MIRA
INFORM REPORT
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Report Date : |
13.10.2007 |
IDENTIFICATION DETAILS
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Name : |
MCDONALDS INDIA PRIVATE LIMITED |
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Registered Office : |
202-206, Tolstoy, H. No. 15, Tolstoy Marg, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
30.08.1993 |
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Com. Reg. No.: |
55-55015 |
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CIN No.: [Company
Identification No.] |
U74899DL1993PTC055015 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELM03640A |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Food Chain |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 12000000 |
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Status : |
Good |
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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 running and
operating a chain of food outlets. Trade relations are fair. Business is good.
Payments are reported as 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 : |
202-206, Tolstoy, H. No. 15, Tolstoy Marg, |
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Tel. No.: |
91-11-23359347 |
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Fax No.: |
91-11-23738450 |
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E-Mail: |
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Website : |
DIRECTORS
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Name : |
Mr. Chittaranjan Dua |
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Designation : |
Director |
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Address : |
88, Sunder Nagar, |
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Date of Birth/Age : |
03.11.1951 |
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Date of Appointment : |
30.08.1993 |
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Name : |
Mr. Ravi Oberoi |
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Designation : |
Director |
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Address : |
316 Kailash Tower – 1, MS Flats, East of Kailash, |
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Date of Birth/Age : |
14.03.1956 |
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Date of Appointment : |
26.04.1999 |
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Name : |
Mr. Tucker O. Todd |
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Designation : |
Director |
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Address : |
09 |
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Date of Birth/Age : |
06.04.1959 |
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Date of Appointment : |
23.12.2002 |
KEY EXECUTIVES
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Name : |
Mr. V. Raghavana |
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Designation : |
Secretary |
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Address : |
C 11/005 Mangal Apartments, Vasundhara Enclave, |
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Date of Birth/Age : |
03.01.1930 |
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Name : |
Mr. N Seetharaman |
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Designation : |
Secretary |
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Address : |
177 Aravaii Apartments, Alaknanda, |
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Date of Birth/Age : |
08.05.1938 |
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Date of Appointment : |
01.09.2004 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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McDonald International Branch Holdings LLC |
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317294141 |
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McDonalds Corporation, |
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1 |
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Total
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317294142 |
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Names of Shareholders |
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Percentage of
Holding |
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Foreign holdings (Foreign institutional investor(s), Foreign companie(s),
Foreign financial institution(s), Non-resident Indian(s), or Overseas
corporate bodies or Others |
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100.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Food Chain |
GENERAL INFORMATION
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Suppliers: |
v
Trikaya
Agriculture - Supplier of Iceberg Lettuce v v Dynamix Diary - Supplier of Cheese v Amrit Food - Supplier of long life UHT Milk
and Milk Products for Frozen Desserts v Radhakrishna Foodland - Distribution Centre |
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Bankers : |
Not Available |
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Auditors : |
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Name : |
S R Batliboi and Company Chartered Accountants |
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Address : |
Ernst and Young Tower, B -26, Quatab Institutional Area, New Delhi –
110 016, India |
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Tel. No.: |
91-11-26611004 - 26611009 /
26852034 |
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Fax No.: |
91-11-26611012 / 26611013 |
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Associates/Subsidiaries : |
Hardcastle Restaurants Private Limited Head Office: Ashiana, 69-C, Tel. No.: 91-22-30013001 Fax No.: 91-22-30013002 |
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Holding Company: |
McDonalds International Branch Holding LLC Address: |
CAPITAL STRUCTURE
Authorized Capital:
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No. of Shares |
Type |
Value |
Amount |
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318022600 |
Equity Shares |
Rs. 10.00 each |
Rs. 3180.226 millions |
Issued, Subscribed & Paid-up Capital:
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No. of Shares |
Type |
Value |
Amount |
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317294142 |
Equity Shares |
Rs. 10.00 each |
Rs. 3172.941 millions |
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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3172.941 |
3172.941 |
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2] Share Application Money |
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2.710 |
2.710 |
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3] Reserves & Surplus |
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8.661 |
6.158 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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3184.312 |
3181.809 |
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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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0.000 |
0.000 |
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TOTAL BORROWING |
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0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
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0.089 |
0.138 |
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TOTAL |
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3184.402 |
3181.947 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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0.665 |
0.905 |
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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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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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3064.432 |
3064.432 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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0.000 |
0.000 |
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Sundry Debtors |
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49.373 |
20.031 |
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Cash & Bank Balances |
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64.003 |
52.535 |
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Other Current Assets |
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14.214 |
14.214 |
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Loans & Advances |
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169.203 |
154.875 |
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Total
Current Assets |
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296.793 |
241.655 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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146.471 |
94.248 |
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Provisions |
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31.018 |
30.798 |
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Total
Current Liabilities |
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177.489 |
125.046 |
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Net Current Assets |
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119.305 |
116.610 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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3184.402 |
3181.947 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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150.742 |
101.728 |
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Other Income |
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0.000 |
0.000 |
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Total Income |
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150.742 |
101.728 |
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Profit/(Loss) Before Tax |
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2.675 |
2.888 |
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Provision for Taxation |
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0.171 |
0.187 |
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Profit/(Loss) After Tax |
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2.504 |
2.701 |
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Total Expenditure |
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148.067 |
98.840 |
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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1.66 |
2.65 |
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Net Profit Margin (PBT/Sales) |
(%) |
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1.66 |
2.65 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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0.89 |
1.11 |
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Return on Investment (ROI) (PBT/Networth) |
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0.00 |
0.00 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.06 |
0.04 |
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Current Ratio (Current Asset/Current Liability) |
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1.67 |
1.93 |
LOCAL AGENCY FURTHER INFORMATION
Website details
attached:
McDonald's - A Global Phenomenon
Subject have been opened its doors in
Their first restaurant opened on 15th April 1955 in
Locally Owned
McDonald’s in
Amit Jatia and Vikram Bakshi are like-minded visionaries who
share McDonald's complete commitment to Quality, Service, Cleanliness and Value
(QSC&V). Having signed their joint-venture agreements with McDonald's in
April 1995, they trained extensively, along with their Indian management team,
in McDonald's restaurants in
Respect for local culture
The company has developed a special menu with vegetarian
selections to suit Indian tastes and preferences. McDonald's does not offer any
beef or pork items in
In addition, they've re-formulated some of their products
using spices favored by Indians. Among these are McVeggie™ burger, McAloo
Tikki™ burger, Veg. Pizza McPuff™ and Chicken McGrill™ burger. They've also
created eggless sandwich sauces for their vegetarian customers. Even their soft
serves and McShakes™ are egg-less, offering a larger variety to their
vegetarian consumers.
International Standards
The company's local suppliers provide us with the highest
quality, freshest ingredients. Complete adherence to the Indian Government
regulations on food, health and hygiene is ensured, while maintaining their own
recognized international standards. Fast, friendly service - the hallmark of
McDonald's restaurants the world over is the mantra they abide by.
Stringent cleaning standards ensure that all tables, chairs,
highchairs and trays are sanitized several times each hour. Such meticulous
attention to cleanliness extends beyond the lobby and kitchen to even the
pavement and immediate areas outside the restaurant.
Philosophy
"They take the burger business more seriously than
anyone else." When McDonald's founder, Ray Kroc made that memorable
statement, he was letting the world in on the philosophy and secret behind
McDonald's phenomenal success.
Their vision to be
The principles that guide us …
- Quality, Service, Cleanliness &
Value - It is an unflinching McDonald's ideology that their customers must
always get quality products, served quickly and with a smile, in a clean
and pleasant environment; and all at a fair price
- They are committed to exceeding their
customers' expectations in every restaurant every time.
- They have a passion and a
responsibility for enhancing and protecting the McDonald's brand.
- They believe in a collaborative
management approach, employing a mutually respectful business philosophy,
- They will seize every opportunity to
innovate and lead the industry on behalf of their customers.
History
McDonald's has come a long way ever since its beginning in 1955. Here
are a few milestones of the McDonald's journey...
1955 Ray
Kroc opens his first restaurant in
1957 Quality,
Service, Cleanliness and Value (QSC& V) becomes the company motto.
1959 The
100th McDonald's opens in
1961
1963 One billion hamburgers sold. Ronald
McDonald makes his debut.
1964 Filet-O-Fish
sandwich is introduced.
1965 McDonald's
Corporation goes public.
1967 The
first restaurants outside of the
1968 The Big Mac is introduced.
The 1,000th
restaurant opens in
1972 A new McDonald's restaurant opens every
day.
The Quarter
Pounder is introduced.
1973 Egg
McMuffin is introduced.
1974 The first Ronald McDonald House opens in
The Happy Meal is
launched
1983 Chicken McNuggets is introduced.
New
1984 50 billionth hamburger sold.
Ronald McDonald
Children's Charities is founded in Ray Kroc’s memory to raise funds in support
of child welfare.
1989 McDonald's
is listed on the Frankfurt,
1990 McDonald's
opens in
1993 The first McDonald's at sea opens aboard
the Silja Europa, the world's largest ferry sailing between
1994 Restaurants open in
1996 McDonald's
opens in
Press Kit
A Locally Owned Company
The company is a joint-venture company managed by Indians.
In
Local Sourcing Is Key
for Truly Indian Products
Around the world, McDonald's traditionally operates with
local partners or local management. In
McDonald's sources food products form local companies. Fresh
Lettuce comes from Pune, Delhi,
Nainital and Ooty; Cheese form
Dynamix Dairies, Baramati,
Maharashtra; fresh Buns from
Cremica, Phillaur, Punjab and Mrs. Bector and Sons, Khopoli, Maharashtra; Sauce from Bector Foods, Phillaur,
Punjab and Hindustan Lever Limited-Best Foods Division, Thane, Chicken Patties, Vegetable Patties, Pies and
Pizza McPuff™ from Vista
Processed Foods, Taloja, Maharashtra. Dairy
Products from Amrit Food,
Setting Up Of an
Extensive Food Chain
Six years prior to the opening of the first McDonald's restaurant in India, McDonald's and its international supplier partners worked together with local Indian Companies to develop products that meet McDonald's rigorous quality standards. These standards also strictly adhere to Indian Government regulations on food, health and hygiene. Part of this development involves the transfer of state-of-the-art food processing technology, which has enabled Indian businesses to grow by improving their ability to compete in today’s international markets.
For instance, Cremica Industries worked with one of
McDonald's suppliers from
In some cases, the Indian suppliers had the technology - but
no market for the products they produced. For example, Dynamix Dairies –
through its relationship with McDonald's – was introduced to a large consumer
to supply milk casein and other milk derivatives. The two companies entered
into a business relationship resulting in an initial export order of
approximately US $12 million per year – with the potential to increase.
McDonald's local supply networks through Radhakrishna Foodland to get products
from various suppliers to restaurants in
Respect for the Indian Customs and Culture
McDonald's worldwide is well known for the high degree of respect
to the local culture. McDonald's has developed a menu especially for
An Employer of
The company is an employer of opportunity, providing quality
employment and long-term careers to the Indian people. The average McDonald's
restaurant employs, on an average, 60-80 people from crew to restaurant
manager. McDonald's world class-training inputs to its employees can be seen in
the present close to 2000 employees currently in Mumbai and
Community Partnership
McDonald's believes in giving back to the community it serves. Wherever McDonald's goes, it becomes a part of the community it operates in and contributes towards the development of the locality. For example, McDonald's has introduced the concept of ‘Litter Patrols’ – McDonald's employees go around the market every day, picking up garbage left behind not only by customers from McDonald's restaurants but also by other visitors to the area. The result is a cleaner neighborhood.
To commemorate 50 years of Indian independence, on 15th
August 1998, McDonald's Mumbai organised a ‘
Some of their significant contributions have been:
• 1995 – donation of $25,000/- to the Chief Minister’s Relief Fund for Latur earthquake.
• 2001 – donation of $50,000/- for the Earthquake devastated Bhuj.
• 2002 – donation of $250,000/- to the Rosser
Family Foundation to build a primary school and health clinic for children in
the Alaknanda slum of
Apart from these, McDonald's has also played a role in:
• Supporting Health drives like Pulse Polio since 1999.
• Along with Nehru Science Centre, McDonald's has taken the initiative of being a partner of the Inter –School Science Quiz Competition.
• McDonald’s Spotlight, an Inter-school Performing Arts Competition started in 1998 for schools all over Mumbai to provide the students with an atmosphere for healthy competition in performing arts.
• In 2002, McDonald’s tied up with the Nalanda Foundation for a period of three years to generate funds for the education of the underprivileged Girl-Child.
Quality, Service
Cleanliness and Value
The McDonald's philosophy of QSC&V is the guiding force behind its service to the customers.
The company serves only the highest quality products. All McDonald’s suppliers adhere to Indian Government regulations on food, health and hygiene while continuously maintaining their own recognized standards. All McDonald’s products are prepared using the most current state-of-the-art cooking equipment to ensure quality and safety. At McDonald’s, the customer always comes first. The company provides fast friendly service- the hallmark of McDonald’s that sets its restaurants apart from others.
McDonald’s restaurants provide a clean, comfortable environment especially suited for families. This is achieved through McDonald’s stringent cleaning standards, carefully adhered to.
McDonald’s menu is priced at a value that the largest segment of the Indian consumers can afford. McDonald’s does not sacrifice quality for value – rather McDonald’s leverages economies to minimize costs while maximizing value to customers.
Supply Chain
Overview
Everybody knows that every year, Rs. 500000.000
millions worth of food produce is wasted
in
A Supply Chain is a network of facilities including - material flow from suppliers and their "upstream" suppliers at all levels, transformation of materials into semi-finished and finished products, and distribution of products to customers and their "downstream" customers at all levels. So, raw material flows as follows: supplier - manufacturer – distributor – retailer – consumer. Information and money flows in the reverse direction. The balance between these 3 flows is what a Supply Chain is all about.
When there is a balance in the finished product ordering, the Supply Chain operates at its best. Any major fluctuation in the product ordering pattern causes excess / fluctuating inventories, shortages / stock outs, longer lead times, higher transportation and manufacturing costs, and mistrust between supply chain partners. This is called the Bullwhip Effect.
Depending on the situation, the Supply Chain may include major product elements, various suppliers, geographically dispersed activities, and both upstream and downstream activities. It is critical to go beyond one’s immediate suppliers and customers to encompass the entire chain, since hidden value often emerges once the entire chain is visualized. For example, a diesel engine manufacturer may be able to integrate a GPS locator system into its engine control system. Its immediate customer, a heavy truck manufacturer, may see no need for this functionality. However, the downstream customer, a trucking company with a large fleet, may be very interested in a locator system. Understanding the value to the downstream customer is part of the supply chain management process.
Suppliers
Trikaya Agriculture - Supplier of Iceberg Lettuce
Implementation of advanced agricultural practices has
enabled Trikaya to successfully grow specialty crops like iceberg lettuce,
special herbs and many oriental vegetables. Farm infrastructure features:
- A specialized nursery with a team of
agricultural experts.
- Drip and sprinkler irrigation in raised
farm beds with fertiliser mixing plant.
- Pre-cooling room and a large cold room
for post harvest handling.
- Refrigerated truck for transportation
A joint venture
with OSI Industries Inc.,
- Separate processing lines for chicken
and vegetable foods.
- Capability to produce frozen foods at
temperature as low as -35 Degree Celsius to retain total freshness.
- International standards, procedures and
support services.
Dynamix Diary -
Supplier of Cheese
Dynamix has
brought immense benefits to farmers in Baramati, Maharashtra by setting up a
network of milk collection centres equipped with bulk coolers. Easy accessibility
has enabled farmers augment their income by finding a new market for surplus
milk. The factory has:
- Fully automatic international standard
processing facility.
- Capability to convert milk into cheese,
butter/ghee, skimmed milk powder, lactose, casein & whey protein and
humanized baby food.
- Stringent quality control measures and
continuous Research & Development
Amrit Food -
Supplier of long life UHT Milk and Milk Products for Frozen Desserts
Amrit Food, an ISO
9000 company, manufactures widely popular brands - Gagan Milk and Nandan Ghee
at its factory at
- State-of-the-art fully automatic
machinery requiring no human contact with product, for total hygiene.
- Installed capacity of 6000 liters /
hour for producing homogenized UHT (Ultra High Temperature) processed milk
and milk products.
- Strict quality control supported by a
fully equipped quality control laboratory.
Radhakrishna
Foodland - Distribution Centre
An integral part of
the Radhakrishna Group, Foodland specializes in handling large volumes,
providing the entire range of services including procurement, quality
inspection, storage, inventory management, deliveries, data collection,
recording and reporting. Salient strengths are:
- A one-stop shop for all distribution
management services.
- Dry and cold storage facility to store
and transport perishable products at temperatures up to - 22 Degrees
Celsius.
- Effective process control for minimum
distribution cost.
Restaurant
Details
MUMBAI
|
Colaba ( McDelivery!
) Tel: 022-32550984/32569046 |
Bandra ( McDelivery!
) Tel: 022-32568954/3255230 |
|
Fort ( McDelivery!
) Tel: 022-32568956/ 32552296 |
Vile Parle
( McDelivery!
) Tel: 022-32550983 |
|
Haji Ali ( McDelivery!
)
Tel: 022-32569044 |
Andheri Tel:
022-32568951 |
|
Mumbai Central
( McDelivery!
) Tel: 022-32569050 |
Kalamboli Tel: 022-32569047 |
|
Tel:
022-39570808 |
Lokhandwala ( McDelivery!
) Tel:
022-32552349 |
|
Goregaon ( McDelivery!
) Tel:
022-32568955 |
Borivali Agora ( McDelivery!
) Tel :
022-32569063 |
|
Mulund ( McDelivery!
)
Tel: 022-32569056 |
Thane Tel : 022-32569052 |
|
Chembur ( McDelivery!
) Tel: 022-32569057 |
Vashi ( McDelivery!
)
Tel:
022-32568952 |
|
Centre One Tel:
022-32569062 |
Thane-Lake city Tel: 022-32470816 |
PUNE
|
Tel: 020-66024795 |
Kalyani
Nagar ( McDelivery! ) Tel: 020-27030027/32926003 |
|
Camp
( McDelivery! ) Tel:
020-32926040 |
Kothrud Tel:
020-32506415 |
Ahmedabad
|
Ashram Road Tel: 079-2658 0983 / 32951010 |
S.
G. Highway Tel : 079-32917724 |
|
|
Himalaya
Mall Tel
: 079-32984844 |
|
The Forum Tel: 080-22067733/7661 |
Tel: 080-32918641 |
|
Tel: 0731-3207044 |
Tel: 0731-3243412 |
|
Inox Multiplex Tel: 0265-3256200 |
TNW Business Centre Tel: 0265-3204733 |
Raj Empire Multiplex
Besides Radio Station,
Tel: 0261-3207790
College Road
Devi Zone, Opp Big Bazaar,
Tel: 0253-3255976
Prasads Imax,Off
Necklace Road
Tel: 040-32002620
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.39.33 |
|
|
1 |
Rs.79.74 |
|
Euro |
1 |
Rs.55.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
63 |
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. |
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 |
|