MIRA
INFORM REPORT
|
Report Date : |
9th
June 2006 |
IDENTIFICATION
DETAILS
|
Name : |
HEINZ INDIA PRIVATE LIMITED |
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Registered Office : |
D, Shiv Sagar Estate, A. B. Road,
Worli, Mumbai – 400 018, Maharashtra, India |
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Country : |
India |
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Financials (as on) : |
30.04.2005 |
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Date of Incorporation : |
14.06.1994 |
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Com. Reg. No.: |
11-138918
(New) 55-59610
(Old) |
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CIN No.: [Company
Identification No.] |
U15200MH2003PTC138918
/ U15499DL1994PTC059610 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMH03167D |
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PAN No.: [Permanent
Account No.] |
AAACH0667B |
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Legal Form : |
Private limited liability company. |
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Line of Business : |
Manufacturing, trading and exporting of baby food,
cereal based weaning food, instant energy drinks, health beverages, energy
food and talcum powder and other food products like medicated powder, milk
based foods, protein foods, sugar base preparations, tomato ketchup, etc. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD
7750000 |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company and part of Heinz Group. Available information
indicates high financial responsibility of the company. Financial position is
good. Trade relations are fair. Payments are usually current and as per
commitments. The company can be considered good for any normal business
dealings. It can be regarded as a promising business partner in a medium to
long run. |
LOCATIONS
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Registered Office / Head Office : |
D, Shiv Sagar Estate, 8th Floor,
A. B. Road, Worli, Mumbai – 400 018, Maharashtra, India |
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Tel. No.: |
91-22-50085555 / 24952551 / 2958 /
24988754 /59/56/50 |
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Fax No.: |
91-22-50085552 / 24960024
/24962064 |
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E-Mail : |
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Location : |
Owned |
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Corporate
Office : |
A-11, 2nd Floor, Chintels House, Kailash Colony, New
Delhi – 110 048 |
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Tel.
No.: |
91-11-26223241,
26223243, 26223253, 26293334, 26294461, 26294467 |
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Factory
1 : |
Plot No. 36, Village Sikandarpur, Cherrot, Tehsil Koli, District
Aligarh, Uttar Pradesh |
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Location : |
Owned |
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Branches
: |
Located At: Bangalore, Kolkata and Hyderabad |
DIRECTORS
|
Name : |
Mochael
Durwood Milone |
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Designation : |
Chairmen
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Address : |
718,
Carriage Drive, Wexford, Pennsylvania, USA – 15090 |
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Date of Birth/Age : |
14/08/1956 |
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Date of Appointment : |
28/10/2002 |
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Name : |
Mr. Nilesh Chhotabhai Patel |
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Designation : |
Managing Director |
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Address : |
Apartment
1368 Grand Hyatt, Off Western Express Highway, Santacruz W Mumbai – 4000055,
Maharashtra, India |
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Date of Birth/Age : |
01/12/1959 |
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Date of Appointment : |
01/05/2004 |
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Name : |
Mr. Pradeep Narendra Poddar |
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Designation : |
Director |
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Address : |
222, Mount Blank, Kemps
Corner, Mumbai |
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Date of Birth/Age : |
09.09.1954 |
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Qualification : |
B. Com. - P.G.D.M. |
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Date of Appointment : |
30.04.2004 |
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Name : |
Mr. Ashok Barat |
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Designation : |
Director
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Address : |
9 Bay
View, Worli Sea face, Worli, Mumbai – 400018, Maharashtra, India |
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Date of Birth/Age : |
05/12/1956 |
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Date of Appointment : |
29/01/2004 |
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Name : |
Emanuele
Alnerto Vare |
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Designation : |
Director
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Address : |
24,
Chi Swick Road, London, England W45RB |
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Date of Birth/Age : |
21/03/1967 |
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Date of Appointment : |
10/09/2001 |
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Name
: |
Mr. Dara Phirozeshaw Mehta |
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Designation
: |
Alternate
Director |
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Address
: |
10,
Sothlands, 177, Colaba, Mumbai – 400005, Maharashtra, India |
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Date
of Birth/Age : |
13/07/1933 |
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Date
of Casing: |
26/09/2005 |
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Date
of Appointment : |
28/10/2002 |
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Name
: |
Dina
Kushroo Wadia |
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Designation
: |
Alternate
Director |
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Address
: |
67-D
Gilder House, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra , India |
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Date
of Birth/Age : |
14/05/1959 |
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Date
of Casing: |
26/09/2005 |
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Date
of Appointment : |
25/09/2003 |
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Name
: |
Amanda
William Beamon |
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Designation
: |
Director
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Address
: |
2723
Cobden Street, Pittsburgh PA, USA – 15203 |
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Date
of Birth/Age : |
11/03/1969 |
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Date
of Appointment : |
25/09/2003 |
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Name
: |
Mr. Khannan Dasaratharaman |
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Designation
: |
Director
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Address
: |
161 A
Jolly Maker Towers, Chffe Parade Colaba, Mumbai – 400005, Maharashtra, India |
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Date
of Birth/Age : |
23/11/1959 |
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Date
of Appointment : |
25/09/2003 |
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Name
: |
Debabrata
Debendranath Roy |
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Designation
: |
Director
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Address
: |
194
Falcon Crest G D Ambedkar Road, Parel
Mumbai – 400012, Maharashtra, India |
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Date
of Birth/Age : |
03/02/1949 |
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Date
of Appointment : |
20/08/2004 |
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Name
: |
Fernando Alberto Pocaterra |
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Designation
: |
Director
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Address
: |
Piazza
Repubblica 24, Parel Milab Italy, Caracas Venezuela – 20124 |
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Date
of Birth/Age : |
03/12/1949 |
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Date
of Appointment : |
27/09/2004 |
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Name
: |
Nellaiappan
P Thiruambalam |
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Designation
: |
Director
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Address
: |
8
Omratan Pochkhanwala Road, Worli Mumbai – 400025, Maharashtra India |
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Date
of Birth/Age : |
16/09/1957 |
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Date
of Appointment : |
01/02/2005 |
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Name
: |
Mohan
Vegulaparanan Iyer |
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Designation
: |
Director
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Address
: |
745, 2nd
Floor, Shri Rambhuvan Jehangir Vima Dalal Road, parsi Colony Dadar east,
Mumbai – 400014, Maharashtra, India |
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Date
of Birth/Age : |
07/05/1959 |
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Date
of Appointment : |
30/12/1999 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
|
No. of Shares |
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Heinz
Italia S R L |
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10416998 |
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Dara
Phirozeshaw Mehta |
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1 |
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Mr. Ravindra Krishna Kulkarni |
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1 |
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Total
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10417000 |
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BUSINESS DETAILS
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Line of Business : |
Manufacturing, trading and exporting of baby food,
cereal based weaning food, instant energy drinks, health beverages, energy
food and talcum powder and other food products like medicated powder, milk
based foods, protein foods, sugar base preparations, tomato ketchup, etc. |
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Products : |
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Brand Names : |
“COMPLAN”, “GLUCON-D”, “NYCIL” and “FAREX” |
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Exports to : |
Europe, UAE and Saudi Arabia |
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Imports from : |
Italy |
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Terms : |
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Selling : |
Cash or Credit (30-60 days) |
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Purchasing : |
Credit (30-60 days) |
PRODUCTION
STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Milk Based Foods: Own Manufacturing Outside Manufacturing |
Tonnes |
28,100
(28,100) -- |
12,663
(11,163) 586 (876) |
|
Protein Foods |
Tonnes |
120 (120) |
-- |
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Sugar Based Preparation: Own Manufacturing Outside Manufacturing |
Tonnes Tonnes |
10,320
(10,320) -- |
1856 9798 |
|
Tomato Ketchup |
Tonnes |
8,100 (8,100) |
2093 (885) |
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Others Own Manufacturing – Bulk Outside Manufacturing |
Tonnes Tonnes |
-- -- |
1086
(1,819) 422
(380) |
GENERAL
INFORMATION
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Customers : |
Wholesalers |
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No. of Employees : |
170 |
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Bankers : |
v
Hongkong & Shanghai Banking Corporation, K. G. Road, New
Delhi - 110 001 v
Hongkong & Shanghai Banking Corporation, 52/60, M. G. Road,
Mumbai – 400 001 v
Citibank |
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Banking Relations : |
-- |
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Auditors : |
Lovelock & Lewes Chartered Accountants New Delhi – 110 030 |
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Associates/Subsidiaries : |
v Heinz
Wattie’s Australasia, Melbourne, Victoria, Australia v Heinz
Singapore PTE. Limited, Singapore v Heinz
Wattie’s Limited, New Zealand v Tegel
Foods Limited, Auckland, Newmarket, New Zealand v Heinz
Japan Limited Tokyo, Japan v Heinz
– UFE Limited, Guangzhou, People’s Republic of China v Heinz
Cosco, Qingdao, People’s Republic of China v Heinz
Korea Limited, Inchon, South Korea v Heinz
Win Chance Limited, Bangkok, Thailand v Heinz
India Private Limited, Mumbai, India v PT
Heinz ABC Indonesia, Jakarta Indonesia v PT
Heinz Suprama, Surabaya, Indonesia v Heinz
UFC Philippines, Manila, the Philippines v Heinz
Hong Kong Limited, Wanchai, Hong Kong. v Heinz
Win Chance Limited, Thailand v H J
Heinz Company Limited, UK v Heinz
Africa and Middle East FZE |
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Parent company : |
v
Heinz Italia S. r. l. v
H. J. Heinz Company, U. S. A. |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
15,000,000 |
Equity shares |
Rs. 10 each |
Rs. 150.000 millions |
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Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
10,417,000 |
Equity shares |
Rs. 10 each |
Rs. 104.170 millions |
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FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
30.04.2005 |
30.04.2004 |
30.04.2003 |
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|
SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
104.170 |
104.170 |
104.170 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1878.359 |
1751.928 |
1868.748 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1982.529 |
1856.098 |
1972.918 |
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LOAN FUNDS |
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|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
117.114 |
104.311 |
107.614 |
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TOTAL |
2099.643 |
1960.409 |
2080.532 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1386.961 |
781.427 |
795.377 |
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Capital work-in-progress |
71.187 |
4.041 |
7.364 |
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INVESTMENT |
471.824 |
1038.480 |
790.024 |
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DEFERREX TAX ASSETS |
20.837 |
28.036 |
15.210 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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|
Inventories |
482.087
|
516.221 |
489.015 |
|
|
Sundry Debtors |
111.534
|
40.520 |
69.728 |
|
|
Cash & Bank Balances |
342.053
|
306.993 |
604.467 |
|
|
Other Current Assets |
212.157
|
0.000 |
0.000 |
|
|
Loans & Advances |
0.000
|
220.685 |
198.031 |
|
Total Current Assets |
1147.831
|
1084.419 |
1361.241 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
606.833
|
614.320 |
455.207 |
|
|
Provisions |
392.164
|
361.674 |
433.567 |
|
Total Current Liabilities |
998.997
|
975.994 |
888.774 |
|
|
Net Current Assets |
148.834
|
108.425 |
472.467 |
|
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|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.090 |
|
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|
|
|
|
|
|
TOTAL |
2099.643 |
1960.409 |
2080.532 |
|
ROFIT
& LOSS ACCOUNT
|
PARTICULARS |
30.04.2005 |
30.04.2004 |
30.04.2003 |
|
Sales Turnover [including other income] |
3976.771 |
3448.897 |
3299.312 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
537.695 |
181.239 |
600.107 |
|
Provision
for Taxation |
183.214 |
71.921 |
224.458 |
|
Profit/(Loss)
After Tax |
354.481 |
109.318 |
375.649 |
|
|
|
|
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Export
Value |
80.118 |
76.784 |
68.546 |
|
|
|
|
|
|
Import
Value |
70.496 |
109.979 |
0.298 |
|
|
|
|
|
|
Total
Expenditure |
3439.076 |
3267.658 |
2699.205 |
KEY
RATIOS
|
PARTICULARS |
|
30.04.2005 |
30.04.2004 |
30.04.2003 |
|
PAT / Total Income |
(%) |
8.91
|
3.17 |
11.38 |
|
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Net
Profit Margin (PBT/Sales) |
(%) |
13.52
|
2.25 |
18.19 |
|
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|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
21.21
|
9.71 |
27.83 |
|
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|
Return
on Investment (ROI) (PBT/Networth) |
|
0.27
|
0.10 |
0.30 |
|
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Debt
Equity Ratio (Total
Liability/Networth) |
|
0.50
|
0.52 |
0.45 |
|
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|
Current
Ratio (Current
Asset/Current Liability) |
|
1.15
|
1.11 |
1.53 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was incorporated on 14th June,
1994 at New Delhi in India as a closely held public limited liability company
having Company Registration Number 59610.
Subsequently, it was converted into a private limited liability company.
The company shifted its registered office from “The
Great Eastern Centre, 2nd Floor, 70, Nehru Place, New Delhi - 110
019, India” to “D, Shiv Sagar Estate, A. B. Road, Worli, Mumbai – 400
018, Maharashtra, India.” w.e.f. 31-01-2003 and a New Company Registration 138918 of
Mumbai – ROC was obtained.
The Heinz brand is a $2.5 billion global icon and Hinz’s top – 15
power brands account for two thirds of annual sales.
Hienz is a top supplier of branded products to customers in both
the retail grocery and foodservice channels.
Heinz has also expanded its markets through strategic acquisition
of top-ranked frozen snacks in the U.S. and international favorites such as
Honig dried soups and Hak vegetables in the Netherlands and ABC soy sauces in
Indonesia (the world’s second largest soy sauce brand).
Performance
For the
year ended April 30, 2005 the company achieved gross sales of Rs. 4089.81
millions and profit before tax of Rs. 537.70 millions as against the gross
sales of Rs. 3625.52 millions and a profit before tax of Rs. 181.24 million in
the previous year. while the sales grew by 13 % the profit before tax grew by
197 %
Complan and Tomato Ketchup grew significantly by 33
% respectively due to focused Marketing and distribution efforts on the back f strong support from supply Chain
whereas Gulcon – D and Nycil grew by 5 % and 18 %. Farex continued to decline
due to statutory restriction on promotion of infant foods. Supply chain issues
impacted complan crunch timbers biscuits, Ghee sales were low to due lower
realization on account of falling milk prices.
The
vastly improved results could be attributed to the new management under Nilesh
Patel that took major initiatives such as improved products mix, retail
sales focus, systems improvement, tight
control on costs and employees engagement initiatives.
Outlook
The retail sales of the Company during the four months
ended July 2005 grew by 16% with complan continuing its strong growth. Seasonal
brands Nycil and Glucon – D showed strong resurgence by growing at 66 % and 14
% respectively. Baring unforeseen events the managements is cautiously
optimistic about achieving its targets.
Farex
Divestiture :
The
Board on reviewing the performance of Farex of late and the statutory
restrictions on the marketing and sales promotion of the same, had decided to
divest Farex to a prospective buyer. Accordingly, the EAC Group, Denmark was
identified as the suitor and appropriate documentation are being completed for
the effective transfer and divesture of the brand.
Future
plan and Action :
Emphasis will continue to be on the main areas of core
competence, adaptation of new technologies and introduction of new products.
Foreign
Exchange earnings and outgo
During
the year ended 30.04.2005 foreign exchange outgoing was Rs. 312.28 millions
which includes dividend of Rs. 200 millions and capital expenditure of Rs.
70.10 millions. the foreign exchange inflow by way of exports and reimbursement
of expenses was Rs. 80.12 millions. details of same are provided in the Notes
of the Accounts.
press
clipping
HC directive to Heinz India on Complan commercial
Kolkata, September 3, 2004
Mr. Justice Subhra Kamal Mukherjee of the Calcutta
High Court today directed Heinz India Private Limited to telecast the
advertisement of Complan, after deleting the Cup marked ‘H’, in the
advertisement. The ad shows two cups, the bigger one showing a ‘C”, and the
smaller showing ‘H”.
Glaxosmithkline Beecham Health Care Private Limited,
the manufacturer of Horlicks , filed a suit against Heinz, the manufacturer of
Complan, alleging that its advertisement of Complan being telecast in various
television channels showing Complan as more growing power than that of Horlicks
and others.
In the injunction petition, it was stated that
Horlicks has been projected in the advertisement in a slandering manner,
affecting the reputation of the product. It was further stated in the petition
that in the said advertisement, which announces that Complan was better than
Horlicks, is merely a false one having no justification or logic.
Justice Mukherjee, while passing the interim order,
directed the parties to file affidavit. Next hearing will be on September 7.
The Company’s fixed assets of important value include
land and buildings, plant and machinery, furniture and fittings and vehicles
and computer software.
Subject is an offshot of Glaxo India Limited.
The company is in trade terms with the following:
v Dudh
Utapadak Sahakari Sangh Limited, Mumbai
v Amijet
Chemicals
v Mandagini
Agencies
v Durga
Plastics
v Moden
Pronging Press
v Hiena
Pharma
v Poojitha
Plastic Industries
v Pulwal
polymers
v Kwality
Rubber Products
v Sahaya
Print Services Private Limited
v Mahavir
Pulverized
v Shakun
Products
v Mak Food
and Industries
v Stikon
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs. 45.91 |
|
UK
Pound |
1 |
Rs. 84.72 |
|
Euro |
1 |
Rs. 57.92 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership background (20%) Payment record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |