MIRA
INFORM REPORT
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Report Date : |
27.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
CREMICA AGRO FOODS LIMITED |
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Registered Office : |
B XXXIII, 324, GT Road West, Near Jallandhar, Bye Pass,
Ludhiana-144409, Punjab |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
06.09.1989 |
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Com. Reg. No.: |
16-9676 |
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CIN No.: [Company
Identification No.] |
L15146PB1989PLC009676 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JLDC00394C |
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Legal Form : |
Public Limited Liability Company. The Company’s shares are listed on
Stock Exchanges |
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Line of Business : |
Manufacturers of Biscuits |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
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Status : |
Small company |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a relatively small company having satisfactory track.
Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are however
reported as usually correct and as per commitments. The company can be considered for small dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered/ Head Office : |
B XXXIII, 324, GT Road West, Near Jallandhar, Bye Pass,
Ludhiana-144409, Punjab, India |
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Tel. No.: |
91-1826- 222460 |
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Mobile No.: |
91-9876736654 |
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Fax No.: |
91-1826-222915 |
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E-Mail : |
biscuits@cremicafoods.com,snackfoods@cremicafoods.com, sauces@cremicafoods.com, enquiries@cremicafoods.com |
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Website : |
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Factory 1 : |
Theing Road, Phillaur - 144 409, Punjab |
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Tel. No.: |
91-1826-225410/ 225418 |
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Fax No.: |
91-1826-222915 |
DIRECTORS
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Name : |
Mr. Dharamvir Bector |
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Designation : |
Chairman |
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Name : |
Mr. Anoop Bector |
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Designation : |
Managing Director |
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Name : |
Mr. Jagdish Saluja |
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Designation : |
Director |
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Name : |
Mr. Subhash Agarwal |
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Designation : |
Director |
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Name : |
Mr. Ramesh Aggarwal |
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Designation : |
Director |
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Name : |
Mr. Ravinder Nath Aggarwal |
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Designation : |
Director |
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Name : |
Mr. Ashish Agarwal |
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Designation : |
Director |
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Name : |
Mr. Ajay Bector |
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Designation : |
Director |
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Name : |
Mr. Akshay Bector |
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Designation : |
Director |
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Name : |
Mr. Anil Thapar |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. M.L. Arora |
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Designation : |
Company Secretary |
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Name : |
Mr. Vishal Malik |
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Designation : |
Marketing Manager |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Biscuits |
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Products : |
Biscuits, Buns, Namkeen, Confectionery, Ketchup, Mayonaisse and
Candies |
GENERAL
INFORMATION
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Customers : |
v McDonalds v Pizza Hut v Barista Cafe v Cafe Coffee Day v Jet Airways v United Nations (World Food Programme) v Indian Railways v Canteen Stores Department (Indian Army) v Super Bazaar |
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Bankers : |
v State Bank of
India v ICICI Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Kumar Sunil & Associates Chartered Accountants |
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Address : |
Punjab |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2003 |
31.03.2002 |
31.03.2001 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
15.000 |
15.000 |
15.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
46.800 |
38.000 |
33.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
61.800 |
53.000 |
48.000 |
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LOAN FUNDS |
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1] Secured Loans |
56.300 |
50.600 |
35.100 |
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2] Unsecured Loans |
8.200 |
10.500 |
13.600 |
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TOTAL BORROWING |
64.500 |
61.100 |
48.700 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
126.300 |
114.100 |
96.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
88.400 |
86.500 |
62.200 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
1.200 |
1.100 |
2.100 |
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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 |
25.600
|
22.600 |
22.800 |
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Sundry Debtors |
66.700
|
47.500 |
34.800 |
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Cash & Bank Balances |
9.600
|
4.600 |
4.700 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
15.100
|
12.200 |
11.000 |
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Total
Current Assets |
117.000
|
86.900 |
73.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
80.300
|
63.300 |
45.600 |
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Provisions |
2.600
|
0.900 |
0.000 |
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Total
Current Liabilities |
82.900
|
64.200 |
45.600 |
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Net Current Assets |
34.100
|
22.700 |
27.700 |
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MISCELLANEOUS EXPENSES |
2.600 |
3.800 |
4.700 |
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TOTAL |
126.300 |
114.100 |
96.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2003 |
31.03.2002 |
31.03.2001 |
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Sales Turnover |
533.300 |
436.200 |
409.800 |
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Other Income |
(0.900) |
0.900 |
1.100 |
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Total Income |
532.400 |
437.100 |
410.900 |
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Profit/(Loss) Before Tax |
12.900 |
6.400 |
8.900 |
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Provision for Taxation |
4.100 |
1.400 |
1.300 |
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Profit/(Loss) After Tax |
8.800 |
5.000 |
7.600 |
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Expenditures : |
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Manufacturing Expenses |
3.000 |
2.100 |
2.300 |
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Administrative Expenses |
44.400 |
39.100 |
38.500 |
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Raw Material Consumed |
352.200 |
275.000 |
269.100 |
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Miscellaneous Expenses |
12.600 |
15.600 |
14.600 |
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Salaries, Wages, Bonus, etc. |
22.100 |
24.800 |
21.800 |
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Power & Fuel |
5.200 |
3.200 |
3.000 |
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Depreciation & Amortization |
5.500 |
4.600 |
3.500 |
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Other Expenditure |
65.000 |
58.700 |
41.800 |
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Total Expenditure |
510.000 |
423.100 |
394.600 |
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KEY RATIOS
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PARTICULARS |
31.03.2003 |
31.03.2002 |
31.03.2001 |
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Debt-Equity Ratio |
1.09 |
1.09 |
0.98 |
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Long Term Debt-Equity Ratio |
1.09 |
1.09 |
0.98 |
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Current Ratio |
1.39 |
1.46 |
1.49 |
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TURNOVER RATIOS |
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Fixed Assets |
4.88 |
4.77 |
5.76 |
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Inventory |
22.13 |
19.22 |
18.38 |
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Debtors |
9.34 |
10.60 |
11.79 |
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Interest Cover Ratio |
2.36 |
1.84 |
2.20 |
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Operating Profit Margin(%) |
5.23 |
4.26 |
4.83 |
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Profit Before Interest And Tax Margin(%) |
4.20 |
3.21 |
3.98 |
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Cash Profit Margin(%) |
2.68 |
2.20 |
2.71 |
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Adjusted Net Profit Margin(%) |
1.65 |
1.15 |
1.85 |
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Return On Capital Employed(%) |
19.15 |
13.84 |
19.53 |
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Return On Net Worth(%) |
15.33 |
9.90 |
17.41 |
STOCK PRICES
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Face Value |
Rs.10.00/- |
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High |
Rs.1.65/- |
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Low |
Rs.1.65/- |
LOCAL AGENCY
FURTHER INFORMATION
Subject incorporated in September 1989 as a private limited
company and was converted into a public limited compny in January 1993. It was
promoted by the Bector family of Ludhiana and its associate concerns Cremica
Industries Private Limited and Bector Foods Private Limited.
The company is engaged in the manufacture of biscuits, which are marketed in
the northern states of Punjab, Haryana, Rajasthan, Uttar Pradesh, Bihar and
Delhi. Commercial production commenced in November 1991.
In May 1994, the company came out with a public issue of 0.8 million equity
shares of Rs.10 each for cash at par aggregating Rs.8.000 millions, to
part-finance the cost of capacity expansion from 3000 tpa to 6000 tpa, at its
plant in Phillaur, near Ludhiana (Punjab).
Website Details :
The Cremica Group was established in 1978 by Mrs. Rajni
Bector. Turning her passion for ice cream-making (also her hobby) into a small
backyard enterprise, she established the Cremica Group — today a widely
diversified food products and services company with an annual sales figure of
INR 1 billion, growing at a rate of 30 per cent per annum.
In the course of the past two decades, The Cremica Group has
established itself as a huge food products conglomerate, leading the food
processing business through its range of products, its internationally
certified production facilities, the consistency of its quality, and its
unmatched expertise in the industry. This gives the Group a critical edge in
the market, enabling it to entrench itself as a leading supplier to global and
Indian food giants like McDonalds, Pizza hut, Cafe Coffee Day and Barista, to
name just a few.
Food Services :
Its considerable expertise in product development,
ingredient substitution and product customization has enabled subject to emerge
as India’s largest player in the food services business. Acting as a one-stop
solutions provider to all the leading food service chains in the country,
subject specializes in delivering better quality at the same price.
Subject seeks to help its customers succeed in the
marketplace by helping them develop new products, substitute ingredients with
local alternatives, and reformulate existing products. Subject’s core
competence in this business arises from its extensive product development and
R&D capabilities, its team of experienced food technologists and its
plants, which are specifically designed for food service applications.
Some key innovations originated by subject in the food services
business include:
v Developing
vegetarian burgers and vegetarian mayonnaise for McDonalds
v Creating
Imli and Mint Chutneys for McDonalds
v Creating
the Makhni Gravy for Pizza Hut
v Developing
Curry Bread for McDonalds
v Developing
types of choco sauces
v Ingredient
substitution for syrups at Barista
v Evolving
solutions for the Soft Serve industry
v Development
of a variety of retail and institutional packaging options
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.44.17 |
|
UK Pound |
1 |
Rs.86.69 |
|
Euro |
1 |
Rs.58.22 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
3 |
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OPERATING SCALE |
1~10 |
3 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
4 |
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--PROFITABILIRY |
1~10 |
2 |
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--LIQUIDITY |
1~10 |
4 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
4 |
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--CREDIT LINES |
1~10 |
4 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
36 |
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 |
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PRIVATE & CONFIDENTIAL : This information
is provided to you at your request, you having employed MIPL for such purpose.
You will use the information as aid only in determining the propriety of giving
credit and generally as an aid to your business and for no other purpose. You
will hold the information in strict confidence, and shall not reveal it or make
it known to the subject persons, firms or corporations or to any other. MIPL
does not warrant the correctness of the information as you hold it free of any
liability whatsoever. You will be liable to and indemnify MIPL for any loss,
damage or expense, occasioned by your breach or non observance of any one, or
more of these conditions