MIRA
INFORM REPORT
|
Report Date : |
13.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
HILTON TOBACCOS PRIVATE LIMITED |
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Registered Office : |
H-1. Samrat Complex, Saifabad, Hyderabad – 500004, Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
24.09.1984 |
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Com. Reg. No.: |
01-4983 |
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CIN No.: [Company
Identification No.] |
U16001AP1984PTC004983 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDH00083G |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
To carry on the business of tobacco growing, curing,
grading, threading, redrying, packing ware-housing, selling, buying, battering,
importing, exporting of tobacco and tobacco growers manufacturers, merchants,
dealers, traders, buyers, sellers balers, importers and exporters in all
varieties of tobacco whether manufactured, or not and at all places within
and outside India. |
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 200000 |
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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 : |
H-1. Samrat Complex, Saifabad, Hyderabad – 500004, Andhra Pradesh,
India |
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Te. No.: |
91-40-23233981 |
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Fax No.: |
91-40-23240198 |
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E-Mail : |
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Website : |
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Factory 1 : |
Survey No. 96, Kompally, Hakimpet P. O., Secunderabad – 500 014, Andhra
Pradesh |
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Tel. No.: |
91-8418-232026 |
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Fax No.: |
91-8418-232058 |
DIRECTORS
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Name : |
Mr. B. Sriman Narayana |
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Designation : |
Managing Director |
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Address : |
4-5-7, Lalithananda Nagar, Ring Road, Guntur – 522007 |
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Date of Birth/Age : |
24.09.1984 |
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Date of Appointment : |
17.06.1960 |
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Name : |
Ms. Bommidala Venkata Lakshmi
Sarojini |
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Designation : |
Director |
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Address : |
4-5-7, Lalithananda Nagar, Ring Road, Guntur – 522007 |
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Date of Birth/Age : |
30.09.1999 |
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Date of Appointment : |
29.10.1936 |
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Name : |
Mr. Bommidala Bhanu
Murthy |
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Designation : |
Managing Director |
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Email : |
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Address : |
4-5-7, Lalithananda Nagar, Ring Road, Guntur – 522007 |
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Date of Birth/Age : |
10.07.1931 |
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Date of Appointment : |
28.09.1998 |
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Name : |
Mr. B.V.S. Narayana |
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Designation : |
Director - Leaf |
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Email : |
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Name : |
Mr. B.V.S.K. Ratnam |
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Designation : |
Director - Technical |
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Email : |
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Address : |
4-5-7, Lalithananda Nagar, Ring Road, Guntur – 522007 |
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Date of Birth/Age : |
20.05.1963 |
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Date of Appointment : |
27.08.1985 |
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Name : |
Mr. B.V.S.R.V.
Prasad (Raja) |
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Designation : |
Director - Cig. Man. |
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Email : |
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Address : |
Plot No. 1322, Road No. 68, Jubile Hills, HYD – 500034 |
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Date of Birth/Age : |
26.07.1971 |
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Date of Appointment : |
11.05.1992 |
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Name : |
Mrs. P.V.S.A. Padma |
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Designation : |
Director - Finance |
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Email : |
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Address : |
4-5-7, Lalithananda Nagar, Ring Road, Guntur – 522007 |
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Date of Birth/Age : |
20.06.1968 |
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Date of Appointment : |
05.12.2001 |
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Name : |
Mr. P.G. Srinivas |
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Designation : |
Director |
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Email : |
MAJOR SHAREHOLDERS
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Names of Shareholders |
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No. of Shares |
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Mr. B. Sriman Narayana |
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765350 |
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Ms. B. V. L. Sarojini |
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765350 |
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Mr. Bommidala Bhanu
Murthy |
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100 |
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Mr. B. Sailaja |
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100 |
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Mr. B.V.S.K. Ratnam |
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765450 |
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Mr. B.V.S.R.V.
Prasad (Raja) |
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765450 |
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Mrs. P.V.S.A. Padma |
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382725 |
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Total
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3444525 |
BUSINESS DETAILS
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Line of Business : |
To carry on the business of tobacco growing, curing,
grading, threading, redrying, packing ware-housing, selling, buying, battering,
importing, exporting of tobacco and tobacco growers manufacturers, merchants,
dealers, traders, buyers, sellers balers, importers and exporters in all
varieties of tobacco whether manufactured, or not and at all places within
and outside India. |
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Brand Names : |
Ř Lucky Gold Ř Premier Club Ř Pride King Size Ř Smart |
GENERAL
INFORMATION
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No. of Employees : |
72 |
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Bankers : |
Andhra Bank, 150, Main Branch, Kothapet, Guntur -522001,
Andhra Pradesh |
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Facilities : |
Cash, Credit/Packing, Credit/Bank, Credit/Letter of Credit
for Group companies. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Narasimha Rao & Associates Chartered Accountants |
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Address : |
Akshara, 6-3-609/89, Anandnagar, Khairtabad, Hyderabad –
500 004, Andhra Pradesh |
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Associates/Subsidiaries : |
v
Premier Tobacco Packers Limited v
Bommidala Purnaiah v
Bommidala Enterprises v
Bommidala Brothers v
BBM Infotech Private Limited v
Bio-Pharma Laboratories Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
52,00,000 |
Equity Shares |
Rs.10/-
each |
Rs.
52.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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34,44,525 |
Equity Shares |
Rs.10/-
each |
Rs.
34.445 millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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34.445 |
34.445 |
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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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20.927 |
18.897 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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55.372 |
53.342 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
0.000 |
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2] Unsecured Loans |
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1.959 |
1.959 |
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TOTAL BORROWING |
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1.959 |
1.959 |
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DEFERRED TAX LIABILITIES |
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0.195 |
0.164 |
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TOTAL |
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57.526 |
55.465 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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40.872 |
40.802 |
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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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2.914 |
2.914 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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1.211 |
0.609 |
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Sundry Debtors |
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5.286 |
10.099 |
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Cash & Bank Balances |
|
1.109 |
1.518 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
|
46.013 |
27.830 |
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Total
Current Assets |
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53.619 |
40.056 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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39.879 |
28.307 |
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Provisions |
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Total
Current Liabilities |
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39.879 |
28.307 |
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Net Current Assets |
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13.740 |
11.749 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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57.526 |
55.465 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.76 |
0.57 |
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Current Ratio (Current Asset/Current Liability) |
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1.34 |
1.42 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was incorporated on 24th September, 1984
at Hyderabad in Andhra Pradesh having Company Registration Number 4983.
It was later converted into a Private Limited Company.
BUSINESS
Subject was incorporated to carry on the business of tobacco
growing, curing, grading, threading, redrying, packing ware-housing, selling,
buying, battering, importing, exporting of tobacco and tobacco growers
manufacturers, merchants, dealers, traders, buyers, sellers balers, importers
and exporters in all varieties of tobacco whether manufactured, or not and at
all places within and outside India.
Subject was also incorporated to carry on the business of
manufacturers and dealers in tobacco cigars, pipe tobacco, whit beedies,
cigarettes, snuff, match box, pipes, tin canisters, card board and other boxes
and any other article required by or which may be convenient to the smokers and
snuff grinders and snuff merchants and to manufacture box merchants and to
manufacture and deal in any other articles or things commonly dealt in by
tobacconists in connection with tobacco business.
HISTORY
The BBM Bommidala Group is a 40-year-old business
conglomerate that operates out of Guntur, the tobacco heartland in the South
Indian State of Andhra Pradesh. Named after Bommidala Bhanumurthy, a
second-generation tobacco entrepreneur, the BBM Group of businesses is a
complete supply chain from tobacco leaf growing and processing to cigarette
production and packing.
In the 2000-2001 financial year
the group’s business was more than Rs. 100 crore (US$20.53 mn). One of the
handful of highly synergic Indian tobacco companies, the BBM group has highly
productive forward and backward integrations that stretch from growing almost
all varieties of leaf and cut rag production to the manufacture of all types of
cigarettes and high value tobacco byproducts.
The group has the rare
distinction of receiving the prestigious Chemixil Award from the Government of
India in 1984 for highly innovative biochemical research.
Premier Tobacco Packers, the flagship company of the BBM
group, specializes in green leaf processing while its Hyderabad-based
subsidiary, the Hilton Tobaccos private Limited, produces high quality cut rag
and a variety of cigarettes. Bommidala Brothers supply all types of Indian tobacco
leaf while Bommidala Enterprises Private Limited’s forte is cut tobacco and
cigarette export. Bio-Pharma Laboratories Private Limited, another
Hyderabad-based subsidiary of the group, produces various chemicals with
specific focus on solanesol, a tobacco by product that could be used in several
life-enriching formulations. BBM Infotech Private Limited, is the information
technology arm of the BBM Group in Hyderabad that specializes in content
management.
The rare synergy from leaf to cigarettes and information to
technology blended with decades of experience translates into highly decisive
quality and price advantages to the BBM Group’s clients and business partners.
Hilton
has comprehensive primary and secondary capabilities and the company operates
on an Industrial License granted by the Union Ministry of Industry to a
capacity of 5 billion sticks per year. The company’s primary and secondary
plants are highly efficient in manufacturing various types of cigarettes such
as regular and menthol filter in sizes ranging from 59mm thru 100mm. The
company designs blends in-house and has access to world-class printers and
packers. Over the past two decades Hilton has blended and manufactured some of
the finest tobaccos and cigarettes for both domestic and overseas multinational
companies. The company also functioned as a third party operator for the
regional cigarette industry.
Blending with the BBM Group
business philosophy, Hilton has put in place Standard Operating Procedures in
all work areas to ensure production that measures up to international
standards. These procedures are implemented through well-designed training and
motivational programs as well as critical monitoring at all levels. A key
factor for Hilton’s success is its efficient, sensitive and foresighted
management.
Hilton has adopted the FTR (Fabricues de-Tabac Reunies) QUALITY AUDIT SYSTEM,”
in October 1991. Prior to this the company was assessing the quality of the
product by its in-house system called QTR (Quality Ratio Index).
With a built-up area of 100,000 square feet on seven acres
of industrial estate, Hilton owns several trademarks. As part of its expansion
program, Hilton has acquired a plot in the Sanathnagar Industrial belt in Hyderabad.
Hilton’s vision is to evolve up into a modern, quality and decisively
cost-efficient cut rag production and cigarette manufacturing plant.
Promoters :
Premier Tobacco Packers Limited
8-24-53, Mangalagiri Road,
Guntur - 522 001, Andhra Pradesh, INDIA.
Tel: 91-863-2356772
Fax: 91-863-2356771
ptp@bbmbommidala.com
Bommidala Purnaiah
Hilton Tobacco Private Limited
Bommidala Enterprises
Bommidala Brothers
Maxwell Health Foods (Private) Limited
8-24-53, Mangalagiri
Road, Guntur -522 001, Andhra Pradesh, INDIA.
Tel: 91-863-2356772
Fax: 91-863-2356771
maxwell@bbmbommidala.com
BBM Infotech Private Limited
B-2, Samrat
Complex, Saifabad, Hyderabad - 500 004 Andhra Pradesh, INDIA.
Tel: 91-40-23240006
Fax: 91-40-23240198
info@bbminfotech.com
Bio-pharma Laboratories Private Limited
B-2,
Samrat Complex, Saifabad, Hyderabad - 500 004, Andhra Pradesh, INDIA.
Tel: 91-40-23240006
Fax: 91-40-23240198
biopharma@bbmbommidala.com
BBM
Bommidala Brothers
8-24-53, Mangalagiri Road,
Guntur - 522 001, Andhra Pradesh, INDIA.
Tel: 91-863-2356772
Fax: 91-863-2356771
bbm@bbmbommidala.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.44.17 |
|
UK Pound |
1 |
Rs.85.58 |
|
Euro |
1 |
Rs.58.67 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
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--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
49 |
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 |
|