MIRA INFORM REPORT

 

Report Date :

28.02.2007

 

IDENTIFICATION DETAILS

 

Name :

CHHAJED FOODS PRIVATE LIMITED

 

 

Registered Office :

Suraj Estate, Near Plot No. 3757, Phase – 4, GIDC, Vatva, Ahmedabad, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

19.12.1996

 

 

Com. Reg. No.:

04-31332

 

 

CIN No.:

[Company Identification No.]

U45209GJ1996PTC031332

 

 

Legal Form :

Private Limited Liability Company.

 

 

Line of Business :

Manufacturing and Exporting of Food Products like Wheat Pellets, Multi Cereal Pellets and Shield Products.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

 

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having satisfactory track. Director’s are reported as experienced and respectable businessmen. Their trade relations are fair. Payments are usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office /

Factory  :

Suraj Estate, Near Plot No. 3757, Phase – 4, GIDC, Vatva, Ahmedabad, Gujarat, India

Tel. No.:

91-79-25840197 / 32945545 / 25840390 / 55232930 / 55232930

Mobile No.:

91-9879007940 / 9824081555

Fax No.:

91-79-25841653

E-Mail :

contact@chhaiedfoods.com

Website :

http://www.chhajedfoods.com

Location :

Owned

 

 

DIRECTORS

 

Name :

Mr. Shubhkaran Chhajed

Designation :

Director

Address :

A/2, Vijay Tower, Opposite Kankaria Police Chowky, Kankaria, Ahmedabad – 380 022, Gujarat

Qualification :

S.S.C.

 

 

Name :

Mr. Rajesh Chhajed

Designation :

Director

Address :

A/2, Vijay Tower, Opposite Kankaria Police Chowky, Kankaria, Ahmedabad – 380 022, Gujarat

Qualification :

B. Com.

 

 

Name :

Mr. Nikunj Chhajed

Designation :

Director

Address :

A/2, Vijay Tower, Opposite Kankaria Police Chowky, Kankaria, Ahmedabad – 380 022, Gujarat

Qualification :

B. Com.

 

 

Name :

Mr. Sandip Chhajed

Designation :

Director

Address :

A/2, Vijay Tower, Opposite Kankaria Police Chowky, Kankaria, Ahmedabad – 380 022, Gujarat

Qualification :

B. Com.

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Exporting of Food Products like Wheat Pellets, Multi Cereal Pellets and Shield Products.

 

 

Products :

Ø       Multi grains, Wheat base, Flavor base, multi design for ready-to-roast and snack foods

Ø       Construction and Real Estate Activities

 

 

Brand Names :

“Pum-Pum Doodles”

 

PRODUCTION STATUS

 

Particulars

Unit

Installed Capacity

Wheat Pellets and Multi Cereal Pellets

MT per day

15

Shield Products

MT per day

2

 

 

GENERAL INFORMATION

 

No. of Employees :

63

 

 

Bankers :

Bank of Baroda

Bhadra, Gujarat

 

 

Facilities :

The company enjoys Credit Limits facility from it’s bankers.

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

B. M. Jain & Company

Chartered Accountants

Address :

302, Kalinga Complex, Opposite Caramel School, Ashram Road, Ahmedabad, Gujarat

Tel. No.:

91-79-26583107

Fax No.:

91-79-26587038

 

 

Associates/Subsidiaries :

v      Arham Food Corporation

Suraj Estate, Vatva, Ahmedabad, Gujarat

Line of Business – Manufacturing of Pellets

 

v      Shubhkaran S. Chhajed HUF

Suraj Estate, Vatva, Ahmedabad, Gujarat

Line of Business – Manufacturing of Pellets

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

5,00,000

Equity Shares

Rs. 10/-  each

Rs. 5.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

5,00,000

Equity Shares

Rs. 10/-  each

Rs. 5.000 millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

5.000

5.000

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

3.044

1.719

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

8.044

6.719

LOAN FUNDS

 

 

 

1] Secured Loans

 

11.880

10.152

2] Unsecured Loans

 

10.086

9.262

TOTAL BORROWING

 

21.966

19.414

DEFERRED TAX LIABILITIES

 

0.934

0.891

 

 

 

 

TOTAL

 

30.940

27.024

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

17.407

14.854

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

0.000

0.000

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

6.260

5.084

 

Sundry Debtors
 

10.403

5.786

 

Cash & Bank Balances
 

0.721

0.635

 

Other Current Assets
 

0.000

0.000

 

Loans & Advances
 

3.127

3.676

Total Current Assets
 

20.511

15.181

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

6.993

3.050

 

Provisions
 

 

 

Total Current Liabilities
 

6.993

3.050

Net Current Assets
 

13.518

12.131

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.019

0.039

 

 

 

 

TOTAL

 

30.944

27.024

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2006

31.03.2005

Sales Turnover

 

29.456

22.374

Other Income

 

 

 

Total Income

 

29.456

22.374

 

 

 

 

Profit/(Loss) Before Tax

 

1.655

1.251

Provision for Taxation

 

--

--

Profit/(Loss) After Tax

 

1.655

1.251

 

 

 

 

Expenditures :

 

 

 

 

Interest

 

2.339

2.372

 

Depreciation & Amortization

 

2.177

2.141

 

Other Expenditure

 

27.801

21.123

Total Expenditure

 

32.317

25.636

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2006

31.03.2005

PAT / Total Income

(%)
 

5.62

5.59

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

5.62

5.59

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

4.74

4.17

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.21

0.19

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

3.60

3.34

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

2.93

4.98

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Chhajed Foods Private Limited (CFPL) is a manufacturer, exporter and supplier of premium quality Indian Traditional Snack Foods (Ready-to-eat and Ready-to-fry segment) with modern fineness.


CFPL is owned and managed by the Chhajed Family. Mr Shubhkaran Chhajed, a first generation entrepreneur, founded the unit in 1979 for manufacturing extruded snacks. The products due to the sole reason of quality witnessed amazing growth in the overseas markets.


Modern Food Technology for high quality products


Extruded pellets are mediterion Ready-to-Fry snacks. Mushroom manufacturers fry the pellets and market as Ready-to-Eat snacks as their own brand name. The end-quality is subject to inputs which is not a controllable factor.

Pum Pum Doodles: The Chhajed family is a dreaming to provide the branded RTE/RTF quality branded snacks not only locally but globally. The company used cutting edge technology and created PUM PUM DOODLES, a dream brand, which is ready to go on stream. After establishing the PUM PUM DOODLES, CFPL have export project in pipeline where development of Indian Traditional Foods, such as Papad (a snack food) and Pickle is in full swing.


Qualitative Products and Services


The company adopts world class food technology, food engineering and packing material to ensure rich taste and freshness over a long duration and food items can be transported for long distances. Indian traditional snack food has got rich tradition and Namkeen/Farsan is the far well known and highly consumed Indian Traditional Snack good throughout the length and breadth of Indian sub-continent.


CFPL's RTF base in wheat with additive of starch and salt, whereas large number of RTF base is wheat, corn and potato starch with additives of natural ingredients such as iodised salt, spices, condiments and edible oil.

Key Strengths

Company Profile

 

Business Type

Exporter , Manufacturer

Primary Competitive Advantages

GMO Free raw material used (if required). Reliable and efficient services, timely deliveries.

No of Staff

7

Year of Establishment

1979

No of Production Lines

5

Export Markets

Worldwide

OEM Service Provided

Yes

Production Type

Fully Automatic

No of Engineers

2

No of Designer(s)

1

Monthly Production Capacity

300 Mtons

Credit Rated

No

 

 

 

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.44.20

UK Pound

1

Rs.86.72

Euro

1

Rs.58.23

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--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

 

45

 

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