MIRA
INFORM REPORT
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Report Date : |
02.07.2007 |
IDENTIFICATION DETAILS
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Name : |
KUNDAN RICE MILLS LIMITED |
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Registered Office : |
Kundan House, D-17, Central
Market, Prashant Vihar, |
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Country : |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
05.01.1995 |
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Com. Reg. No.: |
55-64113 |
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CIN No.: [Company
Identification No.] |
U74899DL1995PTC064113 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKK01578D |
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PAN No.: [Permanent
Account No.] |
AAACK7098P |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Importers, Exporters and Manufacturers of Rice, Food Grains and Chemicals. |
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 38000000 |
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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 company having satisfactory track.
Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are 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, |
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Tel. No.: |
91-11-27567171 / 27865180 /27865160 |
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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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Factory 1 : |
E-4, Industrial Area, Pasina Kalan, Panipat, Haryana |
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Factory 2 : |
12, |
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Tel. No.: |
91-33-22356734 / 32919301 |
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Fax No.: |
91-33-22356734 |
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E-Mail : |
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Factory 3 : |
17, Bhailal Bhawan 1st Floor, 118, Keshv Ji, Naik Road,
Chinch Bunder, Mumbai – 400008, Maharashtra, India |
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Tel. No.: |
91-22-67106212 |
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Fax No.: |
91-22-28389292 |
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E-Mail : |
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Factory 4 : |
78, City Centre, Room No. 22/23, Second Floor, 118, Keshav Ji, Swastik
Char Rasta, Ahmedabad – 380009, Gujarat, India |
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Tel. No.: |
91-79-32995206 |
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Fax No.: |
91-79-26560627 |
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E-Mail : |
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Overseas Office : |
Located at : |
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Branches : |
Located at :
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DIRECTORS
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Name : |
Mr. Pradeep Garg |
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Designation : |
Managing Director |
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Date of Birth/Age : |
1962 |
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Qualification : |
Graduate |
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Experience : |
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Date of Appointment : |
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Name : |
Mr. Jai Bhagwan Garg |
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Designation : |
Director |
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Name : |
Ms. Angoori Devi |
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Designation : |
Director |
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Name : |
Ms. Madhu Garg |
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Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Mr. Jai Bhagwan Garg |
3224750 |
40.61 |
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Mr. Pradeep Garg |
1050000 |
13.22 |
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Mrs. Madhu Garg |
2725000 |
34.31 |
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Ms. Angoori Devi |
25500 |
0.32 |
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Ms. Shalini Garg |
450000 |
5.67 |
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Ms. Sushma Goel |
24750 |
0.31 |
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Mr. S. K. Aggarwal |
5000 |
0.06 |
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Mr. Udit Garg |
436500 |
5.50 |
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Total |
7941500 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Importers, Exporters and Manufacturers of Rice, Food Grains and Chemicals. |
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Products : |
v
Rice in the Husk v
Rice Paraboiled v
Basmati Rice |
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Brand Names : |
"VIKRANT" |
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Exports : |
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Countries : |
The subject also sells its product in the domestic market.
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Imports : |
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Products : |
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Countries : |
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Terms : |
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Selling : |
Credit terms |
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Purchasing : |
Credit or L/C terms |
GENERAL INFORMATION
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Suppliers : |
v
Sri Balaji Traders, v
Hanuman Minor Oil Limited v
Kancherla Kameshwara Rice Mills v
S. Laxmi Ganpathi Traders v
Sathi Rama Reddy |
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Customers : |
v
Punjab Trading Inc., v
v
Office of v
Ministry of Food, Government of v
Foodworld Stores, |
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No. of Employees : |
Around 600 |
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Bankers : |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. Lall & Company Chartered Accountants |
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Address : |
15 Arya School Shopping Complex, Opposite Civil Hospital, G T Road,
Panipat – 132103, Haryana, India |
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Tel. No.: |
91-130-2630840 / 2630723 |
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Associates/Subsidiaries : |
v
J. B. Overseas Activity – Purchase of Wax,
Rice and Pulses v
Kundan Edible Production Limited Activity – v
Kundan Fats and Proteins Limited Activity – v
Durga Rice Mills Activity – Purchase of Rice v
Gari Overseas Private Limited Activity – v
Lala Munna Lal Paradeep Kumar Activity – |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 120.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7,941,500 |
Equity Shares |
Rs. 10/- each |
Rs. 79.415
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 |
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79.415 |
79.415 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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305.216 |
287.893 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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384.631 |
367.308 |
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LOAN FUNDS |
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1] Secured Loans |
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238.267 |
146.479 |
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2] Unsecured Loans |
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12.905 |
12.905 |
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TOTAL
BORROW38ING |
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251.172 |
159.384 |
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DEFERRED TAX LIABILITIES |
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6.024 |
6.101 |
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TOTAL |
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641.827 |
532.793 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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33.089 |
32.692 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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115.427 |
166.954 |
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DEFERREX TAX ASSETS |
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0.540 |
0.457 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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711.360 |
267.600 |
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Sundry Debtors |
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597.135 |
266.284 |
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Cash & Bank Balances |
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26.014 |
40.635 |
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Other Current Assets |
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275.501 |
204.128 |
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Loans & Advances |
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20.920 |
129.443 |
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Total
Current Assets |
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1630.930 |
908.090 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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1128.773 |
554.560 |
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Provisions |
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9.386 |
20.840 |
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Total
Current Liabilities |
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1138.159 |
575.400 |
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Net Current Assets |
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492.771 |
332.690 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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641.827 |
532.793 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2005 |
31.03.2004 |
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Sales Turnover |
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2416.475 |
3532.120 |
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Other Income |
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24.349 |
32.117 |
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Total Income |
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2440.824 |
3564.237 |
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Profit/(Loss) Before Tax |
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26.549 |
58.212 |
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Provision for Taxation |
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9.225 |
22.859 |
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Profit/(Loss) After Tax |
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17.324 |
35.353 |
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Earnings in Foreign Currency : |
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Total Earnings |
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64.573 |
534.087 |
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Imports : |
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Total Imports |
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2444.000 |
0.000 |
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Expenditures : |
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Cost of Goods Sold |
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2306.776 |
3386.850 |
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Manufacturing Expenses |
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17.821 |
24.261 |
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Administrative Expenses |
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22.218 |
19.383 |
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Selling Expenses |
|
19.057 |
30.657 |
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Preliminary Expenses |
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0.000 |
0.041 |
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Financial Charges |
|
37.392 |
27.184 |
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Depreciation & Amortization |
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2.617 |
2.122 |
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Other Expenditure |
|
8.394 |
15.527 |
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Total Expenditure |
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2414.275 |
3506.025 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
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0.71
|
0.99 |
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Net Profit Margin (PBT/Sales) |
(%) |
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1.10
|
1.65 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
|
0.97
|
3.19 |
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Return on Investment (ROI) (PBT/Networth) |
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4.50
|
9.62 |
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Current Ratio (Current Asset/Current Liability) |
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1.43
|
1.58 |
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Quick Ratio |
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0.81
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1.11 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.65
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0.43 |
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Current Liabilities / Networth |
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2.96
|
1.57 |
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Fixed Assets / Networth |
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0.09
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0.09 |
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Average Collection Days |
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91.20
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27.52 |
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Account Receivables Turnover |
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4.05
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13.26 |
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Inventory Turnover |
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3.40
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13.20 |
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Assets Turnover |
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73.03
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108.04 |
LOCAL AGENCY FURTHER INFORMATION
State of
Incorporated in January 1995 the subject is engaged in the business of
Manufacturers, Importers and Exporters of Rice and Chemicals. The subject is a Government
of India Certified Golden Status Star Trading House holding as ISO 9002
Certification for Quality Management has ventured into Chemical Sector through
its Chemical Division. The Chemical Division of the Group deals with the
hundreds of Industrial Users by Importing / Storing various Chemicals and
Solvents.
In 1984 they began with a small scale trading unit, which dealt in rice.
Today the subject is one of the biggest manufacturing companies in
With a capacity of producing two hundred and twenty matric tons of
Vanaspati, Shortening, Margrines and Mustard Oil in northern
The Bulk Storage Terminals have been Leased by the company at all the
major Ports like Kandla, Mumbai and Kolkata
The subject is having their offices in
CMIE [Council for Monitoring Indian Economy] conducted a survey in which
‘Kundan Rice Mills Limited’ placed on No. 10 rank among top 100 unlisted
companies of
Introduction & History
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 (
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.
Subject 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
Subject’s Corporate Office is in
Kundan Group - The Chemical Division deals with the
number of Industrial Users by importing, Storing and distributing various
Chemicals, Solvents & Polymers. KUNDANis active and has become most trusted
name in the supply & service amongst the Major chemical users all over the
lenght and breath of
Subject is expanding beyond its
traditional core business of Global trading of agro-commodities to utilize the
company's long-standing, close working relationships with some of the best
Professionals and Industrial Houses around the world.
Subject has made tie-ups with
International Majors of Chemical Industry to minimize the hassles and
ultimately cost advantage to everyone.
Subject is dedicated to :
• Reduction of cost without
compromising on quality.
• Maintain leadership in Chemical
Sales & Marketing, Logistics & Excel in Supply Chain Management.
Subject is confident and looking
ahead to explore every opportunity in the growing Global Economy.
Manufacturing
Refined Oil :
- Refined Oils
: The group is manufacturing various refined oils namely Soyabean,
Corronseed, Sunflower and Groundnut under the brand name ‘Kundan’
- Vanaspati :
The Kundan group is manufacturing Vanaspari in the Brand Name of ‘Jumbo’
- Milk Products
: Producers of ghee from fresh Milk procured from the best of the dairies.
They are also producing Skimmed Milk Powder is the bye products of the
production of Pure Ghee.
- Laundry Soap
: They are manufacturing washing soap under the brand name Jumbo
Bakery Shortening and Margarines : Manufacturing Bakery Shortening under
the brand name Kundan separately for Biscuit and Puff and Kundan Bakery
Margarine separately for Puff, cakes and icing.
Mustard Oil : It is produced Mustard
Oil and being marked in the brand name of “Taj Mahal”
Imports
The supplies are regular and are in bulk from reputed manufacturers in
Edible Oil [Mainly CPO and Soya Degummed Oil] in
brief
about kundan group
Address – Kundan House, D-17, Central Market, Prashant
Vihar,
Tel. No. 91-11-27567171
Fax. No. 91-11-27567180/27865180
Website. http://www.kundangroup.com
Established – 1971
Activity – Manufacturer, Exporter, Importer, Supplier and Trading
Company
Export Percentage – 10%
Import Percentage – 70%
Export Markets –
Import Markets –
Monthly Production – 150 MT Vanaspati per day, 100 MT
refined oil per day
Membership – KPMG, EPCA [European Petrochemical Association]
The subject is having its Depot at the following locations
in
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State
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Place
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Telephone
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Rajasthan |
Jaipur Bhiwadi Sri Ganga Nagar |
91-141-5105620 / 2740834 91-291-2740509 91-1492250171 / 172 / 175 91-1592-2477635 |
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Mohali |
91-172-266040 / 265930 |
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Haryana |
Dharuhera |
91-1493-512479 |
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Himachal Pradesh |
Parwanoo |
91-1792-233201 |
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Uttar Pradesh |
Rishikesh Rudrapur |
91-5944-246391 / 243370 91-9839274352 |
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Kolkata |
91-33-25321526 / 9830221539 |
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Ahmedabad |
91-79-26891852 |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.66 |
|
|
1 |
Rs.81.70 |
|
Euro |
1 |
Rs.55.05 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
9 |
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--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
|
52 |
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 |
|