MIRA INFORM REPORT

 

 

Report Date :

27.09.2007

 

IDENTIFICATION DETAILS

 

Name :

FOODS AND INNS LIMITED

 

 

Registered Office :

Punjabwadi, Sion-Trombay Road, Deonar, Chembur, Mumbai-400088

 

 

Country :

India

 

 

Financials (as on) :

30.09.2006

 

 

Date of Incorporation :

11.10.1967

 

 

Com. Reg. No.:

11-13837

 

 

CIN No.:

[Company Identification No.]

U55200MH2004PTC013837

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMF03486A/MUMF03698C/MUMF03844B/MUMF03863G

 

 

PAN No.:

[Permanent Account No.]

AAACF0521C/AAACF0521C/AAACF0521C/AAACF0521C

 

 

Legal Form :

A Public Limited liability Company.  It’s shares are listed on the Stock Exchanges

 

 

Line of Business :

Manufacturer of Egg Powders and Fruit Powders, Poultry Farming and Canning of Fruit Pulp and Vegetables.

 

 

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 890000

 

 

Status :

Good

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having satisfactory track. Financial position of the company is good. Trade relations are fair. Payments are usually correct and as per commitments.

 

The Company can be considered good for normal business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office :

Punjabwadi, Sion-Trombay Road, Deonar, Chembur, Mumbai-400088

Tel. No.:

91-22-25564326/25564327/25515853

Fax No.:

91-22-25553612

 

 

Factory 1 :

Chembur (Mumbai), Canning Plant at Abrama, Dist. Bulsar and Poultry Farm at Theur (Dist. Pune).

Area :

110000 sq.ft.

 

 

DIRECTORS

 

Name :

Mr. Field Marshal Sam Manekshaw M C

Designation :

Chairman

 

 

Name :

Mr. Utsav Dhupelia

Designation :

Director

 

 

Name :

Mr. D. B. Engineer

Designation :

Director

 

 

Name :

Mr. C. M. Maniar

Designation :

Director

 

 

Name :

Mr. R. Simkins

Designation :

Director

 

 

Name :

Mr. D. D. Trivedi

Designation :

Director

 

 

Name :

Mr. M. B. Dalal

Designation :

Director

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Egg Powders and Fruit Powders, Poultry Farming and Canning of Fruit Pulp and Vegetables.

 

 

Products :

Its generic name of principle products includes

 

v      Fruit Pulp

v      Fruit Juice and Canned Vegetables

v      Fruit Powders

v      Corn Flour

v      Green Pickles

v      Mango Pickles

v      Mango Chutneys

v      Other Chutneys

v      Peas Prepared/Preserved

v      Other Vegetables Prepared/Preserved

v       Fruit Nuts, Fruit Peel Preserves by sugar

v      Pineapple Prepared/Preserved

v      Mango Sqash

v      Guava Preserved/Prepared

v      Pineapple Juice

v      Mango Juice

v      Other Fruit Juices

  • Active Yeast

 

 

Exports :

 

Countries :

U.K., Kuwait, Saudi Arabia, Yemen, Japan, Germany and West Asia

 

 

PRODUCTION STATUS

 

Particulars

Unit

 

 

Installed Capacity

Egg, Powder & its Derivatives

Kg.

 

 

300000

Fruit Pulp Paste, Slices & Frozen Pulp

Kg.

 

 

20000000

Canned Veg, Pickles, Mango Chutney & Frozen Veg.

Kg.

 

 

2500000

Other Powder

Kg.

 

 

300000

 

 

GENERAL INFORMATION

 

No. of Employees :

280

 

 

Bankers :
  • Andhra Bank, Main Branch, Mumbai 400 023, Maharashtra, India
  • State Bank of India, Mumbai, Maharashtra, India.
  • Bank of Maharashtra
  • Export-Import Bank of India

 

 

Facilities :

SECURED LOANS :

Rs in Millions

From Banks :

 

a. Packing Credit :

304.449

(Secured by hypothecation of stocks of Raw material, Stock in Process. Finished Goods, Cans etc meant for export. lodgments of confirmed contract and irrevocable letters of credit and ECGC Packing Credit Guarantee cover.)

 

b. Open Cash Credit :

23.197

c. Working Capital Term Loan

(b & c are secured against Hypothecation of stocks of raw materials, Stock in Process, Finished Goods & Packing Material)

(All the above Loans including from the Banks are also secured by a personal Guarantee of one Director, a Shareholder and a individual {by one consortium Bank)

 

and charge on all the Fixed Assets and Current Assets including book debts of the Company, both present & future)

0.810

d. Term Loan :

(secured against Hypothecation of Imported Aseptic Plant and further second residual charge on Current Assets and personal Guarantee of one Director)

55.546

e. Vehicle Loan :

(Secured against specific assets.) (Amounts due within one year is Rs. 15.233 Millions

3.641

Total

387.643

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

B. S. Mehta and Company

Chartered Accountants

Address :

11/13, Botawala Building, 2nd  Floor, Horniman Circle, Fort, Mumbai-400 001

 

 

Associates :

Finns Frozen Foods India Limited

 

 

Subsidiaries :
  • Dravya Finance Limited
  • Asim Exports International Limited

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

30,00,000

Equity Shares

Rs.10/- each

Rs. 30.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

12,25,820

Equity Shares

Rs.10/- each

Rs. 12.258 Millions

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

30.09.2006

30.09.2005

30.09.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

12.258

12.258

12.300

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

210.210

185.128

170.200

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

222.468

197.386

182.500

LOAN FUNDS

 

 

 

1] Secured Loans

387.643

363.435

319.200

2] Unsecured Loans

35.846

40.826

41.600

TOTAL BORROWING

423.489

404.261

360.800

DEFERRED TAX LIABILITIES

13.253

8.011

0.000

 

 

 

 

TOTAL

659.210

609.658

543.300

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

330.367

274.247

266.800

Capital work-in-progress

2.152

0.000

0.000

 

 

 

 

INVESTMENT

20.713

20.254

20.300

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
341.369

288.914
267.100

 

Sundry Debtors
68.348

74.503
57.600

 

Cash & Bank Balances
31.941

19.952
7.400

 

Other Current Assets
0.000

0.000
0.000

 

Loans & Advances
121.214

161.021
145.200

Total Current Assets
562.872

544.390

477.300

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
227.927

219.554
215.000

 

Provisions
28.967

9.736
6.600

Total Current Liabilities
256.894

229.290

221.600

Net Current Assets
305.978

315.100
255.700

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.057

0.500

 

 

 

 

TOTAL

659.210

609.658

543.300

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

30.09.2006

30.09.2005

30.09.2004

Sales Turnover

1081.116

900.425

794.800

Other Income

45.244

40.695

--

Accretion/(Decretion) of Stock

44.140

18.922

--

Total Income

1170.500

960.042

794.800

 

 

 

 

Profit/(Loss) Before Tax

51.950

23.345

6.900

Provision for Taxation

21.796

7.576

3.000

Profit/(Loss) After Tax

30.154

15.769

3.900

 

 

 

 

Earnings in Foreign Currency :

 

 

 

Total Earnings

817.861

723.980

NA

 

 

 

 

Imports :

 

 

 

 

Packaging Materials

39.004

54.138

NA

 

Machinery

25.329

0.000

NA

Total Imports

64.333

54.138

NA

 

 

 

 

Expenditures :

 

 

 

 

Manufacturing and Other Expenses

1061.947

889.376

 

 

Financial Charges

43.432

36.993

785.200

 

Depreciation

13.170

10.328

 

Total Expenditure

1118.549

936.697

785.200

 

QUARTERLY RESULTS

 

PARTICULARS

 

31.12.2006

31.03.2007

30.06.2007

Type

1st Quarter

2nd Quarter

3rd Quarter

Sales Turnover

284.300

290.400

310.800

Other Income

1.400

8.400

5.400

Total Income

285.700

298.800

316.200

Total Expediture

263.700

272.100

294.600

Operating Profit

22.000

26.700

21.600

Interest

10.700

12.600

11.800

Gross Profit

11.300

14.100

9.800

Depreciation

3.200

3.900

4.300

Tax

2.200

2.900

1.800

Reported PAT

5.900

7.300

3.700

 

 

KEY RATIOS

 

PARTICULARS

 

30.09.2006

30.09.2005

30.09.2004

Debt-Equity Ratio

3.15

3.46

2.97

Long Term Debt-Equity Ratio

0.73

0.90

0.83

Current Ratio

0.97

1.00

1.01

TURNOVER RATIOS

 

 

 

Fixed Assets

3.90

3.88

3.60

Inventory

3.43

3.24

3.24

Debtors

15.14

13.64

11.12

Interest Cover Ratio

2.17

1.63

1.24

Operating Profit Margin(%)

10.11

7.89

6.40

Profit Before Interest And Tax Margin(%)

8.89

6.75

5.29

Cash Profit Margin(%)

4.01

2.90

1.69

Adjusted Net Profit Margin(%)

2.79

1.75

0.57

Return On Capital Employed(%)

17.63

12.27

9.00

Return On Net Worth(%)

23.00

13.92

3.78

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY

 

Incorporated in 1967, Foods and Inns (FIL) is engaged in the business of processing food products and fruits. Its manufacturing facilities are located in Bombay and Nashik. Sam Manekshaw M C is the Chairman of the company.  
 
FIL's export-oriented processed food and vegetable unit located in Nashik went on stream in Nov.'94. In 1994-95, FIL commenced commercial production of its project for frozen mango pulp and vegetables. Dravya Finance and Asim Exports International are 100% subsidiaries of FIL. It is the first company in India to export egg powder and has obtained repeat orders for the same. It has developed a new product for a soft-drink company. It has also exported lychees, a seasonal fruit. 

 
The company exports its products in industrial and consumer packs to the UK, Kuwait, Saudi Arabia, Yemen, Japan, Germany and West Asia. During the year, the company sold its poultry division to Bhairavnath Poultry Farm Pvt Limited, to concentrate on its core business of food processing. 

 
In 1998-99, it made a preferential allotment of 1,75,820 equity shares of Rs. 10/- each at a premium of Rs. 50/- per share to a non-residential director of the company.

 

OPERATIONS

During the year, the turnover of the Company was Rs.1081.400 Millions as compared to Rs. 900.800 Millions for the year ended 30th September, 2005 recording an increase of 19.89% over earlier year. The profit before tax has increased from 23.300 Millions to 52.000 Millions.

 

FUTURE PROSPECTS

The Company is trying to explore the possibilities of processing different fruits and identify new export market for the same. The fourth Aseptic manufacturing line commissioned in the earlier year was fully operational. The Company expects to achieve additional turnover by exploiting new export markets.

 

SUBSIDIARY COMPANIES

The Company's subsidiary Company Dravya Finance Limited, has made a Loss of Rs.74/- during the year ended 31st March, 2006. The other subsidiary Company Asim Exports International Limited has made a loss of Rs.89,956 after tax for the Year ended 31st March, 2006.

 

FIXED ASSETS

  • Land
  • Factory Building
  • Plant and Machinery
  • Furniture and Office Equipments
  • Vehicles
  • Patents and Trade Marks
  • Generators
  • Forklift and Accessories

 

 

 

 

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.39.74

UK Pound

1

Rs.80.34

Euro

1

Rs.56.30

 

 

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

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

63

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

 

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