MIRA
INFORM REPORT
|
Report Date : |
14th
June, 2006 |
IDENTIFICATION
DETAILS
|
Name : |
FOOD
AND INNS LIMITED |
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Registered Office : |
Punjabwadi, Sion-Trombay Road, Deonar, Chembur, Mumbai-400088 |
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Country : |
India |
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Financials (as on) : |
30.09.2004 |
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Date of Incorporation : |
11.10.1967 |
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Com. Reg. No.: |
11-13837 |
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CIN No.: [Company
Identification No.] |
U55200MH2004PTC013837 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMF03486A/MUMF03698C/MUMF03844B/MUMF03863G |
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PAN No.: [Permanent
Account No.] |
AAACF0521C/AAACF0521C/AAACF0521C/AAACF0521C |
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Legal Form : |
A
Public Limited liability Company.
It’s shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturer
of Egg Powders and Fruit Powders, Poultry Farming and Canning of Fruit Pulp
and Vegetables. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
700000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Slow
but Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well – established company having satisfactory track. Trade relations
are fair. General financial position is satisfactory. Payments are reported
as slow but correct. However,
the company can be considered normal for business dealings at usual trade
terms and conditions. |
LOCATIONS
|
Registered Office : |
Punjabwadi, Sion-Trombay Road, Deonar, Chembur, Mumbai-400088 |
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Tel. No.: |
91-22-25564326/25564327/25515853 |
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Fax No.: |
91-22-25553612 |
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Factory
1 : |
Chembur
(Mumbai), Canning Plant at Abrama, Dist. Bulsar and Poultry Farm at Theur
(Dist. Pune). |
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Area : |
110000
sq.ft. |
DIRECTORS
|
Name : |
Sam Manekshaw M C |
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Designation : |
Chairman
|
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|
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Name : |
Mr.
Utsav Dhupelia |
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Designation : |
Director |
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Name : |
Mr. D.
B. Engineer |
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Designation : |
Director |
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Name : |
Mr. C.
M. Maniar |
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Designation : |
Director |
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Name : |
Mr. R.
Simkins |
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Designation : |
Director |
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Name : |
Mr. D.
D. Trivedi |
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Designation : |
Director |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
of Egg Powders and Fruit Powders, Poultry Farming and Canning of Fruit Pulp
and Vegetables. |
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|
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Products : |
Its
generic name of principle products includes v
Fruit
Pulp v
Fruit
Juice and Canned Vegetables v
Fruit
Powders v
Corn
Flour v
Green
Pickles v
Mango
Pickles v
Mango
Chutneys v
Other
Chutneys v
Peas
Prepared/Preserved v
Other
Vegetables Prepared/Preserved v
Fruit Nuts, Fruit Peel Preserves by sugar v
Pineapple
Prepared/Preserved v
Mango
Sqash v
Guava
Preserved/Prepared v
Pineapple
Juice v
Mango
Juice v
Other
Fruit Juices v
Active
Yeast |
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|
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Exports to : |
U.K.,
Kuwait, Saudi Arabia, Yemen, Japan, Germany and West Asia |
GENERAL
INFORMATION
|
No. of Employees : |
280 |
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|
|
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Bankers : |
v
Andhra
Bank, Main Branch, Mumbai 400 023, Maharashtra, India v
State
Bank of India, Mumbai, Maharashtra, India. |
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Facilities : |
-- |
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Banking Relations : |
Satisfactory
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Auditors : |
B. S.
Mehta and Company Chartered
Accountants |
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Associates/Subsidiaries : |
v
Finns
Frozen Foods India Limited subsidiary
v
Dravya
Finance Limited v
Asim
Exports International Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
3000000 |
Equity Shares |
Rs.10/- each |
Rs. 30.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
1,230,000 |
Equity Shares |
Rs.10/- each |
Rs. 12.300 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
30.09.2004 |
30.09.2003 |
30.09.2002 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
12.300 |
12.300 |
12.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
170.200 |
166.400 |
160.600 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
182.500 |
178.700 |
172.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
319.200 |
173.600 |
206.100 |
|
|
2] Unsecured Loans |
41.600 |
60.500 |
30.400 |
|
|
TOTAL BORROWING |
360.800 |
234.100 |
236.500 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
|
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TOTAL |
543.300 |
412.800 |
409.400 |
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|
|
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APPLICATION OF FUNDS |
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|
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|
|
|
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FIXED ASSETS [Net Block] |
266.800 |
208.200 |
183.500 |
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Capital work-in-progress |
0.000 |
0.000 |
0.00 |
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|
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INVESTMENT |
20.300 |
19.500 |
21.900 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
267.100
|
152.900 |
210.400 |
|
|
Sundry Debtors |
57.600
|
64.900 |
35.800 |
|
|
Cash & Bank Balances |
7.400
|
8.600 |
14.800 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
145.200
|
105.100 |
112.100 |
|
Total Current Assets |
477.300
|
331.500 |
373.100 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
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|
|
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|
Current Liabilities |
215.000
|
140.900 |
159.700 |
|
|
Provisions |
6.600
|
6.400 |
10.700 |
|
Total Current Liabilities |
221.600
|
147.300 |
170.400 |
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|
Net Current Assets |
255.700
|
184.200 |
202.700 |
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MISCELLANEOUS EXPENSES |
0.500 |
0.900 |
1.300 |
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TOTAL |
543.300 |
412.800 |
409.400 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
30.09.2004 |
30.09.2003 |
30.09.2002 |
|
Sales Turnover [including other income] |
794.800 |
584.000 |
875.600 |
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|
|
|
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Profit/(Loss)
Before Tax |
6.900 |
14.800 |
8.000 |
|
Provision
for Taxation |
3.000 |
8.900 |
3.200 |
|
Profit/(Loss)
After Tax |
3.900 |
5.900 |
4.800 |
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|
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|
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Total
Expenditure |
785.200 |
569.000 |
867.600 |
SUMMARISED RESULTS
|
PARTICULARS |
|
|
30.09.2005 Full Year |
|
Sales Turnover |
|
|
894.300 |
|
Other Income |
|
|
3.200 |
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Total Income |
|
|
897.500 |
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Total Expenditure |
|
|
837.400 |
|
Operating Profit |
|
|
60.100 |
|
Interest |
|
|
36.500 |
|
Gross Profit |
|
|
23.600 |
|
Depreciation |
|
|
10.100 |
|
Tax |
|
|
2.400 |
|
Reported PAT |
|
|
11.100 |
Quarterly
|
PARTICULARS |
|
31.12.2005 (1st Quarter) |
31.03.2006 (2nd Quarter) |
|
Sales Turnover |
|
194.000 |
225.400 |
|
Other Income |
|
0.500 |
2.100 |
|
Total Income |
|
194.500 |
227.500 |
|
Total Expenditure |
|
183.400 |
210.200 |
|
Operating Profit |
|
11.100 |
17.300 |
|
Interest |
|
7.800 |
9.400 |
|
Gross Profit |
|
3.300 |
7.900 |
|
Depreciation |
|
2.500 |
3.000 |
|
Tax |
|
0.200 |
1.700 |
|
Reported PAT |
|
0.600 |
3.200 |
200512
Quarter 1
- Expenditure includes (Increase)/Decrease in stock in Trade Rs 75.959
million Consumption of Raw Material Rs 56.635 million Consumption of Packing
Material Rs 12.496 million Staff Cost Rs 8.260 million Other expenditure Rs
30.131 million EPS is Basic & Diluted Status of Investor Complaints for the
quarter ended December 31, 2005 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 22 Complaints disposed off
during the quarter 22 Complaints unresolved at the end of the quarter Nil 1.
The above unaudited financial (provisional) results were considered and taken
on record by the Board of Directors at the meeting held on January 28, 2006. 2.
Previous year and corresponding quarter figures have been re-grouped wherever
necessary. 3. The Company operates only in one segment of Food Products. 4.
Deferred Tax adjustment will be made at the year end.
200603
Quarter 2 - The above unaudited Financial (Provisional) results were
considered and taken on record by the Board of Directors at the meeting held on
29th April,2006. 2. Previous year and corresponding quarter figure have been
re-grouped wherever necessary. 3. The Company operates only in one segment of
Food Products. 4. During the quarter ended 31st March,2006 the Company had
received four investor complaints, and no complaints remanined unresolved as on
that date. 5. Deferred tax adjustment will be made at the year end.
KEY
RATIOS
|
PARTICULARS |
|
30.09.2004 |
30.09.2003 |
30.09.2002 |
|
PAT / Total Income |
(%) |
0.49
|
1.01 |
0.54 |
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Net
Profit Margin (PBT/Sales) |
(%) |
0.86
|
2.53 |
0.91 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
0.92
|
2.74 |
1.43 |
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Return
on Investment (ROI) (PBT/Networth) |
|
0.03
|
0.08 |
0.04 |
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Debt
Equity Ratio (Total
Liability/Networth) |
|
3.19
|
2.13 |
2.35 |
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Current
Ratio (Current
Asset/Current Liability) |
|
2.15
|
2.25 |
2.18 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.86.00/- |
|
Low |
Rs.78.00/- |
LOCAL AGENCY
FURTHER INFORMATION
History
Incorporated in 1967, Foods and Inns
(FIL) is engaged in the business of processing food products and fruits. Its
manufacturing facilities are located in Bombay and Nashik. Sam Manekshaw M C is
the Chairman of the company.
FIL's export-oriented processed food and vegetable unit located in Nashik
went on stream in Nov.'94. In 1994-95, FIL commenced commercial production of
its project for frozen mango pulp and vegetables. Dravya Finance and Asim
Exports International are 100% subsidiaries of FIL. It is the first company in
India to export egg powder and has obtained repeat orders for the same. It has
developed a new product for a soft-drink company. It has also exported lychees,
a seasonal fruit.
The company exports its products in industrial and consumer packs to the
UK, Kuwait, Saudi Arabia, Yemen, Japan, Germany and West Asia. During the year,
the company sold its poultry division to Bhairavnath Poultry Farm Pvt Ltd, to
concentrate on its core business of food processing.
In 1998-99, it made a preferential allotment of 1,75,820 equity shares of
Rs. 10/- each at a premium of Rs. 50/- per share to a non-residential director
of the company.
OPERATIONS:
During the year the turnover of the Company improved by 9% attaining
Rs.680.800 Millionsas compared to Rs. 623.700 Millions for year ended on 30th
September, 2003. The severe competition in the international market and high
raw material cost had its double edged effect on profitability of the Company.
Inspite, the Company has registered a cash profit of Rs. 14.563 Millions . The
net profit is Rs. 6.958 Millions compared to Rs. 14.749 Millions of the
previous year. For the current year, dividend is not recommended by the
Directors.
FUTURE PROSPECTS :
The Company has identified new export markets as potential growth areas.
The Company has been making conscious attempts to understand and exploit the
new markets. The export orders include repeat orders from existing customers as
well as from new customers. To meet with the growing demand of the products, Company
has installed a new Aseptic Line at Bulsar. Similarly a new Fruit Processing
& Pulping line has been commissioned during the season at Chittoor. These
additions reduce our dependence on other processors. The full benefit of this
additional capacity will be available in the coming year. The Company has
incurred capital expenditure amounting to Rs.68.239 Millions during the year
(corresponding period amount expended Rs.31.363 Millions )
CORPORATE
GOVERNANCE:
Though Clause 49 of the Listing Agreement relating to Corporate
Governance is not applicable to the Company as per schedule of implementation
contained therein. The Company is gearing up and designing structure of review
and authorisation in addition to strong internal Audit procedure. The Company
is also in the process of establishing effective mechanism by defining the role
and responsibilities of senior executive of the company to ensure
accountability and required level transparency.
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 records 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 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |