MIRA
INFORM REPORT
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Report Date : |
10.09.2007 |
IDENTIFICATION DETAILS
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Name : |
AARKAY FOOD PRODUCTS LIMITED |
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Registered Office : |
35, 3rd Floor, City Centre, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
02.03.1987 |
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Com. Reg. No.: |
009464 |
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CIN No.: [Company
Identification No.] |
U15131GJ1987PLC009464 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMA02226A |
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Legal Form : |
A Closely Held Public Limited Company |
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Line of Business : |
Manufacturers of Food Colors and Food 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 80000 |
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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 : |
35, 3rd Floor, City Centre, |
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Tel. No.: |
91-2764-286513 |
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Mobile No.: |
91-9925004139 |
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Fax No.: |
91-2765-286509 |
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E-Mail : |
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Website : |
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Factory: |
Block No.634, Village
Rakanpur, Taluka Kalol, District – Mehsana, |
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Area: |
2308 Sq.mtrs. |
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Location: |
Owned |
DIRECTORS
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Name : |
Mr. Ravi Kapoor |
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Designation : |
Director |
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Address : |
22, Goyal Terrace, Near Judges Bunglow, |
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Date of Appointment : |
09.03.1987 |
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Name : |
Mr. Anil Kapoor |
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Designation : |
Director |
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Address : |
B 31, Akash Plate, Near Judges Bunglow, |
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Date of Appointment : |
15.10.1987 |
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Name : |
Mr. Shashi K. Kapoor |
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Designation : |
Director |
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Address : |
B 31, Akash Plate, Near Judges Bunglow, |
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Date of Appointment : |
09.03.1987 |
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Name : |
Mrs. Saroj M. Kapoor |
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Designation : |
Director |
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Address : |
B 51, Akash Plate, Near Judges Bunglow, |
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Date of Appointment : |
01.03.1997 |
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Name : |
Mr. K V Shah |
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Designation : |
Director |
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Address : |
S 31, Satellite Complex, |
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Date of Appointment : |
09.03.1997 |
KEY EXECUTIVES
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Name : |
Mr. Abhishek Kapoor |
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Designation : |
Sales and Marketing Executive |
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Mobile No.: |
91-9925004139 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. K C Kapoor |
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1880 |
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Mr. Shashi K. Kapoor |
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2497 |
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Mr. Ravi Kapoor |
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73060 |
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Mr. Kunjkumar Shah |
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21500 |
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Mrs. Saroj Kapoor |
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116450 |
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Mrs. Geetaben Shah |
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32750 |
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Mr. Anil Kapoor |
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43740 |
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Mr. Chand Kapoor |
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82700 |
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Mr. Ashok Hingorani |
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43700 |
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Kautilya Tech. Private Limited |
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20000 |
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Mr. O P Kinger |
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24440 |
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Category |
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Percentage
of Holding |
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Directors or relatives of directors |
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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 : |
Manufacturers of Food Colors and Food Products. |
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Products : |
v
Caramel Colour v
Natural Food Colours v
Spray Dried Powders v
Herbal Products v
Instant Food Products |
GENERAL INFORMATION
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Bankers : |
Bankers: v
Standard Chartered Bank v
Corporation Bank v
ICICI Bank v
Canara Bank v
Vishakha Bank Financial
Institutions: v
Maruti Countrywide A F S Limited |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Baheti Bhadada and Associates Chartered Accountants |
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Address : |
201, Shaily Complex, Opposite Loha Bhavan, Ashram road, Ahmedabad –
380 009, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs. 10.00 each |
Rs. 10.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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700000 |
Equity Shares |
Rs. 10.00 each |
Rs. 7.000
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 |
7.000 |
7.000 |
8.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
13.179 |
12.992 |
10.263 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
20.179 |
19.992 |
18.263 |
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LOAN FUNDS |
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1] Secured Loans |
12.395 |
12.240 |
13.377 |
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2] Unsecured Loans |
3.738 |
3.988 |
4.950 |
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TOTAL BORROWING |
16.133 |
16.228 |
18.327 |
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DEFERRED TAX LIABILITIES |
4.273 |
3.987 |
3.105 |
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TOTAL |
40.585 |
40.207 |
39.695 |
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APPLICATION OF FUNDS |
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30.709 |
30.379 |
30.032 |
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FIXED ASSETS [Net Block] |
0.000 |
0.000 |
0.000 |
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Capital work-in-progress |
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0.020 |
0.020 |
0.020 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
8.850
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8.943 |
8.943 |
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Sundry Debtors |
3.378
|
3.616 |
4.148 |
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Cash & Bank Balances |
0.380
|
0.204 |
0.721 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
1.086
|
1.517 |
3.998 |
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Total
Current Assets |
13.694
|
14.280 |
17.809 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
4.043
|
4.700 |
8.420 |
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Provisions |
0.000
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0.000 |
0.000 |
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Total
Current Liabilities |
4.043
|
4.700 |
8.420 |
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Net Current Assets |
9.651
|
9.580 |
9.389 |
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MISCELLANEOUS EXPENSES |
0.205 |
0.228 |
0.254 |
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TOTAL |
40.585 |
40.207 |
39.695 |
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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 |
33.580 |
22.547 |
16.025 |
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Other Income |
0.018 |
0.020 |
6.686 |
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Total Income |
33.598 |
22.567 |
22.711 |
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Profit/(Loss) Before Tax |
1.556 |
0.554 |
0.080 |
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Provision for Taxation |
0.000 |
0.000 |
0.021 |
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Profit/(Loss) After Tax |
1.556 |
0.554 |
0.059 |
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Expenditures : |
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Raw Material Consumed |
14.466 |
8.445 |
9.440 |
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Increase or decrease in finished goods,
work-in-progress |
0.092 |
0.000 |
0.000 |
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Salaries, wages and bonus |
1.315 |
1.147 |
0.000 |
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Managerial Remuneration |
1.032 |
0.924 |
0.000 |
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Payment of auditors |
0.028 |
0.032 |
0.000 |
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Interest and Financial Charges |
0.976 |
1.190 |
2.029 |
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Insurance Expenses |
0.245 |
0.161 |
0.000 |
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Power and Fuel |
1.677 |
1.221 |
0.000 |
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Depreciation and amortization |
2.066 |
1.816 |
1.717 |
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Other Expenditure |
10.145 |
7.077 |
9.445 |
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Total Expenditure |
32.042 |
22.013 |
22.631 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
4.63
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2.45 |
0.26 |
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Net Profit Margin (PBT/Sales) |
(%) |
4.63
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2.46 |
0.50 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
3.50
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1.24 |
0.17 |
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Return on Investment (ROI) (PBT/Networth) |
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0.08
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0.03 |
0.00 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.00
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1.05 |
1.46 |
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Current Ratio (Current Asset/Current Liability) |
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3.39
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3.04 |
2.12 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
Plant and Machinery
Air Conditioner
Lab Equipments
Electrical Equipments
Furniture
Electric Fittings
Type Writer
Refrigerator
Cycle
Motor Car
Books
Computer
Pager
Fire Fighter Equipments
Land
EPABX System
Fan
FORM 8
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Name of the company |
AARKAY FOOD PRODUCTS LIMITED |
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Presented By |
Shri. R.K.
Kapoor, Director |
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1) Date and description of instrument creating the change |
17.05.1995 Deed of
Hypothecation of Movables. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 3.700
millions |
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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 |
All Movable
assets of the Company |
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4) Gist of the terms and conditions and extent and operation of the charge. |
All assets of the
Company charged against Term Loan, C/C Limit |
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5) Name and Address and description of the person entitled to the charge. |
Corporation Bank IFB Branch, V S
Hospital, |
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6) Date and brief description of instrument modifying the charge |
Supplementary
common deed of Hypothecation of Movables/
Assets/ Book Debts dated 23.05.2007 |
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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. |
By this Deed of
Hypothecation of Movables the charge has been increased from Rs. 6.096
millions to Rs. 17.000 millions, to cover the following limits:
In consideration
of the above facility the borrower hereby hypothecate all raw material,
stock-in-process, semi-finished goods, stores and spares etc. which now belonging
to the borrower and which are brought into or stored at company’s premises at
Block No.634, Village Rakanpur, Taluka Kalol, District – Mehsana All receivables
and Book Debts, Factory Building, Plant and Machineries, equipments,
Furniture and all other movable fixed assets at borrower’s premises at Block
No. 634, Village Rakanpur, Taluka Kalol, District – Mehsana |
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Corporate
identity number (CIN) Foreign company registration number |
U15131GJ1987PLC009464 |
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Name of the
Company |
AARKAY FOOD PRODUCTS LIMITED |
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Address |
35, 3rd Floor, City Centre, |
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This form is for |
Modification of
charge |
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Type of Charge |
A charge on Immovable property |
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Particulars of
the charge holder |
Corporation Bank Industrial
Finance Branch, Ellisbride, Ahmedabad – 380 006, E-Mail: cb489@corpbank.co.in |
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Nature or description
of the instrument(s) creating or modifying the charge |
Letter of
Continuity |
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Date of the
instrument creating or modifying the charge |
31.03.2007 |
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Amount secured by
the charge |
Rs. 6.500
millions |
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Brief particulars
of the principal terms and conditions and extent and operation of the charge |
(a) Rate of
Interest Cash Credit
(Hypo) 11.00% per annum being 1.50% below Corporation bank bench mark Advance
Rate which is 12.50% per annum as at present, (DBC?BDD) As per the Bank
Rules. (b) Terms of
Payment: Payable on Demand (c) Margin: As
per sanction Letter (d) Extent and
operation of the charge: To cover the
Entire Facilities |
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Short particulars
of the property charged (including location of the property) |
Property situated
at Survey No. Block No. 634 (Paiki) at Rakanpur Village Kalol Taluka
Gandhinagar District of the Extent aggregating to about 2308 sq. mtrs. Plus
the superstructure thereon. |
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Particular of the
present modification |
By this agreement
the limit shall stand reduced from Rs. 11.000 millions to Rs. 6.500 millions
Detail break up which shall be as follows: Cash Credit
: Rs. 6.000 millions (Hypo. Of Stock
and BD) DBC/BDD: Rs. 0.500 millions |
Website details attached:
Established in the year 1982 by the name of Aarkay Food Products Ltd., they
are leading manufacturer dealing in 100%
Natural Food Products. They have
only one mission that is to ladder their way towards success and become
In their premises, they manufacture purely natural food colours and instant food products by using a healthy blend of completely natural resources and technology. Their range of products is well known for their global quality standards. As a result of high quality productivity at very reasonable prices within the specified delivery time they can proudly mention that they are the single supplier of Natural Food Colours to many prestigious food industrialists since years.
The organization's commitment to provide Quality Food Products has won it
accolades from one and from all. But their zest for better quality is the
driving force for their regular improvements. Apart from the market
competition, they believe in competing theirselves and testing their limits.
This motivation factor encourages them to increase their manufacturing
potentials and to augment them time to time.
Their incomparable state-of-the-art infrastructure consists a well-equipped and a high-tech plant to cater to the increased demand for their Products. All these qualities have positioned them as the ALLFRESH organization and their plant is absolutely pollution free, which reflects their concern for environment.
Now with them the
days of chemical preservatives, artificial flavors and synthetic colours have vanished
and you can have the great taste, the pure, fresh and healthy Food Products.
Heritage
When the whole World was struggling to accept the concept of
chemical and synthetic food products, a revolution was taking place in
And a revolution it was. In the year 1982 the patriarchs of
Though a small and a humble Organization, it had dreams and passion to serve the Country with the very best in Natural Products. The Company began its early operations by making Caramel and Annatto Colour for various food industries. During those days both these Colours were like infants with no guardians to support their upbringing. Those who attempted to could not find the required technical expertise. In-fact a large chunk of the domestic demand was being met by importing the Product from other countries.
After relentless dedication and focused R&D, Team Aarkay
developed different grades of Caramel and other Natural Food Colours. These
ground breaking innovations changed the very phase of Food
Year after year after year, Team Aarkay developed different Products constantly striving to serve its nation and Markets abroad with the very best. Creating and recreating higher Industry benchmarks with newer and better innovations. And today subject has become “A House of Natural Food Products”, serving Products which serve various Industries including yours.
However all is not done for Team Aarkay. Who knows there just might be another revolution in the making in their R&D Department!!
Research and Development
They constantly endeavour to
develop a purposeful innovation, something that would not only enhance but
transform the lives of their Consumers.
To realize this endeavour they have a well equipped R&D Department and a
dedicated team of Food Technologists who work directly under the leadership of
Organizational heads. This synergic method facilitates a quick and responsive
strategy towards any Market Developments.
Subject was primarily involved in
Caramel and Natural Food Colours. But when their Consumers asked for wider Food
ingredient solutions they couldn’t turn them down.
Their food technologists regularly interact with clients to help them find
their complete food solutions. Infact a lot of their recent Products are
dedicated to their valuable consumers.
Infrastructure
To nurture the spirit of entrepreneurship and further shape their R&D efforts it was much required to have a supporting Production Facility.
A State of the Art Production facility was established at the outskirts of Ahmedabad equipped with all the latest machinery. A 3 Phase expansion plan was carried out to upgrade their technology and Production Capacity. Today the Company has successfully implemented the expansion plan for its existing businesses as well as future ventures.
The Company is set to expand its businesses by entering in new Markets following a Vertical Integration Business Model.
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. 40.58 |
|
|
1 |
Rs. 82.22 |
|
Euro |
1 |
Rs. 55.97 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
48 |
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 |
|