MIRA
INFORM REPORT
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Report Date : |
04.09.2007 |
IDENTIFICATION DETAILS
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Name : |
MOTHER DAIRY FOODS PROCESSING LIMITED |
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Registered Office : |
“Mother Dairy”, Patparganj, Delhi-110092 |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
24.05.2002 |
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Com. Reg. No.: |
115531 |
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CIN No.: [Company
Identification No.] |
U15419DL2002PLC115531 |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business : |
Producer, Processor and Marketer of Milk and Allied Products. |
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 5400000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company in the Indian Dairy
Industry. Directors are reported as experienced and respectable businessmen.
Company has some accumulated losses. Payments are reported as slow but
correct. In view of the well-established brand of the company, the company can
be considered normal for business dealings at usual trade terms and
conditons. |
LOCATIONS
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Registered Office : |
“Mother Dairy”, Patparganj, Delhi-110092, |
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Tel. No.: |
91-11-22471991 |
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Fax No.: |
91-11-22475991 |
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E-Mail : |
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Website : |
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Branches : |
·
National Dairy Development Board Complex, Tel No :- 91-22-28413812/28403603 Fax No :- 91-22-28402122 E-mail :- safalmum@vsnl.com ·
Mangolpuri Industrial Area Phase-I,
Delhi-110083, Tel No :- 91-11-27921729/30 Fax No :- 91-11-27915816 E-mail :- safal1@vsnl.com |
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Overseas Offices: |
80 b, Print Mauritssingel, 3043 PJ Tel No :- 31-10-4157441 Fax No :- 31-10-4157444 E-mail :- safal@kabelfoon.nl |
DIRECTORS
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Name : |
Mr. Himat Singh |
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Designation : |
Alternative Managing Director |
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Address: |
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Date of Appointment : |
27.09.2003 |
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Name : |
Mr. Deepak Tikku |
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Designation : |
Director |
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Address : |
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Date of Appointment : |
27.09.2003 |
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Name : |
Mr. Sampath Parthsarathy |
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Designation : |
Director |
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Address : |
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Date of Appointment : |
27.09.2003 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Dr Amrita Hirubhai Patel |
2000 |
4 |
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Mr. Deepak Tikku, |
2000 |
4 |
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Mr. Nisar Ahmed Shaikh, |
2000 |
4 |
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Mr. Vemaraju Narayan Rao, |
2000 |
4 |
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Mr. Arjun Uppal |
2000 |
4 |
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Mr Salil Kumar Das |
2000 |
4 |
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Mother Dairy Fruit and Vegetables Limited |
38000 |
76 |
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Total |
50000 |
100 |
BUSINESS DETAILS
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Line of Business : |
Producer, Processor and Marketer of Milk and Allied Products. |
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Products : |
Ø Food Preparations Ø Tamarind Concentrate Chutney Ø Guava Preserved/Prepared Ø Fruit Prepared and preserved Ø Mango Juice Ø Other Fruit Juice Ø Mango Pulp/Concentrate Ø Guava Pulp/Concentrate Ø Alphonso Mango Pulp Ø Papaya Pulp/Concentrate Ø Banana Pulp Concentrate |
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Exports : |
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Products : |
v
Mango Pulp/Concentrate v
Guava Pulp/Concentrate v
Alphonso Mango Pulp v
Papaya Pulp/Concentrate v
Banana Pulp Concentrate |
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Countries : |
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GENERAL INFORMATION
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No. of Employees : |
650 |
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Bankers : |
State Bank of |
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Facilities : |
- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S B Billimoria and Company Chartered Accountants |
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Address : |
14th Floor, Dr. Gopal Das Bhavan, |
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Parent Company: |
National Dairy Development Board, |
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Group Companies: |
Ø
Mother
Dairy Fruits and Vegetables Limited, Patpargang, Tel No :- 91-11-27921729/27915816 E-mail :- safal1@vsnl.com -- Selling Fruits and Vegetables through their retail outlets. It was started its operations during 22nd April, 2000. Over the years the company has not only implemented latest State-of-the-art technology, but also integrated vertically to give itself an edge over its competitors. Today it stands as a pioneer in the field of agro product exports the company has made substantial progress since its establishment.
For the company’s success, it believes in treating customers with trust, dignity and respect. It believes in fair business practices and in doing its part to save the environment. Ø
Mother
Dairy Food Private Limited -- Manufacturer of Ice Creams and Other Products Ø
Mother
Dairy India Private Limited |
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Fellow Subsidiaries : |
Ø
Indian
Dairy Machinery Company Limited, Vithal Udyognagar -- It is a national leader in the manufacture and supply of equipment for dairy and food processing sectors, also executes turnkey projects in these as well as in refrigeration, pharmaceutical and healthcare, beverage and allied sectors.
Ø
Indian
Immunologicals Limited, -- It is Ø
Dhara
Vegetable Oil and Foods Company Limited, Vadodara, -- Improved productivity trough research remains central to Dhara Vegetable Oil and Foods Company Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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150000000 |
Equity Shares |
Rs. 10.00 each |
Rs.1500.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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150000000 |
Equity Shares |
Rs. 10.00 each |
Rs.1500.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1500.000 |
1500.000 |
1500.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
(146.200) |
(193.900) |
(233.500) |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1353.800 |
1306.100 |
1266.500 |
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LOAN FUNDS |
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1] Secured Loans |
1569.000 |
2198.300 |
1497.600 |
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2] Unsecured Loans |
499.700 |
754.900 |
543.500 |
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TOTAL BORROWING |
2068.700 |
2953.200 |
2041.100 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3422.500 |
4259.300 |
3307.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1108.200 |
933.200 |
742.600 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
1057.600
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2679.900 |
1524.500 |
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Sundry Debtors |
64.600
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56.500 |
41.100 |
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Cash & Bank Balances |
1360.300
|
995.600 |
957.400 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
847.800
|
753.400 |
1232.500 |
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Total
Current Assets |
3330.300
|
4485.400 |
3755.500 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
855.100
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1013.000 |
1047.300 |
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Provisions |
162.900
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150.300 |
149.200 |
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Total
Current Liabilities |
1018.000
|
1163.300 |
1196.500 |
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Net Current Assets |
2312.300
|
3322.100 |
2559.000 |
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MISCELLANEOUS EXPENSES |
2.000 |
4.000 |
6.000 |
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TOTAL |
3422.500 |
4259.300 |
3307.600 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
16522.900 |
12587.800 |
10829.900 |
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Other Income |
172.600 |
141.100 |
256.600 |
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Stock Adjustments |
(26.700) |
132.900 |
108.500 |
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Total Income |
16668.800 |
12861.800 |
11195.000 |
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Profit/(Loss) Before Tax |
47.700 |
40.100 |
(245.800) |
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Provision for Taxation |
0.000 |
0.500 |
0.000 |
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Profit/(Loss) After Tax |
47.700 |
39.600 |
(245.800) |
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Expenditures : |
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Raw Materials |
8861.500 |
11036.500 |
9973.100 |
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Excise Duty |
0.000 |
0.000 |
0.000 |
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Power and Fuel Cost |
249.400 |
234.700 |
186.100 |
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Other Manufacturing Expenses |
5726.700 |
69.700 |
58.600 |
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Employee Cost |
426.800 |
373.900 |
351.000 |
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Selling and Administration Expenses |
121.000 |
12.300 |
9.400 |
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Miscellaneous Expenses |
967.200 |
842.600 |
591.500 |
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Interest and Financial Charges |
102.500 |
92.500 |
111.100 |
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Depreciation |
166.000 |
159.500 |
160.000 |
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Total Expenditure |
16621.100 |
12821.700 |
11440.800 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
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1.89
|
1.94 |
1.64 |
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Long Term Debt-Equity Ratio |
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1.89
|
1.94 |
1.64 |
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Current Ratio |
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3.58
|
3.49 |
3.40 |
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TURNOVER RATIOS |
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Fixed Assets |
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10.68
|
10.41 |
8.09 |
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Inventory |
|
8.84
|
5.99 |
8.41 |
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Debtors |
|
272.88
|
257.95 |
291.13 |
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Interest Cover Ratio |
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1.47
|
1.43 |
(1.21) |
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Operating Profit Margin |
(%) |
1.91
|
2.32 |
0.23 |
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Profit Before Interest And Tax Margin |
(%) |
0.91
|
1.05 |
(1.24) |
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Cash Profit Margin |
(%) |
1.29
|
1.58 |
(0.79) |
|
Adjusted Net Profit Margin |
(%) |
0.29
|
0.31 |
(2.27) |
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Return On Capital Employed |
(%) |
3.91
|
3.51 |
(3.68) |
|
Return On Net Worth |
(%) |
3.59
|
3.08 |
(17.69) |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject was incorporated on 24th May, 2002 at
NDDB is all set to replicate the Amul cooperative model
nationally for fruits and vegetables. And if all goes well, the latest venture
of the government's apex body on dairy development could see
Beginning November, NDDB would establish, own and operate
auction markets for horticulture produce in
According to industry estimates, of the total 150 million tonnes production of fruits and vegetables, post-harvest losses account for one-third.
What's more, this is the first time that a state government -- Karnataka -- has invited a central organization to run such an operation. What does this translate into?
The project, with an outlay of Rs 1500 million, will cover 200 horticultural farmers associations with 50,000 grower members for wholesale marketing.
Their produce will be planned with production and supply assurance, providing both growers and buyers a common platform to negotiate better rates.
But to find out what could make this exercise interesting, just look at its previous avatar. All agricultural commodity operations, until now, were under the purview of state governments.
Not only were they regulated, corruption reined. Monopolistic practices ensured that there was no development of efficient and transparent agri-marketing.
As for the pre and post harvest technologies, forget it. And enforcement of quality standards was something that just didn't apply to the sector.
Also, interestingly, the ministry of agriculture hopes that NDDB could change things. And even as NDDB is yet another government agency, what clinched the deal was its track record of setting up a host of cooperatives across the nation.
"It was recognition of the fact that efficient terminal markets for horticultural produce would stimulate productivity, raise quality standards, reduce losses and ensure consumer access to an increasing supply of fresh produce at reasonable prices. That's why we have initiated the project,"
NDDB was believed to have submitted a detailed proposal
recommending an alternate horticultural produce marketing system, which could
be set up in four major metros --
It would operate as a parallel market to the current system of mandis. Its objective? To establish a marketing structure that sustained quality incentives and enhanced productivity for the farmers.
Farmers have always operated in a Mandi system, which had its own downsides, the gravest being the power of the middleman. Unlike other products, fruit and vegetable marketing did not involve either the producer or the retailer.
"The main beneficiaries of the system have always been the middlemen. They are the commission agent and the wholesaler who drive the business," says a farmer.
Like commission for vegetable agents varies from 3 per cent to 6 per cent. It is a wider band for fruits -- 4 per cent to 12 per cent. That's not all.
Wastage has been the biggest problem of the mandi system. Inadequate infrastructure and lack of technology has meant poor storage, increasing damages and wastages.
It has been instrumental in setting up milk co-operatives in conjunction with assorted state governments.
It was also ventured into fruits and vegetables with its Safal brand in the north.
Setting up a full auction market for horticulture is only a step away.
The terminal market in
MDFVL in turn is a wholly-owned subsidiary of NDDB. There would be greater transparency of transactions, reduced losses through handling and transportation by setting up collection centres at the farm level.
He claims that with prior experience with its Safal brand, NDDB will emphasize the cleaning, sorting and grading of vegetables at these collection centres. Farmers are currently being trained to sort out their produce.
This project would mean a lot to NDDB. Its study has revealed that the existing structure has produced a vested interest in perpetuating the present system.
Therefore, on the basis of NDDB's experience, the only way to modernize horticulture marketing is to set up an alternative marketing system that offers certain advantages and operates parallel to, and in addition to the present market parameters.
NDDB will draw on its prior experience with milk and Safal co-operatives. It is putting systems in place to enhance farmers' bargaining power. Hence, it is looking at collective marketing through farmer associations and collection centres.
It would keep a check on the retail price through cash and carry stores at strategic locations to ensure transparency.
The information would then be disseminated throughout the system providing essential support to the market like training and giving inputs to farmers to enhance production.
These measures are all aimed towards reducing post-harvest losses. "It is anticipated that with sorting, packaging, assembly and storage at the collection centres, post-harvest losses will decrease substantially.
Coupled with farmer and transporter education on post-harvest treatment of fresh produce, significant gains are expected.
Food consultants are optimistic about this experiment. They say that these steps would reduce intermediary margins. Though collection centres will replace village-level commission agents, their service will be better and charges lower.
This will no doubt enhance price realization for the farmer, feel managers. At the same time, it is likely to impact marketing costs, which will be reduced considerably.
With centralized transport, labour, packaging and utilities, the cost of producing the fruits and vegetables are expected to be more economical for the farmer.
NDDB is also talking of generating employment through this operation. The auction market complex is estimated to employ almost 200 skilled and semi-skilled manpower in all its units.
NDDB is working at involving the farmer. For instance, it has formed self-help groups or 'associations'. "This is purely an initiative meant to energize the horticulture marketing in this country. Dairying is a different matter altogether," says a market expert with NDDB.
Clearly, Karnataka has set the ball rolling. It has taken the lead in amending the Agriculture Produce Marketing Act to facilitate NDDB's entry into the auction market.
Agricultural marketing is a state subject. The
Profile
Fruit Processing
Plant,
Fruit and Vegetable Unit was set up in the year 1988 by National Dairy Development Board, an Institute of national importance, a body corporate created by Government of India, with an objective to provide a direct link between unit has drawn on NDDB’s three decades of dairy sector strengths in designing it’s state of the art large and ultramodern central distribution facility to handle fresh and frozen fruit and vegetables.
Presently it is a unit of Mother Dairy Foods Processing Limited, a wholly owned company of Mother Dairy Fruit and Vegetables Limited. In April 2000, Mother Dairy Fruit and Vegetable Limited were created as a subsidiary of NDDB. The processed of the unit are marketed with the brand name ‘SAFAL’.
Unit complex is situated on 22 acres of land. It comprises a prefabricated building consisting of cold store chambers with different sets of temperature and humidity conditions suitable for storage of various fruit and vegetables. It has controlled atmosphere chambers and ripening rooms, deep freeze rooms, preparation hall, processing hall, dispatch hall, reception, dispatch facilities, etc. Material handling is done in specially designed plastic crates with the help of forkifts.
279 specially designed modern retail outlets have been set
up in and around
Food Processing Plant, Mumbai
The 100% export oriented ultra modern Fruit Processing Plant
was established in 1996 at Mumbai, Capitalizing NDDB’s food processing
strength. All the equipments and technical know-how has been supplied by Sasib
Manzini Cosmaco SPA of
The plant also has a capacity to pack fruit pulp in 3.1 Kg sterilized and hermetically sealed aluminium cans @1 MT/Hr and a plant freezer to instantly block pulp @ 10MT/hr. the frozen product can be shrink packed before dispatch in cartons. Other facilities in the plant include two tetra pack-filling machines for packing fruit drinks. The processing facility has obtained US Food and Drug Administration Registration. HACCP quality system is followed at every stage. The unit is ISO 9002 certified. The products are Kosher Certified. Mumbai unit is register member of SGF, Europe.
The fruit processing plant at Mumbai is engaged to process
and refine products specially aseptic and frozen purees and concentrates from
various varieties of finest tropical fruits such as mango, banana, papaya, etc.
These products can be packed in a plethora of bilk and small quantities in a
wide range of packing materials. Fruit Drinks in Tetrapacks are the other
popular consumer products. The unit has established an office at
Website details attached:
Mother Dairy -
Subject sources its entire requirement of liquid milk from dairy cooperatives.
Similarly, subject sources fruits and vegetables from farmers/growers
associations. Mother Dairy also contributes to the cause of oilseeds grower
cooperatives that manufacture/ pack the Dhara range of edible oils by
undertaking to nationally market all Dhara products. It is Mother Dairy's
constant endeavor to (a) ensure that milk producers and farmers regularly and
continually receive market prices by offering quality milk, milk products and
other food products to consumers at competitive prices and; (b) uphold
institutional structures that empower milk producers and farmers through
processes that are equitable.
At subject, processing of milk is controlled by process
automation whereby state-of-the-art microprocessor technology is adopted to
integrate and completely automate all functions of the milk processing areas to
ensure high product quality/ reliability and safety. Mother Dairy,
Company markets dairy products like Liquid Milk, Ice Creams, Flavoured Milk, Dahi, Lassi, Mishti Doi, Ghee, Butter, Cheese, Dairy Whitener, UHT Milk, Dhara range of edible oils and the Safal range of fresh fruits and vegetables, frozen vegetables and fruit juices at a national level, through it's sales and distribution networks, for marketing food items.
In times to come, company shall strive to become a leading
player in the food industry in
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. 40.94 |
|
|
1 |
Rs. 82.26 |
|
Euro |
1 |
Rs. 55.59 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
49 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
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 |
|