MIRA
INFORM REPORT
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Report Date : |
18th
January, 2007 |
IDENTIFICATION
DETAILS
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Report on : |
KUNDAN
EDIBLE PRODUCTS LIMITED |
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Registered Office : |
Kundan
House, D-17, Central Market, Prashant Vihar, Delhi – 110 085, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
20.11.2001 |
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Com. Reg. No.: |
55-113201 |
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CIN No.: [Company
Identification No.] |
U15139DL2001PLC113201 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELK04172A |
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Legal Form : |
A
Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturing
of Edible Oil |
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
425000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a well established and reputed oil manufacturers of a medium-sized Kundan
Group. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
reported as 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 : |
Kundan
House, D-17, Central Market, Prashant Vihar, Delhi – 110 085, India |
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Tel. No.: |
91-11-27567171
(10 Lines) |
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Fax No.: |
91-11-27567180
/ 27865180 |
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E-Mail : |
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Website : |
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Corporate
Office : |
New Delhi Kundan House, D -17,
Central Market, Prashant Vihar, Delhi-110085 Kolkata 12, Pollock Street, Room
# 22/23, IInd Floor Mumbai 17, Bhailal Bhawan 1st
Floor, 118, Keshav Ji, Naik Road, Chinch Bunder, Mumbai- 400009 Ahmedabad 78, City Centre, Room No. 22/23, IInd Floor, 118,
Keshav Ji, Swastik Char Rasta, Ahmedabad-380009 |
DIRECTORS
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Name : |
Mr. J
B Garg |
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Designation : |
Director
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Address : |
435-R,
Model Town, Panipat, Haryana, India |
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Date of Appointment : |
20.11.2001 |
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Name : |
Mr.
Pardeep Garg |
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Designation : |
Director
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Address : |
B-324,
Saraswati Vihar, Delhi, India |
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Date of Appointment : |
20.11.2001 |
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Name : |
Mr.
Sanjeev Garg |
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Designation : |
Director
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Address : |
A-39-A,
Shahdra, Delhi, India |
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Date of Appointment : |
20.11.2001 |
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Name : |
Mr.
Arun Kumar Mathur |
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Designation : |
Director
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Address : |
A-115,
Ashiana Bagicha, Bhiwadi. District Alwar, Rajasthan, India |
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Date of Appointment : |
13.01.2003 |
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Name : |
Mr.
Sanjay Mittal |
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Designation : |
Director
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Address : |
B-6,
Mehandru Enclave, Opp Gujarwala Town, Delhi, India |
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Date of Appointment : |
19.11.2002 |
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Name : |
Mr.
Rajinder Nadha |
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Designation : |
Director
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Address : |
156,
4-A, Chandigarh, India |
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Date of Appointment : |
12.09.2003 |
MAJOR SHAREHOLDERS
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Names
of Shareholders |
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No. of Shares |
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Kundan
Rice Mills Limited |
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4889600 |
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Mr. J
B Garg |
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1815000 |
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J B
Garg and Sons |
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1797500 |
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Mrs.
Madhu Garg |
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1497500 |
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Mrs.
Angoori Devi |
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100 |
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Mr.
Pardeep Garg |
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100 |
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Mr. P
C Chawla |
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100 |
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Mr.
Sanjeev Garg |
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100 |
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BUSINESS DETAILS
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Line of Business : |
Manufacturing
of Edible Oil |
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Products : |
Edible
Oil |
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GENERAL
INFORMATION
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No. of Employees : |
About
1200 |
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Bankers : |
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Facilities : |
Secured Loan (Rs. in millions)
Unsecured Loan (Rs. in millions)
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Banking Relations : |
Satisfactory
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Auditors : |
S.
Lall and Company Chartered
Accountants |
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Subsidiaries : |
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CAPITAL STRUCTURE
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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12000000 |
Equity
Shares |
Rs. 10/- |
Rs. 120.000 millions |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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10000000 |
Equity
Shares |
Rs. 10/- |
Rs. 100.000 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
100.000 |
100.000 |
86.480 |
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2] Share Application Money |
6.480 |
6.480 |
0.000 |
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3] Reserves & Surplus |
0.752 |
0.785 |
0.000 |
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4] Profit and Loss Account |
0.000 |
0.000 |
(0.029) |
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NETWORTH |
107.232 |
107.265 |
86.451 |
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LOAN FUNDS |
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1] Secured Loans |
185.097 |
196.954 |
95.535 |
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2] Unsecured Loans |
64.875 |
84.875 |
22.250 |
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TOTAL BORROWING |
249.972 |
281.829 |
117.785 |
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DEFERRED TAX LIABILITIES |
1.980 |
1.209 |
0.000 |
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TOTAL |
359.184 |
390.303 |
204.236 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
153.963 |
146.822 |
132.550 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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Deferred Advertisement Expenses |
8.553 |
8.737 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
235.600
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212.744 |
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Sundry Debtors |
98.785
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123.454 |
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Cash & Bank Balances |
8.990
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17.194 |
286.377 |
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Other Current Assets |
36.787
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55.470 |
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Loans & Advances |
37.940
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45.303 |
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Total Current Assets |
418.102
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454.165 |
286.377 |
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Less : CURRENT LIABILITIES & PROVISIONS |
221.490
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219.485 |
214.763 |
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Current Liabilities |
221.326
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219.317 |
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Provisions |
0.164
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0.168 |
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Total Current Liabilities |
221.490
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219.485 |
214.763 |
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Net Current Assets |
196.612
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234.680 |
71.614 |
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MISCELLANEOUS EXPENSES |
0.056 |
0.064 |
0.072 |
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TOTAL |
359.184 |
390.303 |
204.236 |
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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Sales Turnover [including other income] |
1600.640 |
2298.435 |
1233.220 |
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Profit/(Loss)
Before Tax |
2.096 |
2.192 |
0.829 |
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Provision
for Taxation |
0.936 |
0.733 |
0.065 |
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Profit/(Loss)
After Tax |
1.160 |
1.459 |
0.764 |
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Total
Expenditure |
1598.544 |
2308.333 |
1232.390 |
KEY
RATIOS
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PARTICULARS |
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31.03.2005 |
31.03.2004 |
31.03.2003 |
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PAT / Total Income |
(%) |
0.07
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0.06 |
0.06 |
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Net
Profit Margin (PBT/Sales) |
(%) |
0.13
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0.09 |
0.06 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
0.36
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0.35 |
0.19 |
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Return
on Investment (ROI) (PBT/Networth) |
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0.02
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0.02 |
0.01 |
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Debt
Equity Ratio (Total
Liability/Networth) |
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5.41
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5.68 |
4.84 |
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Current
Ratio (Current
Asset/Current Liability) |
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1.88
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2.06 |
1.33 |
LOCAL AGENCY
FURTHER INFORMATION
The
company has performed the manufacturing activity during the year with Total
Sales of Rs. 1595.000 millions and earned net profit of Rs. 1.161 millions
after tax. The working results are by and large satisfactory.
Introduction and
History about Kundan Group :
Kundan has a history that dates
back to the early eighties when one man set out on a mission with a venture of
small scale unit of Rice Mill in Haryana (India).
Business gradually grew and became global in Nineties. The Company added
diversified trading activities of various commodities and became 10th largest
closely held Company in the country. It received the various export performance
award and got status of "Golden
Status Star Trading House". The group has interest in manufacturing
as well as domestic and international trading activities.
Kundan Group deals in
International trading and distribution activities of various products including
edible oils, Pulses, Chemicals, waxes etc. KUNDAN has made tie-ups with
International Major and Domestic consumers to minimize the hassles that
ultimately result in cost advantage to everyone. The supplies are regular from
reputed manufacturers in Iran, Qatar, Oman, UAE, USA, Europe, South Africa, UK,
Singapore, Malaysia, Indonesia, Libya, Russia, Romania, Ukraine, Uzbekistan,
Korea & China. In Short, Kundan is becoming the most trusted name in the
World of 24/7 global Economy.
Kundan's Corporate Office is in
New Delhi. Our branch offices are located at Mumbai, Kolkata, Ahmedabad &
Hyderabad and has a vast network of 26 offices in all major cities of the
country. Kundan also own active offices abroad for various operational activities.
Vision
"Our vision is to become a truly Global Organization in the business of
international trading of organic/inorganic chemicals, edible oil, pulses, wax,
basic drugs and allied products by developing and continuously upgrading our
quality systems and professional skills".
Mission
- To
make customer delight-the criterion of our business.
- To
forge long-lasting and reliable relationship with our suppliers.
- To consistently
deliver highest standards of quality through a continuous learning process,
thus staying ahead of the competition and offering total quality
solutions.
Refine Oil
Refined Oils are popular cooking media and
different oils are preferred by different segment of customers depending upon
their specific needs, usage, social status and ofcourse the purchasing power.
At Kundan we are manufacturing various refined oils namely Soyabean,
Cottonseed, Sunflower and Groundnut under the brand name Kundan.
Packing material plays a major role in keeping qualities, nutritional
and health properties of edible oils. There are large number of malpractices
adopted by the suppliers of such packing material like tins and HDPE
containers. To give the best quality to our customers we have taken all the
pains to manufacture Tins and HDPE containers of all our packs "in
house" within our own factory premises.
Distribution Network
The distribution network is
the backbone of any company dealing in a fast moving consumer goods. An
extensive, effective and efficient distribution network helps in ensuring the availability
of our products at arms length from the consumers. Right from the beginning
they are of the opinion that sound distribution network will definitely give us
upper hand over most of the other players in edible oil industry. The game plan
worked and have started getting results more than our expectations.
Today they have 28 company
owned depots in 12 States. They have more than 500 dedicated distributors in
almost all major cities, towns and even bigger villages in these states. To
give proper sales, services and for implementation of various marketing
strategies they have qualified and highly charged team of more than 100
persons.
Bankers
Charges Report as per Registry
Name of the Company : Kundan Edible Products
Limited
Presented by : -- Mr. Pradeep Garg, Director
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1.
Date and description of the instrument creating or evidencing the charge
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Agreement
dated 07.03.2003 of hypothecation of stock and receivables and 1st
charge on all current assets and fixed assets of the company registered on
27.03.2003. Further modified on 19.09.2003 and modification regd. On
28.10.2003 |
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2.
Amount secured by the charge /amount
owing on security of the charge |
Limits:
Fund Based CC
(Hypothecation of stock) : Rs. 30.000 millions Term
Loan – I : Rs. 17.100 millions Term
Loan – II: Rs. 50.000 millions L/C :
Rs. 120.000 millions |
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3.
Short Particular of the property charged. If the property acquired is subject to
change date of acquisition of property should be
given
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Hypothecation
of stock and receivables and 1st charge on all current assets and
fixed assets of the company |
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4.
Gist of the terms and conditions and extent and operation of the charge. |
Interest
: as applicable to SB-3 rating subject to change as per RBI/SBI guidline. TL:
SBTL-3, 1.75% above ABMTLP Repayment:
TL-1 – Rs. 0.600 millions per months beginning one month after takeover of
the same from Indian Bank TL-II
– 20 quarterly instalments of Rs. 2.500 millions each plus interest at
quarterly rests. The first instalments shall fall due six months after the
disbursements. However interest on term loan will be recovered on quarterly
basis as and when due. |
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5.
Names, address and description of the
persons entitled to charge |
State
Bank of India Overseas
Branch, New Delhi – 110 001, India |
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6.
Date and brief description of instrument modifying the charge |
Supplemental
agreement of loan for increase in the overall limit dated 05.09.2005
supplemental agreement of hypothecation of goods and assets for increased in
the overall limit dated 05.09.2005 Supplemental
deed of guarantee for increased in overall limit dated 05.09.2005. Letter
regarding the grant of individual limits within the overall limit dated
05.09.2005 Sanction
Letter No. OBND/RM-II/126 dated 13.08.2005 Letter
dated 19.09.2005 regarding creation of Equitable Mortgage of Factory Land and
Building. |
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7.
Particular of modification specifying the terms and conditions or the extent
or operation of the charge in which modification is made and the details of modification |
Rs. in millions
Hypothecation
of stock and receivables and 1st charge on current assets and
fixed assets of the company including equitable mortgge of factory land and
building situated at Plot No. 1, RIICO Industrial Area, Khushkhera, Bhiwadi,
District Alwar, Rajasthan, India. Other
term and condition remained unchanged.
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The
Company’s Fixed Assets of important value includes:
- Plant and Machinery
- Land and Building
- Office Equipment
- Furniture and Fixtures
- Vehicles
- Computers
- Water Cooler
- Television
- Mobile Set
- Projector
- Freeze
- EPABX
- Fax Machines
- Canteen and Dispensary
Equipment
Corporate Office
New Delhi
Kundan House, D -17,
Central Market, Prashant Vihar, Delhi-110085
Tel: 91- 11-27567171 (Hunting)
Fax : 91-11-27567180, 27865180
Kolkata
12, Pollock Street, Room #
22/23, IInd Floor
Tel : 91-33-235586, 2356546-47
Mumbai
17, Bhailal Bhawan 1st
Floor, 118, Keshav Ji, Naik Road, Chinch Bunder, Mumbai- 400009
Tel:- 91-22-23713295,22-237138-45
Ahmedabad
78, City Centre, Room No.
22/23, IInd Floor, 118, Keshav Ji, Swastik Char Rasta, Ahmedabad-380009
Tel : 91-79- 26563539 -40
Fax : 91-79-26560627
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered against
subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.25 |
|
UK
Pound |
1 |
Rs.87.30 |
|
Euro |
1 |
Rs.57.36 |
SCORE &
RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
9 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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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 |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
50 |
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 |
|