MIRA INFORM REPORT

 

 

Report Date :

01.08.2014

 

IDENTIFICATION DETAILS

 

Name :

BURGER KING INDIA PRIVATE LIMITED

 

 

Registered Office :

1, Indiabulls Centre, 16th Floor, Senapati Bapat Marg, Elphinston, Mumbai – 400013, Maharashtra

 

 

Country :

India

 

 

Date of Incorporation :

11.11.2013

 

 

Com. Reg. No.:

11-249986

 

 

Capital Investment / Paid-up Capital :

Rs. 195.500 Millions

 

 

CIN No.:

[Company Identification No.]

U55204MH2013FTC249986

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

It’s a Restaurant. 

 

 

No. of Employees :

25 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

-

 

NB

                                       New Business

-

 

Status :

New business

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is a new company establishing itself gradually.

 

Mr. Sagar Patil, Finance controller provided general information and confirmed that general information and confirmed that the company has not yet commenced any commercial activity.

 

Trade relations are improving. Business is active. Payment terms are unknown.

 

In view of infancy, the company can be considered for business dealings on a safe and secured 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.

 

INDIAN ECONOMIC OVERVIEW

 

N E W S

 

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

 

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

 

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

 

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

 

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 31-03-2014.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Sagar Patil

Designation :

Finance Controller

Contact No.:

91-22-61033000

Date :

31.07.2014

 

 

LOCATIONS

 

Registered Office :

1, Indiabulls Centre, 16th Floor, Senapati Bapat Marg, Elphinston, Mumbai – 400013, Maharashtra, India

Tel. No.:

91-22-61033000 / 40436000

Fax No.:

Not Available

E-Mail :

spatil@burgerking.in

Website :

http://www.burgerking.in

 

 

Corporate Office :

Unit 502, Peninsula Tower, Peninsula Corporate Park, G.K. Marg, Lower Parel, Mumbai – 400013, Maharashtra, India 

 

 

DIRECTORS

 

 

Name :

Mr. Venkatesh Ssrinivasan Srinivasan

Designation :

Additional director

Address :

21, Purushottam Nagar, S. V. Road, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

08.11.1971

Date of Appointment :

23.06.2014

DIN No.:

02110770

 

 

Name :

Mr. Jayapal Seshadri

Designation :

Director

Address :

54, Paya Lebar Crescent, Singapore – 536128

Date of Birth/Age :

15.08.1970

Date of Appointment :

11.11.2013

DIN No.:

06711357

 

 

Name :

Mr. Michael Heath Ferranti

Designation :

Additional director

Address :

2, Sinaran Drive, #24-07 Soleil Sinaran, Singapore – 307467, India

Date of Birth/Age :

22.11.1982

Date of Appointment :

05.03.2014

DIN No.:

06831416

 

 

KEY EXECUTIVES

 

Name :

Mr. Sagar Patil

Designation :

Finance Controller

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 06.11.2013

 

Names of Shareholders

 

No. of Shares

QSR Asia Pte. Limited, Singapore 

 

9999

Ashutosh Arvind Lavakare

 

1

 

 

 

Total

 

10000

 

 

BUSINESS DETAILS

 

Line of Business :

It’s a Restaurant. 

 

 

Terms :

 

Selling :

Cash

 

 

Purchasing :

Cash

 

 

GENERAL INFORMATION

 

No. of Employees :

25 (Approximately)

 

 

Bankers :

HDFC Bank Limited, Fort Branch, Mumbai, Maharashtra, India

 

 

Facilities :

--

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

B S R and Company LLP

Chartered Accountants

Address :

Lodha Excelus, 1st Floor, Apollo Mills Compound, N. M. Joshi Marg, Mahalakshmi, Mumbai – 400011, Maharashtra, India

PAN No.:

AAAFB9852F

 

 

CAPITAL STRUCTURE

 

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

65000000

Equity Shares

Rs.10/- each

Rs. 650.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

19550000

Equity Shares

Rs.10/- each

Rs. 195.500 Millions

 

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

NEW BUSINESS

 

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

Yes

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

No

12]

Profitability for last three years

No

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

No

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

No

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

No

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

No

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

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

No

 

PRESS RELEASE

 

COMING SOON: BURGER KING IN MUMBAI, NCR

 

MUMBAI: American fast-food giant Burger King will open its first few outlets in the country by year-end as it aims to make India, along with China, its biggest market in Asia-Pacific. The outlets will come up in Mumbai and Delhi.

Coming at a time when rivals like McDonald's, Domino's Pizza and Yum! Brands have established a long lead here, Burger King will look to penetrate the untapped smaller towns to gain a toehold in the market, said a senior executive from the Miami-based chain.


"China and India will be the two growth engines for us," said Elias Diaz Sese, president, APAC, Burger King, in a chat with TOI.

 

Burger King has a joint venture with the Everstone Group, an India-focused, Singapore-based private equity and real estate group, to open a few hundred stores here over the next ten years. Having stepped up its international expansion, particularly in Asia, and post the entry of its new owner 3G Capital in 2010, the hamburger chain is banking on the new growth wave in the continent propelled by favourable demographics and consumers' increased eating-out occasions.


Burger King formed a joint venture in 2012 to open 1,000 restaurants in China by 2015. It recently started selling burgers in Pakistan and Brunei.


India has been untouched by the maker of the Whopper burger in stark contrast to many other western fast-food chains who spotted the opportunity in the 1990s post the economic liberalization. "Deciding on a partner in India was tedious. We met most of the large corporations and players in the F&B space," said Sese, justifying the chain's delayed entry.


Burger King has been expanding in newer countries amid a tough fast-food market in the US, mainly through a franchised model, which also has been a cause of concern among the investor community despite the business growing steadily. With its 33-year-old CEO Daniel Schwartz at the helm, who spearheaded major spending cuts at the company, Burger King now owns just 52 stores. In 2010, when 3G Capital bought the chain, Burger King owned 11% of the total stores, according to a recent Bloomberg Businessweek story.


The Asia-Pacific region, where Australia and South Korea have been major growth drivers, accounted for 5% of Burger King's $1.14-billion revenue last year. "It (Asia-Pacific) is the smallest contributor but with the largest potential," said Raj Varman, CEO, Burger King India. The 60-year-old burger chain is currently putting together building blocks to roll out stores in India by the last quarter of this year, Varman said.


Currently, almost 40% of the western fast-food market by value sales lies between Delhi NCR and Greater Mumbai, which means there is a much bigger potential outside these two cities, said Jaspal Singh Sabharwal of Everstone Capital. Burger King and Everstone may look to sub-franchise the brand for airport and railway retailing at a later stage, Sabharwal said.


While Burger King offers vegetarian burgers and spicy bean burgers in Canada and UK, it will unveil a segregated vegetarian menu here in India, a common practice for most Western fast-food brands. Nearly two-thirds of Indians now eat out at least once a week, boosting the growth of the restaurant industry, which is expected to touch $26 billion in 2015, according to industry data.

 

CHINA FOOD SCANDAL SPREADS, DRAGS IN STARBUCKS, BURGER KING AND MCNUGGETS IN JAPAN

 

SHANGHAI, July 22 (Reuters) - The latest food scandal in China is spreading fast, dragging in U.S. coffee chain Starbucks , Burger King Worldwide Inc and others, as well as McDonald's products as far away as Japan.

McDonald's Corp and KFC's parent Yum Brands Inc apologised to Chinese customers on Monday after it emerged that Shanghai Husi Food Co Ltd, a unit of U.S.-based OSI Group LLC, had supplied expired meat to the two chains.

 

On Tuesday, Starbucks said some of its cafes previously sold products containing chicken originally sourced from Shanghai Husi, a firm that was shut down on Sunday by local regulators after a TV report showed staff using expired meat and picking up meat from the floor to add to the mix.

 

A Tokyo-based spokesman at McDonald's Holdings Co (Japan) Ltd said the company had sourced about a fifth of its Chicken McNuggets from Shanghai Husi and had halted sales of the product on Monday. Alternative supplies of chicken have been found in Thailand and China, he added. The company's shares briefly fell as much as 1.4 percent to a 15-month low before closing down 0.4 percent.

 

China's food watchdog said it ordered regional offices to carry out spot checks on all firms which had used Shanghai Husi products, and would inspect all of parent OSI's sites around China to see if enough has been done to ensure food safety. It said the case could be handed over to the police.

 

The regulator's Shanghai branch said in a statement on Tuesday it had demanded production, quality control and sales from OSI. It added it already ordered McDonald's to seal over 4,500 boxes of suspected meat products and Yum's Pizza Hut to seal over 500 boxes of beef.

 

Fast-food chain Burger King and Dicos, China's third-ranked fast food chain owned by Ting Hsin International, said they would remove Shanghai Husi food products from their outlets. Pizza chain Papa John's International Inc said on its Weibo blog that it had taken down all meat products supplied by Shanghai Husi and cut ties with the supplier.

 

FOOD SAFETY CONCERNS

 

Food safety is one of the top issues for Chinese consumers after a scandal in 2008 where dairy products tainted with the industrial chemical melamine led to the deaths of six infants and made many thousands sick. Other food scandals have hit the meat and dairy industries in recent years, and many Chinese look to foreign brands as offering higher safety standards.

 

China is McDonald's third-biggest market by number of restaurants and Yum's top market by revenue. McDonald's is due to report quarterly earnings later on Tuesday.

 

The scare has stirred local consumers and become one of the most discussed topics online among the country's influential 'netizens', with some users spreading long lists of firms thought to be tarnished.

 

The incident highlights the difficulty in ensuring quality and safety along the supply chain in China. Wal-Mart Stores Inc came under the spotlight early this year after a supplier's donkey meat product was found to contain fox meat. It also came under fire for selling expired duck meat in 2011.

 

Starbucks said on its Chinese microblog site that it had no direct business relationship with Shanghai Husi, but that some of its chicken acquired from another supplier had originally come from Husi for its "Chicken Apple Sauce Panini" products. This had been sold in 13 different provinces and major cities. The company added that all the products had already been removed from its shelves.

 

Burger King said in a Weibo statement posted late on Monday that it had taken off its shelves all meat products supplied by Shanghai Husi Food and had launched an investigation.

 

Dicos said it pulled all ham products supplied by Shanghai Husi, and would stop serving its ham sandwich product for breakfast. "We will continue to carry out a probe into Shanghai Husi Food and its related firms, to understand whether or not it followed national regulations," Dicos said in a statement.

 

Swedish furniture firm IKEA, which has in-store food outlets, said on Weibo that Shanghai Husi had previously been a supplier, but had not provided the firm with products since September last year. Domino's Pizza Inc and Doctor's Associates Inc's Subway brand, which were named in online reports as being supplied meat from Shanghai Husi, said their outlets in China did not use meat products from the firm.

 

Yoshinoya-parent Hop Hing Group Holdings Ltd, Japanese convenience store FamilyMart Co Ltd and Chinese chain Wallace urged diners not to worry, and said they did not currently use any products from Shanghai Husi. (Additional reporting by Pete Sweeney, Shanghai Newsroom and Teppei Kasai in TOKYO,; Editing by Kazunori Takada and Ian Geoghegan)

 

US-BASED BURGER CHAIN THE COUNTER TO OPEN OUTLETS IN MUMBAI AND DELHI, PRICING TO BE 400 UPWARDS

 

MUMBAI: Los Angeles-based burger chain The Counter, which is featured in GQ magazine's '20 Hamburgers You Must Eat Before You Die', is entering India. With over 3,000 different combinations, a burger at Counter will cost a minimum Rs 400. That's eight times more than the rates at the most famous global burger chain, McDonald's, which operates assembly line-like stores in 13 Indian cities.

 

"In India, we either have lower-priced burgers or the ones available at the coffee shops of 5-star hotels. There is a huge gap and potential between these segments, which we hope to fill through The Counter with a fine-dining positioning," said Gaurav Marya, chairman of Franchise India, which is partnering The Counter in India.

 

Franchise India is a retail solutions provider that helped several QSR (quick-service-restaurant) chains such as Chicago Pizza, San Churro Amore Gourmet, Fruitilicious and Gelato expand in India.

 

The Counter is planning to open a dozen outlets in Mumbai and Delhi in the first phase. Globally, it sells its "custom-built" burgers through 33 stores in the US and four outlets in Dublin, Kuwait and Jeddah.

 

However, industry observers are surprised at the introduction of a pricier version of what's seen as a fast food, especially when consumers are limiting discretionary spending due to economic slowdown.

 

"The Counter will have to deal with pricing issues, which might crop up, and also the fact that the younger generation has been moving towards healthier options," said Ruchi Sally, director at Elargir Solutions, a boutique retail consultancy.

 

In India, 'dine-in' accounts for almost 67% of sales at quick-service-restaurants, while 'takeaways' account for 19%, says a report by the National Restaurant Association of India and research firm Technopak. At least 50% of consumers eat out at least once every three months today, and the QSR concept played a significant role in this shift, says the report.

 

The Counter will soon be joined by Los Angeles-based gourmet burger chain Fatburger India, and possibly by Burger King later. McDonald's, which entered the country in the mid 1990s, is by far the market leader in the segment, growing 30% annually.

 

 


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. 60.25

UK Pound

1

Rs. 101.92

Euro

1

Rs. 80.70

 

 

INFORMATION DETAILS

 

Information Gathered by :

HTL

 

 

Analysis Done by :

SUB

 

 

Report Prepared by :

DPH

 


 

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

 

--

 

 

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.