MIRA
INFORM REPORT
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Report Date : |
28.07.2007 |
IDENTIFICATION DETAILS
|
Name : |
M R TOBACCO
PRIVATE LIMITED |
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Registered Office : |
1/33, G.F.I., Sir
Ganga Ram Hospital Road, Opp. Nanaksar Gurudwara, Old Rajendra Nagar, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
15.01.1988 |
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Com. Reg. No.: |
55-30327 |
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CIN No.: [Company
Identification No.] |
U74899DL1988PTC030327 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELM08738C/DELM10187C |
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PAN No.: [Permanent
Account No.] |
AABCM8262E |
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Legal Form : |
Private Limited
Liability Company |
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Line of Business : |
Manufacturer and Exporter
of Chewing Tobacco Products |
RATING & COMMENTS
|
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 26000 |
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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 : |
1/33, G.F.I., Sir
Ganga Ram Hospital Road, Opp. Nanaksar Gurudwara, Old Rajendra Nagar, New
Delhi 110 060, India |
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Tel. No.: |
91-11-2586 0147, 5244 5294, 25860147 |
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Fax No.: |
91-11-2725 1320,
4237 1999 |
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E-Mail : |
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Website : |
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Location : |
Commercial |
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Factory : |
B-14, Gali No-7, Saneypur, |
DIRECTORS
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Name : |
Mr. Chandra Kumar Gupta |
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Designation : |
Director |
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Address : |
D-21, |
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Date of Birth/Age : |
18.08.1952 |
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Date of Appointment : |
15.01.1988 |
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Name : |
Mr. Anil Kumar
Gupta |
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Designation : |
Director |
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Address : |
1979, |
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Date of Birth/Age : |
04.11.1954 |
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Date of Appointment : |
15.01.1988 |
KEY EXECUTIVES
|
Name : |
Ms Richa Kalia |
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Designation : |
Company
Secretary |
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Address : |
B-1A/49A,
Janakpuri, |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Mr Chandra Kumar Gupta |
10010 |
50.00 |
|
Mr Anil Kumar
Gupta |
5010 |
25.02 |
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Mr Himanshu Gupta |
5000 |
24.98 |
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Total |
20020 |
100.00 |
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Equity Share
Breakup |
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Category |
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Percentage of
Holding |
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Directors of relatives of directors |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and
Exporter of Chewing Tobacco Products |
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Products : |
v
Pan
Masala v
Gutkha v
Khaini v
Mouth
Freshner v
Meethi
Supari v
Herbal
Pan Masala v
Mix
Supari v
Zarda |
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Brand Names : |
v
Daawar
Pan Masala v
Pan
King v
Soni
Pan Masala v
Mughal
Pan Masala |
PRODUCTION STATUS
|
Particulars |
Unit |
|
Actual
Production |
|
Gutkha |
Qty (kg) |
|
29894.714 |
GENERAL INFORMATION
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Bankers : |
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Facilities : |
Vehicle Loan from
ICICI Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M.S. Sekhon & Company Chartered Accountants |
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Address : |
170, Madhuvan, |
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Tel. No.: |
91-11-52445194, 52445294 |
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E-Mail : |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30,000 |
Equity Shares |
Rs.100/- each |
Rs. 3.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20,020 |
Equity Shares |
Rs.100/- each |
Rs. 2.002 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
2.002 |
2.002 |
2.002 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
4.675 |
4.608 |
4.379 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
6.677 |
6.610 |
6.381 |
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LOAN FUNDS |
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1] Secured Loans |
0.199 |
0.000 |
0.441 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.199 |
0.000 |
0.441 |
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DEFERRED TAX LIABILITIES |
0.056 |
0.107 |
0.138 |
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TOTAL |
6.932 |
6.717 |
6.960 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1.729 |
1.889 |
2.359 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
1.697
|
1.144 |
2.035 |
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Sundry Debtors |
2.313
|
2.454 |
1.866 |
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Cash & Bank Balances |
2.505
|
2.122 |
3.099 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
4.375
|
4.729 |
3.855 |
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Total Current Assets |
10.890
|
10.449 |
10.855 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities & Provision |
5.695
|
5.633 |
6.271 |
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Provisions |
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Total Current Liabilities |
5.695
|
5.633 |
6.271 |
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Net Current Assets |
5.195
|
4.816 |
4.584 |
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MISCELLANEOUS EXPENSES |
0.008 |
0.012 |
0.017 |
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TOTAL |
6.932 |
6.717 |
6.960 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
11.385 |
14.374 |
13.894 |
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Other Income |
0.051 |
0.105 |
0.047 |
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Total Income |
11.436 |
14.479 |
13.941 |
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Profit/(Loss) Before Tax |
0.060 |
0.215 |
(0.853) |
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Provision for Taxation |
[0.007] |
(0.014) |
(0.025) |
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Profit/(Loss) After Tax |
0.067 |
0.229 |
(0.828) |
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Expenditures : |
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Interest |
0.000 |
0.059 |
0.063 |
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Depreciation & Amortization |
0.396 |
0.470 |
0.612 |
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Other Expenditure |
10.980 |
13.735 |
14.119 |
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Total Expenditure |
11.376 |
14.264 |
14.794 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
0.59
|
1.58 |
(5.93) |
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Net Profit Margin (PBT/Sales) |
(%) |
0.53
|
1.50 |
(6.114 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
0.48
|
1.74 |
(6.45) |
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Return on Investment (ROI) (PBT/Networth) |
|
0.01
|
0.03 |
(0.13) |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.88
|
0.85 |
1.05 |
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Current Ratio (Current Asset/Current Liability) |
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1.91
|
1.85 |
1.73 |
LOCAL AGENCY FURTHER INFORMATION
As Per Website Details
Manufactures, Suppliers & Exporters of Chewing Tobacco, Packing Sada Pan Masala
& Gutkha, Mughal Pan Masala & Gutkha, Tobacco, Mughal Khaini, Chndra Gupt
Gutkha, Mohan Zafrani Zarda, Mouth Freshener
Authentic flavour and real taste. They are manufacturers,
suppliers and exporters of a wide range of tobacco and related products like
chewing tobacco and pan masala
Profile
M.R Tobacco is a prominent name in the world of export and
manufacture of a wide range of tobacco related products including chewing
tobacco, pan masala, gutkha, khaini, zarda and mouth freshener. Incepted in
1932, the company has gone from strength to strength and become one of the significant
players in it's area of operation. M.R Tobacco's phenomenal growth has been
possible for the variety and quality of it's products. The company follows
stringent quality measures to ensure the absolute best for it's customers.
Infrastructure
Without proper infrastructure, given the competitive nature
of the market, it is not just difficult to deliver but also to survive. Their
infrastructural strength comprises of high tech machinery, a superb work
environment & of course a dedicated & experienced work force. The work
force is armed with adequate knowledge and skill to handle the subtlety of
tobacco and related products with finesse. Although mostly the preparatory work
is carried out manually, the gadgets also have a significant role to play. The
final perfection of the products is in fact to a great extent dependent on the
precision of the gizmos. In view of their significance in the manufacturing
process, the machines are always kept under the surveillance of the experts for
performance appraisal and quick detection of snags that may detriment their
efficiency.
Quality
It's based on their quality that they have come so far. All
their products are made of high quality raw materials. Their products go
through strict quality checks in post manufacture phase to ensure authenticity
of flavour and taste. During the checking the products found to have fallen
short of the satisfactory standard are rejected immediately.
Profile
Their company is one of the
premier manufacturers and exporters of Pan Masala in the country today. Their
company has acquired a leadership position in the market owing to its high
quality products. They have managed to establish ourselves as a brand in the
market due to their unflinching commitment to customer satisfaction. They have
made their mark in every conceivable segment of the tobacco industry. Their
products are available in small individual pouches to economy packs. ( You can
get pouches of any amount).
The Milestones
1932:
Family Business started under Mr. Khayaliram Kishanlal.
1960: The business was taken over by Mohanlal Ramkumar.
1976: Establishment Year of MR Sales Corporation.
1988: MR Sales Corporation rechristened as MR Tobacco.
Today, they have reached a
position of strength in the market due to the vision and foresight of the
senior management of the company. They have accurately measured the demand and
have managed to match expenses with revenue to create a profitable business
model. This strategic planning combined with flawless execution has resulted in
MR Tobacco being the vendor of choice to their customers.
They believe in supplying top quality products to their customers
and by doing so they hope to gain valuable word of mouth publicity. Being in
the tobacco business they face severe legal and regulatory pressures which
prohibits us from using the traditional modes of advertising. In such a
scenario word of mouth publicity becomes their sole medium of advertising and
this medium only works for those who have top quality products to offer.
They understand the needs of the market
They constantly
research the market to keep ourselves informed of the latest production
methodology employed by tobacco manufacturers. This helps us to acquire
knowledge about cost control techniques which will ultimately help us in
providing good quality products at even more reasonable prices.
Customer centric approach
They constantly
strive to offer customer friendly products and they manufacture only those
products which their customer prefer. Based on the feedback received from the
clients they try to include those ingredients which their customers prefer. Any
ingredient alters the taste as perceived by the customers is also excluded from
the production process. Since they offer the guarantee of no side effect to
their clients they make sure that the composition of their products matches the
expectations of their clients.
Client Base
Owing to their
product quality and customer oriented service, they have been exporting to many
neighboring countries,
Quality and infrastructure
"Their tobacco
based products have acquired immense popularity in both
"Being
manufacturers of tobacco and tobacco based products they face severe challenges
with regard to the perception of their products. Most of the products they
manufacture are perceived to be injurious to health. This places immense responsibility
on us to maintain their quality standards. Since their products are edible they
ensure that their hygiene levels are never compromised and their production
facilities never lag behind on this parameter.
" To maintain
their standards of excellence they employ stringent quality measures to ensure
that the products delivered to the customers are of international quality and
match up to the expectations of their clients. Their quality control team
inspects all the incoming and the outgoing raw material for their quality and
releases them into the market only when it is convinced that they match up to
the standards specified by the customers.
" It is a well
known fact that only a good set of equipments can produce a good quality
product. To manufacture a product of superior quality it is imperative that it
is churned out from a well maintained machinery. Their maintenance department
conducts regular preventive and break down maintenance of the equipments and
machinery to ensure their smooth and efficient functioning.
""Packaging"
is supposed to be the fifth "P"in marketing. After product, price,
place and promotion; packaging is the element which holds the maximum
importance in the marketing of a product. Effective packaging can prompt a customer
to make an impulse buying decisions. As majority of the purchase decisions are
made in store they ensure that their products are attractively packed so as to
capture the attention of the buyers. Their senior management selects the
designs after careful examination of a vast number of designs. These designs
are selected on parameters of eye appeal, colour and various other factors all
aimed at capturing the attention of the customer.
" In order to
make it easier for their customers to access more information about the
company's products their company has recently developed a web based interface .
This will not only enable them to access information about the company's
products but also allow them to send business queries online so that their
company can respond to them quite effectively.
"Inspite of
these handicaps they have managed to achieve their sales targets for the past
many years and this has been possible on account of their loyal customer base
that they have cultivated over the past many years. Their customers have
rewarded us with repeat orders as well as bulk orders and they are deeply
indebted to them for their patronage.
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.40.48 |
|
|
1 |
Rs.82.59 |
|
Euro |
1 |
Rs.55.55 |
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 |
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 |
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 |
|