MIRA
INFORM REPORT
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Report Date : |
17.03.2011 |
IDENTIFICATION DETAILS
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Name : |
CHRISTY FRIEDGRAM INDUSTRY |
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Registered
Office : |
A-2 and A-3, SIDCO Industrial Estate, Andipalayam, Tiruchengode –
637214, Namakkal District, Tamilnadu |
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Country : |
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Year of
Establishment : |
1989 |
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TIN No.: |
33873200807 |
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CST : |
420697 |
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Legal Form : |
Sole Proprietory Concern |
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Line of Business
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Manufacturer and
supplier of Cereals and Pulses based Ready to Eat Food products and
Supplementary Weaning Food |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (51) |
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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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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 concern having fine track.
Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
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Name : |
Mr. Kannan |
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Designation : |
Office Executive |
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Contact No.: |
91-4288-285401 |
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Date : |
12.03.2011 |
LOCATIONS
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Registered Office : |
A-2 and A-3, SIDCO Industrial Estate, Andipalayam, Tiruchengode –
637214, Namakkal District, Tamilnadu, India
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Tel. No.: |
91-4288-285401 / 285564 / 285601 / 285064 |
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Fax No.: |
91-4288-285963 |
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E-Mail : |
purchase@christyfoods.in [Purchase Department] marketing@christyfoods.in [Marketing Department] qc@christyfoods.in [Quality Control Department] technical@christyfoods.in [Maintenance Department] admin@christyfoods.in [Administration Department] |
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Website : |
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Factory : |
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Branches : |
Located at :
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SOLE PROPRIETOR
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Name : |
Mr. T S Kumarasamy |
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Designation : |
Proprietor |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and
supplier of Cereals and Pulses based Ready to Eat Food products and
Supplementary Weaning Food |
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Products : |
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Imports : |
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Products : |
Machinery |
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Countries : |
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Terms : |
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Selling : |
Cash and Credit [30 to 60 Days] |
PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Fried gram and other food supplements |
Tones per day |
-- |
200 |
Full capacity |
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GENERAL INFORMATION
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Customers : |
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No. of Employees : |
500 |
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Bankers : |
Indian Bank, Tiruchengode |
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Facilities : |
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Banking
Relations : |
-- |
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Associates/Subsidiaries : |
Name of the Company : Rasi Nutri Food (An ISO 22000:2005 and HACCP Certified Company) Address : 1/67-A, 1/67-B, Salem Trichy Main Road, Ayeepalayam, Athanur
– 636301, Rasipuram Taluk, Namakkal District, Tamilnadu, India Tel No. : 91-4287-255255 / 255550 Fax No. : 91-4287-255583 Email : info@rasifoods.com Line of Business : Products
Ingredients
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CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Not Available |
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Borrowed : |
Not Available |
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Total : |
-- |
FINANCIAL DATA
[all figures are
in Rupees Millions]
Not Available
LOCAL AGENCY FURTHER INFORMATION
General Comments on history, commercial activities, any future
programmes, foreign collaboration, etc.:
The turnover for the group for the year 31.3.2010 is 3.50 billion on net
sales and a PAT of about 150 million INR. The Christy group reported a profit
after tax (PAT) of Rs.110 million on net sales of Rs.3.0 billion for 2008-09,
against a PAT of Rs.80 million on net sales of Rs.2.1 billion for 2007-08.
The firm is rated by CRISIL — the premium rating company of India as
follows CRISIL ‘BBB+’ and ‘P2’ for CHRISTY FRIEDGRAM INDUSTRY’s bank facilities
[Indian bank, Tiruchengode]
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Rs. 54.20 Million Lon Term loan |
BBB + /Stable (Assigned) |
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Rs. 902.50 Million Cash Credit / Working Capital Demand Loan * |
BBB + /Stable (Assigned) |
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Rs. 43.30 Million Bank Guarantee |
P2 (Assigned) |
*lncludes a proposed limit of Rs.102.50 Million
CRISIL has assigned its ‘BBB+IStableIP2’ ratings to the bank facilities
of Christy Friedgram Industry (CFI, part of the Christy group). The ratings
reflect the Christy group’s established position in the production of weaning
and energy-based, ready-to-eat foods under the integrated child development
services (ICDS) scheme. The ratings also factor in the group’s healthy
financial risk profile. These rating strengths are partially offset by the
Christy group’s exposure to risks related to the tender-based nature of
business, volatility in raw material prices, geographical concentration in
revenue profile, and limited product diversity.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of CFI, and Rasi Nutri Foods (Rasi), collectively
referred as the Christy group, as Rasi and CFI are in the same line of
business, are managed by the same promoter family, and have operational and
financial linkages with each other.
Outlook: Stable
CRISIL believes that the Christy group will continue to benefit from its
established market position in the weaning foods industry, supported by steady
cash accruals. The outlook may be revised to ‘Positive’ if the group
substantially scales up its operations, and considerably improves its revenue
diversity, while maintaining its profitability. Conversely, the outlook may be
revised to Negative’ if the group’s financial risk profile deteriorates,
because of steep decline in profitability, fresh large, debt-funded capital
expenditure, adverse change in government policy on the implementation of the
ICDS programme, or in case of significant withdrawal of capital by the
promoters.
About the Group
Set up in 1989 as a sole proprietorship concern by Mr. T S Kumarasamy,
CFI manufactures amylase-rich energy food, and weaning food for supply to Tamil
Nadu and Karnataka state government departments, under the national ICDS
programme. CFI’s processing plant, spread across 23 acres in and around SIDCO
Industrial Estate in Tamil Nadu, has a milling and mixing plant capacity of
about 800 tonnes per day (tpd).
Set up in 2000 as a partnership firm by Mrs. Perumayee, Rasi
manufactures cereal- and pulse-based weaning food for supplies to Tamil Nadu
state government departments under the national ICDS programme. It has a
milling and mixing plant, with a capacity of about 200 tpd, in Rasipuram Taluk,
Namakkal District, Tamil Nadu.
The Christy group reported a profit after tax (PAT) of Rs. 110 million
on net sales of Rs.3.0 billion for 2008-09, against a PAT of Rs. 80 million on
net sales of Rs.2.1 billion for 2007-08.
PROFILE
Subject is a manufacturer and supplier of Cereals
and Pulses based Ready to Eat Food products and Supplementary Weaning Food,
established in the year 1989 with the sole motto to deliver, quality and safe
foods on time, every time. This is a Company of 500 strong technical and
skilled personnel guided by the promoter with a decade long experience in the
field of manufacture of Ready to Eat Nutritious Foods. Subject is serving our
nation to eradicate the malnutrition among children, lactating mothers and
nursing women.
They are the first in our nation to obtain BIS product certification for
Protein Rich Food Supplements for Infants and Preschool Children as per IS
7021: 1973 and Edible Groundnut Flour (Expeller Pressed) as per IS:4684:
1975. They Have two factories one in
Tiruchengode in Tamilnadu and one in Attibele, Karnataka. They are ISO
22000:2005 and HACCP certified for Quality Management and Food Safety System.
Subject has technological arrangement with Central
Food Technological Research Institute (CFTRI),
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.27 |
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1 |
Rs.72.94 |
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Euro |
1 |
Rs.63.08 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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51 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.