MIRA
INFORM REPORT
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Report Date : |
02.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
MILK FOOD LIMITED |
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Registered Office : |
P. O. Bahadurgarh, District Patiala – 147021, Punjab |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
31.03.1973 |
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Com. Reg. No.: |
55-3746 |
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CIN No.: [Company
Identification No.] |
L15201PB1973PLC003746 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELM06050G / DEML10741D |
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PAN No.: [Permanent
Account No.] |
AAACM5913B |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are listed on
the Stock Exchange. |
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Line of Business : |
Manufactures and markets of milk and milk products. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 1400000 |
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Status : |
Good |
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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 fine track.
Available information indicates high financial responsibility of the company.
Trade relations are fair. Payments are correct and as per commitments. The company can be considered good for any normal business dealings.
It can be regarded as a promising business partner in a medium to long run. |
LOCATIONS
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Registered Office : |
P. O. Bahadurgarh, District Patiala – 147021, Punjab,
India |
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Tel. No.: |
91-175-2380001 , 2380002 |
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Fax No.: |
91-175-2380248 |
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E-Mail : |
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Website : |
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Corporate Office : |
5th Floor , Bhandari House, 91, Nehru Place,
New Delhi – 110019, India |
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Tel. No.: |
91-11-26460670-4 , 26463773 |
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Fax No.: |
91-11-26460823 |
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E-Mail : |
sectl@milkfoodltd.com
( For Investor Queries) |
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Factory 1 : |
P. O. Bahadurgarh, District Patiala – 147021, Punjab,
India |
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Tel. No.: |
91-175-2380001 , 2380002 |
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Fax No.: |
91-175-2380248 |
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E-Mail : |
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Factory 2 : |
Village Mugalpur URF Aghwanpur Mustakam, Kanth Road,
Tehsil Moradabad, Uttar Pradesh, India
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Tel. No.: |
91-591-3295605, 3954054 |
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E-Mail : |
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Factory 3 : |
Plot No. 5,
Sector 18, Maruti Industrial Complex, Gurgaon [Haryana], India |
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Factory 4 (DAIRY PLANT) : |
Jagatjit Nagar, District Kapurthala, Punjab, India |
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Tel. No.: |
91-181-2237934 |
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E-Mail : |
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For Investors : |
DIRECTORS
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Name : |
Mr. Karamjit S. Jaiswal |
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Designation : |
Executive Chairman |
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Name : |
Mr. Umesh Saxena |
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Designation : |
Managing Director |
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Name : |
Ms. Roshni Jaiswal |
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Designation : |
Director (Projects) |
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Name : |
Mr. Deepankar Barat |
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Designation : |
Director |
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Name : |
Mr. Suresh Alipura |
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Designation : |
Director |
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Name : |
Mr. Amarjit Kapoor |
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Designation : |
Director |
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Name : |
Ms. Asha Gadi |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Sudhir Avasthi |
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Designation : |
Finance Director |
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Name : |
Mr. Narender Sapra |
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Designation : |
Joint President |
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Name : |
Mr. H. M. Sood |
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Designation : |
Senior Vice President |
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Name : |
Mr. R. C. Mahajan |
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Designation : |
Senior Vice President |
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Name : |
Ms. Kamlesh Gupta |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
AS ON 31.03.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
2449554 |
50.13 |
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Mutual Funds |
2850 |
00.06 |
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Banks, Financial Institutions and Insurance Companies |
3550 |
00.07 |
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FIls |
146945 |
03.01 |
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Corporate Bodies |
923660 |
18.90 |
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Indian Public |
1355821 |
27.75 |
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NRIs / OBCs |
4060 |
00.08 |
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Total |
4886440 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufactures and markets of milk and milk products. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Actual
Production |
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Milk Products |
Tonne |
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13824 |
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Ghee |
Tonne |
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10286 |
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Casein |
Tonne |
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167 |
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Whey Powder |
Tonne |
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211 |
GENERAL
INFORMATION
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No. of Employees : |
About 1200 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
R. N. Bahl and Company Chartered Accountants |
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Address : |
New Delhi |
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Associates/Subsidiaries : |
Jagatjit Industries Limited Jagatjit Nagar, District
Kapurthala, Punjab Phone : 91-181-2237934 email : deepak.gupta@milkfoodltd.com |
CAPITAL STRUCTURE
AS ON 31.03.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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7500000 |
Equity Shares |
Rs. 10/- each |
Rs. 75.000 Millions |
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50000 |
Preference Cumulative Preference Shares |
Rs. 100/- each |
Rs. 5.000 Millions |
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Total |
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Rs. 80.000
Millions |
Issued Capital :
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No. of Shares |
Type |
Value |
Amount |
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4887890 |
Equity Shares |
Rs. 10/-
each |
Rs. 48.879
Millions |
Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4886440 |
Equity Shares |
Rs. 10/-
each |
Rs. 48.865
Millions |
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Less : Calls in arrears |
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Rs. 0.019
Million |
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Rs. 48.846
Millions |
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Amount paid on 1450 Forfeited Shares |
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Rs. 0.007
Million |
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Total |
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Rs. 48.853 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
48.853 |
48.853 |
48.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
302.589 |
254.746 |
221.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
351.442 |
303.599 |
270.600 |
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LOAN FUNDS |
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1] Secured Loans |
540.933 |
320.433 |
221.400 |
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2] Unsecured Loans |
95.466 |
174.225 |
33.400 |
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TOTAL BORROWING |
636.399 |
494.658 |
254.800 |
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DEFERRED TAX LIABILITIES |
30.041 |
15.226 |
0.000 |
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TOTAL |
1017.882 |
813.483 |
525.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
837.151 |
417.914 |
174.900 |
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Capital work-in-progress |
26.490 |
126.160 |
168.500 |
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INVESTMENT |
42.600 |
42.600 |
45.000 |
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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 |
312.472
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368.702 |
162.800 |
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Sundry Debtors |
92.549
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130.371 |
63.000 |
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Cash & Bank Balances |
29.160
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17.038 |
17.600 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
74.570
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88.808 |
88.000 |
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Total
Current Assets |
508.751
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604.919 |
331.400 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
397.110
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378.110 |
194.200 |
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Provisions |
0.000
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0.000 |
0.200 |
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Total
Current Liabilities |
397.110
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378.110 |
194.400 |
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Net Current Assets |
111.641
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226.809 |
137.000 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1017.882 |
813.483 |
525.400 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
3108.269 |
2038.669 |
1918.400 |
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Other Income |
17.692 |
24.033 |
2.900 |
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Total Income |
3125.961 |
2062.702 |
1921.300 |
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Profit/(Loss) Before Tax |
72.769 |
41.476 |
0.800 |
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Provision for Taxation |
24.926 |
8.476 |
[1.900] |
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Profit/(Loss) After Tax |
47.843 |
33.000 |
2.700 |
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Earnings in Foreign Currency : |
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Export Earnings |
106.818 |
56.679 |
NA |
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Imports : |
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Capital Goods |
33.590 |
0.000 |
NA |
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Expenditures : |
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Raw Material Consumed |
2550.577 |
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Packaging Materials Consumed |
81.644 |
72.437 |
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Manufacturing |
136.850 |
122.972 |
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Personnel |
55.139 |
54.849 |
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Administration |
35.910 |
30.675 |
1920.500 |
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Selling and Distribution |
65.265 |
36.680 |
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Finance Charges |
42.074 |
17.188 |
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Depreciation & Amortization |
27.746 |
16.655 |
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Increase/(Decrease) in Finished Goods |
57.987 |
[195.268] |
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Total Expenditure |
3053.192 |
2021.226 |
1920.500 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
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Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
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Sales Turnover |
476.700 |
454.600 |
1021.300 |
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Other Income |
0.000 |
0.000 |
0.000 |
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Total Income |
476.700 |
454.600 |
1021.300 |
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Total Expenditure |
485.200 |
435.900 |
942.100 |
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Operating Profit |
[8.500] |
18.700 |
79.200 |
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Interest |
18.600 |
21.000 |
21.300 |
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Gross Profit |
[27.100] |
[2.300] |
57.900 |
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Depreciation |
10.600 |
10.600 |
10.600 |
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Tax |
0.200 |
0.300 |
0.400 |
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Reported PAT |
[37.900] |
[13.200] |
46.900 |
KEY RATIOS
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
1.73 |
1.31 |
0.75 |
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Long Term Debt-Equity Ratio |
1.32 |
0.98 |
0.30 |
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Current Ratio |
1.02 |
1.20 |
1.20 |
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TURNOVER RATIOS |
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Fixed Assets |
3.55 |
3.68 |
4.51 |
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Inventory |
9.14 |
7.68 |
8.90 |
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Debtors |
27.95 |
21.13 |
24.18 |
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Interest Cover Ratio |
2.72 |
2.43 |
0.89 |
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Operating Profit Margin(%) |
4.58 |
2.88 |
0.92 |
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Profit Before Interest And Tax
Margin(%) |
3.69 |
2.06 |
0.48 |
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Cash Profit Margin(%) |
2.43 |
1.74 |
0.48 |
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Adjusted Net Profit Margin(%) |
1.54 |
0.93 |
0.05 |
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Return On Capital Employed(%) |
12.87 |
6.36 |
1.97 |
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Return On Net Worth(%) |
14.59 |
6.58 |
0.33 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Milkfood is a Punjab-based company, controlled by the Jaiswal
family through L P Investments, a subsidiary of Jagatjit Industries, commenced
commercial production in 1973.
The company manufactures and markets milk and milk products. The main products
are milk powder, ghee, baby food, ice-creams and yoghurt.
The company came out with a convertible debenture offer in Feb.'91 to
part-finance normal capital expenditure, to repay loans and for long-term
working capital.
Brooke Bond Lipton India has acquired the marketing and distribution rights of
the Milkfood range of ice-creams. Milkfood has over 2000 vending outlets
predominantly in Delhi and Punjab.
During the year 1999-2000, an amount of Rs.32.821 Millions was paid towards
final instalment of redemption of debentures.
The company is planning to upgrade its technology, modnerise its
plants/training and motivation of employees, improve the capacity utilisation
for the year 2001-02.
OPERATIONS:
During the period under Report, the Company's Sales were Rs. 3125.900 Millions
and cash profit Rs. 100.500 Millions as compared to last year's figures of
Rs.2062.700 Millions and cash profit of Rs. 58.100 Millions respectively. After
depreciation, the profit for the year is Rs. 72.800 Millions as compared to the
profit of Rs. 41.500 Millions in the previous year.
FORMATION
OF WHOLLY OWNED SUBSIDIARY COMPANY:
The Company has formed a Wholly Owned Subsidiary Company in the name of 'Ispace
Developers Pvt. Ltd.' on 29th March 2007. During the year, due to
the disinvestments in the Triplefast Investments Pvt. Ltd., this Company has
ceased to be the subsidiary of the Company.
Industry
Outlook, Opportunities and Threats:
The new plant at Moradabad has become fully operational and has enabled the
Company to procure orders from institutional buyers.
The Company has set up a 100% Export Oriented Unit for manufacture of Value
Added Products like Casein and Demineralised Whey Powder. Overseas parties in
USA and Germany have shown keen interest in the product. The Company has
exported 1,50,000 Kg Casein and Whey Powder in the current year. This will open
the large opportunities of growth in the Dairy Industry.
Milk and product prices have increased during the year. Milk reception is of
good quality. The Company has opened number of Centres for milk collection at
village level. During the current year the Company will be opening more Centres
in Moradabad and in the vicinity of plant at Moradabad and Patiala.
The Company has exported 13,04,000 Kg Skimmed Milk Power, Whole Milk Powder to
overseas buyers in Pakistan, Afghanistan, Myanmar and Nepal. Inspite of tough
competition in the market the Company is playing a leading role in the
market.
Company has taken the effective steps for the reduction of cost and to improve
the quality of the product.
The Company is operating on customized Computer Software Packages with a view
to derive various types of M I S required by different levels of management
functionaries.
There is a procedure of physical verification of fixed and current assets of
the Company at regular intervals. No adverse Inference has been noted at such
physical verification. The Company has a system of assessing the total market
of dairy products in different segments/ territories and efforts are made to
enhance Company's share of the total market.
FIXED
ASSETS
- Freehold Land
- Building
- Plant and
Machinery
- Furniture,
Fixtures and Equipments
- Vehicles
AS PER
WEBSITE
Profile / Business
Milkfood Limited
was set up in the year 1973 with the first Plant at Bahadurgarh , on the Rajpura
Patiala Road in the State of Punjab . The company manufactures Pure Ghee,
Skimmed Milk Powder , Whole Milk Powder, and Dairy Whitener . From the intial
installed capacity of 80 MT of milk processing per day at Patiala during 1974
the Company at has enhanced the processing capacity from time to time and the
present milk processing capacity of all Plants is 1500 MT per day.
In the year 1987
the Company commissioned its Second Plant at Gurgoan in the State of Haryana
for the manufacture of Cultured Desserts like Long Life Yoghurts, UHT Milk ,
Juices etc. and Frozen Desserts Yoghurts like Ice Creams. The Ice Cream brand
"Milkfood 100% Ice cream" still conjurs up memories even years after
it's sale to Hindustan Lever.
The company has
taken on lease a Dairy Plant in 2003 at Hamira, Distt. Kapurthala, in the State
of Punjab to supplement the production capacities by 200 MT of milk processing
per day. The capacity has since been enhanced to 500 MT of Milk Processing per
day.
In 2005, the
company has taken expansion plans further to the State of Uttar Pradesh where a
fully modernised facility has been set up at Village Agwanpur, Tehsil Moradabad
to add capacity of 500 MT of milk processing per day. The plant has commenced
production in November 2005.
Further Expansion
plans for manufacture of Export Oriented and Value added products like Casein ,
Demineralised Whey Powder , Whey Protien Concentrates has been initiated at the
Bahadurgarh facility , which is likely to be commissioned by end of 2006.
Capacity expansion will enable the Bahadurgarh plant to process 700 MT of milk
per day.
The company is
promoted by Mr. Karamjit Jaiswal, Executive Chairman .The Jaiswal family are
also promoters of Jagatjit Industries Limited, which has interests in Alcoholic
Beverages (AC Black, Aristocrat Premium, ACP , Bonnie Scot) , Malted Foods,
Plastic and Glass Bottling and Real Estate. The Group has a Gross Turnover in
excess of INR 5500 Million. The companies Milkfood Limited and Jagatjit
Industries Limited are public limited companies and the Shares are traded on
the Stock Exchanges at Mumbai, Delhi and Ludhiana.
'Premium Quality
and Good Taste ' are the driving factors for the company's products for three decades.
Continuous modernisation have enabled enhancement of product quality over the
years.
At the
International Dairy Federation (IDF) seminar on "Utilization of Dairy
Ingredients in Foods" held at Luxemburg in 1981, Dr. Ernest Mann,
Consultant, IDF, stated that milk has four faces. First two faces are
represented by liquid milk on one hand and traditional dairy products viz. Milk
Powder, Cheese and other traditional cottage dairy products on the other hand.
The third phase of milk is represented by new dairy products tailored to suit
the changing social and dietary habits of the people who have encouraged the
dairy industries of many countries to take a re-look at the new range of
products manufactured and aided by the new technological processes such as fat
fractionate, protein fractionation, electrodialysis, membrane separation etc.
This has helped to further the concept of milk as an industrial liquid whose
ingredients could be extracted and recombined in different ways to form new
processed food products.
The
present expansion by Dairies shall cover the third face of milk viz.
fractionation and extraction of milk ingredient leading to manufacture of
various value added products which is a new and just introduced milk phase in India
and has a long way to go in the time to came i.e. extraction of its ingredients
viz. Casein, Whey proteins, Lactose, Minerals and Dimineralised Whey powder.
The
fourth face of milk is a generator of thousands of ingredients with specified
nutritional and functional property for different branches of food industry
which is revealing milk to be a treasure chest of more than 2000 ingredients.
This phase of milk is yet to be come up.
India
continues to be the largest milk producer of the world , with competitive
advantage of low cost milk production. With the reduction of Farm subsidies
worldwide and advent of world class technologies in India the country is poised
to become the largest exporter of Milk products in the years to come.
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.40.46 |
|
UK Pound |
1 |
Rs.79.50 |
|
Euro |
1 |
Rs.63.09 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
|
59 |
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 |
|