit after depreciation and Before interest
3 23 18
Finance expenses (1) (1) 0
Net Profit 2 22 18
The above financials are taken from the audited accounts of the subject. The accounts are audited by Akshay & Co. (Chartered Accountants).
BUBBLE ELECTRONICS
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FINANCIAL RATIOS
2008 2009 2010
Growth Ratios
Sales Growth (%) - 46.19 (8.69)
Net Profit Growth (%) - 1,000.00 (18.18)
Turnover Ratios
Collection Period (Days) 83 81 57
Account Payable Days 106 89 156
Sales to Inventory (times) 23 42 19
Assets to Sales (%) 54.73 41.23 54.15
Sales to Net Working Capital (times) *** 37 7
Fixed Assets Turnover Ratio (times) 72 127 64
Profitability Ratios
Gross Profit Margin (%) 22.40 27.33 30.62
Operating Profit Margin (%) 0.69 3.63 3.11
Net Profit Margin (%) 0.46 3.48 3.11
Return on Assets (%) 0.84 8.43 5.75
Return on Networth (Return on Equity) (%) 4.35 33.33 13.53
Return on Capital Employed (%) 6.52 34.85 13.53
Liquidity Ratios
Quick Ratio (times) 0.88 1.01 1.27
Current Ratio (times) 0.98 1.09 1.44
Gearing & Solvency Ratios
Fixed Assets to Tangible Networth (%) 13.04 7.58 6.77
Current Liabilities to Tangible Networth (%) 415.22 295.45 135.34
Total Liabilities to Tangible Networth (%) 415.22 295.45 135.34
***Since the net working capital of the subject was negative as on 31/Mar/2008, the relevant ratios cannot be calculated
BUBBLE ELECTRONICS
10
AUDITOR Akshay & Co., (Chartered Accountants) 27, Ashoka Super Market, S.V. Road, Goregaon (West), Mumbai – 400 062 Maharashtra India BANK Information in this report may not represent the full extent of subject's bank relationships.
Name of the Bank Canara Bank
Branch CBS Branch
No independent confirmation was obtained from the bank. INSURANCE The Funding Institution(s) and / or user(s) of this report are advised to seek unexpired insurance policies (if applicable) before taking any business decision. PARTNERSHIP CAPITAL: INR 133 (in thousands) as on 31/Mar/2010 PROFIT/LOSS SHARING RATIO
Name of the Partner Profit / Loss Sharing Ratio (%)
Mrs. Saroj D. Daga 60.00
Mr. D. M. Daga (H.U.F.) 40.00
Total 100.00
Profit Sharing Ratio as on 31/Mar/2010
BUBBLE ELECTRONICS
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PARTNERS DETAILS
Name Mrs. Saroj D. Daga
Year of Birth 1960
Current Designation Partner
Appointed to Present Position
1986
Started with Subject 1986
Qualification Bachelor of Arts
Related Experience since 1986
Active in daily operations Yes
Founder of Subject Yes
Address
201, Hill View Society, Filmy City Road, Goregoan (East), Mumbai – 400 063 Maharashtra India
Permanent Account Number ADKPD6669H
Name Mr. D. M. Daga (H.U.F.)
Year of Birth 1953
Current Designation Partner
Appointed to Present Position
1986
Started with Subject 1986
Qualification Diploma in Industrial Electronics
Related Experience since 1986
Active in daily operations Yes
Founder of Subject Yes
Address
201, Hill View Society, Filmy City Road, Goregoan (East), Mumbai – 400 063 Maharashtra India
Permanent Account Number ABLPD3431C
Mobile Number (91) (9022915531)
Email ID [email protected]
BUBBLE ELECTRONICS
12
OPERATIONS The subject is engaged in assembly of electronic products for industrial use, design of test panels as per ISI requirements (custom design) and also provides consultancy services for development of electronic products for industrial requirements. PURCHASES
FY 2008 FY 2009 FY 2010
(%) (%) (%)
Indigenous 100.00 100.00 100.00
PURCHASING TERMS
Indigenous Cash Open Account : 45 Days
SUPPLIERS
Suppliers Name and Location Length of
relationship (Years) % share
in Purchases
Guddy Electronics, India
15 60.00
Wire Print, India
15 20.00
BUBBLE ELECTRONICS
13
SALES
FY 2008 FY 2009 FY 2010
(%) (%) (%)
Indigenous 100.00 100.00 100.00
SELLING TERMS
Indigenous Open Account : 45 Days
CUSTOMERS Subject maintains 25 to 30 accounts / customers. MAJOR CUSTOMERS
Customer Name and Location Length of
relationship (Years) % share in Sales
Technocrats Security Systems Private Limited, India
15 40.00
Global Convergence, India
10 10.00
Kiyosh Electronics, India
15 10.00
EMPLOYEE(s) DETAILS
FY 2010 FY 2009
Total Employees 03 03
Permanent 03 03
BUBBLE ELECTRONICS
14
LOCATION DETAILS
Location Used as Address Employees Production
Contribution
Administrative Office & Works
J.R. Building, 2nd Floor, 192, Aarey Road, Goregaon (East), Mumbai – 400 063 Maharashtra India
03 100
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 Date of Expiry
VAT 27130151342 -
CST 27130151342 -
PAN AAEFB7236R -
Note - As informed by management, Pollution Control Board Certificate for Air & Water is not applicable to the subject.
BUBBLE ELECTRONICS
15
SITE VISIT COMMENTS CONDUCTED ON HEAD OFFICE & FACTORY
Address
J.R. Building, 2nd Floor, 192, Aarey Road, Goregaon (East), Mumbai – 400 063 Maharashtra India
Size of Premise Land - 300 square feet
Site Details Type Commercial Area
Site Location Main Road
Location Used As Head Office, Factory & Sales Office
Kind of Buildings Adobe Building
On Floor Second Floor
Total Floors in Building Ground Floor +Two Floors
Type of Occupation Owned
Owners Name Mr. D. M. Daga (H.U.F.)
Does Group Companies share the Office No
Is the office furnished Yes
Any Fire Extinguishers No
No. of people working at this location 03
Do Partners sit at the site location Yes
Are Partners involved in any other Business Yes
Name of the companies Global Consultancy
Were Partners present at the time of interview
Yes
Are there any competitors around No
Are there any boards / nameplates outside the premises
Yes
No. of shifts that the unit is operating General Shift
Site equipped with following facilities:
Telephone Yes
Fax Yes
Internet Yes
Printer Yes
Modem Yes
Power Back up Yes
UPS Yes
Security Guards No
Signage, name plates Yes
BUBBLE ELECTRONICS
16
Name of the Executive contacted Mr. D. M. Daga (H.U.F.), Partner
BUBBLE ELECTRONICS
17
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.
-- End of Report --
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