MIRA INFORM REPORT
|
Report Date : |
16TH May, 2006 |
IDENTIFICATION DETAILS
|
Name : |
DOMINO’S
PIZZA INDIA LIMITED |
|
|
|
|
Registered Office : |
Chamber No. 1517, 15TH
Floor, Devika Towers, 6, Nehru Place, New Delhi – 110019 |
|
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|
Country : |
India
|
|
|
|
|
Financials (as on) : |
31.03.2005 |
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|
|
|
Date of Incorporation : |
16th
March, 1995 |
|
|
|
|
Com. Reg. No.: |
55-66426 |
|
|
|
|
TAN No.: (Tax Deduction &
Collection Account No.) |
DELD04631E/DELD03279D/CALD02145D |
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|
|
|
PAN No.: (Permanent Account No.) |
AABC01821C |
|
|
|
|
Legal Form : |
A
Closely Held Public Limited Liability Company |
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|
|
|
Line of Business : |
Pizza
Franchisee |
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 |
|
Maximum Credit Limit : |
USD 100000 |
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|
|
|
Status : |
Satisfactory |
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|
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a Master Franchisee of Domino’s Pizza International Inc. USA. Available
information indicates high financial responsibility of the company. Trade
relations are fair. Profit margin is under server pressure. Payments are
usually correct and as per commitments. The
company can be considered good for normal business dealings due to exposure
of parent company. |
LOCATIONS
|
Registered Office : |
Chamber No. 1517, 15TH
Floor, Devika Towers, 6, Nehru Place, New Delhi – 110019 |
|
Tel. No.: |
91-11-55282934 |
|
|
|
|
Corporate Office : |
Plot
1A, Sector 16A, Institutional Area, Noida – 201301, Uttar Pradesh |
|
Tel. No.: |
91-120-2516820 |
|
Fax No.: |
91-120-2516842 |
DIRECTORS
|
Name : |
Mr.
Bhartia Sunder Shyam |
|
Designation : |
Director
|
|
Address : |
46,
Friends Colony, New Delhi – 110065 |
|
Date of Birth/Age : |
9.11.1952 |
|
Date of Appointment : |
16.03.1995 |
|
|
|
|
Name : |
Mr.
Bhartia Shankar Hari |
|
Designation : |
Director
|
|
Address : |
H
– 11, Maharani Bagh, New Delhi – 110065 |
|
Date of Birth/Age : |
12.12.1956 |
|
Date of Appointment : |
16.03.1995
|
|
|
|
|
Name : |
Mr.
Rai Bodhishwar |
|
Designation : |
Director
|
|
Address : |
E
– 151, Greater Kailash, New Delhi – 110048 |
|
Date of Birth/Age : |
1.12.1934 |
|
Date of Appointment : |
1.1.2000 |
|
|
|
|
Name : |
Mr.
Gupta Mukesh |
|
Designation : |
Director
|
|
Address : |
171,
7th Floor, Sita Ram Apartments, I P Extn. Patparganj, New Delhi –
110092 |
|
Date of Birth/Age : |
7.08.1959 |
|
Date of Appointment : |
28.06.2002 |
|
|
|
|
Name : |
Mr.
Kaul Ajay |
|
Designation : |
Director
|
|
Address : |
Apartment
No. 7, 1ST Floor, House No. 12, Friends Colony, New Delhi – 110065
|
|
Date of Birth/Age : |
11.12.1963 |
|
Qualification |
B.
Tech. IIT, MBA |
|
Experience |
16
Years |
|
|
|
|
Date of Appointment : |
14.03.2005 |
|
Name : |
Mr.
Gaurav Mathur |
|
Designation : |
Director
|
|
Address : |
No.
24-01, Leonie Hill Road, Singapore |
|
Date of Birth/Age : |
15.11.1974 |
|
Date of Appointment : |
27.06.2003 |
|
|
|
|
Name : |
Ms.
Hetal Madhkant Gandhi |
|
Designation : |
Director
|
|
Address : |
Rosy
House Cooperative Society, Flat – 61, North Avenue, Santacruz (West), Mumbai
– 400054 |
|
Date of Birth/Age : |
29.07.1965 |
|
Date of Appointment : |
30.09.2004 |
|
|
|
|
Name : |
Mr.
Arvind Nair |
|
Designation : |
Director
|
|
Address : |
2,
Western Avenue, Maharani Bagh, New Delhi – 110065 |
|
Date of Birth/Age : |
30.01.1956 |
|
Date of Appointment : |
3.10.2001 |
|
|
|
|
Name : |
Mr.
Anil Ahuja |
|
Designation : |
Director
|
|
Address : |
8,
Cuscaden Walk, # 10-02, Singapore – 249692 |
|
Date of Birth/Age : |
1.12.1962 |
|
Date of Appointment : |
27.06.2003 |
|
|
|
|
Name : |
Mr.
Ravi Shankar Gupta |
|
Designation : |
Company
Sectary |
|
Address : |
610,
Mahagun Manor, Plot No. F – 30, Sector – 50, Noida – 201301 |
|
Date of Birth/Age : |
8.8.1967 |
|
Date of Appointment : |
28.06.2002 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
|
Mr.
Bhartia Shankar Hari |
1 |
|
Mr.
Bhartia Sunder Shyam |
1 |
|
M/s. Jubilant Capital
Private Limited |
1 |
|
M/s. Jubilant Securities |
1 |
|
M/s. Alka Leasing &
Fiscal |
3515995 |
|
Love Life Vinimay Private
Limited |
1 |
|
M/s. Weston Investments |
4837481 |
|
M/s. Jubilant Enpro Private
Limited |
31139457 |
|
M/s. Indcocean Pizza
Holding |
6668016 |
|
M/s. The India Private
Limited |
12002431 |
|
Ms. Bharita Shobhana |
1 |
|
Ms. Kavitha Bhartia |
1 |
|
M/s. Infrastructure Leasing
& Financial Services Limited |
30 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
of Pizza |
|
|
|
|
Products : |
Pizza
|
PRODUCTION STATUS
|
Particulars |
Unit |
|
|
Actual Production |
|
Pizza |
Nos |
|
|
5766534 |
GENERAL INFORMATION
|
No. of Employees : |
600 |
|
|
|
|
Bankers : |
v
IDBI Bank Limited v
UTI Bank Limited |
|
|
|
|
Facilities : |
Secured
Loan Secured
Non Convertible – Rs. 177.207 Term
Loan – Rs. 40.000 Millions Interest
Accued & Due on term loan – Rs. 0.312 Millions Cash
Credit Loan from Bank – Rs. 5.002 Millions Vehicles
Loans – Rs. 0.888 Millions Hire
Purchase – Rs. 4.997 Millions Total
– Rs. 228.408 Millions |
|
|
|
|
Banking Relations : |
Satisfactory
|
|
|
|
|
Auditors : |
S
R Batliboi & Company Chartered
Accountant |
|
Address: |
Ernst
& Young Tower, B – 26, Qutab Institutional Area, New Delhi – 110016 |
|
|
|
|
Associates/Subsidiaries
: |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
60,000,000 |
Equity
Shares |
Rs. 10/- Each |
Rs. 600.000 Millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
58,163,387 |
Equity
Shares |
Rs. 10/- Each |
Rs. 581.633 Millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
581.633 |
581.633 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
390.578 |
390.578 |
|
|
4] (Accumulated Losses) |
|
(948.728) |
(931.339) |
|
NETWORTH
|
|
23.483 |
40.872 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
228.408 |
211.466 |
|
|
2] Unsecured Loans |
|
52.009 |
68.332 |
|
TOTAL
BORROWING
|
|
280.417 |
279.798 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
|
303.900 |
320.670 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
|
320.590 |
352.592 |
|
Capital work-in-progress
|
|
0.000 |
2.023 |
|
|
|
|
|
|
|
INVESTMENT
|
|
|
|
|
DEFERREX TAX ASSETS
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
|
13.925 |
18.744 |
|
|
Sundry Debtors
|
|
3.449 |
3.802 |
|
|
Cash & Bank Balances
|
|
27.573 |
6.266 |
|
|
Other Current Assets
|
|
1.104 |
0.412 |
|
|
Loans & Advances
|
|
67.673 |
59.984 |
Total Current Assets
|
|
113.724 |
89.208 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
|
125.704 |
119.393 |
|
|
Provisions
|
|
4.710 |
3.820 |
Total Current Liabilities
|
|
130.414 |
123.213 |
|
Net Current
Assets
|
|
(16.690) |
(34.005) |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
|
0.000 |
0.060 |
|
|
|
|
|
|
|
TOTAL
|
|
303.900 |
320.670 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
|
744.800 |
574.300 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
|
(17.389) |
(88.430) |
Provision for Taxation
|
|
0.000 |
0.000 |
Profit/(Loss) After Tax
|
|
(17.389) |
(88.430) |
|
|
|
|
|
Export Value
|
|
0.032 |
0.212 |
|
|
|
|
|
Import Value
|
|
1.526 |
0.532 |
|
|
|
|
|
Total Expenditure
|
|
762.188 |
662.730 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2005 |
31.03.2004 |
PAT / Total Income
|
(%)
|
|
(2.33) |
(15.39) |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
|
(2.33) |
(15.39) |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total Assets} |
(%) |
|
(4.00) |
(20.01) |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
|
(0.74) |
(2.16) |
|
|
|
|
|
|
Debt Equity Ratio
(Total Liability/Networth) |
|
|
17.49 |
9.86 |
|
|
|
|
|
|
Current Ratio
(Current Asset/Current
Liability) |
|
|
0.87 |
0.72 |
LOCAL AGENCY FURTHER INFORMATION
|
Nature
of Industry |
Hotels
and Restaurants |
|
Date
of Commencement of Commercial production |
January
1996 |
|
In
case of new companies expected date of commencement of activities as per
project approved by financial institution appearing in the prospectus |
For
the financial period ending March 2005 the company made a turnaround [as
compared to the same period last year] by improving its topline by Rs.
166.759 Millions a growth on account of the following Increase
in Contribution by 27.22% Increase
productivity in store operating cost, Marketing cost and general & admin
cost. |
|
Foreign
investments or collaborators if any |
Investment
by The
India Private Equity Fund Indocean
Pizza Holding Limited Weston
Investment Limited |
Job Profile
Mr.
Ajay Kaul is responsible for the overall functioning of the company. His
responsibility included supervision and control over operation, Marketing,
Finance, Human Resource, Supply chain and Quality Control/ Product Development
function of the company. In particular he leads the operating and strategic
activities of the company and is responsible for the company’s day to day
operation and profitability
Mr.
Kaul had commendable experiences in the area of sales, Marking & customer
services. He is knowledgeable about implementation of business plan
He
had worked with American Express Travel Related Services, Modiluft, TNT India
Limited etc. His last assignment was with TNT Express at Indonesia as Country
Head.
Financial
During
the year the company opened 14 new stores across India, relocated 1 stores and
company had to close down 1 non profit marking store. During the year the sale
of the company withnessed a growth of 29.24% thereby increasing the net sales
from Rs. 569.964 Millions in 2003-2004 to Rs. 736.658 Millions in 2004-2005
The
director take pleasure in informing you that the company had generated positive
cash profits to the tune of Rs. 51.152 Millions during the current financial
year.
Operation
During
the year the company opened various stores in different regions across the
country and is expecting to reach the target of 100 stores within the span of
short period of time
The
company launched 30 minutes or free services guarantee which had a tremendous
success. During the year the company also successfully lunched a new product
“Domino’s Double Cheez Crunch the company’s T V commercial featuring a
celebrity was widely appreciated and had a good brand recall
The
company also got the 2nf highest rating in operations evolution report
Fixed Assets
v
Freehold Land
v
Leasehold Improvements
v
Plant & Machinery
v
Office Equipment
v
Furniture & Fixture
v
Vehicles
Domino's
India to set foot in Bangladesh, Nepal
Sindhu
J. Bhattacharya
New
Delhi , July 27
DOMINO'S
India is set to spread its wings. The company said it was talking
to several interested parties for appointing sub-franchisees in Nepal
and Bangladesh.
Domino's
Pizza India, a joint venture between the Bhartiyas of Jubilant Organosys and J.
P. Morgan, is the master franchisee for India, Sri Lanka, Bangladesh and Nepal.
But even after eight years, the joint venture has not begun operations in
either Bangladesh or Nepal and has only two outlets in Sri Lanka. "Domino's
Pizza India is the master franchisee for India and the neighbouring countries
of Sri Lanka, Bangladesh and Nepal. We are talking to several parties for
appointing a sub-franchisee in these two countries. Till date, all Domino's
outlets in India are fully owned by the joint venture," the Managing
Director, Mr Arvind Nair told Business Line.
Mr
Nair said the pizza chain would expand into new geographies while keeping in
mind the buyer profile and income levels of that region and
"mindless" expansion would not be pursued.
On
expansion plans in India, Mr Nair said there are already 90 stores
across 25 towns and another 7-10 will be added per year. With an average
investment of Rs 7. 0 Millions a store, the chain will invest up to Rs 70.000
Millions annually on expansion.
He
said Domino's Pizza India has broken even for the first time last fiscal after
it set shop in the country in 1996, but declined to provide any other financial
data. Taking the example of Bangladesh and Nepal, Mr Nair said Domino's is
planning to take the franchisee route to growth. "Over the next five
years, fully-owned stores versus franchisees will be in the ratio of 2:1,"
Mr Nair said.
Asked
whether free delivery, if the order is not delivered within 30 minutes, had
worked well, Mr Nair said this was not a one-time promotion "but an
investment in the brand. It is in fact a brand promise. Over the last three
months since we launched this initiative, our sales have registered double
digit growth rates."
Dominos to spend Rs 20 m
on advt, new TVC features Rawal in double-role
Indiantelevision.com
Team
(2
December 2004 5:00 pm)
NEW DELHI: Domino's Pizza
India Limited, a leading pizza chain in India, has introduced in the Indian
market an all-new Double Cheez Crunch Pizza, which is a successful product in
other countries, and said that Bollywood actor Paresh Rawal will, feature in a
double role in the new TV commercials.
The advertising campaign, for
which a budget of Rs 20 million has been allocated, features the multifaceted
Rawal and is based on the double theme where he is in a double role for the
first time in a TV commercial --- a concept that goes down well with the
Domino's Double Cheez Crunch Pizza.
The campaign
has been created by Phat Phish Productions and conceptualised by Contract
Advertising.
According to Domino's Pizza
India Limited CEO Arvind Nair, "Domino's Double Cheez Crunch is the result
of our consistent effort to offer our customers the best pizzas in the world.
The Domino's Double Cheez Crunch is already a huge success in a number of
markets around the globe and we are confident that it would be a welcome
delight amongst our huge base of Indian customers."
The new pizza has a delicious
soft creamy layer of cheese generously spread between two crunchy thin crust
bases and more creamy cheese spread over the toppings. It's a new innovation
and a major advertising campaign, comprising high impact television and press
activity spread over a duration of four months, will support the launch.
Domino's
Double Cheez Crunch Pizza is claimed to be an internationally acclaimed product
and doing well in the markets of the US, UK, Australia, Japan, Korea, Taiwan
and Malaysia.
It comes in
the size of 10" and can be ordered in both vegetarian and non-vegetarian
combinations. As a part of Domino's promotional offer, customers who buy a
Double Cheez Crunch Pizza will get the second pizza at a 50 per cent discount.
Domino's
Pizza India Limited, which is the master franchisee for India, Nepal,
Bangladesh and Sri Lanka, is promoted by Shyam and Hari Bhartia of the Jubilant
Organosys Group (formally Vam Organic Group).
It opened its
first Domino's Pizza store in India in January 1996, at New Delhi. Today
Domino's Pizza India has grown into a countrywide network of stores, with a
team of over 2,000 people.
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.45.46 |
|
UK
Pound |
1 |
Rs.85.94 |
|
Euro |
1 |
Rs.58.32 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
47 |
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 |