MIRA INFORM REPORT
|
Report
Date : |
4TH
May 2006 |
IDENTIFICATION
DETAILS
|
Name : |
SUNSHINE FOODS |
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Registered
Office : |
109/111,
Avvai Shanmugam Salai, Royapettah, Chennai – 600 014, Tamilnadu, India |
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Country
: |
India |
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Financials
(as on) : |
31.03.2005 |
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Date
of Incorporation : |
October, 2002 |
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TAN
No.: (Tax
Deduction & Collection Account No.) |
CHES17547F |
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PAN
No.: (Permanent
Account No.) |
AAVFS1025N |
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Legal
Form : |
Partnership Concern with an Unlimited Liability of the
Partners. |
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Line
of Business : |
Restaurant Business Franchisee of subway an International Chain of Restaurants
of USA Franchisee of Italian Gelatino - DLucas |
RATING & COMMENTS
|
MIRA’s
Rating : |
B |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
Maximum
Credit Limit : |
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|
|
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Status
: |
Moderate |
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Payment
Behaviour : |
Usually
correct |
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Litigation
: |
Clear |
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Comments
: |
Subject is a franchisee of world renowned Subway
sandwiches. It also markets ice cream
D LUCAS of Italy. Nothing adverse reported. No financials and operational
details and available. Trade relations are fair. Payments are reported as correct
and as per commitments. However, the concern can be considered for mediocre
business dealings at usual trade terms and conditions, initially. |
LOCATIONS
|
Registered
Office : |
109/111,
Avvai Shanmugam Salai, Royapettah, Chennai – 600 014, Tamilnadu, India |
|
Tel.
No.: |
91-44-28114444 |
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Fax
No.: |
91-44-28114444 |
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Mobile
No.: |
91-9841733351 |
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E-Mail
: |
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Website
: |
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Area : |
3 floors (2 floors for Press + 1 floor for Outlet) |
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Location : |
Owned |
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|
|
|
Branches : |
Spencer Plaza 2nd Floor, Phase 3, 768, 769 Anna salai T. Nagar 147, GN Chetty Road Besant Nagar No 9, 2nd Ave Nungambakkam No 2, Crystal lawn, Wallace Garden 2nd Street Chennai Citi Centre -
Opening Shortly No 10/11 Radhakrishna Salai, Mylapore |
PARTNERS
|
Name : |
Mr Vipin Sachdev |
|
Designation
: |
Partner |
|
Date
of Birth/Age : |
43 years |
|
Qualification
: |
Diploma in Printing Technology |
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Mobile
No.: |
91-98410 22622 |
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Email: |
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|
Name : |
Mrs. Somna Sachdev |
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Designation
: |
Partner |
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Date
of Birth/Age : |
39 Years |
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Qualification
: |
Graduate |
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Mobile
No.: |
91-98410 22922 |
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Email: |
KEY EXECUTIVES
|
Name : |
Mr. Sreeman Narayan |
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Designation
: |
Account Manager |
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|
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Name : |
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Designation
: |
Sr. Mgr.- HR., Training. & Admin |
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Mobile
No.: |
91-98413 83568 |
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Name : |
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Designation
: |
Mgr.- Purchase, Stores & Logistics |
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Mobile
No.: |
91-98412 78673 |
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Name : |
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Designation
: |
Mgr.- Operations |
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Mobile
No.: |
91-98410 27269 |
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Name : |
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Designation
: |
Sr.Mgr.- Finance |
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Mobile
No.: |
91-98417 33351 |
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Name : |
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Designation
: |
Mgr.- Bussiness Dev. & Projects |
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Mobile
No.: |
91-98412 78425 |
BUSINESS DETAILS
|
Line
of Business : |
Restaurant Business Franchisee of subway an International Chain of Restaurants
of USA Franchisee of Italian Gelatino - DLucas |
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|
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Products
: |
Ice – Cream |
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Brand
Names : |
DLUCAS |
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Agencies
Held : |
DLUCAS |
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Imports
from : |
Sandwiches (Raw Materials)- USA, Ice-Cream (Raw Materials)- Italy |
GENERAL INFORMATION
|
Suppliers: |
v Amalgam Foods and Beverages v Aura & Company – Chennai v Bharani Enterprises – Chennai v Bisleri International Private v Blue Acre Foods Private Limited –
Chennai v B V M & Brothers v Darshan Foods Private Limited – Gurgao v Deepak Enterprises v Food Line Enterprises v Fun Foods Private Limited – New
Delhi v General Mills India Private
Limited v Mani Marketing – Chennai v P & N Trading v Radhakrishan J v R V Sales Private Limited – New
Delhi v Star Frozen Foods – New Delhi v Sufal Marketing – Chennai v The Global Green Company Limit. |
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Customers
: |
End Users and individuals |
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No. of
Employees : |
65 |
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Bankers
: |
HSBC Bank, Chennai Canara Bank, Chennai |
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Banking Relations : |
Unknown |
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Auditors
: |
Ramiah and Ravichandar Chartered Accountants 33/1 (16/1), III Trust Cross Street, Mandavelipakkam,
Chennai - 600028 |
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Associates/Subsidiaries
: |
NPT Offset Press Private Limited Line of Business : Printing Press |
CAPITAL STRUCTURE
|
Capital
Investment : |
|
|
Owned : |
Rs. 1.500 millions |
|
Borrowed : |
-- |
|
Total : |
Rs. 1.500 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1]
Partners Capital A/C |
|
1.500 |
1.527 |
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|
2]
Partners Current A/C |
|
2.452 |
0.000 |
|
|
3]
Reserves & Surplus |
|
0.000 |
0.000 |
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|
4]
(Accumulated Losses) |
|
0.000 |
0.000 |
|
NETWORTH
|
|
3.952 |
1.527 |
|
|
|
|
|
|
|
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LOAN
FUNDS |
|
2.689 |
2.201 |
|
TOTAL
BORROWING
|
|
2.685 |
2.201 |
|
|
DEFERRED
TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
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TOTAL
|
|
6.637 |
3.728 |
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|
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|
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APPLICATION OF FUNDS
|
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FIXED ASSETS [Net Block]
|
|
2.644 |
2.849 |
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Capital work-in-progress
|
|
0.000 |
0.000 |
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INVESTMENT
|
|
0.000 |
0.000 |
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DEFERREX TAX ASSETS
|
|
0.000 |
0.000 |
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|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
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Inventories
|
|
0.795 |
0.775 |
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Sundry Debtors
|
|
0.086 |
0.317 |
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Cash & Bank Balances
|
|
2.383 |
0.313 |
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Other Current Assets
|
|
0.461 |
0.413 |
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Loans & Advances
|
|
1.473 |
0.000 |
Total Current Assets
|
|
5.198 |
1.818 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
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Current Liabilities
|
|
1.205 |
0.939 |
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Provisions
|
|
0.000 |
0.000 |
Total Current Liabilities
|
|
1.205 |
0.939 |
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Net
Current Assets
|
|
3.993 |
0.879 |
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MISCELLANEOUS EXPENSES
|
|
0.000 |
0.000 |
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TOTAL
|
|
6.637 |
3.728 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
|
12.851 |
6.187 |
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Profit/(Loss) Before Tax
|
|
0.394 |
0.137 |
Provision for Taxation
|
|
0.075 |
0.012 |
Profit/(Loss) After Tax
|
|
0.109 |
0.020 |
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|
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Total Expenditure
|
|
13.254 |
6.825 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2005 |
31.03.2004 |
PAT / Total Income
|
(%)
|
|
0.85 |
0.32 |
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|
Net Profit Margin
(PBT/Sales) |
(%) |
|
3.07 |
0.52 |
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Return on Total Assets
(PBT/Total
Assets} |
(%) |
|
5.01 |
0.69 |
|
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Return on Investment (ROI)
(PBT/Networth) |
|
|
0.10 |
0.02 |
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Debt Equity Ratio
(Total
Liability/Networth) |
|
|
0.98 |
2.06 |
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Current Ratio
(Current
Asset/Current Liability) |
|
|
4.31 |
1.94 |
LOCAL AGENCY FURTHER INFORMATION
Outlets:
Restaurants are located in the heart of the City at Spencers
Plaza, Besant nagar, Wallace Garden and T. Nagar. Proposal to open four more
outlets in Chennai City.
Fixed Assets :
Ø Plant and machinery
Ø Computer Systems Block
Ø Vehicles Two Wheeler
Ø Vehicles Four Wheelers
Ø Furniture and Fixture Block
Ø Franchises Block
About Sunshine Foods and
its Brand – SUBWAY – USA
Fred Deluca started his first SUBWAY in 1965 in USA and
today the SUBWAY brand has become the worlds largest submarine sandwich brand
in more than 24400 location in 81 countries around the world. The SUBWAY brand
has become a ledger in the international development of the quick service restaurant
industry. Wherever SUBWAY restaurant are located, the core menu stays
relatively the same with the exceptions of some cultural variations. World
travelers can expects the same high quality of ingredients regardless of
whichever nation they are visiting.
SUBWAY India
In India, there are 51 subway outlets in many cities among
which 4 are in Chennai .
Sunshine Foods is the Master Franchise in Tamil Nadu, having its SUBWAY restaurant in
the following places:
Ø Spencer Plaza: Monday to Thursday –
11 am to 10 pm, Fri, Sat and Sun : 11 am to
Ø T Nagar – Sunday to Friday 11 am to
11 pm Sat 11 am to midnight
Ø Besant Nagar – Sunday to Friday 11
am to 11 pm Sat 11 am to midnight
Ø Wallace Garden – sun to Thursday
1111 am to 11 pm Fri and Sat 11 am to Midnight
About Ms. Somna Sachdev
Ms. Somna Sachadev is the CEO of SUBWAY and has a Diploma
from SUBWAY, USA to operate the SUBWAY restaurant.
What types of foods are served at SUBWAY® restaurants?
SUBWAY sandwiches are a healthier alternative to
traditionally greasy fast food.
SUBWAY restaurants
offer a delicious variety of foot long and 6-inch
sandwiches, salads and wraps that are made with a wide assortment of meats,
cheeses, vegetables and toppings. All SUBWAY® sandwiches are made on
freshly baked bread and are prepared right before your eyes, just the way you
like it.
What is different in
SUBWAY?
Generally, healthy food does not taste good. But at SUBWAY,
it is different.
The SUBWAY foods are definitely.
Ø Tastier
Ø Healthier
Ø Fair Priced and
Ø Possess international standards of
hygiene and quality
The vegetables used in the sandwiches and salads are hand
picked and fresh. There are no eggs in the breads and the saves consumed
in SUBWAY.
There are separate counters for Vegetarian and Non –
Vegetarian customers.
Awards Won by SUBWAY:
The SUBWAY at Spencer Plaza has received the Best Award for
whole of Indian operations are and stands 8th best in the whole of
Asia.
The star visitors of SUBWAY Chennai:
The health conscious Chennaites take advantage of the new
SUBWAY concept
The Corporate order SUBWAY products in bulk.
The cine stars are the regular customers for the SUBWAY
restaurants in Chennai either they dine in the restaurant or they order for
their choices, which are home delivered. Star actress Namitha claims that she
has lost around 10 kgs in a period of 3 months eating the SUBWAY sandwiches.
Among them are:
Kamal Hsassan
Prakash Raj
Director / Producer AVM Saravanam
Shivaji Ramkumar
Director S J Surya
Ajit
Shalini
Expansion Plans:
By July’ 06, Sunshine Foods plans to open two more
restaurants at Chennai Citi Center Mall and Anna Nagar.
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. 46.20 |
|
UK Pound |
1 |
Rs. 84.57 |
|
Euro |
1 |
Rs. 58.12 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP
CAPITAL |
1~10 |
3 |
|
OPERATING
SCALE |
1~10 |
3 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
- |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
31 |
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 |