MIRA INFORM REPORT

 

 

Report Date :

12.09.2007

 

IDENTIFICATION DETAILS

 

Name :

PARLE AGRO PRIVATE LIMITED

 

 

Registered Office :

Western express Highway, Andheri (East), Mumbai 400 099, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

26.12.1985

 

 

Com. Reg. No.:

38459

 

 

CIN No.:

[Company Identification No.]

U15130MH1985PTC038459

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMM19663A

 

 

PAN No.:

[Permanent Account No.]

AAACP8416G

 

 

Legal Form :

Closely Held Public Limited Liability Company

 

 

Line of Business :

The company is engaged in manufacturing of Aerated Drinks.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 2183536

 

 

Status :

Good

 

 

Payment Behaviour :

Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is well-established and reputed company having fine track record. They were the owner of well known softdrink brand in India and sold to MNC, years back. Their means are large. Payments are correct and as per commitments.

The company can be considered good for medium to large dealings at usual track terms and conditions.

 

 

LOCATIONS

 

Registered Office / Facotry :

Western Express Highway, Andheri (East), Mumbai – 400 099, Maharashtra, India

Tel. No.:

91 – 22 – 834 9809

Fax No.:

91 – 22 – 836 2786

E-Mail :

rnair@parleintl.com

Area :

Large

Location :

Owned

 

 

DIRECTORS

 

Name :

Mr. Prakash Jayantilal Chauhan

Designation :

Chairman & Managing Director

Address :

Shanty Kunj, 47 Tejpal Road, Vile Parle (East), Mumbai 400 057, Maharashtra, India

Date of Birth/Age :

08.01.1986

Date of Appointment :

29.09.2006

 

 

Name :

Rajan Kanal

Designation :

Director

 

 

Name :

Mr. Schauna Chauhan Bikramjeet Saluja

Designation :

Whole Time Director

Address :

702, Bhagtani Heights, Off Yari Road, Versova, Mumbai 400 061, Maharashtra, India

Date of Birth/Age :

02.08.1976

Date of Appointment :

30.09.1999

 

 

Name :

Mr. Naida Prakash Chauhan

Designation :

Whole Time Director

Address :

Shani Kunj, 47, Tejpal Road, Vile Parle (East), Mumbai 400 057, Maharashtra, India

Date of Birth/Age :

08.01.1986

Date of Appointment :

29.09.2006

 

 

Name :

Mr. Ashish Kumar Promode Chaterjee

Designation :

Whole Time Director

Address :

22 / 18, Four Bungalows, Amarjyoti Society, Andheri (West), Mumbai 400 058, Maharashtra, India

Date of Birth/Age :

12.02.1954

Date of Appointment :

06.09.2003

 

 

Name :

Mr. Hariharan Rajamani

Designation :

Whole Time Director

Address :

Flat No. 1040, Guru Samridhi Heights, Sector 14, Palm Beach, Sanpada, Navi Mumbai 410 705, Maharashtra, India

Date of Birth/Age :

02.06.1960

Date of Appointment :

24.09.2004

 

 

Name :

Mr. Praful Pundalik Bandekar

Designation :

Whole Time Director

Address :

165 – E, Mumbadevi Sadan, 3rd Floor, Hindu Colony, Dr. Ambedkar Road, Dadar, Mumbai 400 014, Maharshtra, India

Date of Birth/Age :

16.05.1944

Date of Appointment :

24.09.2004

 

 

KEY EXECUTIVES

 

Name :

Mr. Rajeevan Narayanan Nair

Designation :

Secretary

Address :

D 701 / 702, 7th Floor, Satellite Park, Caves Road, Jogeshwari (East), Mumbai 400 060, Maharashtra, India

Date of Birth/Age :

16.05.1968

Date of Appointment :

01.04.2004

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

The company’s entire share capital is held by Chauhan family and their nominees.

 

Equity share breakup (percentage of total equity)

S. No.

Category

Percentage

1

Directors or relatives of directors

100.00

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The company is engaged in manufacturing of Aerated Drinks.

 

 

Products :

Ř       Apply Apple N A B B

Ř       Frooti Mango N A B B

Ř       Frooti Orange N A B B

 

 

GENERAL INFORMATION

 

No. of Employees :

1500

 

 

Bankers :

State Bank of India, Mumbai, Maharashtra, India

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S V Ghatalla & Associates

Chartered Accountants

Address :

Medows House, 2nd Floor, Nagindas Master Road, Fort, Mumbai 400 023, Maharashtra, India

 

 

Associates/Subsidiaries :

Ř       Parle (Exports) Limited

Ř       Parle Beverages Limited

Ř       Parle Battling Private Limited

Ř       Parle Sales & Services Limited

CIN NO.: U15499GJ1992PTC017153

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

250000

Equity shares

Rs. 10/- each

Rs. 2.500 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

200000

Equity shares

Rs. 10/- each

Rs. 2.000 millions

 

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

 

2.000

2.000

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

543.884

405.654

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

545.884

407.654

LOAN FUNDS

 

 

 

1] Secured Loans

 

131.027

80.000

2] Unsecured Loans

 

407.542

376.799

TOTAL BORROWING

 

538.569

456.799

DEFERRED TAX LIABILITIES

 

0.000

0.000

 

 

 

 

TOTAL

 

1084.453

864.453

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

574.292

521.047

Capital work-in-progress

 

34.263

26.131

 

 

 

 

INVESTMENT

 

0.001

0.001

DEFERREX TAX ASSETS

 

19.507

10.180

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

312.182

203.069

 

Sundry Debtors
 

122.265

110.981

 

Cash & Bank Balances
 

27.346

24.119

 

Other Current Assets
 

8.724

22.186

 

Loans & Advances
 

344.025

249.593

Total Current Assets
 

814.542

609.948

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

350.005

300.064

 

Provisions
 

8.147

2.790

Total Current Liabilities
 

358.152

302.854

Net Current Assets
 

456.390

307.094

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

1084.453

864.453

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2006

31.03.2005

Sales Turnover ( Including Other Income )

 

2451.648

1723.844

 

 

 

 

Total Income

 

2451.648

1723.844

 

 

 

 

Profit/(Loss) Before Tax

 

138.989

(0.111)

Provision for Taxation

 

0.000

0.000

Profit/(Loss) After Tax

 

138.989

(0.111)

 

 

 

 

Export Value

 

36.519

28.118

 

 

 

 

Expenditures :

 

 

 

 

Interest

 

10.755

16.390

 

Insurance Expenses

 

0.000

0.000

 

Power & Fuel

 

0.000

0.000

 

Depreciation & Amortization

 

106.174

98.929

 

Other Expenditure

 

2195.730

1608.636

Total Expenditure

 

2312.659

1723.955

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2006

31.03.2005

PAT / Total Income

(%)
 

5.66

(0.00)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

5.66

(0.00)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

10.00

(0.00)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.25

(0.000)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

1.64

1.86

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

2.27

2.01

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Corporation identity number or foreign company registrations number of the company 

U15130MH1985PTC038459

Name of the company

PARLE AGRO PRIVATE LIMITED

Address

Western Express Highway, Andheri (East), Mumbai – 400 099, Maharashtra, India

This Form is for

Creation of charge

Type of Charges

Movable property (not being pledge)

Particular of the charge holder 

Tetra – Pak India Private Limited, Mayfair Towers, Ground Floor, Wakdewadi, Shivajinagar, Pune 411 005, Maharashtra, India

sunil.tembe@tetrapak.com

Nature or description of the instrument creating charge  

Deed of hypothecation dated 13.10.2006

Date of the instrument creating charge

13.10.2006

Amount Secure by the charge

Rs. 23.891 millions

Brief of the principal terms and conditions and extent and operation of the charge

a)       Rate of Interest:

7% p. a.

 

b)       Terms of Repayment:

Rs. 23.890 millions alongwith interest @ 7% p. a. for three year shall be paid in three equal installments of Rs. 9.104 millions

Description of the property charge whether it is a charge on

First and exclusive charge on the equipment

Particulars of the Property charged  

First line – TBA / 19 filling machine

1 No. Tetra Brik Aseptic (TBA) 19 filling Machine

1) Having capacity of 7500 pph machine No. 21204 / 00276

2) 1 NO. straw Applicator TSA21

3) Cardboard packer CP 70

4) 1 No. Conveyor

5) Pull Tab

6) TCCS

7) Start up spare parts kit

Second line – TBA/19 filling machine

 

 

INDUSTRY

 

India’s food processing industry, with a turnover of about Rs.850 billions, is the key sector in the economy and should play a critical role in increasing agricultural productivity, providing employment and improving exports. The industry, comprising fruits & vegetables, milk, fish & meat products, consumer foods and cereal based foods, has grown significantly over the last few years. India ranks amongst the top countries in terms of raw material availability for the food processing industry. It is the second largest producer of fruits and vegetables, that largest producer of spices, groundnut and rapeseed, the largest producer of milk and the fourth largest producer of wheat. It has a large livestock population and, with a long coastline of 7,500 kms., is the seventh largest producer of fish in the world. Despite this, India processes only 7% of its produce of fruits and vegetables and lags behind countries like Brazil, Philippines, Thailand and Malaysia in this regard. The quality of its processed foods also does not match international standards and the preference for raw and semi-processed foods remains strong in the most parts of the country.

 

The potential for growth of the industry is also reflected in the number of foreign investment proposals received for the various sub-sectors of the industry. Between July 1991 and March 1998, the government approved joint ventures with a collective project cost of Rs.186,490 millions of which foreign investment comprises of Rs.87,560 millions.

 

Capitalisation of the huge potential of the Indian food sector, expecially that of mass-based high-volume foods, will require large-scale production and backward integration, with farmers for unhindered access of raw material. Investments of the order of approximately Rs.120 billion will be required across the food chain processing, procurement, distribution and agriculture. Storage and distribution alone is likely to absorb around 85% Rs.78 billion of the total investment required.

 

Branding is of key importance in certain area such as aerated and alcoholic drinks, convenience foods, processed fruits, vegetable and dairy products. This is the reason why many large corporate houses are very active in these areas. Currently, because of the mainly “urban” reach and the presence of many large business houses, these areas show the highest growth rate in the food processing industry.

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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

UK Pound

1

Rs.82.22

Euro

1

Rs.55.97

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

NO

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions