MIRA INFORM REPORT
|
Report Date : |
17.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
TASTY BITE
EATABLES LIMITED |
|
|
|
|
Registered
Office : |
204, Mayfair
Towers, Wakdewadi, Shivajinagar, Pune - 411005, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
02.09.1985 |
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|
|
|
Com. Reg. No.: |
11-037347 |
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|
|
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Capital
Investment / Paid-up Capital : |
Rs. 31.613 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L15419PN1985PLC037347 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNET03922C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACT2317A |
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|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer and Sellers of Prepared Foods. |
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|
|
|
No. of Employees
: |
185 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1200000 |
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|
|
|
Status : |
Satisfactory |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is an established company having satisfactory track record. Company performance has improved. Overall financial position of the
company is decent. Trade relations are reported to be fair. Business is active. Payments are
reported to be regular and as per commitment. The company can be considered for business dealing 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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard and Poor said increasing focus by India Inc on lowering debt is
likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long term Fund Based Limits - Cash Credit = BBB |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk. |
|
Date |
September, 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short term Fund Based Limits = A2 |
|
Rating Explanation |
Strong degree of safety and low credit risk. |
|
Date |
September, 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED BY
|
Name : |
Ms. Minal Talwar |
|
Designation : |
Account Executive |
|
Date : |
10.04.2014 |
LOCATIONS
|
Registered Office : |
204, |
|
Tel. No.: |
91-20-25510685 |
|
Fax No.: |
91-20-50625331 / 25512695 |
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E-Mail : |
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|
Website : |
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|
Factory : |
Khutbhao and |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Ashok Vasudevan |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Ravi Nigam |
|
Designation : |
Managing Director |
|
Qualification : |
Masters in Rural
Managements |
|
Previous
Employment: |
Chief General
Manger, Ballarpur Industries Limited |
|
|
|
|
Name : |
Mrs. Meera Vasudevan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. P. Balasubramaniam |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. V. S. Arunachalam |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kavas Patel |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Sohel Shikari |
|
Designation : |
Alternate Director |
KEY EXECUTIVES
|
Name : |
Ms. Minal Talwar |
|
Designation : |
Account Executive |
|
|
|
|
Name : |
Mrs. Anuja Laturkar (up to 31st May 2013) |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1904510 |
74.22 |
|
|
1904510 |
74.22 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
1904510 |
74.22 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1500 |
0.06 |
|
|
1500 |
0.06 |
|
|
|
|
|
|
58084 |
2.26 |
|
|
|
|
|
|
371790 |
14.49 |
|
|
213218 |
8.31 |
|
|
16898 |
0.66 |
|
|
12511 |
0.49 |
|
|
145 |
0.01 |
|
|
4242 |
0.17 |
|
|
659990 |
25.72 |
|
Total Public shareholding (B) |
661490 |
25.78 |
|
Total (A)+(B) |
2566000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
2566000 |
0.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
567000 |
0.00 |
|
|
567000 |
0.00 |
|
Total (A)+(B)+(C) |
19969286 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Sellers of Prepared Foods. |
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|
Brand Names : |
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GENERAL INFORMATION
|
No. of Employees : |
185 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
|
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Banking
Relations : |
--- |
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|
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Auditors : |
|
|
Name : |
Kalyaniwalla and
Mistry Chartered Accountants |
|
Address : |
Pune, Maharashtra, India |
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|
|
|
Holding Company : |
|
|
|
|
|
Ultimate Holding
Company |
ASG OMNI L.L.C. |
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|
|
|
Fellow Subsidiary |
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|
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|
|
Enterprises Over
Which Key Management Personnel Exercise Significant Influence |
K. S. Shikari and Associates |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4400000 |
Equity Shares |
Rs.10/- each |
Rs. 44.000 Millions |
|
60000 |
1%
Non-Cumulative, Non-Convertible Redeemable Preference Shares |
Rs.100/- each |
Rs. 6.000 Millions |
|
|
Total |
|
Rs.50.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2566000 |
Equity Shares |
Rs.10/- each |
Rs. 25.660 Millions |
|
59530 |
1%
Non-Cumulative, Non-Convertible Redeemable Preference Shares |
Rs.100/- each |
Rs. 5.953 Millions |
|
|
Total |
|
Rs.31.613 Millions |
Reconciliation of
shares outstanding at the beginning and at the end of the reporting period
|
Equity Shares |
As at 31st March, 2013 |
|
|
|
No. of shares |
Rs. In Millions |
|
At the beginning of the year |
2,566,000 |
25.660 |
|
Issues during the year |
-- |
-- |
|
Outstanding at the end of the year |
2,566,000 |
25.660 |
|
1% Non-Cumulative,
Non-Convertible, Redeemable Preference Shares |
As at 31st March, 2013 |
|
|
|
No. of shares |
Rs. In Millions |
|
At the beginning of the year |
59,530 |
5.953 |
|
Issues during the year |
-- |
-- |
|
Outstanding at the end of the year |
59,530 |
5.953 |
Details of shares
held by Holding Company
Out of above, 1,904,510 Equity shares and 59,530 1% Non-Cumulative, Non-Convertible, Redeemable Preference Shares are held by Preferred Brands Foods (India) Private Limited, the Holding Company, the subsidiary of Preferred Brands International Inc., USA, the subsidiary of ASG Omni LLC, the Ultimate Holding Company.
Details of
shareholders holding more than 5% shares in the Company
|
Name of the
Shareholder |
As at 31st March, 2013 |
|
|
|
% holding |
No. of shares |
|
Preferred Brands Foods (India) Private Limited |
74.22 |
1,904,510 |
|
K. Swapna |
6.15 |
157,900 |
Terms attached to
Equity Shares
The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
Rights, Preferences
and Restrictions attaching to each class of shares including restrictions on
the distribution of dividends and repayment of capital.
1% Non-Cumulative, Non-Convertible, Redeemable Preference Shares are redeemable on or before August 31, 2018 at a premium of Rs.1,950 per share. The preference shareholder reserves the right to demand for redemption of preference shares during the period upto 31st August, 2018.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
31.613 |
31.613 |
31.613 |
|
(b) Reserves & Surplus |
273.076 |
212.892 |
199.320 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
304.689 |
244.505 |
230.933 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
291.103 |
105.746 |
99.900 |
|
(b) Deferred tax liabilities (Net) |
19.735 |
19.147 |
13.714 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
7.544 |
5.479 |
8.363 |
|
Total Non-current
Liabilities (3) |
318.382 |
130.372 |
121.977 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
104.567 |
85.462 |
64.631 |
|
(b) Trade
payables |
126.155 |
94.259 |
92.886 |
|
(c) Other
current liabilities |
54.597 |
46.106 |
43.187 |
|
(d) Short-term
provisions |
25.506 |
6.306 |
14.516 |
|
Total Current
Liabilities (4) |
310.825 |
232.133 |
215.220 |
|
|
|
|
|
|
TOTAL |
933.896 |
607.010 |
568.130 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
323.340 |
305.974 |
223.663 |
|
(ii) Intangible
Assets |
0.908 |
1.656 |
2.406 |
|
(iii)
Capital work-in-progress |
117.138 |
6.687 |
12.806 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
52.363 |
4.332 |
6.866 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
493.749 |
318.649 |
245.741 |
|
|
|
|
|
|
(2) Current
assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
97.706 |
67.342 |
73.308 |
|
(c) Trade
receivables |
176.885 |
93.017 |
141.481 |
|
(d) Cash
and cash equivalents |
93.749 |
61.604 |
20.274 |
|
(e) Short-term
loans and advances |
70.547 |
66.381 |
84.373 |
|
(f) Other
current assets |
1.260 |
0.017 |
2.953 |
|
Total
Current Assets |
440.147 |
288.361 |
322.389 |
|
|
|
|
|
|
TOTAL |
933.896 |
607.010 |
568.130 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1056.948 |
781.38 |
769.658 |
|
|
|
Other Operating Income |
58.277 |
43.026 |
44.278 |
|
|
|
Other Income |
3.979 |
6.292 |
14.725 |
|
|
|
TOTAL (A) |
1119.204 |
830.698 |
828.661 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of raw materials
including packaging materials consumed |
652.984 |
489.132 |
509.049 |
|
|
|
Changes in inventories of finished
goods, work-in-progress and Stock-in-Trade |
(12.506) |
(2.881) |
(7.536) |
|
|
|
Employees benefits expense |
133.598 |
104.876 |
108.823 |
|
|
|
Other expenses |
213.744 |
182.695 |
161.414 |
|
|
|
Extraordinary Items |
0.837 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
988.657 |
773.822 |
771.750 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
130.547 |
56.876 |
56.911 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
10.541 |
11.727 |
9.298 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
120.006 |
45.149 |
47.613 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
26.965 |
21.154 |
16.762 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
93.041 |
23.995 |
30.851 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
29.785 |
7.371 |
11.973 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
63.256 |
16.624 |
18.878 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
81.600 |
68.028 |
52.202 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.060 |
0.060 |
0.060 |
|
|
|
Dividend |
2.566 |
2.566 |
2.566 |
|
|
|
Tax on Dividend |
0.446 |
0.426 |
0.426 |
|
|
BALANCE CARRIED
TO THE B/S |
141.784 |
81.600 |
68.028 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
669.570 |
549.080 |
547.301 |
|
|
|
Other |
0.000 |
0.000 |
3.375 |
|
|
TOTAL EARNINGS |
669.570 |
549.080 |
550.676 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Packing Materials |
106.064 |
80.034 |
75.618 |
|
|
|
Plant and Machinery |
59.771 |
29.742 |
55.432 |
|
|
|
Stores and Spares |
4.964 |
3.132 |
0.962 |
|
|
TOTAL IMPORTS |
170.799 |
112.908 |
132.012 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
After Extraordinary items |
24.62 |
6.45 |
7.33 |
|
|
|
Before Extraordinary items |
24.95 |
6.45 |
7.33 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
5.65 |
2.00 |
2.28 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.80 |
3.07 |
4.01 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.39 |
4.00 |
5.56 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.31 |
0.10 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.30 |
0.78 |
0.71 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.42 |
1.24 |
1.50 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
31.613 |
31.613 |
31.613 |
|
Reserves & Surplus |
199.320 |
212.892 |
273.076 |
|
Net
worth |
230.933 |
244.505 |
304.689 |
|
|
|
|
|
|
long-term borrowings |
99.900 |
105.746 |
291.103 |
|
Short term borrowings |
64.631 |
85.462 |
104.567 |
|
Total
borrowings |
164.531 |
191.208 |
395.670 |
|
Debt/Equity
ratio |
0.712 |
0.782 |
1.299 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
769.658 |
781.380 |
1056.948 |
|
|
|
1.523 |
35.267 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
769.658 |
781.380 |
1056.948 |
|
Profit |
18.878 |
16.624 |
63.256 |
|
|
2.45% |
2.13% |
5.98% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
LITIGATIONS DETAILS
|
Case Details |
|
|
Case Type |
Sum Case |
|
Filing No. |
2200995/1994 Filing date: 28-06-1994 |
|
Registration No. |
2200995/1994 Registration date: 28-06-1994 |
|
Case code |
203422009951994 |
|
CASE STATUS |
|
|
First Hearing Date |
14-03-2006 |
|
Next Hearing Date |
03-04-2014 |
|
Purpose of Hearing |
|
|
Court No &
Judge |
1 - JOINT CIVIL JUDGE J.D. AND J.M.F.C. DAUND |
GENERAL INFORMATION
Subject is in the business of manufacturing and selling ‘Prepared Foods’. It includes a range of Ready-to-Serve (‘RTS’) ethnic food products under the brand name ‘Tasty Bite’ and Frozen Formed Products (‘FFP’). The Company has manufacturing facility near Pune in India. The Company is a public limited company and is listed on the Bombay Stock Exchange.
FINANCIAL PERFORMANCE
AND OPERATIONS
The year 2012-13 has been a landmark year for the company. Total revenues crossed the Rs. 1000.000 Millions mark during the year increasing 35% over the previous year to close the year at Rs. 1120.000 Millions.
At operations level, the turnover for FY 12-13 was Rs. 1057.000 Millions as against Rs. 781.000 Millions in previous FY, an increase of 35%. Revenues from both exports and domestic market rose significantly. Exports increased by 22% to reach Rs.716.000 Millions whereas domestic turnover grew 75% to Rs.339.000 Millions in the current financial year.
Also, the Company got the benefits of volume leverage and productivity improvement as a result of operating efficiencies realized in the second half of the year.
Better results are largely attributable to increase in domestic customers coupled with increased product range and better margins. On export front also, the Company benefitted on account of consistent margins during the year due to forex gains. The effect was well reflected in the profits after tax which increased to Rs. 63.000 Millions from Rs. 16.000 Millions in previous year.
The expansion work relating to the domestic business is going on in full swing and it is expected to commission in the first half of the ensuing financial year.
FINANCE
The Company continues its relationship with Axis Bank Limited (Axis) for its working capital requirements of Rs.130.000 Millions including LER limits of Rs. 35.000 Millions.
During the year, the Company availed credit facilities of Rs.25.000 Millions from Ratnakar Bank Limited on account of closure of its facilities with Citibank N.A. ('Citibank'). Subsequently, the charge created on the assets of the Company in favour of Citibank has been satisfied on April 1, 2013.
During the year, the Company received approval from Reserve Bank of India to avail External Commercial Borrowing (ECB) of US$4.0 million from Worldbusiness Capital Inc., US to fund the expansion of its manufacturing facilities. As on March 31, 2013, the Company has fully drawn down the same.
As on March 31, 2013, the Company has completed repayment of five installments of USD 50,000 each towards the External Commercial Borrowing of USD 1 mn to its holding company Preferred Brands International Inc. Also, the Term Loan availed from Axis Bank Limited., has been repaid in full during the year.
ICRA Limited. assigned long term rating of ICRA BBB (pronounced as ICRA triple B) with a stable outlook and short term rating as ICRA A2 (pronounced as ICRA A two) to Rs. 250.000 Millions credit line of the Company.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
Subject manufactures the "Tasty Bite," brand of shelf stable, all-natural, ready-to-serve (RTS) ethnic food products. Tasty Bite is the leading brand in the prepared ready-to-eat Indian foods category in the US and amongst the top four in the Asian category. The brand offers a variety of shelf-stable pouches of Indian entrées and sides made with farm-fresh, natural ingredients.
Tasty Bite continues to strengthen its position and continues to be the No. 1 shelf-stable Indian brand. In the broader Indian and pan-Asian category, Tasty Bite commands a 65% share of the natural category growing 17.1% YoY while in the conventional supermarket category has a 24% market share and growing 13.6% YoY1.
The products of the Company are marketed in North America and Australia through its associated enterprises Preferred Brands International and Preferred Brands Australia, respectively.
The grocery segment pertaining to the Company's products, namely the international/ethnic foods category is approximately $2.5 billion in size and growing at a rate of 15-20%. Ethnic food mainly consists of Mexican/Hispanic foods, Asian and Indian Foods. This is one of the fastest growing segments of supermarkets and driven by an increasingly diverse population, a growing interest in international foods driven by travel and cooking shows and the growing number of ethnic restaurants.
Reasons behind the increasing popularity of ethnic foods are:
- The expanding ethnic population influencing the American palate and piquing "mainstream" Americans' interest in new cuisines
- Spice and flavors are gaining traction and consumer demand for such products continue to grow
- Exposure to international foods when Americans dine at restaurants
- Increasing trend of cooking and recreating ethnic dishes at home. Cooking is experiencing something of resurgence due in part to a newfound frugality prompted by the economic recession. Americans are eating out less and cooking more meals at home.
- Popularity of cooking television shows
- And rise in international travel over the last decade boosting interest in global cuisines.
Asian foods holds the second-largest share (29%) of the ethnic foods market and continues a steady growth trend. Sales of Asian foods made strong gains, increasing nearly 15% from 2007-09 while Indian foods have also been growing at a compounded rate of 10% over the last five years. Asian foods are a much larger industry, having sales of $700 million, compared to Indian foods which is a $41 million category.
The three major global food trends driving the growth of the Company's revenues in its international markets are:
- Increased focus on illnesses (like diabetes, heart disease, and obesity) has resulted in consumers taking health into consideration when making food choices and purchasing packaged foods.
- Consumers are increasingly eating at home and are seeking products that are convenient to prepare and integrate into their meals while adding new flavors and cuisines.
- Growth of international cuisines also called specialty foods. Cuisines such as Indian and Asian are growing in demand.
Tasty Bite continues to occupy the 'sweet spot' across these three industry mega-trends. Tasty Bite products are ready-to-serve, microwavable, all natural and vegetarian.
In addition to the export market, the domestic Indian market provides growing opportunities for the Company in the food-service arena. In India, the Company develops and manufactures a range of products for institutional users such as quick-service restaurants, HORECA (hotels, restaurants and catering institutions), and other retail and corporate customers. The Company's strategy is to partner with industry leaders in these segments to develop and manufacture products specifically for the Indian consumer market. The Company has started focusing on developing and manufacturing products for leading market players of packaged food industry. This segment is expected to see robust growth over the next several years.
The Indian quick service restaurant is approximately US $800 mn in size and estimated to be growing at a rate of approximately 40% per annum. A recent study indicates that an urban Indian eats out over 6 times a month (a 300% growth compared to a decade back), many a time at such restaurants. This change in eating habits has grown and will continue to grow given the young demographics of the country, rising disposable incomes and the emergence of dual income nuclear families. Over the course of the last fiscal year, the Company's domestic food service business grew 75%.
The other growth area is expected to be in packaged foods. According to a study by Assocham, the packaged food industry in India is likely to double by 2015 to reach a size of USD 30 billion from the current USD 15 billion owing to rising incomes, changing urban lifestyles and modern retail trade. Consumers are seeking products that are convenient and reduce preparatory time of meals at home and also seeking products offering newer flavours and ingredients.
The Company's mission statement reflects its consumer focus approach to its strategy. The Company also continues to use the Spice Card approach in order to align business and functional initiatives to the overall strategy of the Company.
Purpose To be a socially-responsible company that will delight consumers by offering
Advantage Great taste, Good value and Real Convenience achieved through
Scope Manufacturing and Marketing Natural, Convenient and Specialty Foods in a
Environment knowledge driven, energetic and fun work environment
This strategy has resulted in growth of 11.49% per annum in total revenues over the past four years with growth in export market of 6.15% per annum and domestic sales increases of 33.15% CAGR.
TBEL manufactures its products in a world-class, versatile manufacturing facility located near Pune, India encompassing manufacture of products in multiple formats (shelf-stable, frozen), multiple packaging (pouches, trays), multiple cuisines and multiple pack sizes. The Company prides itself on its quality and has endeavored to set industry standards of quality assurance.
In the second half of the year, the Company started benefitting from its investments made in the previous financial year to enhance its manufacturing capacity to over 100,000 meals per day in addition to manufacturing prepared frozen formed products. The increase in efficiency derived by way of reduction of direct manufacturing costs.
The Company started implementing a US$ 6 million capital expenditure program during FY13 to augment its manufacturing capacity for its food service business. A state-of-art new sauce manufacturing plant and a frozen foods line have been installed and will be commissioned in mid-2013.
The Tasty Bite Research Center (TBRC) continues to build on its strong foundation or Research and Development in products, ingredients and processes and provide the Company with a sustainable platform for growth. TBRC is recognized by the Department of Science and Industrial Research (DSIR) as an "In-house R&D facility". A strong team of highly skilled culinary professionals and food technologists work towards development of improving existing SKUs, adding new SKUs to existing product categories as well as focusing on developing new product categories. TBRC is committed towards delivering 'consumer delight' by building on the Company's strategic advantage of providing consumers great taste, good value and a high-speed response. During the course of the year TBRC developed, innovative, ready-to-eat Asian range of noodles was launched in the US market. TBRC also collaborates with global food and technology experts to develop new recipes and understand new technologies for its international and domestic markets.
The Company has been recognized for its sustained export performance and is currently certified as an Export House.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10406414 |
06/02/2013 |
25,000,000.00 |
THE RATNAKAR BANK LIMITED |
SHAHUPURI,KOLHAPUR, YAPARI PETH, KOLHAPUR, MAHARASHTRA - 416001, INDIA |
B68969021 |
|
2 |
10375921 |
18/09/2012 |
217,040,000.00 |
WORLDBUSINESS CAPITAL INC. |
ONE STATE STREET, SUITE 2350, HARTFORDCT, - 06103, UNITED STATES OF AMERICA |
B57879355 |
|
3 |
10280862 |
11/03/2011 |
47,026,379.00 |
PREFERRED BRANDS INTERNATIONAL INC. USA |
9, WEST BROAD STREET, 5TH FLOOR, CONNECTICUT, ST AMFORD, - 06902, UNITED STATES OF AMERICA |
B09613696 |
|
4 |
10129997 |
15/11/2012 * |
130,000,000.00 |
AXIS BANK LIMITED |
214/215, CITY MALL, 2ND FLOOR,, GANESHKHIND (PUNE |
B62166053 |
|
5 |
80063492 |
20/10/2011 * |
58,838,000.00 |
PREFRRED BRANDS INTERNATIONAL INC. USA |
9, WEST BROAD STREET, 5TH FLOOR, CONNECTICUT, STA |
B25225541 |
* Date of charge modification
FIXED ASSETS
- Buildings
- Plant and Machinery
- Office Equipment
- Computers
- Furniture and Fixtures
- Vehicles
- Electrical Installations
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 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 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.6023 |
|
|
1 |
Rs.100.79 |
|
Euro |
1 |
Rs.83.29 |
INFORMATION DETAILS
|
Information
Gathered by : |
HET |
|
|
|
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
50 |
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 |
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 |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.