MIRA INFORM REPORT
|
Report Date
: |
9TH
June 2006 |
IDENTIFICATION
DETAILS
|
Name : |
PARLE PRODUCTS PRIVATE LIMITED |
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Registered
Office : |
Nirlon House,
254-B, Dr. Annie Besant Road, Mumbai – 400 025, Maharashtra, India. |
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Country : |
India
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Financials (as on) : |
31.03.2005 |
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Date of
Incorporation : |
9th December, 1950 |
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Com. Reg.
No.: |
11-8834 |
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TAN No.: (Tax
Deduction & Collection Account No.) |
MUMP15062F MUMP00186E |
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PAN No.: (Permanent
Account No.) |
AAACP0486A |
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Legal Form : |
Private limited liability company |
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Line of
Business : |
Manufacturing of Biscuits, Sugar Confectionery and Chocolate
Confectionery. |
RATING & COMMENTS
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MIRA’s
Rating : |
Aa |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum
Credit Limit : |
USD 10000000 |
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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 family owned company engaged in manufacturing and marketing of
Biscuits, Sugar Confectionery, Chocolate Confectionery, etc. The company’s
products are very popular in the market and it is one of the leading Biscuit
manufacturing companies in the country. Directors are well experienced and
respectable businessmen. Their trade relations are reported as fair. The company’s business is progressing well. Payments are correct
and as per commitments. The company can be considered good for business
dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
Nirlon House,
254-B, Dr. Annie Besant Road, Mumbai – 400 025, Maharashtra, India. |
|
Tel. No.: |
91-22-24931841
/ 24921685 / 24951916 / 24921692 / 24933089 / 24933630 |
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Fax No.: |
91-22-24933630/56916927 |
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E-Mail : |
3.
pplworli@vsnl.com |
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Website : |
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Factory: |
Parle
Biscuits Pvt. Ltd.
North Level
Crossing, Tejpal Road, Vile Parle (East), Mumbai – 400 057 Tel. No.
91-22-26916911 to 14 Fax No.
91-22-26916927 Survey No.
120/2 & 118/2, Doddabidarakallu Village, Yeshwantpura, Hubli, Bangalore
North, 15th K. M., Tumkur, N. H. No. 4, Bangalore – 560 073,
Karnataka Tel. No.
91-80-28398825 / 28372807 Fax No.
91-80-28398800 / 28398825
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Regional Sales Offices
(RSO) |
MUMBAI Parle Products Pvt. Ltd. DELHI Parle
Products Pvt. Ltd. BANGLORE Parle
Products Pvt. Ltd. KOLKATA Parle Products Pvt.Ltd. |
Parle Products Pvt. Ltd.
DIRECTORS
|
Name : |
Mr. Vijay K.
Chauhan |
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Designation
: |
Chairman &
Managing Director |
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Date of
Birth/Age : |
66 years |
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Qualification
: |
B. S. - Worcester
Polytechnic Institute, USA (Mech. Engineering) |
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Experience : |
41 years |
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Date of
Appointment : |
01.02.1962 |
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Previous
Employment |
Morgan
Construction Company, Worcester Mass, U.S.A. |
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Name : |
Mr. Sharad P.
Chauhan |
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Designation
: |
Managing
Director |
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Date of
Birth/Age : |
58 years |
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Qualification
: |
B. S. –
Massachussets Institute of Technology, USA (Industrial Management), B. S. –
Massachussets Institute of Technology, USA (Electrical Engineering) |
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Experience : |
36 years |
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Date of
Appointment : |
01.09.1966 |
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Previous
Employment |
O. G. Kelly
& Company (Engineer) |
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Name : |
Mr. R. K.
Chauhan |
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Designation
: |
Managing
Director |
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Date of
Birth/Age : |
56 years |
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Qualification
: |
B. S. -
Worcester Polytechnic Institute, USA (Mechanical Engineering) |
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Experience : |
33 years |
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Date of
Appointment : |
01.12.1969 |
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Name : |
Mr. A. V.
Chauhan |
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Designation
: |
Executive
Director |
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Date of
Birth/Age : |
37 years |
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Qualification
: |
B. S. - (Mech. Engg.) USA, MBA (USA) |
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Experience : |
14 years |
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Date of
Appointment : |
01.09.1989 |
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Name : |
Mr. Arup S.
Chauhan |
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Designation
: |
Executive
Director |
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Address : |
Mumbai – 400
057, Maharashtra |
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Date of
Birth/Age : |
27.06.1975 |
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Date of
Appointment : |
22.08.2003 |
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MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
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Mr. Sharad P. Chauhan |
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Mrs. Asha S. Chauhan |
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Mr. Arup S. Chauhan |
5276 |
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Mr. Samar S. Chauhan |
5276 |
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5276 |
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Mr. Sharad P. Chauhan |
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Mrs. Asha J. Chauhan |
4978 |
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Mr. Raj K. Chauhan |
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Mr. Narottam Mohanlal |
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Mr. Vijay K. Chauhan |
10226 |
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Mr. Sharad P. Chauhan |
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39590 |
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Mr. Vijay K. Chauhan |
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Mrs. Shakuntala V. Chauhan |
6904 |
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Mohanlal Dayal Charitable Foundation |
8250 |
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Mrs. Sheela A. Chiniwalla |
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Mr. Vijay K. Chauhan |
10224 |
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Mr. Sharad P. Chauhan |
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BUSINESS DETAILS
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Line of
Business : |
Manufacturing of Biscuits, Sugar Confectionery and Chocolate
Confectionery. |
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Products : |
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Exports to : |
Bahrain, Cameroon, Canada, Korea Dem. Rep., Malta, Nepal, New
Zealand, Saudi Arabia, Sierra, Leone, South Africa, U.A.E. and U.S.A. |
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Imports from
: |
Europe and USA |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Processed Foods
|
Metric Tonnes |
NA |
224.950 |
292237 |
|
Printing Unit |
Metric Tonnes |
NA |
6790 |
2340 |
|
Corrugated
boxes |
Nos. in 000’s |
NA |
11250 |
3550 |
|
Power generated
from wind mills (non conventional energy) |
KW / KWH |
7200 |
7200 |
12368442 |
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GENERAL INFORMATION
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No. of
Employees : |
1500 |
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Bankers : |
Ø
State Bank
of India Ø
State Bank
of Hyderabad Ø
State Bank
of Bikaner & Jaipur Ø
Indian
Overseas Bank Ø
Corporation
Bank Ø
The United
Western Bank Limited Ø
Bank of
India Ø
The Bharat
Co-operative Bank Limited Ø
Standard
Chartered Grindlays Bank Limited Ø
The Vysya
Bank Limited Ø
United
Bank of India Ø
Punjab
National Bank Ø
UTI Bank
Limited Ø
Canara
Bank Ø
Bank of
Punjab |
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Banking Relations : |
Good |
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Auditors : |
C. C. Chokshi & Company Chartered
Accountants Mafatlal House,
Backbay Reclamation, Mumbai – 400 020, Maharashtra |
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Associates: |
Ø
Vile
Packaging Private Limited Ø
Apex
Packaging Private Limited Ø
Fitrite
Packers Ø Caxton Chemical Industries |
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Subsidiaries
: |
Ø
Parle
Biscuits Private Limited Ø
Flash
Laboratories Private Limited Ø
Triad
Foods Private Limited Ø
Aquathane
Chemicals Private Limited Ø
Arctic
biscuits Private Limited, Bangladesh |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
3,72,900 |
Ordinary Shares
|
Rs. 100/- each |
Rs. 37.290 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
1,94,100 |
Ordinary Shares
|
Rs. 100/- each |
Rs. 19.410 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
19.410 |
19.410 |
19.410 |
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|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves
& Surplus |
2433.050 |
1978.814 |
1988.857 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
2452.460 |
1998.224 |
2008.267 |
|
|
LOAN FUNDS |
|
|
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|
1] Secured
Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured
Loans |
68.932 |
68.932 |
103.398 |
|
TOTAL
BORROWING
|
68.932 |
68.932 |
103.398 |
|
|
DEFERRED TAX
LIABILITIES |
95.477 |
98.835 |
39.355 |
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TOTAL
|
2616.869 |
2165.991 |
2151.020 |
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APPLICATION OF FUNDS
|
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|
|
|
|
|
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FIXED ASSETS [Net Block]
|
1252.772 |
1402.004 |
1089.094 |
|
Capital work-in-progress
|
28.797 |
33.616 |
262.550 |
|
|
Deferred Revenue
Expenditures |
|
|
69.762 |
|
|
|
|
|
|
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INVESTMENT
|
722.463 |
482.105 |
576.712 |
|
DEFERREX TAX ASSETS
|
|
|
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
567.596
|
526.721 |
455.119 |
|
|
Sundry Debtors
|
138.456
|
151.903 |
76.505 |
|
|
Cash & Bank Balances
|
147.479
|
100.589 |
50.161 |
|
|
Other Current Assets
|
13.319
|
13.334 |
16.244 |
|
|
Loans & Advances
|
1949.724
|
1543.083 |
1564.333 |
Total Current Assets
|
2816.574
|
2335.630 |
2162.362 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
870.797
|
1063.424 |
2009.460 |
|
|
Provisions
|
1332.940
|
1023.940 |
|
Total Current Liabilities
|
2203.737
|
2087.364 |
2009.460 |
|
Net
Current Assets
|
612.837
|
248.266 |
152.902 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
2616.869 |
2165.991 |
2151.020 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
10593.715 |
8240.384 |
6529.116 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
918.440 |
202.594 |
35.739 |
Provision for Taxation
|
315.792 |
71.230 |
(10.405) |
Profit/(Loss) After Tax
|
602.648 |
131.364 |
46.144 |
|
|
|
|
|
Export Value
|
230.174 |
141.303 |
75.151 |
|
|
|
|
|
Import Value
|
120.575 |
132.057 |
130.835 |
|
|
|
|
|
Total Expenditure
|
9900.726 |
8321.816 |
6664.485 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
PAT / Total Income
|
(%)
|
5.69
|
1.59 |
0.71 |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
8.67
|
2.46 |
0.55 |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
22.56
|
5.42 |
1.10 |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.37
|
0.10 |
0.02 |
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
0.93
|
1.08 |
1.05 |
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
1.28
|
1.12 |
1.08 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
The sales for the year is Rs. 11076.548 millions as compared to
previous year sales of Rs. 8603.569 millions showing an increase of 28.74 % in
sales.
The Net profit after Taxation and Depreciation is Rs. 602.648
millions as compared to Rs. 131.363 millions for the previous year.
DIVIDEND
The Directors paid Interim Dividend for the year ended 31.03.2005
of Rs. 675/- per share on 194100 ordinary shares of Rs. 100/- each on
24-11-2004 amounting to Rs. 131.017 millions
It is in trade
terms with :-
Ø
Acusharp
Knives
Ø
Avcon
Controls pri
Ø
Dynaspede
Integrated Systems Limited
Ø
Mayur
Plastics & Polygraphics
Ø
Modern
Packaging Company
Ø
Modern Paper
Convertors
Ø
Sahyadri
Starch
Ø
Super
Textile Industries
Ø
Vasumati
Printers
Ø
Venture
Packaging
Ø
Vivira
Chemicals Industries
The company’s
fixed assets of important value include goodwill and trademark, freehold land, buildings,
plant & machinery, furniture, fixtures and office equipments, vehicles and
patent rights.
AS PER WEBSITE
Awards - Monde Selection
The Brand Strength
The Quality Commitment
The Quality Policy
The Marketing Strength
The Customer Confidence
Introduction
A long time ago, when the British ruled India, a small factory was set up in
the suburbs of of Mumbai city, to manufacture sweets and toffees. The year was
1929 and the market was dominated by famous international brands that were
imported freely. Despite the odds and unequal competition, this company called
Parle Products, survived and succeeded, by adhering to high quality and
improvising from time to time.
A decade later, in 1939, Parle Products began manufacturing biscuits, in
addition to sweets and toffees. Having already established a reputation for
quality, the Parle brand name grew in strength with this diversification. Parle
Glucose and Parle Monaco were the first brands of biscuits to be introduced,
which later went on to become leading names for great taste and quality.
How Parle fought to make biscuits affordable to all.
Biscuits were very much a luxury food in India, when Parle began production in
1939. Apart from Glucose and Monaco biscuits, Parle did offer a wide variety of
brands.
However, during the Second World War, all domestic biscuit production was
diverted to assist the Indian soldiers in India and the Far East. Apart from
this, the shortage of wheat in those days, made Parle decide to concentrate on
the more popular brands, so that people could enjoy the price benefits.
Thankfully today, there's no dearth of ingredients and the demand for more
premium brands is on the rise. That's why, we now have a wide range of biscuits
and mouthwatering confectionaries to offer.
The strength
of the Parle Brand
Over the years, Parle has grown to become a multi-million US Dollar company.
Many of the Parle products - biscuits or confectionaries, are market leaders in
their category and have won acclaim at the Monde Selection, since 1971.
Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of
the total confectionary market, in India. The Parle Biscuit brands, such as,
Parle-G, Monaco and Krackjack and confectionery brands, such as, Melody,
Poppins, Mangobite and Kismi, enjoy a strong imagery and appeal amongst
consumers.
Be it a big city or a remote village of India, the Parle name symbolizes
quality, health and great taste! And yet, they know that this reputation has
been built, by constantly innovating and catering to new tastes. This can be
seen by the success of new brands, such as, Hide & Seek, or the single
twist wrapping of Mango bite.
In this way, by concentrating on consumer tastes and preferences and
emphasizing Research & Development, the Parle brand grows from strength to
strength.
The Quality
Commitment
Parle Products has one factory at Mumbai that manufactures biscuits &
confectioneries while another factory at Bahadurgarh, in Haryana manufactures
biscuits. Apart from this, Parle has manufacturing facilities at Neemrana, in
Rajasthan and at Bangalore in Karnataka. The factories at Bahadurgarh and
Neemrana are the largest such manufacturing facilites in India. Parle Products
also has 14 manufacturing units for biscuits & 5 manufacturing units for
confectioneries, on contract.
All these factories are located at strategic locations, so as to ensure a
constant output & easy distribution. Each factory has state-of-the-art
machinery with automatic printing & packaging facilities.
All Parle products are manufactured under the most hygienic conditions. Great
care is exercised in the selection & quality control of raw materials,
packaging materials & rigid quality standards are ensured at every stage of
the manufacturing process. Every batch of biscuits & confectioneries are
thoroughly checked by expert staff, using the most modern equipment.
The Marketing
Strength
The extensive distribution network, built over the years, is a major strength
for Parle Products. Parle biscuits & sweets are available to consumers,
even in the most remote places and in the smallest of villages with a population
of just 500.
Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets
directly or indirectly. A two hundred strong dedicated field force services
these wholesalers & retailers. Additionally, there are 31 depots and
C&F agents supplying goods to the wide distribution network.
The Parle marketing philosophy emphasizes catering to the masses. They
constantly endeavour at designing products that provide nutrition & fun to
the common man. Most Parle offerings are in the low & mid-range price
segments. This is based on the cultivated understanding of the Indian consumer
psyche. The value-for-money positioning helps generate large sales volumes for
the products.
However, Parle Products also manufactures a variety of premium products for the
up-market, urban consumers. And in this way, caters a range of products to a
variety of consumers.
The Customer
Confidence
The Parle name conjures up fond memories across the length and breadth of the
country. After all, since 1929, the people of India have been growing up on
Parle biscuits & sweets.
Today, the Parle brands have found their way into the hearts and homes of
people all over India & abroad. Parle Biscuits and confectioneries, continue
to spread happiness & joy among people of all ages.
The consumer is the focus of all activities at Parle. Maximizing value to
consumers and forging enduring customer relationships are the core endeavours
at Parle.
The efforts are driven towards maximising customer satisfaction and this is in
synergy with the quality pledge. "Parle Products Limited will strive to
provide consistently nutritious & quality food products to meet consumers'
satisfaction by using quality materials and by adopting appropriate processes.
To facilitate the above they will strive to continuously train the employees
and to provide them an open and participative environment."
v Monaco bites
v Kismi Bart
v Fun Ventre
v Mango Bite
v Hide and Seek
v Melody
v Magix
v Jeffs
v Krackjack
v Orange Candy
v Marie Choice
v Poppins
v Monaco
v Rol-a-Cola
v Parle-G
v Sixer
v Toffees
v Milk Shakti
v Nimkin
v Parle Cream
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. 45.92 |
|
UK Pound |
1 |
Rs. 84.62 |
|
Euro |
1 |
Rs. 58.03 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
YES |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT
FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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
|
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 |