MIRA
INFORM REPORT
|
Report Date : |
21.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
THE
PANCHMAHAL DISTRICT COOPERATIVE MILK PRODUCERS UNION LIMITED |
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Registered Office : |
Lunawada
Road, P B No. 37, Godhra, Panchmahal, Gujarat – 389001 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
1973 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDP01412F |
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Legal Form : |
A
Cooperative Society having Limited Liability of members |
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Line of Business : |
Manufacturers
of Milk and Milk Products for Amul and domestic market. |
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
650000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Usually
correct |
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Litigation : |
Clear |
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Comments : |
This
report is based on an interview with Mr. J. V. Kapadia [Finance Manager], of
the Society. Subject
is an established Society, backed by Federation [AMUL], Amul is highly
successful society in India. Trade
relations are fair. Payments are
usually correct and as per commitments. The
society can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office/Factory : |
Lunawada
Road, P B No. 37, Godhra, Panchmahal, Gujarat – 389001, India |
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Tel. No.: |
91-2672-261782/83/84/260116/260104/260168 |
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Fax No.: |
91-2672-260327 |
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E-Mail : |
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Website : |
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Area : |
15
acres |
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Location : |
Owned |
DIRECTORS
|
Name : |
Mr. Bhupendrasinh Prabhatsinh Solanki |
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Designation : |
Chairman
[Member of Parliament] |
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Name : |
Mr.
Indrajitsinh Parmar |
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Designation : |
Director |
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Name : |
Dr. R.
S. Patel |
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Designation : |
Managing
Director |
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Name : |
Mr.
Kanubhai S. Patel |
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Designation : |
Director
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Name : |
Mr.
Rajivbhai Shankarbhai Patel |
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Designation : |
Director |
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Name : |
Mr.
Ganeshbhai Mathurbhai Patel |
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Designation : |
Director |
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Name : |
Mr.
Magansinh Ratansinh Baria |
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Designation : |
Director
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Name : |
Mrs.
Ilaba Jayadrathsinh Parmar |
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Designation : |
Director
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Name : |
Mrs.
Anjanban Patel |
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Designation : |
Director
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Name : |
Mr. J.
G. Pandya |
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Designation : |
Director
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Name : |
Mr.
Jayant Mehta |
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Designation : |
Director |
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Name : |
Mr.
Atul Agrawal |
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Designation : |
Director
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Name : |
Mr. M.
C. Shah |
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Designation : |
Director |
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Name : |
Mr.
Shanabhai Galabhai Khant |
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Designation : |
Director
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Name : |
Mr.
Kanubhai Somabhai Patel |
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Designation : |
Director
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Name : |
Mr.
Narvatsinh Khatusinh Patel |
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Designation : |
Director
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Name : |
Mr.
Rameshbhai Devjibhai Patel |
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Designation : |
Director |
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Name : |
Mr.
Vasantkumar Kantilal Pandya |
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Designation : |
Director
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Name : |
Mr.
Bachubhai Somabhai Parmar |
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Designation : |
Director
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Name : |
Mr.
Indrajitsinh Pramodsinh Parmar |
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Designation : |
Director
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Name : |
Mr.
Ranvirsinh Raysinh Solanki |
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Designation : |
Director
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Name : |
Ms.
Jiviben Virabhai Patel |
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Designation : |
Director
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Name : |
Ms.
Sumanben Kalsing Bhabhor |
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Designation : |
Director
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BUSINESS DETAILS
|
Line of Business : |
Manufacturers
of Milk and Milk Products for Amul and domestic market. |
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Imports from : |
Australia
and Germany [Machinery] |
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Terms : |
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Selling : |
Cash
and Credit |
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Purchasing : |
Cash
and Credit [10 days & some products – 30 days] |
GENERAL
INFORMATION
|
Customers : |
Wholesalers
– 60% for Amul and 40% for domestic market
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Bankers : |
Bank
of Baroda Godhra,
Gujarat, India State
Bank of India Godhra,
Gujarat, India |
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Banking Relations : |
Satisfactory
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CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
500000 |
Equity
Shares |
Rs. 100/- each |
Rs. 50.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
389420 |
Equity
Shares |
Rs. 100/- each |
Rs. 38.942 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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|
SHAREHOLDERS FUNDS |
|
|
|
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1] Share Capital |
|
38.942 |
37.186 |
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|
2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
120.949 |
121.112 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
159.891 |
158.298 |
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LOAN FUNDS |
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1] Secured Loans |
|
264.112 |
212.749 |
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2] Unsecured Loans |
|
204.233 |
158.499 |
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TOTAL BORROWING |
|
468.345 |
371.248 |
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DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
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TOTAL |
|
628.236 |
529.546 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
643.386 |
558.063 |
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Capital work-in-progress |
|
0.000 |
0.000 |
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INVESTMENT |
|
20.760 |
20.760 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
213.883 |
203.279 |
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Sundry Debtors |
|
0.000 |
0.000 |
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Cash & Bank Balances |
|
312.184 |
237.385 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
157.623 |
175.116 |
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Total Current Assets |
|
683.690 |
615.780 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
|
719.600 |
665.057 |
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Provisions |
|
0.000 |
0.000 |
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Total Current Liabilities |
|
719.600 |
665.057 |
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Net Current Assets |
|
[35.910] |
[49.277] |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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TOTAL |
|
628.236 |
529.546 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
Sales Turnover [including other income] |
|
1778.235 |
1568.744 |
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Net
Profit |
|
6.318 |
5.998 |
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Total
Expenditure |
|
1771.917 |
1562.746 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
0.35 |
0.38 |
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Net
Profit Margin (PBT/Sales) |
(%) |
|
0.35 |
0.38 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
0.47 |
0.51 |
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Return
on Investment (ROI) (PBT/Networth) |
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|
0.03 |
0.03 |
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Debt
Equity Ratio (Total
Liability/Networth) |
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|
7.42 |
6.54 |
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Current
Ratio (Current
Asset/Current Liability) |
|
|
0.95 |
0.92 |
LOCAL AGENCY
FURTHER INFORMATION
WEBSITE
DETAILS
Established in 1973 by Gujarat Dairy Development Corporation Limited
(GDDC). From 1983 Milk producers of the district has taken over the charge.
From 1983 to 2006, the milk processing capacity was expanded to 4 LLPD
from 30 TLPD.
Union constitutes 1650 village Dairy Co-operative Societies covering
2080000 milk producers across the Panchmahal & Dahod district. Collection
of milk From Village Dairy Co-operative societies.
Reception of Milk at Chilling center / Dairy Dock. Processing of Milk.
To Provide Technical Input Services to DCS & Milk Producers.
HISTORY
Panchmahal District Co-operative Milk Producers' Union Limited
(Panchmahal Dairy) was established in 1973 by the erstwhile Gujarat Dairy
Development Corporation Limited, Gandhinagar, (GDDC), at Godhra, the district
head-quarter of Panchamahals district.
It was a historic moment when a decade later i.e. in 1983, GDDC handed
over the administration to the milk producers of the union. Since then, the
Union has been flourishing under NDDB's Operation Flood Programmes, handling
more than 200000 Litres of milk, converting it into a myriad of value-added
milk products like Milk powder, Ghee, Butter, Gulabjamun mix and Chhash (Butter
milk) besides essential market milk for the residents of Godhra and neighboring
cities of the district including a portion of Ahmedabad too!
Panchmahal Dairy is a member of Gujarat Cooperative Milk Marketing
Federation Limited, Anand which is a state level apex body under "Anand
pattern" of Cooperatives established By NDDB. It helps in marketing of
their products all over India, abroad and to defense services also.
The milk producers and employees feel proud to state that the union
follows Quality Management and Food Safety System-ISO 9002 and HACCP (Hazard
Analysis Critical Control Points) that has been certified by an Internationally
accredited Quality auditors namely QAS, Australia in April, 2000 which proves
that they care for ultimate consumer's interest in assuring that he gets best
quality and a safe product.
MILK PROCUREMENTS
During
the year 2005-06, with an addition of 56 new Primary Village Dairy Co-operative
Societies (DCS), the milk union now manages 1656 Village milk co-operatives.
The collection of milk at an average of 275000 kilo per day, registered an
increase of 7%, as compared to the last year's procurement. The members could
be paid price on an average Rs. 198 per kilo fat.
It is a
matter of pleasure for all of us, to note that this year on January 18th, 2006 the Union recorded the highest
procurement of milk at 3, 66,834 kilo and soon they will be in a position to
surpass their collection to 0.400 million kilos per day. With the installation
of the modern milk processing plant, they have successfully expanded the
processing capacities and now are able to meet the increasing requirement for
disposal of milk and their milk products also meet the international standards
that could provide good returns to their members. In addition to the modern
milk processing plant, a 1.200 million litres per day (LPD) capacity Effluent
Treatment Plant (ETP) has been installed under the technical guidance from
NDDB.
In the
current scenario of ever growing industrialization and globalization; the dairy
cooperative sector is faced with severe competition from national and
international players. They also have to see that the private traders do not
exploit the milk producers. In this situation, they will have to make the
returns more attractive. The services to their members will have to be
strengthened and efforts to be made for effective implementation and
outreach.
In their
efforts to improve raw milk quality and stay fit in the ever increasing
competitive market, the Bulk Milk Cooling systems at DCS are in operation since
2 years. The collected milk, chilled and stored under controlled conditions,
maintains the quality, for a longer duration. Till date, they have installed 35
such units at remote and far flung sites. Installation of 2 Bulk Milk Cooling
units of 5000 lpd capacities have been completed at Pipero and Kharedi villages
in Dahod region which will soon be commissioned. They hope that in near future
the DCSs will extend their full support and co operation in establishing the
cooling systems. Plans are on anvil to achieve these objectives
PRODUCTION AND SALE
The efforts of the milk union are targeted to maintain the quality and
increase the production of milk and milk products. During the year under
report, they produced 3283 MT Ghee of
which 3147 MT was sold. Against 2221 MT Milk Powder production, 2502 MT was sold; in addition out of 501 MT Table Butter produced, 493 MT was
sold and 10 MT Gulab Jamun Mix
was produced, 11 MT was sold,
during the year under report.
In their efforts to meet the ever increasing market demand, they
initiated the marketing of liquid milk at Indore, Madhya Pradesh, and now with
the establishment of milk packaging facility at Devas in Madhya Pradesh, the
distribution of milk has been easier and faster in Indore, Bhopal and nearby
cities. During 2005-06 the milk union distributed 70,000 Ipd. of milk to the local consumers. Through Gujarat
Co-operative Milk Marketing Federation (GCMMF), they distributed 37, 000 Ipd milk under Amul Brand. During the year
under report they have produced and distributed
11.500 millions 'Amul Kool' brand sterilized flavoured milk in 200 ml and 150
ml bottles.
They have also supplied on an average 87,000 kilo of milk daily to the Mother Dairy, Gandhinagar and
other Milk Unions. 1 million litres of
Goras Chhas has been provided to their consumers during the year under
report.
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.44.99 |
|
UK
Pound |
1 |
Rs.85.34 |
|
Euro |
1 |
Rs.57.63 |
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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|