MIRA
INFORM REPORT
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Report Date : |
03.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
INDFRAG LIMITED |
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Registered Office : |
102/3, Kundumaranpalli Village, denkanikota Taluka, District
Dharmapuri - 635113, Tamilnadu |
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Country : |
INDIA |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
02.02.1987 |
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Com. Reg. No.: |
006931 |
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CIN No.: [Company
Identification No.] |
U02424TZ1987PLC006931 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEI00305E |
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Legal Form : |
Closely Held Public Limited
Liability Company |
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Line of Business : |
Leading Producer of Natural Extracts for the Dietary Supplement, Sport
Nutrition, Pharmaceutical, Food and Cosmetic Industries. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 720000 |
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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 : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experience and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal
for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
102/3, Kundumaranpalli village, denkanikota Taluka, District
Dharmapuri - 635113, Tamilnadu |
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Tel. No.: |
91-4347-232255 |
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Fax No.: |
91-4347-232327 |
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E-Mail : |
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Website : |
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Corporate Office : |
1320,12th Cross, indira NAgar, 2 Stage, Bangalore – 560038,
Karnataka |
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Tel. No.: |
91-80-25285365 |
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Fax No.: |
91-80-25284636 |
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E-Mail : |
edwin@indfrag.com /
info@indfrag.com |
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US Branch Office and Warehouse : |
One Main Street, Suite 204, Eatontown, NJ 07724 |
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Tel. No.: |
+1732- 3809530 |
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Fax No.: |
+1732-3809532 |
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E-Mail : |
lkopp@indfrag.com |
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Contact Person :
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Mr. Larry Kopp |
DIRECTORS
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Name : |
Mr. Philip Samuel |
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Designation : |
Chairman & Managing Director |
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Address : |
103, Ivth Main, Domlur II Stage, Domlur, Bangalore – 560071, Karnataka |
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Date of Birth/Age : |
18-09-1947 |
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Date of Appointment : |
30.08.1995 |
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Name : |
Mr. A. Vellayan |
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Designation : |
Director |
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Address : |
No. 5 Ambadi Road, Kotturpuram, Chennai - 600018, Tamilnadu |
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Date of Birth/Age : |
19.02.1953 |
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Qualification : |
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Date of Appointment : |
30.09.1995 |
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Name : |
Ms. Sumant Kapur |
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Designation : |
Director |
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Address : |
B / 17/2, Phase I, Gurgaon – 122002, Haryana |
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Date of Birth/Age : |
05.09.1952 |
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Date of Appointment : |
10.05.1996 |
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Name : |
Mr. Vasantha Natarajan |
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Designation : |
Director |
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Address : |
DII / 3, Type IV, Clri Quarters,, Adyar, Chennai – 600020, Tamilnadu |
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Date of Birth/Age : |
24.12.1950 |
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Date of Appointment : |
03.08.1993 |
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Name : |
Ms. Fabian Samuel |
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Designation : |
Director |
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Address : |
103, Ivth Main, Domlur II Stage, Domlur, Bangalore – 560071, Karnataka |
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Date of Birth / Age |
19.08.1978 |
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Date of Appointment : |
26.09.2003 |
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Name : |
Ms. Anita Samuel |
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Designation : |
Director |
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Address : |
103, Ivth Main, Domlur II Stage, Domlur, Bangalore – 560071, Karnataka |
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Date of Birth/ Age |
26.01.1955 |
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Date of Appointment : |
29.05.1997 |
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Name : |
Larry Kopp |
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Designation : |
Vice President - US Branch |
SHAREHOLDING PATTERN
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Sr. No. |
Category |
Percentage |
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1. |
Foreign holding (foreign institutional
investor(s), Foreign companie(s) Foreign financial institution (s), Non-resident
Indian(s or Overseas corporate bodies or Others |
2.14 |
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2. |
Bodies coprporate (not mentioned above) |
24.05 |
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3. |
Directors or relatives of directors |
69.22 |
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4. |
Other top fifty (50) Shareholders (other
than listed above) |
4.59 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Leading Producer of Natural Extracts for the Dietary Supplement, Sport
Nutrition, Pharmaceutical, Food and Cosmetic Industries. |
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Products : |
Principal
Products Item Code
No.
Products Description ITC 1211 Plants & Parts
of Plants (
Including Seeds & Fruits ) |
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GENERAL
INFORMATION
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No. of Employees : |
About 250 |
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Bankers : |
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Facilities : |
31.03.2005 31.03.2004
( Figure Rs.Millions )
(Figure Rs. In
Million) 1)Term Loan from Export Import bank of India (Exim Bank ) ( Secured by 83.873 57.457 First charge on all present and future immovable assets.) 2)Interest free Sales Tax Loan 0.490 0.559 3)(Secured by the movable and immovable properties) Short Term Loan – ABN Ambro Bank 5.000 0.000 (Secured by Stocks and Receivables) |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
R Subramamain And Company Chartered Accountant |
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Address : |
S 616, Manipal Center, # 47 Dikenson Road, Bangalore – 560042,
Karnataka |
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Subsidiaries : |
Sushrut Herbals Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Share |
Rs.10/- Each |
RS.100.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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3861240 |
Equity Share |
RS.10/- Each |
RS.38.612
Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
38.612 |
38.612 |
38.612 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
143.017 |
149.117 |
150.079 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
181.629 |
187.729 |
188.691 |
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LOAN FUNDS |
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1] Secured Loans |
90.215 |
89.363 |
58.016 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
90.215 |
89.363 |
58.016 |
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DEFERRED TAX LIABILITIES |
6.727 |
8.410 |
7.009 |
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TOTAL |
278.571 |
285.502 |
253.716 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
180.043 |
154.621 |
108.675 |
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Capital work-in-progress |
0.000 |
10.334 |
4.024 |
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INVESTMENT |
2.074 |
2.074 |
2.074 |
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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 |
71.601
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62.422 |
68.096 |
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Sundry Debtors |
40.299
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41.760 |
45.911 |
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Cash & Bank Balances |
25.875
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39.268 |
59.053 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
11.691
|
37.708 |
22.174 |
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Total
Current Assets |
149.466
|
181.158 |
195.234 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
24.365
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30.841 |
17.317 |
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Provisions |
28.647
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31.844 |
41.996 |
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Total
Current Liabilities |
53.012
|
62.685 |
59.313 |
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Net Current Assets |
96.454
|
118.473 |
135.921 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
3.022 |
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TOTAL |
278.571 |
258.502 |
253.716 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
264.698 |
242.180 |
348.623 |
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Other Income |
3.367 |
1.164 |
1.019 |
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Total Income |
268.065 |
243.344 |
342.164 |
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Profit/(Loss) Before Tax |
(77.835) |
9.354 |
69.813 |
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Provision for Taxation |
0.000 |
0.000 |
18.422 |
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Profit/(Loss) After Tax |
(77.835) |
(9.354) |
51.391 |
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Earnings in Foreign Currency : |
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FOB Value of Export |
0.000 |
46.833 |
25.583 |
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Commission Earnings |
0.000 |
0.000 |
0.000 |
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Other Earnings |
0.000 |
0.000 |
0.000 |
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Total Earnings |
0.000 |
46.833 |
25.583 |
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Expenditures : |
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Cost of Goods Sold |
0.000 |
0.000 |
0.000 |
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Manufacturing Expenses |
0.000 |
0.000 |
0.000 |
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Administrative Expenses |
0.000 |
0.000 |
181.048 |
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Raw Material Consumed |
77.968 |
64.140 |
77.035 |
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Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
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Consumption of stores and spares parts |
0.000 |
0.000 |
0.000 |
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Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
0.000 |
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Salaries, Wages, Bonus, etc. |
24.323 |
26.529 |
0.000 |
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Managerial Remuneration |
0.000 |
0.000 |
0.000 |
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Payment to Auditors |
0.000 |
0.000 |
0.000 |
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Interest |
6.555 |
3.199 |
0.858 |
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Insurance Expenses |
0.000 |
0.000 |
0.000 |
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Power & Fuel |
37.856 |
28.408 |
0.000 |
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Depreciation & Amortization |
22.197 |
17.337 |
13.410 |
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Other Expenditure |
177.001 |
94.377 |
0.000 |
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Total Expenditure |
345.900 |
233.990 |
272.351 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
(29.03)
|
3.84 |
15.01 |
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Net Profit Margin (PBT/Sales) |
(%) |
(29.40)
|
3.86 |
20.02 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(23.62)
|
2.78 |
22.97 |
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Return on Investment (ROI) (PBT/Networth) |
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(0.42)
|
0.04 |
0.36 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.78
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0.80 |
0.62 |
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Current Ratio (Current Asset/Current Liability) |
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2.81
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1.52 |
3.29 |
LOCAL AGENCY
FURTHER INFORMATION
Fix Assets :
- Land &
Building
Factory Land & Development Office Land
Factory Building
Office Building
- Plant &
Machinery
- R&D
Equipment
- Office
Equipment
- Computers
- Vehicles
- Furniture’s
& Fixtures
- Electrical
Installations
Company Profile :
Indfrag Limited is a leading producer of natural
extracts for the Dietary Supplement, Sport Nutrition, Pharmaceutical, Food and
Cosmetic Industries in the North American, European and Asian regions.
Committed to delivering quality products at competitive prices, Indfrag sources
high quality botanical feed stock from an established global network and uses
ISO-9001 certified water and solvent extraction facilities. To service the
company’s rapidly expanding customer base, manufacturing facilities have grown
and now have a capacity which is in excess of 3000 MTs of raw material per
annum or 750 MTs of finished product with an emphasis in the production of
Garcinia Cambogia, Green Tea, Gymnema Sylvester and a host of other botanical
extracts. Indfrag is headquartered in India with a marketing, warehousing and
customer servicing facility located in New Jersey and offices, laboratories,
affiliates and manufacturing facilities in France, India, Indonesia, Japan,
Singapore and the USA.
Indfrag commenced operations in 1989
for the manufacture of fresh floral extracts for some of the finest Perfumery
Houses in France. Indfrag was backed with a technical and marketing alliance
from Quest International, a Unilever subsidiary. Indfrag's extracts were used
in some of the most exotic and well known perfume brands. In the early 90'sThe Company moved from floral
extracts and into the manufacture of botanical extracts for the emerging
dietary supplement industry with a focus on the following regions: The United
States, Europe and Japan. The company established a reliable global network for
sourcing high quality botanical feed stock. This, coupled with the construction
of specialized extraction facilities and state of the art testing laboratories,
positioned Indfrag to offer standardized extracts comparable to the best in the
world. Complementing the company’s formidable manufacturing capabilities is our
team of R&D chemists specialized in natural product chemistry. Today,
Indfrag has grown to become the largest producer of Garcinia Cambodia in the
world and a leading producer of other botanical extracts.
Indfrag’s
product suite revolves around natural botanical extracts. We achieve high
customer satisfaction by delivering products that meet specifications at the
lowest possible prices and turnaround times. Over the years a development,
testing and production methodology has evolved which has proved highly
successful. The main product focus today is Green Tea and Garcinia. The final
product is offered primarily as powder extracts and also as soft extracts.
Indfrag has the capacity to make up to 5,000 kgs. of finished Garcinia extracts
per day. Today, we are the largest processors of Garcinia in the World.
Promoted by Philip Samuel and his associates in 1987, Indfrag was
converted into a public limited company in Sep.'95. The company set up a unit
at Kundumaranapalli, Tamilnadu, to manufacture floral extracts with an
installed capacity of 250 kg pa and essential oils with an installed capacity
of 500 kg pa. The company was initially set up with technical knowhow from
Quest International, a subsidiary of the Unilever group, a leading industrial
house in the field of perfumeries and cosmetics. Commercial production
commenced in 1989 with tuberose and jasmine extraction. Gradually, other
natural extracts were developed for the fragrance, flavor and health food
industry. 80% of the company's products are being exported, out of
which about 69% is exported to European countries and the rest to the US,
Singapore and UAE. Its international clients include Quest International, UK
and Holland; Givaudan Roure, Switzerland and Singapore; Beacon, US; Albert
Vieille, France and Ajmal Perfumery, UAE.
In 1995-96, the company undertook an expansion programmed to enhance the
capacities of flower extracts and essential oils to 1000 kg each, and also to
take up the production of herbal extracts from certain herbs and oleoresins
from ginger, chilly, pepper, celery, etc. It came out with a public issue of
6.5 lac equity shares of Rs10 each for cash at a premium of Rs10 per share
aggregating Rs 13.000 Millions in
Mar.'96 to part-finance its expansion project.
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.43.15 |
|
UK Pound |
1 |
Rs.85.22 |
|
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 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
44 |
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 |
|