MIRA
INFORM REPORT
|
Report Date : |
24th
January, 2007 |
IDENTIFICATION
DETAILS
|
Name : |
AGRO
DUTCH INDUSTRIES LIMITED |
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|
Formerly Known As : |
AGRO DUTCH FOODS
LIMITED |
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Registered Office : |
SCO 441-442, Sector 35-C, Chandigarh – 160
022, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
29.05.1992 |
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Com. Reg. No.: |
16-12321 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTLA10910E |
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PAN No.: [Permanent
Account No.] |
AABCA2430Q |
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Legal Form : |
Public
Limited Liability company. The company’s shares are listed on the Stock
Exchanges. |
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Line of Business : |
Manufacturing
and Exporting of White Button Mushroom. Presently, it is the largest exporter
of Mushroom. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
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
5000000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well-established company having satisfactory track. Trade relations are
fair. General financial position is satisfactory. 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 : |
SCO 441-442, Sector 35-C, Chandigarh – 160
022, India |
|
Tel. No.: |
91-172-663336/606575/610605 |
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Fax No.: |
91-172-604045 |
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E-Mail : |
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Website : |
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Head
Office : |
SCO
30, 2nd Floor, Sector 33-D, Chandigarh – 160 020, Punjab,
India |
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Tel.
No.: |
91-172-663336/606575/610605 |
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Fax
No.: |
91-172-604045 |
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E-Mail
: |
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Factory
1 : |
Village
Tofapur, Near Lalru, Tehsil Rajpura, District S A S Nagar, Mohali, Punjab,
India |
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Factory
2 : |
Village
Bhagwanpura Barwala Road, Dera Bassi District S A S Nagar, Mohali, Punjab,
India |
DIRECTORS
|
Name : |
Mr. Malvinder Singh |
|
Designation : |
Chairman and Managing Director |
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Address : |
-- |
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Date of Birth/Age : |
48 years |
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Qualification : |
B.E. (Mech.) |
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Experience : |
26 years |
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Date of Appointment : |
22.06.1992 |
|
Previous
Employment : |
Vishwa Calibre Builders Private Limited –
Managing Director |
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|
|
|
Name : |
Mr. G.
S. Bhinder |
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Designation : |
Executive Director |
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|
Name : |
Mr.
Harsh Jajoo |
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Designation : |
Executive Director |
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Name : |
Col.
Satinder Singh |
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Designation : |
Executive Director |
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Date of Appointment : |
01.05.2006 |
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Name : |
Mr. A
P S Sandhu |
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Designation : |
Executive Director |
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Date of Appointment : |
01.05.2006 |
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Name : |
Dr. H.
S. Garcha |
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Designation : |
Director
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Name : |
Mr.
Maninder Singh |
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Designation : |
Director
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Name : |
Mr.
Arvind Kalra |
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Designation : |
Director
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Name : |
Mr. S
R K Agnihotri |
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Designation : |
Director
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Name : |
Mr.
Dilsher Singh |
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Designation : |
Director
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Name : |
Mr. B
B Huria |
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Designation : |
Director
|
|
Date of Appointment : |
27.04.2006 |
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|
|
|
Name : |
Mr.
Ajay Arora |
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Designation : |
Director
|
|
Date of Appointment : |
27.04.2006 |
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|
|
|
Name : |
Mr.
Gurpreet Singh |
|
Designation : |
Executive
Director |
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Qualification : |
B. E.
(Civil) |
|
Experience : |
14
years |
|
Date of Appointment : |
22.06.1992 |
|
Previous
Employment : |
Vishwa Calibre Builders Private Limited –
Managing Director |
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|
|
KEY EXECUTIVES
|
Name
: |
Mr.
Jasbir Singh |
|
Designation
: |
Company Secretary |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
|
|
|
|
Promoters
Holding n
Indian
Promoters n
Individual
Ministry of Food Processing |
5920488 1500000 |
20.03 5.07 |
|
Persons
acting in concert |
-- |
-- |
|
Sub Total |
7420788 |
25.10 |
|
|
|
|
|
Non-Promoters
Holding n
Institutional
Investors a)
Mutual
Funds and UTI b)
Banks/
Financial Institutions, Insurance Companies (Central/ State Government
Institutions/ Non Government Institutions) c)
Foreign
Institutional Investors Sub Total n
Others
a)
Private
Corporate Bodies b)
Indian
Public c)
Non
Resident Indians / Overseas Corporate Bodies d)
Any
other i)
Employees
ii)
NSDL
Transit position Sub Total
|
879611 520729 1400340 3050431 15834130 1609509 300 244502 20738872 |
2.98 1.76 4.74 10.32 53.57 5.44 0.001 0.83 70.16 |
|
|
|
|
|
Grand Total |
29560000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
and Exporting of White Button Mushroom. Presently, it is the largest exporter
of Mushroom. |
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Products : |
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Exports to : |
U.S.A., The Netherlands, Australia, Israel and Canada. |
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Imports from : |
Europe
and Far East. |
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Terms : |
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Purchasing : |
L/C,
D/A and D/P terms. |
GENERAL
INFORMATION
|
No. of Employees : |
Around
347 |
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Bankers : |
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Facilities : |
Secured
Loan (Rs.
in millions)
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Banking Relations : |
Satisfactory
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|
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Auditors : |
Suresh
Mittal and Associates Chartered
Accountants |
|
Address : |
16-A,
Bank Colony, Behind Amar Hospital, Patiala, Punjab, India |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity
Shares |
Rs. 10/- |
Rs. 300.000 millions |
|
1000000 |
Preference
Shares |
Rs. 100/- |
Rs. 100.000 millions |
|
|
Total |
|
Rs. 400.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
29560000 |
Equity
Shares |
Rs. 10/- |
Rs. 295.600 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
295.600 |
147.800 |
147.800 |
|
|
2] Reserves & Surplus |
979.800 |
713.500 |
598.100 |
|
|
NETWORTH |
1275.400 |
861.300 |
745.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1661.800 |
1378.900 |
1091.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
1661.800 |
1378.900 |
109100 |
|
|
|
|
|
|
|
|
TOTAL |
2937.200 |
2240.200 |
1836.900 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1575.800 |
1436.400 |
1385.100 |
|
|
Capital work-in-progress |
288.100 |
33.600 |
68.600 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1016.500
|
839.800 |
486.500 |
|
|
Sundry Debtors |
294.800
|
286.800 |
24.600 |
|
|
Cash & Bank Balances |
219.900
|
65.200 |
31.700 |
|
|
Loans & Advances |
366.500
|
297.600 |
113.200 |
|
Total Current Assets |
1897.700
|
1489.400 |
656.000 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
838.000
|
730.600 |
273.600 |
|
|
Provisions |
1.700
|
1.000 |
0.500 |
|
Total Current Liabilities |
839.700
|
731.600 |
274.100 |
|
|
Net Current Assets |
1058.000
|
757.800 |
381.900 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
15.300 |
12.400 |
1.300 |
|
|
|
|
|
|
|
|
TOTAL |
2937.200 |
2240.200 |
1836.900 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
1575.700 |
1758.100 |
1472.000 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
125.300 |
188.400 |
186.500 |
|
Provision
for Taxation |
80.700 |
73.000 |
56.400 |
|
Profit/(Loss)
After Tax |
44.600 |
115.400 |
130.100 |
|
|
|
|
|
|
Export
Value |
983.847 |
1094.827 |
NA |
|
|
|
|
|
|
Import
Value |
311.730 |
274.341 |
NA |
|
|
|
|
|
|
Total
Expenditure |
1450.353 |
1569.590 |
1285.500 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2006 |
30.09.2006 |
|
Type |
|
1st
Qtr |
2nd
Qtr |
|
Sales Turnover |
|
521.200 |
542.300 |
|
Other Income |
|
6.100 |
4.100 |
|
Total Income |
|
527.300 |
546.400 |
|
Total Expenditure |
|
423.500 |
437.100 |
|
Operating Profit |
|
103.800 |
109.300 |
|
Interest |
|
41.900 |
41.400 |
|
Gross Profit |
|
61.900 |
67.900 |
|
Depreciation |
|
20.800 |
21.100 |
|
Tax |
|
0.500 |
1.000 |
|
Reported PAT |
|
40.600 |
45.800 |
200606 Quarter 1 :-- Expenditure Includes (Increase)/Decrease in stock in Trade Rs 48.070 million Consumption of Raw Material Rs 155.963 million Staff Cost Rs 36.314 million Freight Outward Expenses Rs 83.460 million Other Expenditure Rs 99.661 million Tax Includes Fringe Benefit Tax Rs 0.500 million Provision for Taxation Rs 3.390 million Adjustment for MAT Credit Entitlement Rs (3.390) million.
200609
Quarter 2 :-- Expenditure Includes
(Increase)/Decrease in stock in Trade Rs 36.066 million Consumption of Raw
Material Rs 137.021 million Staff Cost Rs 43.138 million Freight Outward
Expenses Rs 97.161 million Other Expenditure Rs 123.707 million Tax Includes
Fringe Benefit Tax Rs 1.000 million Current Tax Rs 5.610 million Adjustment for
MAT Credit Rs (5.610) million.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
1.42 |
1.54 |
1.79 |
|
Long
Term Debt Equity Ratio |
0.79 |
0.94 |
1.15 |
|
Current
Ratio |
1.16 |
1.09 |
1.03 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
0.73 |
0.84 |
0.84 |
|
Inventory
|
1.49 |
2.18 |
3.10 |
|
Debtors |
4.74 |
9.28 |
11.70 |
|
Interest
Cover Ratio |
1.94 |
2.40 |
2.07 |
|
Operating
Profit Margin (%) |
24.44 |
27.62 |
28.90 |
|
Profit
Before Interest and Tax Margin (%) |
18.71 |
22.37 |
23.74 |
|
Cash
Profit Margin (%) |
8.97 |
13.23 |
13.29 |
|
Adjusted
Net Profit Margin (%) |
3.23 |
7.99 |
8.12 |
|
Return
on Capital Employed (%) |
10.02 |
15.52 |
16.55 |
|
Return
on Net Worth (%) |
4.17 |
13.50 |
15.07 |
STOCK PRICES
|
Face
Value |
Rs.
10.00 |
|
High |
Rs.
27.80 |
|
Low |
Rs.
26.80 |
LOCAL AGENCY
FURTHER INFORMATION
History
The company was incorporated on 29th May 1992 under the name
and style of "Indo Dutch Foods Limited" and registered with the
Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh at Jalandhar
having Company Registration Number 12321.
Subsequently on 29th July, 1992, the name of the company was
changed to “Agro Dutch Foods Limited”.
With effect from 8th January, 2001 the name of the company
was changed to Agro Dutch Industries Limited.
Subject
was incorporated as a public limited company, jointly promoted by Mr. Malvinder
Singh and Punjab Agro Products Development. The company was established with a
production capacity of 12,000 tons of mushroom per annum. It commenced
commercial production in the year 1994. A public issue of Rs.78.7 mn was made
in 1994 for partly financing its 100% EOU, set up for the manufacture of canned
white button mushrooms.
Operations
The company had sales of Rs.1379.300 millions during the year as compared with
Rs.1444.600 millions last year, with the corresponding profits before tax of
Rs.125.388 millions as compared with Rs.188.404 millions last year. The sales
and profits during this financial year are low due to the fact that company was
in process of increasing its mushroom growing capacity, the captive power plant
was commissioned in the first quarter of 2005-06. Due to the technical and
logistics requirements for the inter connectivity in cooling system and other
utilities, the plant had to run at partial capacity for the four months. The
company has not been able to resume normal operation due to ongoing expansion
work. The return from the expansion projects in mushrooms will begin to reflect
in the results from the Financial year 2006-07.
Expansion
Company undertook the expansion of mushroom growing capacity from 36,000 TPA to
50,000 TPA, setting up of individual Quick Freezing (IQF) of mushrooms, new
compost making facilities, additional mushroom processing facilities. The
company has already increased mushroom growing capacity to 40,000 TPA and
completed the setting up of Individual Quick Freezing (IQF) Plant. The mushroom
growing capacity would further enhanced to 50,000 TPA during the current
financial year.
Company's tin cans are appreciated by the food processing/export industry, but
due to capacity constraints, Company was not in a position to sell empty cans
to other food processing industries in India. To meet this demand, Company has
already taken effective steps to double its can making capacity by way of
setting up a new can making unit with an installed capacity of 6000 tonnes per
annum near Chenai. The required plant and machinery has already been ordered
and the unit is likely to go into production by February/March 2007.
Future Plans
In keeping with the fast emerging trend the world over to use the food cans
with Easy Open Ends (EOE), it had become imperative for your Company to
consider manufacture of EOEs. Inasmuch as the capacities of EOE manufacturing
plants are very large compared to our captive requirement, it has been thought
prudent to set up an international scale EOE plant for our captive consumption
as well as outside sale of EOEs, both in domestic as well as export markets.
The cost of the project has been estimated at Rs.557.900 millions which is
proposed to be financed by way of a term loan of Rs.430.000 millions and
balance from internal accruals.
Rights Issue
The Right issue of INR Rs. 14780000 equity shares of Rs.10/- each for cash at a
premium of Rs.15/- per share was opened for subscription on 30th December 2005
and closed on 30th January 2006. The Right issue was fully subscribed. The
basis of allotment of shares was finalized in consultation with the Bombay
Stock Exchange Association Ltd. The shares of the company have been listed on
National Stock Exchange and Bombay Stock Exchange. The proceeds of Rights Issue
are being utilised for the expansion activities undertaken by the Company as
per the letter of offer.
Fixed Assets
The company’s fixed assets of important value
include land, building – factory and non-factory, plant & machinery
(imported and indigenous), vehicles, furniture & fixtures and computers.
As Per
Web
Profile
n Mushrooms constitude
85% of India production and export.
n Full integration
from Composting & Canmaking gives us an unparalled
n 365 days growing
ensures cosistent quality & supplies. No dependence on any season
n INDIA’S Finest can
makers
n They are located in
Punjab. This is the most fertile state in India and produces 80% of India's
wheat. Wheat straw is the most vital substrate for mushroom growing.
n Every batch of
compost is monitored in exactness for various physical and chemical parameters
n 133 Climate controlled concrete growing rooms to ensure that
mushrooms are available
each day
Contact
WORKS:
Village Tofapur, Near Lalru, Teh. Rajpura, Distt. Patiala, Punjab, India
Tel. No.: 91 - 1762 - 274918
Fax No.: 91 - 1762 - 273833
E- mail : enquiry@agro-dutch.com
OFFICE:
S.C.O. 30, 2nd Floor, Sector 33- D, Chandigarh - 160 020 India
Tel No.: 91 - 172-2663336, 2606575
Fax No : 01 - 172 - 2604045
E- mail : enquiry@agro-dutch.com
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.44.24 |
|
UK
Pound |
1 |
Rs.86.95 |
|
Euro |
1 |
Rs.57.33 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
|