MIRA INFORM REPORT

 

 

 

Report Date :

14.07.2008

 

IDENTIFICATION DETAILS

 

Name :

TETRA PAK INDIA PRIVATE LIMITED

 

 

Registered Office :

Mayfair Towers, Mumbai Pune Road, Shivajinagar, Pune – 411003, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

01.12.1987

 

 

Com. Reg. No.:

25-12926

 

 

CIN No.:

[Company Identification No.]

L21014PN1987PTC012926

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNET03816B

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer, Importer and Exporter of Processing Equipment and Plants for Diary, Beverage, Carbonated Soft Drinks, Prepared Food Packaging Material, Filling MCHS, Distribution Equipment for Packaging of Liquid Food Processing and Aseptic Packaging.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 1560000

 

 

Status :

Poor

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject company is passing through difficult times. Its networth has been eroded. However, as the parent company agreed to provide financial assistance to the company, it has still not been declared as a sick unit. Payments are reported as slow and delayed.

 

The company can be considered for any business dealings on fully safe and secured trade terms and conditions only, preferably after obtaining its parent company’s guarantee.

 

Mr. Kanak, Financial Controller of the company confirmed the details however he denied to part latest dates. He claimed that the company has registered sales Rs.3000 Millions in 2007-2008.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Kanak

Designation :

Finance Controller

Contact No.:

91-9822622886

Date :

11.07.2008

 

 

LOCATIONS

 

Registered Office :

Mayfair Towers, Ground Floor, Wakdewadi, Mumbai Pune Road, Shivajinagar, Pune 411005, Maharashtra, India

Tel. No.:

91-20-25510800

Mobile :

91-9822622886

Fax No.:

91-20-25510816

E-mail:

sunil.tembe@tetrapak.com

Area :

800 sq. fts.

Location :

Leased

 

 

Factory 1 :

At & Post Takwe (BK), Taluka Maval, District Pune - 412106, Maharashtra, India

Tel. No.:

91-2114-244127

Fax No.:

91-2114-244123 / 244125

Area :

Owned

Location :

10665 sq. ft.

 

 

Factory 2 :

Near Railway Station, Itola, Vadodara

Area :

Owned

Location :

53547 sq. ft.

 

 

Regional Office :

Mayfair Towers [Ground Floor], Wakdewadi, Shivajinagar – 411005, Pune, India

Tel. No.:

91-20-25510800

Fax No.:

91-20-25510820

 

 

Branch Office :

Global Business Park, Tower C, 5th Floor, Mehroli-Gurgaon Road, Haryana, India

Tel. No.:

91-124-5124600

Fax No.:

91-124-5064308

 

 

Branch Office :

967, 12th Main, Hal 2nd Stage, Indiranagar – 560008, Bangalore

Tel. No.:

91-80-25270681

Fax No.:

91-80-25271005

 

 

DIRECTORS

 

Name :

Mr. Henrik Hauggaard

Designation :

Managing Director

Address :

Bungalow No. 72, Koregaon Park

Date of Birth/Age :

01.11.2002

 

 

Name :

Mr. Wirsen Chrisler Bo Erik

Designation :

Director

Address :

Chem in du Bochar, Switzerland

Date of Birth/Age :

02.10.1944

Date of Appointment :

17.09.1997

 

 

Name :

Mr. Didier Maillard

Designation :

Director

Date of Birth/Age :

19.09.1963

Date of Appointment :

10.01.2001

Date of Ceasing:

31.08.2005

 

 

Name :

Mr. Rusty Kekuewa

Designation :

Director

Address :

Oval House, Renuka Farm, Vasantkunj, New Delhi

Date of Birth/Age :

30.04.1954

Date of Appointment :

27.08.2004

 

 

Name :

Mrs. Kavita Rao

Designation :

Director

Address :

204, Gaurav Apartments, Sanewadi, Aundh, Pune 411007, Maharashtra, India

Date of Birth/Age :

20.09.1962

Date of Appointment :

01.09.2005

 

 

Name :

Mr. Peter Hane Weijman

Designation :

Director

Address :

Tetra Pak India Private Limited, Global Business Park, Tower C, Mehrauli, Gurgaon Road, Gurgaon 122002, Haryana, India

Date of Birth/Age :

21.03.1956

Date of Appointment :

01.01.2006

 

 

KEY EXECUTIVES

 

Name :

Mr. Sunil Rajaram Tembe

Designation :

Secretary

Address :

Suyog Heights, Rambaug Colony, Paud Road, Kothrud, Pune 411038, Maharashtra, India

Date of Birth/Age :

04.03.1961

Date of Appointment :

12.08.1996

 

 

MAJOR SHAREHOLDERS

 

(As on 29.06.2006)

Names of Shareholders

 

No. of Shares

 

 

 

Aldurion BV

 

96919995

Tetra Laval Holding and Finance

 

85000005

 

 

 

Total

 

181920000

 

(As on 31.12.2006)

Equity Share Break-up

 

Percentage

 

 

 

Bodies Corporate

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Importer and Exporter of Processing Equipment and Plants for Diary, Beverage, Carbonated Soft Drinks, Prepared Food Packaging Material, Filling MCHS, Distribution Equipment for Packaging of Liquid Food Processing and Aseptic Packaging.

 

 

Product :

  • Packaging Machines
  • Aseptic Packaging
  • Straws

 

 

Exports :

 

Countries :
  • South Africa
  • Malaysia
  • Indonesia
  • Bangalore

 

 

Imports :

 

Products :
  • Machinery
  • Raw Material

Countries :
  • Japan
  • China
  • Group Companies

 

 

Terms :

 

Selling :

Credit  [30 days to 60 days]

 

 

Purchasing :

Credit  [30 days to 60 days]

 

 

PRODUCTION STATUS

 

Particulars

Unit

Installed Capacity

Actual Production

 

 

 

 

Packaging Material

Packs

33500000

2216161

Processing Machinery

Nos.

NA

219

 

GENERAL INFORMATION

 

Customers :
  • Wholesalers
  • Manufacturer

 

 

No. of Employees :

300

 

 

Bankers :
  • ANZ Grindlays Bank plc., New Delhi
  • HSBC Bank
  • Standard Chartered Bank
  • State Bank of Maharashtra

 

 

Facilities :

Term Loan from Scheduled Bank :  Rs.445.000 millions

C/C from Scheduled Bank  :  Rs.142.812 millions

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

S. R. Batliboi and Associates

Chartered Accountants

Address :

6th Floor, Express Towers, Nariman Point, Mumbai – 400021

Tel. No.:

91-22-22876485

Fax No.:

91-22-22876401

 

 

Parent Company :
  • Baldurion B.V., Netherlands.

 

 

Associates/Subsidiaries :
  • Tetra Pak Converting India Limited
  • Tetra Pak Flexible Packaging India Limited
  • Alfa Laval India Limited
  • Alfa Laval Agri India Limited

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

270000000

Equity Shares

Rs.10/- each

Rs.2700.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

181920000

Equity Shares

Rs.10/- each

Rs.1819.200 Millions

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.12.2006

31.12.2005

31.12.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

1819.200

1819.200

2519.200

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

0.000

800.000

4] (Accumulated Losses)

[1506.107]

[1713.251]

(3111.485)
NETWORTH

313.093

105.949

207.715

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

998.744

1225.195

927.646
TOTAL BORROWING

998.744

1225.195

927.464

DEFERRED TAX LIABILITIES

0.000

0.000

0.000
 

 

 

 
TOTAL

1311.837

1331.144

1135.179
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

665.848

769.376

797.562
Capital work-in-progress

99.374

53.944

132.879
 

 

 

 
INVESTMENT

0.000

0.000

0.000
DEFERREX TAX ASSETS

0.000

0.000

0.000
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories

532.679

478.298
498.410
 
Sundry Debtors

883.516

584.596
299.889
 
Cash & Bank Balances

69.708

48.600
5.367
 
Other Current Assets

36.750

24.131
5.614
 
Loans & Advances

140.604

125.709
144.018
Total Current Assets

1663.257

1261.334

953.298
Less : CURRENT LIABILITIES & PROVISIONS
 

 

 
 
Current Liabilities

1075.603

717.903
724.259
 
Provisions

41.039

35.607
24.301
Total Current Liabilities

1116.642

753.510

748.560
Net Current Assets

546.615

507.824
204.738
 

 

 

 
MISCELLANEOUS EXPENSES

0.000

0.000

0.000
 

 

 

 
TOTAL

1311.837

1331.144

1135.179

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.12.2006

31.12.2005

31.12.2004

Total Income

4292.494

3753.357

2998.709

 

 

 

 

Profit/(Loss) Before Tax

216.482

[97.537]

(108.746)

Provision for Taxation

--

--

0.000

Profit/(Loss) After Tax

216.482

[97.537]

(108.746)

 

 

 

 

Export Turnover

1619.322

1093.906

138.338

 

 

 

 

Total Imports

NA

NA

1345.992

 

 

 

 

Expenditures :

 

 

 

 

Interest

79.148

74.238

0.000

 

Depreciation & Amortization

161.914

134.334

2880.053

 

Other Expenditure

3834.950

3642.322

0.000

Total Expenditure

4076.012

3850.894

2880.053

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2006

31.12.2005

31.12.2004

PAT / Total Income

(%)

5.04
[2.60]

(3.62)

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)

5.04
[2.60]

(3.62)

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

9.29
[4.80]

(6.21)

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.69
[0.92]

(0.52)

 

 

 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 

6.76
18.68

8.06

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

1.49
1.67

1.27

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Trade References:

 

 

 

 

 

 

Website Details

 

Profile:

 

Tetra Pak of Sweden has sought permission from the Government for buying out 80% equity belonging to National Dairy Development Board (NDDB) in it’s Joint Venture for manufacturing packaging products in the country. The Company is awaiting government approval for the transaction as the senior management of Tetra Pak India Limited informs. The management stated that it only made sense for NDDB to focus on the core dairy business while Tetra Pak concentrates on the packaging of products. If NDDB would approach another packaging company for marketing their products, Tetra Pak is also talking with other milk co-operatives. Tetra Pak has already started collaborating with Vijaya Milk for packaging their products.

 

Through Alfa Laval, a Tetra Pak packaging unit has been set up at a cost of Rs. 560 millions. The company is aiming to sell 1.5 billion packages. The company also plans to launch new technology packages, promising higher shelf life to perishables like milk, fruit juices, fruit pulp and other edibles.

 

The net worth of the company has been fully eroded as on 31.12.2004. Based on a legal opinion obtained by the company, the provisions of Section 2(46AA) of the Companies Act, 1956, (relating to Sick Industrial Companies) do not apply to the company. Accordingly, the financial statements have been prepared on the going concern assumption. Moreover, the company has received a letter dated January 24, 2005 from Baldurion BV, “the parent company”, confirming to continue to provide and maintain financial assistance to the company for a period of 18 months commencing from June 19, 2004.

 

News:

 

Tetra Packaging takes off: The packaging material manufacturing facility of Tetra Pak at Takwe, near Pune.

 

PUNE: Chennai is a `strong contender' as a location for Tetra Pak's expansion of its packaging material manufacturing facility.

 

With the demand for Tetra Pak packages, the multi-layer polyethylene, aluminium and board sheet for packaging liquid foods, on the increase, the wholly owned subsidiary of the Swedish company is set to expand its production facilities.

 

According to Ashutosh Manohar, Processing Director, Tetra Pak India Private Limited, Chennai is a strong contender for its new location for expansion. The expansion is a part of its three-year business programme and is likely to happen within two years.

 

Tetra Pak officials told a group of journalists on a tour of its manufacturing facility at Takwe near Pune, organised by the company, that the demand for Tetra Pak packages was on the increase particularly in the last two years. Between 2004-05 and 2005-06, the demand doubled and in the coming years was set to grow by about 20 per cent.

 

The Pune facility would be producing to capacity by the next year and expansion would be inevitable, say officials. Tetra Pak exports its packaging material to over 30 countries, they said.

 

According to Mr. Gratton, Technical Director, Tetra Pak, in 2004-05 over 400-500 million packages were produced. In 2005-06, this increased to over a billion packs. The company estimates that the growth in the coming years will be about 20 per cent.

 

According to Mr. Gratton, the entry of large brands into fruit juice range and dairy companies launching UHT (Ultra High Temperature Treated) milk in Tetra Pak packages resulted in an increase in demand for tetra pak packaging. Companies like Parle introduced triangular packs and Maaza came out in a wedge shaped pack. Dairy companies, especially the cooperatives and some private brands, were introducing UHT milk.

Dairy products in Tetra Pak packages have a shelf life of about four months and juices and beverages six months without refrigeration.

 

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 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.42.72

UK Pound

1

Rs.84.42

Euro

1

Rs.67.38

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

2

OPERATING SCALE

1~10

--

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

2

--LEVERAGE

1~10

2

--RESERVES

1~10

--

--CREDIT LINES

1~10

1

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

 

13

 

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/normal.

 

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