MIRA
INFORM REPORT
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Report Date : |
17.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
PREMIER TOBACCO PACKERS PRIVATE LIMITED |
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Registered Office : |
8-24-53, Mangalagiri Road, Guntur – 522 001, Andhra Pradesh |
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Country : |
INDIA |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
24.11.1977 |
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Com. Reg. No.: |
18-7403 ( ROC Chennai ) |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEP00498B |
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Legal Form : |
Private Limited Liability company |
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Line of Business : |
Manufacturers and Domestic Suppliers of Flue Cured Virginia Tobacco |
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 600000 |
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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 experience and respectable businessmen.
Trade relation 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 : |
8-24-53, Mangalagiri Road, Guntur – 522 001, Andhra Pradesh |
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Tel. No.: |
91-863-2356772 |
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Fax No.: |
91-863-2356771 |
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E-Mail : |
ptp@bbmbommidala.com |
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Website : |
http;\\www.bbmbommidala.com |
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Factory 1 : |
8-24-53, Mangalagiri Road, Guntur – 522001, Andhra Pradesh |
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Factory 2 : |
Pottur, Andhra Pradesh |
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Factory 3 : |
Karedu Andhra Pradesh |
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Tel. No.: |
91-863-2356772 |
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Fax No.: |
91-863-2356772 |
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DIRECTORS
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Name : |
B. Bhanu Murthy |
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Designation : |
Managing Director |
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Date of Birth/Age : |
1.07.1931 |
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Name : |
B V L Sarojini |
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Designation : |
Director - |
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Date of Birth/Age : |
29.10.1936 |
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Name : |
B V Sriman Narayana |
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Designation : |
Director -Leaf |
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Date of Birth/Age : |
17.06.1960 |
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Name : |
B V S K Ratnam |
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Designation : |
Director - Technical |
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Date of Birth/Age : |
20.05.1963 |
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Name : |
B V S R V Prasad |
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Designation : |
Director – Cig. Manager |
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Date of Birth/Age : |
25.07.1971 |
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Name : |
P V S A Padma |
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Designation : |
Director - Finance |
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Date of Birth/ Age |
20.06.1968 |
KEY EXECUTIVES
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Name : |
R J S Associates |
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Address : |
11-9, 201 Lakshmi Nagar Colony, Kolapet, Hyderabad |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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B. Bhanu Murthy |
83000 |
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B V L Sarojini |
36310 |
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B V Sriman Narayana |
36810 |
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B V S K Ratnam |
36810 |
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B V S R V Prasad |
36810 |
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P V S A Padma |
660 |
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Total 230400 |
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BUSINESS DETAILS
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Line of Business : |
Manufacturers and Domestic Suppliers of Flue Cured Virginia Tobacco |
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Products : |
Flue Cured Virginia Tobacco |
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Brand Names : |
A] Cigarettes 1] American Blend 2] Special Blend B] Mouth Fresheners 1] Sampoorna Asli Pan 2] Sampoorna Premium Mouth Freshener 3] Sampoorna Mouth Freshener 4] Sampoorna Classic 5] Sampoorna Plain Betel Nut pieces 6] Sampoorna Sweet Betel Pieces
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PRODUCTION STATUS
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Particulars |
Installed
Capacity |
Actual
Production |
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Karedu Factory Threshing |
14400 MT |
13647.53 MT |
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Pottur Factory Threshing |
19200 MT |
9924.13 MT |
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Karedu Factory Redrying |
30240 MT |
654.68 MT |
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Pottur Factory Redrying |
40320 MT |
361.79 MT |
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OIL Division |
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Pottur Factory |
375 MT |
11.66 MT |
GENERAL
INFORMATION
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No. of Employees : |
About 250 |
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Bankers : |
Andhra Bank , Main Brach Gowri Sankar Theater Road Guntur – 522001,
Andhra Pradesh |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
A N Jambunathan & Co |
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Address : |
Chennai |
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Associates : |
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Name : |
BBM Bommidala Brothers, |
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Address : |
8-24-53, Mangalagiri Road, Guntur – 522 001, Andhra Pradesh |
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Tel No. : |
91-863-2356772 |
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Fax No.: |
91-863-2356771 |
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Email : |
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Name : |
Hilton Tobaccos Limited |
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Address : |
3-70, Kompally Post, Hakimpet – 500 014, Secunderabad, Andhra Pradesh. |
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Tel No. : |
91-8418-232026 |
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Fax No. : |
91-8418-232058 |
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Email : |
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Name : |
Bio- Pharma Laboratories Private Limited |
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Address : |
B-2, Samrat Complex, Saifabad, Hyderabad – 500 004, Andhra Pradesh |
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Tel No. : |
91-40-23240006 |
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Fax No. : |
91-40-23240198 |
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Email : |
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Name : |
BBM Infotec Private Limited |
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Address : |
B-2, Samrat Complex, Saifabad, Hyderabad – 500 004, Andhra Pradesh |
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Tel No. : |
91-40-23240006 |
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Fax No. : |
91-40-23240198 |
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Email : |
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Name : |
Maxwell Health Foods Private Limited |
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Address : |
8-24-53, Mangalagiri Road, Guntur – 522 001, Andhra Pradesh |
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Tel No : |
91-863-2356772 |
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Fax No. : |
91-863-2356771 |
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Email : |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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50,00,000 |
Equity |
Rs.10/- Each |
50.000 |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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2,30,400 |
Equity |
Rs.10/- Each |
2.304 |
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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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31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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2.304 |
2.304 |
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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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150.899 |
124.786 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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153.203 |
127.09 |
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LOAN FUNDS |
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1] Secured Loans |
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88.066 |
60.577 |
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2] Unsecured Loans |
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20.047 |
0.047 |
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TOTAL BORROWING |
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261.316 |
187.714 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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261.316 |
187.714 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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180.846 |
162.320 |
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Capital work-in-progress |
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5.186 |
2.655 |
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INVESTMENT |
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0.004 |
0.004 |
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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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133.157
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45.143 |
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Sundry Debtors |
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39.244
|
35.947 |
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Cash & Bank Balances |
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45.715
|
37.963 |
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Other Current Assets |
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0.000
|
0.000 |
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Loans & Advances |
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52.728
|
37.805 |
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Total
Current Assets |
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456.882
|
321.837 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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195.748
|
134.653 |
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Provisions |
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0.000
|
0.000 |
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Total
Current Liabilities |
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195.748
|
134.653 |
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Net Current Assets |
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261.134
|
187.184 |
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MISCELLANEOUS EXPENSES |
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0.182 |
0.530 |
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TOTAL |
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261.316 |
187.714 |
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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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484.744 |
467.088 |
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Other Income |
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9.246 |
5.408 |
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Total Income |
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493.990 |
472.496 |
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Profit/(Loss) Before Tax |
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39.796 |
45.383 |
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Provision for Taxation |
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23.897 |
41.94 |
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Profit/(Loss) After Tax |
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15.899 |
3.443 |
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Expenditures : |
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Cost of Goods Sold |
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0.000 |
0.000 |
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Manufacturing Expenses |
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0.000 |
0.000 |
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Administrative Expenses |
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184.920 |
147.282 |
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Raw Material Consumed |
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430.894 |
419.380 |
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Purchases made for re-sale |
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0.000 |
0.000 |
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Consumption of stores and spares parts |
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0.000 |
0.000 |
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Increase/(Decrease) in Finished Goods |
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0.000 |
0.000 |
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Salaries, Wages, Bonus, etc. |
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0.000 |
0.000 |
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Managerial Remuneration |
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0.000 |
0.000 |
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Payment to Auditors |
|
0.000 |
0.000 |
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Interest |
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0.000 |
0.000 |
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Insurance Expenses |
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0.000 |
0.000 |
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Power & Fuel |
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0.000 |
0.000 |
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Depreciation & Amortization |
|
13.568 |
13.531 |
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Other Expenditure |
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0.000 |
0.000 |
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Selling Expenses |
|
10.016 |
8.879 |
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Total Expenditure |
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639.398 |
589.072 |
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KEY RATIOS
|
PARTICULARS |
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31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
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3.22 |
0.72 |
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Net Profit Margin (PBT/Sales) |
(%) |
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8.05 |
9.60 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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6.24 |
9.37 |
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Return on Investment (ROI) (PBT/Networth) |
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0.25 |
0.35 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.98 |
2.53 |
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Current Ratio (Current Asset/Current Liability) |
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2.33 |
2.39 |
LOCAL AGENCY
FURTHER INFORMATION
WEBSITE DETAILS ATTACHED :
Milestones:
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1950 |
Thriving tobacco business established. |
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1952 |
Tobacco Exports to Japan, Hong-Kong, Ondonesia and Nepal begin. |
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1956 |
Exports to Europe and East European Countries begin. |
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1975 |
Started manufacture of Drugs manufacture
intermediate Solanesol |
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1975 |
The Bommidala Research & Development Centre was setup. |
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1979 |
Started Unit No.1 of Premier
Tobacco Packers Ltd, a Tobacco processing Company. |
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1981 |
Hilton Tobacco Ltd,
established, licensed to manufacture 5000 million cigarettes per annum. |
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1985 |
Filter Cigarette manufacturing
begins. |
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1995 |
Bommidala Industries Ltd,
formed |
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1996 |
Obtained Letter Of Intent(LOI)
from Govt of India for manufacture of Cigarettes & Cigars. |
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1998 |
Unit No. II of Premier Tobacco
Packers Ltd, established & commissioned. |
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1999 |
BBM Infotech Pvt. Ltd, was Set Up. |
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COMPANY PROFILE:
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.
Subject, the flagship company of the BBM group, specializes
in green leaf processing while its Hyderabad-based subsidiary, the Hilton
Tobaccos private Ltd, produces high quality cut rag and a variety of
cigarettes. Bommidala Brothers supply all types of Indian tobacco leaf while
Bommidala Enterprises Pvt. Limited’s forte is cut tobacco and cigarette export.
Bio-Pharma Laboratories Pvt. Ltd., 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 Pvt. Ltd., 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.
Subject
was incorporated in 1978.
With a plant each at Kareedu in
Ongole and Pothur in Guntur, the core operations of the company are threshing, re-drying
and packing. The Company’s installed green leaf processing capacity is 5 m. t
per hour. The company has the distinction of achieving the highest threshing
yield per hour in the Indian tobacco industry.
PTP
FEATURES
A compact and innovatively designed
threshing plant that substantially cuts down the haul time to give bigger and
better lamina without any leaf degradation. The process also reduces leaf
wastage and thus become more cost effective. Technical innovations in silos
help medium and low-grade leaf absorb moisture uniformly after conditioning in
the primary cylinder. The silos are equipped with variable speeds to control
the tobacco-feeding rate depending on the type of leaf.
Highly efficient conveyors and filters to segregate scrap, “bits”, sand, stones
and other materials from tobacco leaf and then process the scrap and “bits”
separately. The segregation process filters out alien materials and ensures
uniformity and purity of the product.
Process control methods such as
CCTV are in place to monitor the feed rate into driers; bed levels of tobacco
re-drying as well as changes in moisture.
Advanced quality control systems to test moisture, sugar and nicotine levels of
tobacco samples.
Totally mechanized handling of the leaf from unloading of raw tobacco to
loading into containers. The mechanized process includes weighing and packing.
Motorized vacuum sweeper to make the entire plant
environment more conducive and responsive to ever-growing challenges.
Highly efficient automatic hydraulic press to pack the
re-dried lamina into bales/Cartons/Zip bags.
Computerized information system on production and quality management in
standard and customized formats.
Effective Alarm Systems to instantly warn of breakdowns.
Promoters:
1] Bommidala Purnaiah
2] Hilton Tobacco Private Limited
3] Bommidala Enterprises
4] Bommidala Brothers
5] Maxwell Health Foods Private Limited
6] BBM Infotech Private Limited
7] Bio- Pharma Laboratories Private Limited
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.43.98 |
|
UK Pound |
1 |
Rs.85.59 |
|
Euro |
1 |
Rs.58.49 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
54 |
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 |
|