MIRA INFORM REPORT
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Report Date : |
27.02.2007 |
IDENTIFICATION DETAILS
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Name : |
S M FOODS – DIVISION OF VENKATRAMANA FOOD SPECIALITIES LIMITED |
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Registered
Office : |
Shop No. 7, 3rd Floor, 184, Poonamalee High Road, Chennai –
600010, Tamilnadu |
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Country : |
India |
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Financials (as
on) : |
31.03.2005 |
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Date of
Incorporation : |
19.08.1986 |
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Com. Reg. No.: |
59-13312 |
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CIN No.: [Company
Identification No.] |
U15499TN1986PLC013312 |
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TAN No.: [Tax Deduction & Collection Account No.] |
PNEV05426B |
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PAN No.: [Permanent Account No.] |
AABCV1301P |
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Legal Form : |
Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturers of Food Pellet and Snack Foods and Papad. |
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 : |
Moderate |
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Payment
Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Financial position is moderate. Payments are reported as slow but correct. The company can be considered for moderate business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered
Office : |
Shop No. 7, 3rd Floor, 184, Poonamalee High Road, Chennai –
600010, Tamilnadu, India |
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E-Mail : |
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Website : |
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Corporate Office : |
B – 7, Road No. 8, Wagle Industrial Estate, Thane – 400604,
Maharashtra |
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Tel. No.: |
91-22-25838211/12/13/14/15 |
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Fax No.: |
91-22-25838210 |
DIRECTORS
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Name : |
Ms. Vaishali Mohandas Shetty |
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Designation : |
Managing Director |
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Address : |
1818/19, Wing – 2B, Raheja Classique, New Link Road, Oshiwara, Andheri
[West], Mumbai – 400053, Maharashtra, India |
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Date of
Birth/Age : |
11.08.1976 |
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Date of Appointment
: |
13.12.2002 |
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Name : |
Mr. V. Ramdas Balachandra |
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Designation : |
Director |
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Address : |
1502, 15th Floor, Vasty Park, Evershine Nagar, Malad
[West], Mumbai – 400064, Maharashtra, India |
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Date of
Birth/Age : |
22.02.1950 |
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Date of
Appointment : |
20.10.1999 |
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Name : |
Mr. R. S. Raghavan |
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Designation : |
Whole Time Director |
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Address : |
5A, Perry Street, Ananda Nagar, Kadirkamam, Pondicherry – 605009 |
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Date of
Birth/Age : |
21.07.1962 |
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Date of
Appointment : |
01.10.2002 |
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Name : |
Mr. Sanjay Desai |
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Designation : |
Director |
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Address : |
302, Ashraj Kunj, Kasturi Nagar Society, Manjalpur, Behind Shreyas
School, Baroda, Gujarat, India |
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Date of
Birth/Age : |
16.08.1963 |
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Date of
Appointment : |
18.08.2003 |
MAJOR SHAREHOLDERS
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Names of Shareholders |
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No. of Shares |
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Mr. V. R. Balachandra |
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10 |
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Mr. T. Rajmohan |
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10 |
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Mr. R. S. Raghavan |
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10 |
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Prof. R. S. Rajagopalan |
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10 |
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Dr. R. Jayachandran |
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10 |
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Mr. P. S. Govind Rao |
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10 |
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Mr. C. R. Rajkumar |
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10 |
|
SM Holding & Finance Private Limited |
|
1335844 |
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Jatipura Trade & Investment Private Limited |
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421706 |
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Jatipura Trade & Investment Private Limited |
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700000 |
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SM Securities Limited |
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500000 |
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SM Holding & Finance Private Limited |
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1320700 |
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Mrs. G. M. Shetty |
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790000 |
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Ms. Vaishali M. Shetty |
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3750000 |
BUSINESS DETAILS
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Line of Business
: |
Manufacturers of Food Pellet and Snack Foods and Papad. |
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Products : |
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Brand Names : |
v Simba Junior v Piknik v Piknik Paprika v Peppy v Simba v Senorpeppito |
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Exports : |
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Products : |
Simba Junior, Piknik, Piknik Paprika,
Simba Ring A Ring, Peppy- Tomato Discs |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Food Pellets and Snacks Foods |
TPA |
7200 |
12680 |
3261.20 |
GENERAL INFORMATION
|
Bankers : |
Industrial
Development Bank of India Nariman Bhavan,
227, Vinay K. Shah Marg, Nariman Point, Mumbai – 400021 Regional Office : 480,
Anna Salai, Nandanam, Madras – 600035 Industrial Credit
& Investment Corporation of India Limited 163, Backbay
Reclamation, Mumbai – 400020 Regional Office :
1, Canotaph Road, Madras – 600018 UTI Bank Limited 81, Dev Kunj, Veer
Savarkar Marg, Shivaji Park, Dadar, Mumbai – 400028, Maharashtra, India E-mail : shivajiparkbranchhead@utibank.co.in The Saraswat
Co-operative Bank Limited Thane Branch,
Patwardhan Building, Agyari Lane, Jamblinka, Thane [West], - 400601 Industrial Credit
& Investment Corporation of India Limited Bank of Baroda
Building, Post Box No. 363, 16, Sansad Marg, New Delhi - 110001 |
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Facilities : |
Secured Loans : Hire Purchase Loans secured against Vehicles : Rs.
1.538 millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
P. Srinivasan & Company Chartered Accountants, 18, Gopala Krishna Road, T. Nagar, Chennai – 600017, Tamilnadu, India Agrawal & Jindal Chartered Accountants, Room No. 10, 2nd Floor, 132, Bazargate Street, Fort, Mumbai
– 400001, Maharashtra, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1757570 |
Equity Shares |
Rs. 2.50/- each |
Rs. 4.394 millions |
|
4600000 |
Equity Shares |
Rs. 10/- each |
Rs. 46.000
millions |
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TOTAL |
|
Rs.
50.394 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1757570 |
Equity Shares |
Rs. 2.50/- each |
Rs. 4.394 millions |
|
4560700 |
Equity Shares |
Rs. 10/- each |
Rs. 45.607
millions |
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TOTAL |
|
Rs.
50.001 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
|
50.001 |
16.394 |
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2] Share Application Money |
|
39.176 |
0.000 |
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3] Reserves & Surplus |
|
97.438 |
104.490 |
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4] (Accumulated Losses) |
|
[4.199] |
[6.979] |
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NETWORTH |
|
182.416 |
113.905 |
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LOAN FUNDS |
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1] Secured Loans |
|
1.538 |
2.528 |
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2] Unsecured Loans |
|
24.172 |
46.141 |
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TOTAL BORROWING |
|
25.710 |
48.669 |
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DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
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TOTAL |
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208.126 |
162.574 |
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APPLICATION OF
FUNDS |
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FIXED ASSETS [Net
Block] |
|
203.086 |
154.301 |
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Capital
work-in-progress |
|
0.000 |
0.000 |
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INVESTMENT |
|
0.028 |
0.000 |
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DEFERREX TAX
ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS,
LOANS & ADVANCES |
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Inventories |
|
55.685 |
7.265 |
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Sundry Debtors |
|
38.864 |
2.915 |
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Cash & Bank
Balances |
|
5.953 |
1.332 |
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Other Current
Assets |
|
0.000 |
0.000 |
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Loans &
Advances |
|
16.040 |
3.128 |
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Total Current Assets |
|
116.542 |
14.640 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current
Liabilities |
|
107.699 |
13.662 |
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|
Provisions |
|
5.624 |
0.315 |
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Total Current Liabilities |
|
113.323 |
13.977 |
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Net
Current Assets |
|
3.219 |
0.663 |
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MISCELLANEOUS
EXPENSES |
|
1.793 |
7.610 |
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TOTAL |
|
208.126 |
162.574 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
|
Sales Turnover
[including other income] |
|
288.147 |
71.115 |
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Profit/(Loss) Before Tax |
|
1.695 |
0.860 |
|
Provision for Taxation |
|
[2.577] |
0.699 |
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Profit/(Loss) After Tax |
|
[4.272] |
0.161 |
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Export Value |
|
0.334 |
N.A. |
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Import Value |
|
2.876 |
N.A. |
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Total Expenditure |
|
286.452 |
70.255 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2005 |
31.03.2004 |
|
PAT / Total
Income |
(%) |
|
[1.48] |
0.22 |
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Net Profit Margin (PBT/Sales) |
(%) |
|
0.58 |
1.20 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
|
0.53 |
0.50 |
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Return on Investment (ROI) (PBT/Networth) |
|
|
0.01 |
0.01 |
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Debt Equity Ratio (Total Liability/Networth) |
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|
0.76 |
0.54 |
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Current Ratio (Current Asset/Current Liability) |
|
|
1.02 |
1.04 |
LOCAL AGENCY FURTHER INFORMATION
Financial
Highlights
During the year the company has achieved a sales turnover of Rs. 279.803
millions [Previous year Rs. 72.420 millions] with a Net Loss of Rs. 4.272
millions. The loss is mainly on account
of higher charge for Depreciation and the Deferred Tax Liability for the year.
Equity Capital
The company has raised fresh capital of Rs. 33.600 millions during the
year.
Fixed Assets
Leasehold Land, Trade Mark, Factory Building, Other Building, Plant &
Machinery, Electrical Installation, Laboratory Equipment, Office Equipment,
Furniture & Fixtures, Computers and Vehicles.
Form 8 Particular for creation
or modification of charges
|
Name of the
company |
VENKATRAMANA FOOD SPECIALITIES LIMITED [hereinafter referred to as
‘the company’] |
|
Presented By |
Mr. E. Ahobala Rao |
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1) Date and
description of instrument creating the change |
09.01.1987. Deed
of hypothecation executed by the company jointly in favour of Industrial
Development Bank of India [IDBI] Industrial Finance Corporation of India
[IFCI], and the Industrial Credit & Investment Corporation of India
Limited [ICICI] [hereinafter collectively].
A certified copy of the said Deed of Hypothecation is enclosed |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
The Term Loan Rs.
21.500 millions agreed to be lent and advanced by IDBI under Project
Financing Participation Scheme to the company together with interest,
additional interest, liquidated damages, commitment charges, expenses, premia
on prepayment or on redemption, costs, charges and all other moneys payable
by the company to IDBI in terms of the Loan Agreement dated Ninth day of
January, 1987 between the company of the One part and The Lender of the Other
part |
|
3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
The whole of the movable
properties of the company including its movable plant and machinery spares,
tools and accessories and other movables, both present and future [save and
except book debts] whether installed or not and whether now lying loose or in
cases or which are now lying or stored in or about or shall hereafter from
time to time during the continuance of the security by brought into or upon
or be stored in or about the company’s factories, premises and godowns or
wherever else the same may be or be held by any party to the order or
disposition of the company or in the course of transit or on high seas or on
order, or delivery, howsoever and wheresoever in the possession of the
company and either by way of substitution or addition |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
[a] The charge
operates as security, inter alia, for the due repayment by the company to
IDBI for its Term Loan of Rs. 21.500 millions under Project Financing
Participation Scheme together with interest, additional interest, liquidated
damages, commitment charges, premia on prepayment or on redemption, costs,
charges, expenses and all other moneys payable by the company to IDBI in
terms of the said Loan Agreement. [b] The charge in
favour of IDBI under the said Deed of Hypothecation is subject to the
charge[s] created and or to be created by the company in favour of its
bankers of the company’s stocks of raw materials, semi-finished and finished
goods and consumable stores and book debts and such other movables as may be
specifically permitted to secure its working capital requirements in the
ordinary course of business [c] The company
has undertaken to keep the goods hypothecated in marketable and good
condition at its own costs and to insure the same in the joint names of the
company and the Lenders [d] All the goods
hypothecated and all the realisations and insurance proceeds thereof and all
documents in respect of the said security are to be kept distinguishable and
held as the exclusive property of the Lenders [e] The security
created under the said Deed of Hypothecation is to be a continuing security |
|
5) Name and
Address and description of the person entitled to the charge. |
Industrial
Development Bank of India Nariman Bhavan,
227, Vinay K. Shah Marg, Nariman Point, Mumbai – 400021 Regional Office :
480, Anna Salai, Nandanam, Madras – 600035 |
|
6) Date and brief description of instrument
modifying the charge |
Not Applicable |
|
7) Particulars of modifications
specifying the terms and conditions or the extent of operations of the charge
in which modification is made and the details of the modification. |
Not Applicable |
|
Name of the
company |
VENKATRAMANA FOOD SPECIALITIES LIMITED [hereinafter referred to as
‘the company’] |
|
Presented By |
Mr. E. Ahobala Rao |
|
1) Date and
description of instrument creating the change |
09.01.1987. Deed
of hypothecation executed by the company jointly in favour of Industrial
Credit & Investment Corporation of India Limited [ICICI], Industrial
Development Bank of India [IDBI] and
Industrial Finance Corporation of India [IFCI] [hereinafter
collectively]. A certified copy of
the said Deed of Hypothecation is enclosed |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
The Term Loan of
Rs. 7.500 millions agreed to be lent and advanced by ICICI under Project
Financing Participation Scheme to the company together with interest, additional
interest, liquidated damages, commitment charges, expenses, premia on
prepayment or on redemption, costs, charges and all other moneys payable by
the company to ICICI in terms of the Loan Agreement dated Ninth day of
January, 1987 between the company of the One part and The Lender of the Other
part |
|
3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
The whole of the
movable properties of the company including its movable plant and machinery
spares, tools and accessories and other movables, both present and future
[save and except book debts] whether installed or not and whether now lying
loose or in cases or which are now lying or stored in or about or shall
hereafter from time to time during the continuance of the security be brought
into or upon or be stored in or about the company’s factories, premises and
godowns or wherever else the same may be or be held by any party to the order
or disposition of the company or in the course of transit or on high seas or
on order, or delivery, howsoever and wheresoever in the possession of the
company and either by way of substitution or addition |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
[a] The charge
operates as security, inter alia, for the due repayment by the company to
ICICI of its Term Loan of Rs. 7.500 millions under Project Financing
Participation Scheme together with interest, additional interest, liquidated
damages, commitment charges, premia on prepayment or on redemption, costs,
charges, expenses and all other moneys payable by the company to ICICI in
terms of the said Loan Agreement. [b] The charge in
favour of ICICI under the said Deed of Hypothecation is subject to the
charge[s] created and or to be created by the company in favour of its
bankers of the company’s stocks of raw materials, semi-finished and finished
goods and consumable stores and book debts and such other movables as may be
specifically permitted to secure its working capital requirements in the
ordinary course of business [c] The company
has undertaken to keep the goods hypothecated in marketable and good
condition at its own costs and to insure the same in the joint names of the
company and the Lenders [d] All the goods
hypothecated and all the realisations and insurance proceeds thereof and all
documents in respect of the said security are to be kept distinguishable and
held as the exclusive property of the Lenders [e] The security
created under the said Deed of Hypothecation is to be a continuing security |
|
5) Name and
Address and description of the person entitled to the charge. |
Industrial Credit
& Investment Corporation of India Limited 163, Backbay
Reclamation, Mumbai – 400020 Regional Office :
1, Canotaph Road, Madras – 600018 |
|
6) Date and brief description of instrument
modifying the charge |
Not Applicable |
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
Not Applicable |
|
Corporation
identity number or foreign company registrations number of the company |
U15499TN1986PLC013312 |
|
Name of the
company |
S M FOODS – DIVISION OF VENKATRAMANA FOOD SPECIALITIES LIMITED |
|
Address |
Shop No. 7, 3rd Floor, 184, Poonamalee High Road, Chennai –
600010, Tamilnadu |
|
This Form is for
|
Creation of charge |
|
Type of Charges |
Equitable mortgage
or mortgage of property by depositing the title deeds |
|
Particular of
the charge holder |
UTI Bank Limited 81, Dev Kunj,
Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai – 400028, Maharashtra, India E-mail : shivajiparkbranchhead@utibank.co.in |
|
Nature or
description of the instrument creating charge |
No Instrument :
Memorandum of Entry [MOE], Equitable mortgage of property by deposit of title
deeds |
|
Date of the instrument
creating charge |
06.07.2006 |
|
Amount Secure by
the charge |
Rs. 30.000
millions |
|
Brief of the
principal terms and conditions and extent and operation of the charge |
Immovable
property given to secure factoring facility granted by the Bank |
|
Name of the
company |
VENKATRAMANA FOOD SPECIALITIES LIMITED [hereinafter referred to as
‘the company’] |
|
Presented By |
The Saraswat
Co-operative Bank Limited, Thane Branch |
|
1) Date and
description of instrument creating the change |
Agreement of
Hypothecation of movable property recording Letter Evidencing Deposit of
Title Deed Both the agreements are dated 19 September, 2005 and constitute
single charge |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 10.000
millions |
|
3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
Hypothecation of
all the stocks, debtors, tangible movable property [both present and future]
belonging to the borrower and lying and being at the borrowers place of
business or wherever Further
hypothecation of book debts, outstandings monies receivable, claims and
approved bookdebts and bills Mortgage of
commercial property located at Plot No. B7 & B10, MIDC Road No. 8 and 15,
Wagle Industrial Estate, Thane – 400605 |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
R.O.I. : 12% p.a.
or as the bank may from time to time fix.
This is Cash Credit facility The immovable
property is collateral security for the above said cash credit facility |
|
5) Name and
Address and description of the person entitled to the charge. |
The Saraswat
Co-operative Bank Limited Thane Branch, Patwardhan
Building, Agyari Lane, Jamblinka, Thane [West], - 400601 |
|
6) Date and brief description of instrument
modifying the charge |
Not Applicable |
|
Name of the
company |
VENKATRAMANA FOOD SPECIALITIES LIMITED [hereinafter referred to as ‘the
company’] |
|
Presented By |
V. Shankar –
General Manager Finance and Company Secretary |
|
1) Date and
description of instrument creating the change |
06.09.1988. Deed
of hypothecation executed by the company jointly in favour of Industrial Finance
Corporation of India [IFCI], Industrial Development Bank of India [IDBI] and
the Industrial Credit and Investment Corporation of India Limited [ICICI]
[hereinafter collectively referred to as ‘the Lenders’]. A certified copy of
the said deed of hypothecation is enclosed |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
The term loan of
Rs. 1.500 millions agreed to be lent and advanced by IFCI to the company under
Project Finance Participation Scheme [PFPS] together with interest,
additional interest, liquidated damages, commitment charges, premia on
prepayment or on redemption, costs, charges expenses and all other money
payable by the company to IFCI in terms of the Term Loan agreement dated
Sixth day of September, 1988 between the company of the one part and the
Lenders of the Other part. |
|
3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
The whole of the
movable properties of the company including its movable plant and machinery
spares, tools and accessories and other movables, both present and future
[save and except book debts] whether installed or not and whether now lying
loose or in cases or which are now lying or stored in or about or shall
hereafter from time to time during the continuance of the security be brought
into or upon or be stored in or about the company’s factories, premises and
godowns or wherever else the same may be or be held by any party to the order
or disposition of the company or in the course of transit or on high seas or
on order, or delivery, howsoever and where so ever in the possession of the
company and either by way of substitution or addition |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
[a] The charge
operates as security, inter alia, for the due repayment by the company to
IFCI of its Term Loan of Rs. 1.500 millions under PFPS together with interest,
additional interest, liquidated damages, commitment charges, premia on
prepayment or on redemption, costs, charges, expenses and all other moneys
payable by the company to IFCI in terms of the said Loan Agreement. [b] The charge in
favour of IFCI under the said Deed of Hypothecation is subject to the
charge[s] created and or to be created by the company in favour of its
bankers of the company’s stocks of raw materials, semi-finished and finished
goods and consumable stores and book debts and such other movables as may be
specifically permitted to secure its working capital requirements in the
ordinary course of business [c] The company
has undertaken to keep the goods hypothecated in marketable and good
condition at its own costs and to insure the same in the joint names of the
company and the Lenders [d] All the goods
hypothecated and all the realisations and insurance proceeds thereof and all
documents in respect of the said security are to be kept distinguishable and
held as the exclusive property of the Lenders [e] The security
created under the said Deed of Hypothecation is to be a continuing security |
|
5) Name and
Address and description of the person entitled to the charge. |
Industrial Credit
& Investment Corporation of India Limited Bank of Baroda
Building, Post Box No. 363, 16, Sansad Marg, New Delhi - 110001 Regional Office :
Madras |
|
6) Date and brief description of instrument
modifying the charge |
Not Applicable |
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
Not Applicable |
|
Name of the
company |
VENKATRAMANA FOOD SPECIALITIES LIMITED [hereinafter referred to as
‘the company’] |
|
Presented By |
V. Shankar –
General Manager Finance and Company Secretary |
|
1) Date and
description of instrument creating the change |
08.08.1988. Deed
of hypothecation executed by the company jointly in favour of Industrial
Development Bank of India [IDBI]. A certified copy of the said deed of
hypothecation is enclosed. |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
The bridging loan
of Rs. 2.500 millions agreed to be lent and advanced by IDBI to the company together
with interest, additional interest, liquidated damages, commitment charges,
premia on prepayment or on redemption, costs, charges, expenses and all other
moneys payable by the company to IDBI in terms of the bridging loan agreement
dated 8th August, 1988 between the company of the one part and the
IDBI of the other part |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
[a] The charge
operates as security, inter alia, for the due repayment by the company to
IDBI of its Term Loan of Rs. 3.000 millions together with interest,
additional interest, liquidated damages, commitment charges, premia on
prepayment or on redemption, costs, charges, expenses and all other moneys
payable by the company to IDBI in terms of the said Loan Agreement. [b] The charge in
favour of IDBI under the said Deed of Hypothecation is subject to the
charge[s] created and or to be created by the company in favour of its
bankers of the company’s stocks of raw materials, semi-finished and finished
goods and consumable stores and book debts and such other movables as may be
specifically permitted to secure its working capital requirements in the
ordinary course of business [c] The company
has undertaken to keep the goods hypothecated in marketable and good
condition at its own costs and to insure the same in the joint names of the
company and the IDBI [d] All the goods
hypothecated and all the realisations and insurance proceeds thereof and all
documents in respect of the said security are to be kept distinguishable and
held as the exclusive property of the IDBI [e] The security
created under the said Deed of Hypothecation is to be a continuing security |
|
5) Name and
Address and description of the person entitled to the charge. |
Industrial
Development Bank of India Nariman Bhavan,
227, Vinay K. Shah Marg, Nariman Point, Mumbai – 400021 Regional Office :
480, Anna Salai, Nandanam, Madras – 600035 |
|
6) Date and brief description of instrument
modifying the charge |
Not Applicable |
|
7) Particulars of modifications
specifying the terms and conditions or the extent of operations of the charge
in which modification is made and the details of the modification. |
Not Applicable |
Website Details :
The Largest selling Extruded
Indian Snack Brand
Subject is a pioneer of 'Ready-to-Eat' Snacks and non-ship snack food segment,
took the first step in this direction with the installation of a fully
automatic pellet processing line imported from Mapimpianti, Italy. The idea was
to process and popularize a range of high quality pelleted products as a snack
food variant in India. Subject launched its own range of pelleted snack foods
in various flavours, shapes and sizes. This met with instant consumer
acceptance.
The division has now added a host of new brands that have also been success
stories.
Their
products are available in over 1.5 million retail counters across India and
serviced by a distribution network of more than 300 stockists.
They have
strategically placed multiple manufacturing locations across the country to
ensure availability and catering to regional flavour.
The
company, simultaneously started development of Tomato Ketchup and Indian ethnic
range of food products like Pickles, Spices and Papads under the brand name
'Sampoorn'.
Subject
has ambitious plans to capture the overseas markets. Currently they are
exporting their various products to neighboring countries and the Middle East.
Better times
ahead for snack food industry
Saturday, September
09, 2006
SM Foods (a division of Venkatramana Food Specialities Limited), the
largest selling extruded Indian snack brand in the country has carved a place
for itself in the Indian snack industry. Having sold more than a billion packs
till today and with a wide presence of 1.5 million retail counters across the
country, it is one of the major national brands competing against the
multinationals like FritoLay.
Mainly catering to the kids segment, its brands Peppy, Picnic, Simba are a big
hit amongst the school kids. All its manufacturing units are strategically
located across the country to ensure easy availability. A huge distribution
network of more than 500 stockiest backs it up. Growing at the rate of 15-20%
in the past few years, it is confident of growing by 30-40% in future.
Ketan Thakkar from Food and Beverage News spoke to Ossie Menezes, marketing
manager of SM foods about the latest developments in the company and the
industry. Excerpts:
What is the take on the current state
of snacks industry in the country?
As it is commonly referred, today the snack food industry is the
sunshine industry. It has been doing quite well in the past few years and is
heading towards a great future. The way things are developing in the current
context, where people have better spending power, good knowledge and great
exposure, better times are ahead of the snack industry.
What are the key issues affecting the
industry?
Quality has become major issue today; it is one area, which needs a serious
attention. They constantly try to maintain the best of quality, because the
consumer always demands the best even if he is buying a Rs 2 pack or Rs 50
pack.
In the wake of rising fuel prices and the increasing octroi duty, maintaining a
consistent price is a constant challenge. They cannot increase the price of a
product by 50 paise or a rupee, so they have to work backwards and keep their
cost down so as to ensure that they do not comprise on the quality.
They are constantly looking at various ways, through which they can streamline
the viability of operations, cut the cost by adopting latest machinery etc. All
their machineries are imported from reputed companies from Europe, which is one
of the main reasons why the quality is on par with the international standards.
They constantly work to make things viable so that they do not pass on the
burden to the consumers and absorb all the cost on their end.
What is the take on the food packaging in the
industry?
There is a belief 'Consumer first eats with his eyes, then with this
nose and then with his mouth' this itself shows how much of appearance
(packaging) is important. The standard of packaging has changed drastically all
over, and today majority of organized players are geared up in this regard. In
the first 10 years, they decided not to tamper with packaging.
However, in the last six months they have changed their packaging drastically.
The current packaging is more chic and international and it is really appealing
in its looks and colours. And the entire range of snacks brand they have has
gone through a sea change in terms of packaging.
What are the threats and challenges
ahead of the industry?
There is a major assumption that a packaged snack food is a junk food
product. There is a constant effort on part of packaged snack food industry to
project the health aspects. SM Foods is making a conscious effort to project
itself as a healthy snack. Mainly catering to the kids segment, their products
are fortified with vitamins and proteins. Their products do not contain MSG
(mono sodium glutamate) (a fat component), which is widely available in chips
segment.
Being one of the leading national snack
brands, how is it competing against multinational like Lays?
To be honest, they have done good turn to all of them, by making the
average consumer aware of quality offered by a branded snack vis a vis a local
snack. However, I must admit that because of a huge financial backup, they tend
to through a spanner in the works.
Their strength and forte has always been non-chip extruded snack and they still
hold a good lead in that category. With the entry of Lays, the growth rate has
slowed down. Their products mainly cater to child segment and Lays cater to
teenagers and adults. To be frank, the entry of Lays has only helped them to
grow.
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
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
35 |
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 |
|
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