MIRA
INFORM REPORT
|
Report Date : |
29.10.2007 |
IDENTIFICATION DETAILS
|
Name : |
SNOWMAN FROZEN FOODS LIMITED |
|
|
|
|
Registered Office : |
Amalgam House, Plot No. 9, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
17.03.1993 |
|
|
|
|
Com. Reg. No.: |
09 - 007041 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U15122KL1993PLC007041 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
BLRS03089C |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAFCS3514H |
|
|
|
|
Legal Form : |
Closely held Public Limited Liability Company. |
|
|
|
|
Line of Business : |
Subject offer the facilities of Transportation, storage, handling and
retail distribution of frozen and chilled foods. |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
Maximum Credit Limit : |
USD 1460336 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an old and established company Promoted by strong
Promoters. Directors are reported as experienced and respectable businessmen.
Company’s profitability is under severe pressure. It continues to incur
losses. It has some accumulated losses. Payments are reported as slow but
correct. The company can be considered normal for business dealings at usual
trade terms and conditions, in view of strong Promoters. |
LOCATIONS
|
Registered Office : |
Amalgam House, Plot No. 9, |
|
Tel. No.: |
91-484-2668130 |
|
Fax No.: |
91-471-2527651 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Administrative Office : |
No. 570, 5th Main, 17 Cross, Indiranagar 2nd
Stage, |
|
Tel. No.: |
91-80-25213497 / 609 / 25286706 / 25292909 |
|
Fax No.: |
91-80-25274658 |
|
E-Mail : |
|
|
|
|
|
Regional Office : |
Village: Bommanahalli, Panchayat: Boodihal, Taluk: |
|
Tel. No.: |
91-80-7724947 / 7724997 / 7770933 |
|
|
|
|
West Regional Office : |
Plot No. M55, MIDC Taloja, Navi Mumbai – 410206 |
|
Tel. No.: |
91-22-2291842 / 2291843 |
|
|
|
|
East Regional office : |
C/o Modular Food Park Limited, Dag No. 261 and 262, Near Dankuni
Dakshin Rajyadharpur, Serampore, NH2 By-Pass, District Hoogly - 712201 West
Bengal |
|
Tel. No.: |
91-33-262255995 |
|
|
|
|
Kerala office : |
Plot No. 276 / 5 – 1, 277 / 7, Ezhupunna Village, Eramalloor ( |
DIRECTORS
|
Name : |
Mr. Abraham J. Tharakan |
|
Designation : |
Director |
|
Address : |
Shibumi, 814, |
|
Date of Birth/Age : |
17.06.1947 |
|
|
|
|
Name : |
Mr. Hiroshi Anezaki |
|
Designation : |
Director |
|
Address : |
204, Casabianca Apartments, |
|
Date of Birth/Age : |
17.06.1948 |
|
|
|
|
Name : |
Mr. Jitendra Himatlal Mehta |
|
Designation : |
Director |
|
Date of Birth/Age : |
23.11.1952 |
|
|
|
|
Name : |
Mr. Yashpal Jain |
|
Designation : |
Director |
|
Address : |
|
|
Date of Birth/Age : |
16.08.1956 |
|
|
|
|
Name : |
Mr. Kikud Wakamatsa
|
|
Designation : |
Director |
|
Address : |
D-Sone 3-13-2-406 Kohoku-ku, |
|
Date of Birth/Age : |
30.09.1948 |
|
|
|
|
Name : |
Mr. Masato Akiyama |
|
Designation : |
Director |
|
Address : |
8-32-17 Konann-Dai Konan-Ku, |
|
Date of Birth/Age : |
18.051957 |
|
|
|
|
Name : |
Mr. Takashi Oya |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Koji Yoneyama |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Tatsuo Yamamuro |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Hiroo Sasanoo |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kazumi Yashimura |
|
Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Mr. Tharakan J. Abraham |
|
101 |
|
Mr. Tharakan J. Ramesh |
|
101 |
|
Mr. Sethi Siddarth |
|
101 |
|
Amalgam Foods Limited |
|
4028293 |
|
Mitsubishi Corporation |
|
29054000 |
|
Mitsubishi Logistics |
|
3632000 |
|
Mr. Antony P. J. |
|
101 |
|
Mr. Tharakan J. Rani |
|
101 |
BUSINESS DETAILS
|
Line of Business : |
Subject offer the facilities of Transportation, storage, handling and retail
distribution of frozen and chilled foods. |
|
|
|
GENERAL INFORMATION
|
Customers : |
²
HLL ²
Amalgam Group ²
Mother Dairy ²
Amul ²
Mars Chocolate ²
Nilgiris retail ²
Metro ²
Monday to Sunday ²
Domino Pizza ²
Pizza Hut ²
KFC ²
Star hotels ²
Air catering |
||||||||||||||
|
|
|
||||||||||||||
|
Bankers : |
Not Available |
||||||||||||||
|
|
|
||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking Relations
: |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Price Water House Chartered Accountants |
|
|
|
|
Joint Venture : |
²
Gateway Distriparks Limited, ²
Mitsubishi Corporation ²
Nichirei Logistics Group Inc., ² Mitsubishi Logistics Corporation |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
47947000 |
Equity Shares |
Rs.10/- each |
Rs.479.470
millions |
|
|
Of the above shares 29054000 of Rs.10/- each
are held by Mitsubishi Corporation, |
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
479.470 |
479.470 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
40.525 |
40.525 |
|
|
4] (Accumulated Losses) |
|
(154.911) |
(113.393) |
|
|
NETWORTH |
|
365.084 |
406.602 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
66.929 |
57.885 |
|
|
2] Unsecured Loans |
|
1.000 |
1.000 |
|
|
TOTAL BORROWING |
|
67.929 |
58.885 |
|
|
DEFERRED TAX LIABILITIES |
|
69.531 |
76.021 |
|
|
|
|
|
|
|
|
TOTAL |
|
502.544 |
541.508 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
355.088 |
358.557 |
|
|
Capital work-in-progress |
|
0.627 |
2.161 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.022 |
0.022 |
|
|
DEFERREX TAX ASSETS |
|
69.531 |
91.354 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
0.000 |
0.000 |
|
|
Sundry Debtors |
|
66.743 |
57.514 |
|
|
Cash & Bank Balances |
|
32.802 |
37.103 |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
27.461 |
19.390 |
|
Total
Current Assets |
|
127.006 |
114.007 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
48.872 |
23.883 |
|
|
Provisions |
|
0.858 |
0.731 |
|
Total
Current Liabilities |
|
49.730 |
24.614 |
|
|
Net Current Assets |
|
77.276 |
89.393 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.021 |
|
|
|
|
|
|
|
|
TOTAL |
|
502.544 |
541.508 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
|
470.141 |
426.993 |
|
|
Other Income |
|
19.312 |
11.019 |
|
|
Total Income |
|
489.453 |
438.012 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
(25.628) |
0.790 |
|
|
Provision for Taxation |
|
15.890 |
(0.562) |
|
|
Profit/(Loss) After Tax |
|
(41.518) |
0.228 |
|
|
|
|
|
|
|
|
FOB Value of Exports |
|
249.125 |
230.096 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Capital Goods |
|
-- |
1.098 |
|
Total Imports |
|
-- |
1.098 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
|
406.139 |
351.729 |
|
|
Employee Costs |
|
30.946 |
25.152 |
|
|
Administrative Expenses |
|
36.730 |
23.461 |
|
|
Selling and Distribution Expenses |
|
1.506 |
1.269 |
|
|
Interest and Finance Charges |
|
6.450 |
5.548 |
|
|
Depreciation & Amortization |
|
33.308 |
30.062 |
|
Total Expenditure |
|
515.079 |
437.221 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
(8.48) |
0.05 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
(5.45) |
0.18 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
(0.05) |
0.16 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
(0.07) |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
0.13 |
0.06 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
2.55 |
4.63 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets:
³
Land-Freehold and Land Development
³
Land leasehold
³
Buildings
³
Plant and Machinery
³
Computer Equipments
³
Software
³
Furniture and Fixtures
³
Office Equipments
³
Motors Vehicles
As Per Web Details
Companies Profile:
Gateway Distriparks Limited. is a world-class state-of-the-art logistics
facilitator in one of the world’s fastest growing markets-India. Armed with modern
Container Freight Station’s (CFS’s) Inland Container Depot (ICD) the company
provides logistics solutions that fulfill the needs of the international
trading community as well as the shipping industry.
Mitsubishi Corporation, (MC) is
Nichirei Logistics Group Inc. (NLG) is the biggest company and providing
the best solution for temperature controlled logistic service in
Nichirei Group in which NLG is core member is one of the Japanese leading
corporate groups involved in food-related businesses. Its other businesses are
processed frozen foods, marine products, meat and poultry products and real
estate.
Mitsubishi Logistics Corporation
Mitsubishi Logistics Corporation, as a leading company in the
warehousing industry, has been constantly making the utmost effort to improve
and expand their logistic services to support all sorts of businesses and
people's lives. As for operations abroad, they operate a combined international
multimodal transportation business, warehousing, and other related businesses
with a network of 16 affiliated overseas companies and liaison representative
offices in North America, Asia and
To Build long term relationship with customer by improving efficiency of
distribution process through providing most innovative and cost effective
logistic solution of consistent quality and high standard.
MILESTONE:
² Only truly pan
India Cold Chain service provider.
² 16 Cold Stores
across the country.
² 100 Primary/
Secondary reefer trucks.
² Over 200 clients using
these facilities.
² Over 3000 types of
temperature controlled products being handled.
² Employing over 500
people.
Services:
³ Refrigerated
Transport Division
³ Snowman Cold
Stores (Freezer Division)
³ Consignment Agency
Business
NEWS:
MUMBAI: Gateway Distriparks
is taking over Snowman Frozen Foods,
Subject is a JV between Japanese Mitsubishi Corp (currently holding 51%with its
group company Mitsubishi Logistics Corp), Amalgam Foods and HLL. GDL is likely
to pick up majority stake in Subject by infusing fresh equity. Top officials of
GDL, Snowman and Mitsubishi are in Mumbai, and a formal announcement is
expected by GDL on Wednesday.
The eight-year-old cold-chain major was initially promoted by Kochi-based
Amalgam group, which sold its stake to Mitsubishi a few years ago. Amalgam
group now holds 16% stake in Subject, while Abraham Tharakan, promoter of
Amalgam, is chairman of Subject. He is expected to step down when GDL brings in
a new chairman.
Mr Tharakan told ET an announcement regarding a new stakeholder in Subject is
likely to be made in next few days. He refused to divulge any further details.
An e-mail query to GDL went unanswered. GDL will infuse about Rs 1000.000
millions into Subject’s equity and take up 51% stake. The funds will be
utilised to expand Subject’s infrastructure and reach as the domestic retail
market is set for a major expansion, said sources.
They said HLL is likely to relinquish its minority stake in favour of Amalgam
group. However, the exact shareholding pattern of Subject, post the fund
infusion by GDL, is not known. GDL, currently India’s largest warehousing/container
handling company, is a publicly-listed company with promoters including
Windmill International and Thakral Corp - both Singapore-based, holding 38.3%
stake, as on September 30, ’06. FIIs hold 35.7% in GDL, while financial
institutions and banks hold a little over 7%. On Tuesday, GDL closed at Rs
172.40 on BSE.
Bangalore-based Snowman is the first company in
Bangalore-based Subject Frozen Foods Limited, a pioneer in storage and
transportation of perishables in the country, plans to increase its cold stores
from the present 12 to 18 and expand its multi-temperature truck fleet called
Subject Express. Within 18 months, the company proposes to invest Rs 50.000
millions for these initiatives.
The six new cold stores are expected to come up at Ahmedabad,
In 2003, the company had 25 trucks. Today it has 100, equipped with Carrier and
Thermo King transport temperature control systems mounted in Eicher and Tata
chassis. Five of its trucks are multi-temperature units.
The company, which commenced business in 1997, is a single window service
provider engaged in the physical distribution along with its primary business
of storage. Hence it has also taken on the task of door delivery to retail
outlets and collect payments on behalf of its customers. In addition, it also
offers bar coding solutions, which it outsources from experts in the field. Its
three revenue streams include storage, transportation and distribution.
The company is an initiative of the Amalgam Group in
The business of frozen foods storage and transport is nascent and Subject being
the pioneer has created a new industry. The sector involves high investment and
a long gestation period, which deters many from entering the field. Hence there
is no single large venture in the segment, giving Subject a monopoly. However,
there are a few regional players in the business of transportation and cold
storage, informed Elvis D'Cruz, general manager, operations and marketing,
Snowman Frozen Foods.
Challenges in the field Import duties are as high as 40 per cent for
refrigeration units, which need to be imported, as Indian companies are not
able to provide quality, energy efficient equipment. Subject, a service
provider and not a manufacture or exporter, cannot avail of any Export &
Import (EXIM) benefits because equipment is not duty free.
Another challenge in the country is the condition of the roads. With bad roads
and escalating fuel costs, Subject needs to look at the cost per kilogram. It
is not possible to run Volvo trucks since they are not suited to Indian roads.
Since truck efficiency comes through only with turnaround, this must be
improved to maximize cost per kg advantage and decrease maintenance costs.
Business will also benefit if the number and capacity of freezers in retail
outlets storing frozen foods increase.The industry is also hampered by issues
of border check posts and Regional Transport Organisation hassles. Subject is
the only one operator in 120 cities with a wide network and cargo carrying
capacity from 500 kg to 14 tonnes. The cold stores capacity is between 100
tonnes and 1,200 tonnes.
Future plans
In the wake of increasing farm waste, Subject plans to enter the fruit and
vegetable segment. The company is also supporting Bharti Group and Tata
Chemicals with a cold chain for storage and transportation. In this direction,
a pre-cooling centre has been set up in Hiriyur in Chitradurga, a pomegranate
growing zone. A cooling outlet has been set up for export where the cold chain is
managed from harvesting to shipment. It has also associated itself with growers
in Nashik, a grape growing region. Plans to set up cold stores for mangoes in
Tamil Nadu and Karnataka are also on the anvil.
Subject services 3,000 retailers in 5 cities of
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 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.39.51 |
|
|
1 |
Rs.81.16 |
|
Euro |
1 |
Rs.56.76 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
34 |
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 |
|