MIRA
INFORM REPORT
|
Report Date : |
25.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
ARJUNA NATURAL EXTRACTS LIMITED |
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Registered Office : |
P. B. No. VII / 8, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
20.08.1992 |
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Com. Reg. No.: |
09-6670 |
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CIN No.: [Company
Identification No.] |
U24239KL1992PLC006670 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHNA01307F |
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PAN No.: [Permanent
Account No.] |
AACCA8648K |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturer and exporter
of Standardized Herbal and Spice Extracts. |
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 540000 |
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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 / Factory : |
P. B. No. VII / 8, |
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Tel. No.: |
91-484-2622644 / 2622655 |
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Fax No.: |
91-484-2532404 / 2622612 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. P. J. Kunjachan |
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Designation : |
Chairman and Managing Director |
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Address : |
Puthussery House, GCDA Colony, Aluva, Ernakulam – 683108, |
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Date of Birth/Age : |
30.09.1952 |
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Date of Appointment : |
20.08.1992 |
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Election Commission Identity Card No. : |
KL/11/076/006333 |
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Name : |
Mr. P. J. Paul |
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Designation : |
Whole Time Director |
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Address : |
Puthussery House, |
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Date of Birth/Age : |
16.04.1951 |
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Date of Appointment : |
20.08.1992 |
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Election Commission Identity Card No. : |
KL/11/076/021312 |
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Name : |
Mr. Benny Antony |
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Designation : |
Whole Time Director |
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Address : |
Kulangara Parekkattl House, Kiddngoor, Anganaly, Ernakulam – 683572, |
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Date of Birth/Age : |
15.05.1965 |
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Date of Appointment : |
20.08.1992 |
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Election Commission Identity Card No. : |
KL/10/068/219053 |
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Name : |
Mr. Warrier K. Raghunadhan |
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Designation : |
Company Secretary |
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Address : |
Pranavan, III / 17, |
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Date of Birth/Age : |
20.07.1949 |
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Date of Appointment : |
10.09.2001 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
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P. J. Kunjachan |
|
577411 |
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Benny Antony |
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525400 |
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P. J. Paul |
|
198457 |
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Lissy Thomas |
|
5000 |
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Mary Abraham |
|
20000 |
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Philomina Paul |
|
5000 |
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Narayana Kaimal |
|
20000 |
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P. Joseph George |
|
2000 |
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Lucy Poulose |
|
2500 |
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David Arickal |
|
51232 |
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Mathew P. Thomas |
|
2500 |
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Sugu Mathew |
|
2500 |
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Caroline Thomas |
|
2500 |
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Merrin Thomas |
|
2500 |
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K. Surendran |
|
5000 |
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Valsamma Paulose Joint With C. O. Poulose |
|
1200 |
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Daisy Joseph |
|
2500 |
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Giri George |
|
2000 |
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Shyla Kuriakose Joint With K. P. Kuriakose |
|
1500 |
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Paulose John |
|
1500 |
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P. G. Radhamani |
|
2500 |
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Manju Mathews |
|
2500 |
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Sheela Varghese |
|
2500 |
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Kochu Thressia |
|
2000 |
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Jaya Cyril |
|
20000 |
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Rosily George |
|
2500 |
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Gracy Joseph |
|
5000 |
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Saleesa Joseph |
|
2000 |
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George Arickal |
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20000 |
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S. V. Mathai |
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20000 |
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Betty Paulson |
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2000 |
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Babu Antony |
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10000 |
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Lissy Paul |
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5000 |
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Paulachan Maliakal |
|
7000 |
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Josephine Maliakal |
|
7000 |
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C. Y.Mathew |
|
2500 |
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Category |
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Percentage of
Holding |
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
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3.20 % |
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Directors or relatives of directors |
|
84.07 % |
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Other top fifty shareholders |
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11.01 % |
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Others |
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1.72 % |
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Total |
|
100.00
% |
BUSINESS DETAILS
GENERAL INFORMATION
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Bankers : |
State Bank of Travancore |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Balan and Company Chartered Accountants |
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Address : |
Bank Road, Aluva – 683103, |
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Associates/Subsidiaries : |
Liv Long Natraceuticals Limited CIN No. : U15497KL2001PLC014771 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3250000 |
Equity Shares |
Rs. 10/- each |
Rs. 32.500 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1600000 |
Equity Shares |
Rs. 10/- each |
Rs. 16.000
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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|
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1] Share Capital |
16.000 |
16.000 |
16.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
119.581 |
112.939 |
107.113 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
135.581 |
128.939 |
123.113 |
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LOAN FUNDS |
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1] Secured Loans |
44.739 |
36.763 |
39.322 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
44.739 |
36.763 |
39.322 |
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DEFERRED TAX LIABILITIES |
4.606 |
5.067 |
2.607 |
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TOTAL |
184.926 |
170.769 |
165.042 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
114.195 |
84.091 |
88.642 |
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Capital work-in-progress |
0.486 |
28.840 |
24.142 |
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INVESTMENT |
15.028 |
5.003 |
4.682 |
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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 |
32.469
|
39.266 |
33.313 |
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Sundry Debtors |
25.067
|
12.803 |
9.579 |
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Cash & Bank Balances |
3.278
|
3.718 |
2.039 |
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Other Current Assets |
0.843
|
0.406 |
1.294 |
|
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Loans & Advances |
13.843
|
17.143 |
14.456 |
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Total
Current Assets |
75.500
|
73.336 |
60.681 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
13.208
|
17.386 |
11.690 |
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Provisions |
7.075
|
3.115 |
2.076 |
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Total
Current Liabilities |
20.283
|
20.501 |
13.766 |
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Net Current Assets |
55.217
|
52.835 |
46.915 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.661 |
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TOTAL |
184.926 |
170.769 |
165.042 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
166.786 |
134.708 |
100.746 |
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Other Income |
5.688 |
1.597 |
8.026 |
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Total Income |
172.474 |
136.305 |
108.772 |
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Profit/(Loss) Before Tax |
13.069 |
11.019 |
[8.305] |
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Provision for Taxation |
4.603 |
3.384 |
[1.423] |
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Profit/(Loss) After Tax |
8.466 |
7.635 |
[6.882] |
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Earnings in Foreign Currency : |
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Export Earnings |
NA |
89.605 |
80.623 |
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Total Earnings |
NA |
89.605 |
80.623 |
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Imports : |
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Raw Materials |
NA |
1.013 |
0.257 |
|
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Packing Materials |
NA |
0.000 |
0.011 |
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Capital Goods |
NA |
0.823 |
0.462 |
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Total Imports |
NA |
1.836 |
0.730 |
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Expenditures : |
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|
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Manufacturing Expenses |
0.000 |
0.000 |
17.623 |
|
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Administrative Expenses |
0.000 |
0.000 |
3.147 |
|
|
Miscellaneous Expenditure |
0.000 |
0.000 |
0.220 |
|
|
Raw Material Consumed |
76.417 |
62.299 |
50.985 |
|
|
Consumption of stores and spares parts |
1.848 |
1.531 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
7.692 |
[6.169] |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
8.900 |
9.005 |
0.000 |
|
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Managerial Remuneration |
1.320 |
1.152 |
0.000 |
|
|
Payment to Auditors |
0.066 |
0.055 |
0.000 |
|
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Interest |
4.787 |
3.942 |
0.000 |
|
|
Insurance Expenses |
1.045 |
1.278 |
0.000 |
|
|
Power & Fuel |
9.827 |
11.201 |
0.000 |
|
|
Depreciation & Amortization |
13.955 |
12.363 |
13.652 |
|
|
Other Expenditure |
33.548 |
28.629 |
31.448 |
|
Total Expenditure |
159.405 |
125.286 |
117.075 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
4.91
|
5.60 |
[6.33] |
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|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.84
|
8.18 |
[8.24] |
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|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.89
|
7.00 |
[5.56] |
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|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.09 |
[0.07] |
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|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.48
|
0.44 |
0.43 |
|
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|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.72
|
3.58 |
4.41 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
- Land
- Borewell
- Plant and
Machinery
- Pollution
Control Plant
- Furniture and
Fixture
- Computer
- Electrical
Fittings
- Lab
Equipments
- Office
Equipments
- Generator
- UPS
- Phone and Fax
Machines
- Effluent
Treatment Plant
- Temporary
Shed
- Vehicles
- Library Books
Contingent
Liabilities
|
Particulars |
Rs
in Millions [31.03.2005] |
|
Estimated amount of contracts remaining to be executed on capital account
and not provided for |
0.000 |
|
Sales Tax [Entry tax and penalty demand] contested by the company and
pending in appeal |
0.632 |
|
Sales Tax [sales tax penal interest] contested by the company and
pending in appeal |
0.314 |
|
Foreign Bills Discounted |
14.036 |
|
Guarantees |
0.644 |
Bankers Charges
Report as per Registry
|
Name of the company |
ARJUNA NATURAL
EXTRACTS LIMITED |
|
Presented By |
BENNY ANTONYM –
DIRECTOR – TECHNICAL |
|
1) Date and description of instrument creating the change |
Deed of
Hypothecation dated the 26th day of October 2004 executed by Arjuna Natural
Extracts Limited in favour of Technology Information Forecasting and
Assessment Council. |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Technology
Development Assistance of Rs. 9.000 Millions to be lent and advanced by TIFAC
to the company together with interest, liquidated damages premia on
repayment costs charges, expenses and
all other moneys payable by the company to TIFAC in terms of the Technology
Development Assistance Agreement dated 31.05.2004 between the company and
TIFAC. |
|
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 |
The whole of the
movable properties of company at 15/4-B, Sirambarayampalayam Road,
Sennappachetty Pudur PostKarumathampatty, Coimbatore – 641657, Tamilnadu
including its movable plant and machinery, machinery spares, tools and
accessories and other movables both present and future whether installed or
not and whether now lying loose or in cases or which are now lying or stored
and structures, apparatus or equipment constructed or acquired for the
purpose of the project at the cost or from the moneys advanced TIFAC under
the TDAA details of which are given in schedule I of the hypothecation deed
and all drawing notes, memoranda, models and designs relating thereto and nay
reports thereon. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
The charge
operates as security inter alia, for the due repayment by the company to
TIFAC of its TDA to the extent of Rs. 11.250 Millions together with interest,
liquidated damages premia on repayment
costs charges, expenses and all other moneys payable by the company to
TIFAC in terms of the Technology Development Assistance Agreement. The said Goods
are thereby Hypothecated, inter alia to TOFAC as and by way of First Charge. The company has
undertaken to keep the goods hypothecated in marketable and good condition at
its own cots and to insure the same in the joint names of the Company and
TIFAC All the Goods Hypothecated
and all realization and insurance proceeds thereof and all documents in
respect of the said security are to be kept distinguishable and held as the
exclusive property of TIFAC. The security
created under the deed of hypothecation is to be a continuing security. |
|
5) Name and Address and description of the person entitled to the charge. |
Technology
Information Forecasting and Assessment Council Technology Bhawan New |
|
6) Date and brief description of instrument modifying the charge |
Revised Deed of
Hypothecation dated 09.03.2005 |
|
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. |
The address of
the person entitled to the charge has been modified as Technology Information
Forecasting and Assessment Council A wing
Vishwakarma Bhavan, Clause 3 [g] of
the Hypothecation Deed amended not to allow pari passu charge in favour of
bankers. |
AS PER WEBSITE
Subject
is a global manufacturer and exporter of Standardized Herbal and Spice
Extracts, specialized Essential Oils and Omega 3 fatty acids from marine and vegetable
source, in Oil, Powder and Emulsion forms. With 15 years excellence in this
Industry, they are driven by the philosophy that centers on producing
exceptional product quality and ensuring ultimate customer satisfaction.
In this industry
where present becomes history the very next day, Innovation is the key word of
the existence of any company. Here they are a front-runner as it is lead by a
pioneering R&D unit. The Ministry of Science and Technology, Govt. of India
has approved this world-class R&D facility for in house research.
They are
authentically the very first in
With
11,000 sq Mtrs of most modern facilities with high- end machinery at 5
different units spread across the
The
unrelenting efforts of their R&D and an uncompromising attitude in quality
have brought they to a respectable position in the global export market. At
Arjuna they reaffirm core values, rejuvenate business terms, innovations tumble
out of long unused recesses of the mind and a burning desire to show they can
do it.
All
these have won their products an undying market in 44 countries.
Plant
Arjuna's
11,000 sq. mts. state-of-the-art manufacturing facility makes use of the most
technologically advanced equipment to assure consistent product quality and efficient
streamlined service. It follows strict GMPs to guarantee standardized extract
quality, purity and potency. The facility can handle product volumes ranging
from a few 100 kilograms to several 100 metric tones.
Arjuna has four manufacturing facilities for its operations. Two plants are for
herbal extracts and are located near
They are
an ISO 9001:2000 company and their process has received many prestigious
international accolades GMP certification, Star–K Kosher certification and
Halal certification.
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.40.60 |
|
|
1 |
Rs.80.65 |
|
Euro |
1 |
Rs.54.55 |
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 |
|