MIRA
INFORM REPORT
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Report Date : |
09.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
VARUN BEVERAGES LIMITED |
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Registered Office : |
F-2/7, Okhla Industrial Area, Phase – I, New Delhi – 110020 |
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Country : |
India |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
16.06.1995 |
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Com. Reg. No.: |
55-69839 |
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CIN No.: [Company
Identification No.] |
U74899DL1995PLC069839 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELV04789B |
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PAN No.: [Permanent
Account No.] |
AAACV2678L |
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Legal Form : |
Closely held public limited liability company |
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Line of Business : |
Manufacturers and Importers of Spare Parts for Bottle Washing and Filler Machine/Ink Jet Printers. |
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 6250000 |
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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, respectable and resourceful businessmen. Their trade relations are fair. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
F-2/7, Okhla Industrial Area, Phase – I, New Delhi – 110020, India |
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Tel. No.: |
91-11-26819740/ 41706720 |
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Fax No.: |
91-11-26818004/ 41706722 |
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E-Mail : |
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Website : |
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Area : |
Small sized |
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Location : |
Owned by Group (Industrial area) |
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Corporate Office : |
F-34, Sector – VI, Noida – 201301, Uttar Pradesh |
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Tel. No.: |
91-120-2530976/2531004/2550337 |
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Fax No.: |
91-120-2550338 |
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Area : |
15000 Sq. fts. |
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Location : |
Owned by Group (Industrial area, Large size ) |
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Plants : |
v Balmukundapura, Ajmer Road, Tehsil Sanganer, Jaipur, Rajasthan v Village, Dautana, 107 K. M. Stone, Delhi – Agra High Way, Near Kosi Kalan Mills, Distt. Mathura, Uttar Pradesh v Plot No. S. P. 646-653, Matsya Industrial Area, RIICO, Alwar, Rajasthan v Plot No. Special – 159, RIICO Industrial Area, Phase – II, Boranada, Jodhpur – 342801, Rajasthan |
DIRECTORS
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Name : |
Mr. Ravi Kant Jaipuria |
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Designation : |
Director |
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Address : |
8 Prithviraj Road, New Delhi-110011, New Delhi |
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Date of Birth/Age : |
28.11.1954 |
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Date of Appointment : |
16.06.1995 |
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Designation : |
Mrs. Dhara Jaipuria |
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Address : |
Mr. Chandra Kumar Rastogi |
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Date of Birth/Age : |
Mr. Anil Gupta |
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Qualification : |
Mr. Promod Agarwal |
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Designation : |
Director |
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Address : |
C-34, Neeti Bagh, New Delhi-110049 |
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Date of Birth/Age : |
29.10.1951 |
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Date of Appointment : |
07.02.2000 |
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Date of Ceasing : |
18.08.2005 |
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Experience : |
Mr. Krishnan Shankar |
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Designation : |
Whole Time Director |
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Address : |
D-7/7525, Vasant Kunj, New Delhi |
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Date of Birth/Age : |
05.07.1946 |
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Date of Appointment : |
26.07.2000 |
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Name : |
Mrs. Devyani Jaipuria |
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Designation : |
Director |
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Address : |
8 Prithviraj Road, New Delhi-110011, New Delhi |
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Date of Birth/Age : |
06.11.1984 |
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Date of Appointment : |
10.03.2005 |
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Name : |
Mr. Kewal Krishna Mudgil |
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Designation : |
Director |
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Address : |
D-16 Gharonda Apartments, Shrestra Vihar, Opposite Yojana Vihar,
Delhi-110092 |
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Date of Birth/Age : |
14.11.1937 |
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Date of Appointment : |
07.02.2000 |
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Date of Ceasing : |
22.09.2005 |
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Name : |
Mr. Raj Pal Gandhi |
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Designation : |
Whole Time Director |
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Address : |
P 2/50 DLF Phase II, Gurgaon, Haryana |
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Date of Birth/Age : |
07.06.1957 |
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Date of Appointment : |
21.10.2004 |
KEY EXECUTIVES
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Name : |
Mr. Ravi Kant Jaipuria |
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Designation : |
Managing Director |
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Address : |
8, Prithvi Raj Road, New Delhi – 110011 |
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Date of Birth/Age : |
1956 |
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Other Directorships : |
Devyani Beverages Limited |
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Name : |
Mr. Lalit Khanna |
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Designation : |
Company Secretary |
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Date of Birth/Age : |
22.03.1976 |
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Date of Appointment : |
21.10.2004 |
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Date of Ceasing : |
01.12.2005 |
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Name : |
Mr. Ravi Batra |
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Designation : |
Company Secretary |
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Address : |
Flat No.306, Aditya East Park Apartment, Chander Nagar, Ghaziabad,
Uttar Pradesh |
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Date of Birth/Age : |
01.05.1972 |
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Date of Appointment : |
01.12.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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Mr. R. K. Jaipuria & Sons (HUF) |
1194000 |
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Mrs. Dhara Jaipuria |
643800 |
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Devyani Foods Private Limited |
550000 |
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Agra Beverages Corporation Private Limited |
988700 |
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Aradhana Beverages and Food Company Private Limited |
1380000 |
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Pepsico India Holdings Private Limited |
700000 |
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Devyani Exim Private Limited |
1637000 |
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Universal Restaurants Private Limited |
45000 |
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Devyani Overseas Private Limited |
599950 |
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Arctic Drinks Te Limited |
261550 |
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Pepsico India Holdings Private Limited |
7737635 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Importers of Spare Parts for Bottle Washing and Filler Machine/Ink Jet Printers. |
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Products : |
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Brand Names : |
“PEPSI” |
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Imports : |
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Countries : |
USA, France, Germany and Italy |
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Terms : |
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Selling : |
Cash, Contract or Credit (10 days) terms |
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Purchasing : |
Cash or Contract terms |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
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Aerated Beverages |
BPM |
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2820 |
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Pet Performs |
PPM |
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250 |
GENERAL
INFORMATION
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Customers : |
Distributors and Wholesalers |
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No. of Employees : |
400 |
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Bankers : |
v Punjab National Bank, Sansad Marg, New Delhi – 110001 v IDBI Bank, K. G. Marg, New Delhi – 110001 v HDFC Bank Limited, K. G. Marg, New Delhi – 110001 v UTI Bank Limited, Statesman House, 148, Barakhamba Road, New Delhi-110001, India |
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Facilities : |
Secured Loans
(Rs. In millions):
Unsecured Loans
: From Limited Companies : Rs. 50.000 millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
O. P. Bagla & Company Chartered Accountants |
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Address : |
8/12, Kalkaji Extension, New Delhi-110019 |
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Tel. No.: |
91-11-26436190/ 26412939/ 26239913 |
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Fax No.: |
91-11-26239912 |
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E-Mail : |
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Parent Company : |
Pepsico India Holdings Limited |
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Associates/Subsidiaries : |
Devyani Beverages Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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8623650 |
Equity Shares |
Rs.10/- each |
Rs.86.236 millions |
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7737635 |
Preference Shares |
Rs.100/- each |
Rs.773.763 millions |
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Total |
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Rs.860.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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8000000 |
Equity Shares |
Rs.10/- each |
Rs.80.000
millions |
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7737635 |
Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.773.763
millions |
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Total |
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Rs.853.763 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
853.763 |
853.763 |
666.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
742.383 |
628.547 |
277.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1596.146 |
1482.310 |
943.500 |
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LOAN FUNDS |
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1] Secured Loans |
1399.150 |
1655.005 |
992.500 |
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2] Unsecured Loans |
50.000 |
50.000 |
144.400 |
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TOTAL BORROWING |
1449.150 |
1705.005 |
1136.900 |
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DEFERRED TAX LIABILITIES |
442.973 |
372.110 |
0.000 |
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TOTAL |
3488.269 |
3559.425 |
2080.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2936.130 |
3064.949 |
2118.300 |
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Capital work-in-progress |
54.787 |
1.722 |
0.000 |
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INVESTMENT |
271.498 |
271.498 |
27.800 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
289.744
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319.919 |
121.900 |
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Sundry Debtors |
245.310
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215.812 |
170.600 |
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Cash & Bank Balances |
48.682
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17.700 |
22.800 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
196.348
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171.146 |
205.700 |
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Total
Current Assets |
780.084
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724.577 |
521.000 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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570.700 |
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Provisions |
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16.000 |
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Total
Current Liabilities |
555.017
|
504.389 |
586.700 |
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Net Current Assets |
225.067
|
220.188 |
(65.700) |
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MISCELLANEOUS EXPENSES |
0.787 |
1.068 |
0.000 |
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TOTAL |
3488.269 |
3559.425 |
2080.400 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
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Sales Turnover |
2926.224 |
2451.061 |
2142.700 |
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Other Income |
175.090 |
406.642 |
8.600 |
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Total Income |
3101.314 |
2857.704 |
2151.300 |
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Profit/(Loss) Before Tax |
200.477 |
313.776 |
204.500 |
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Provision for Taxation |
91.863 |
132.068 |
79.100 |
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Profit/(Loss) After Tax |
108.613 |
181.707 |
125.400 |
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Expenditures : |
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Manufacturing Expenses |
NA |
NA |
78.800 |
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Administrative Expenses |
95.224 |
84.820 |
249.000 |
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Raw Material Consumed |
1529.674 |
1436.611 |
850.400 |
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Miscellaneous Expenses |
NA |
NA |
43.200 |
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Purchases made for re-sale |
31.705 |
25.365 |
NA |
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Consumption of stores and spares parts |
45.418 |
37.654 |
NA |
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Increase/(Decrease) in Finished Goods |
22.734 |
(72.403) |
NA |
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Salaries, Wages, Bonus, etc. |
185.093 |
153.542 |
68.000 |
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Breakage Leakage and Burst etc. |
22.417 |
26.823 |
NA |
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Selling and Other Expenses |
56.736 |
40.061 |
NA |
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Interest |
132.230 |
140.025 |
83.700 |
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Loss on sale of fixed assets |
16.696 |
2.219 |
NA |
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Provision for doubtful debts |
2.860 |
0.936 |
NA |
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Power & Fuel |
167.596 |
160.546 |
78.600 |
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Depreciation & Amortization |
252.048 |
180.743 |
134.200 |
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Transportation, Handling and Distribution
Cost |
264.449 |
261.470 |
NA |
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Other Expenditure |
75.958 |
65.604 |
360.900 |
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Total Expenditure |
2900.837 |
2543.938 |
1946.800 |
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KEY RATIOS
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PARTICULARS |
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31.12.2005 |
31.12.2004 |
31.12.2003 |
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PAT / Total Income |
(%) |
3.50
|
6.36 |
5.83 |
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Net Profit Margin (PBT/Sales) |
(%) |
6.46
|
10.98 |
9.50 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
5.39
|
8.28 |
7.75 |
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Return on Investment (ROI) (PBT/Networth) |
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0.12
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0.21 |
0.22 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.25
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1.49 |
1.83 |
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Current Ratio (Current Asset/Current Liability) |
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3.47
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1.44 |
0.89 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8 Particular for creation or modification of charges
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Name of the company |
VARUN BEVERAGES LIMITED |
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Presented By |
LALIT
KHANNA, COMPANY SECRETARY |
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1) Date and description of instrument creating the change |
Deed of hypothecation of machinery and other movable fixed assets dated 05.09.2005 amd General undertaking/indemnity for Letters of credit dated 05.09.2005 executed by the company. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Term loan of Rs.250.000 millions and Letter of credit of Rs.50.000 millions (within the term loan limit of Rs.250.000 millions) |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
First pari passu charge the fixed assets of the company including Land and Building, movable oalant and machinery, machinery spares, tools and accessories and other movable save and except book debts, both present and future at the Company’s plant situated at Vilklage Dautana, Agro Delhi NG 2, Near Kosi Kalan , District Mathura, Uttar Pradesh. The chage in faovur of UTI Bank shall rank pari passu with the charges created in favour of Standard Chartered Bank over the above assets. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Limit : TL Rs.250.000 millions Purpose : for normal Capex and meeting loan term working capital requirements. Tenure : 4 years. To be finally repaid on 01.08.2009. Rate of interest : 3.75% below PLR i.e. presently effective 8.25% p.a. payable monthly. Repayment : Starting from 01.05.2007 and ending on 01.08.2009. Limit : Letter of Credit Limit Rs.50.000 millions Purpose : for import of capital goods/domestic purchase of Equipment and Machinery Period : Usance period not to exceed 180 days. Security : Primary : First pari passu charge the fixed assets of the company including land and building, movable plant and machinery, machinery spares, tools and accessories and other movables save and except book debts, both present and future over the company’s plant situated at Village Dautana, Agra Delhi NH2, Near Kosi Kalan, District Mathura, UttarPradesh Collateral Security : Personal Guaranteed of Mr. R. K. Jaipuria, Mrs. Dharar Jaipuria and sons (HUF) |
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5) Name and Address and description of the person entitled to the charge. |
UTI Bank Limited Statesman House 148, Barakhamba Road, New Delhi-110001 |
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6) Date and brief description of instrument modifying the charge |
N.A. |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
N.A. |
BUSINESS
Subject is engaged in manufacturers and importers of Spare Parts for Bottle Washing and Filler Machine/Ink Jack Printer.
The company was bottling of soft drinks for Pepsico India Holding Limited.
The agency held by the company is:
v Pepsico India Holdings Limited
It is in trade terms with:
v Pepsico India Holding Limited
v Aradhna Beverages and Foods Private Limited
Company’s fixed assets include Market Infrastructure, Land and Site Development,
Building, Plant and Machinery, Furniture and Fixtures, Computer, Office
Equipments, Vehicles, Visicoolers and PMX Machines and Containers.
Website Details :
It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself. Their services touch different aspects of commercial and civilian domains like those of Bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on today can lay claim to expertise and leadership in the fields of education, food and beverages.
The business of the company was started in 1991 with a tie-up with Pepsi Foods Limited to manufacture and market Pepsi brand of beverages in geographically pre-defined territories in which brand and technical support was provided by the Principals viz., Pepsi Foods Limited. The manufacturing facilities were restricted at Agra Plant only.
Varun Beverages Limited is the flagship company of the group.
The group also became the first franchisee for Yum Restaurants International [formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise rights for Northern & Eastern India. It has total 46 Pizza Hut Restaurants & 1 KFC Restaurant under its company.
They diversified into education by opening their first school in Gurgaon under management of Delhi Public School Society. The schools of the group are run under a Registered Trust namely Champa Devi Jaipuria Charitable Trust.
Companies are medium sized, professionally managed, unlisted and closely held between Indian Promoters and foreign collaborators.
The group added another feather to its cap when the prestigious PepsiCo “International Bottler of the Year” award was presented to Mr. R. K. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCo’s centennial year celebrations at Hawaii, USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of Pepsi Cola Company.
Vision
Being the best in everything they touch and handle.
Mission
Continuously excel to achieve and maintain leadership position in the chosen businesses; and delight all stakeholders by making economic value additions in all corporate functions.
Their Success
v Production of innovative, high quality retail branded beverages combined with world-class packaging.
v
Driven by a management team with a relentless focus on
achieving superior customer service, driving earnings improvement and
increasing shareholder value.
Their People
At RKJ they are creating an environment where their employees enjoy a greater degree of empowerment - both individually and in their work teams.
Their employees are equipped with the necessary tools, training and management backup for strong performance and accountability, as well as with an environment of open communication and involvement.
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.44.27 |
|
UK Pound |
1 |
Rs.85.54 |
|
Euro |
1 |
Rs.58.23 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
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 |
|