MIRA INFORM REPORT

 

 

Report No. :

356771

Report Date :

26.12.2015

 

IDENTIFICATION DETAILS

 

Name :

LATHA RICE INDUSTRIES

 

 

Registered Office :

Kh. No. 915, Kanhan Tarsa Road, Mouda, Nagpur - 441106, Maharashtra

Mobile No.:

91-9730004331 (Mr. Mahendra Malakodaiah Muppavarapu)

 

 

Country :

India

 

 

Financials (as on) :

--

 

 

Date of Establishment :

01.10.2015

 

 

Capital Investment :

Not Divulged

 

 

IEC No.:

Not Applicable [As claimed by Company management, the Company does not Export and Import]

 

 

PAN No.:

[Permanent Account No.]

AAGFL0573P

 

 

Legal Form :

Partnership Concern with an Unlimited Liability of the Partners

 

 

Line of Business :

Manufacturer and Trader of Rice and Other Pulses. (Confirmed by Management)

 

 

No. of Employees :

4 (Approximately) (In Office)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

 

PROPOSED CREDIT LINE

-

NB

                                       New Business

-

 

 

Status :

New Concern

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject was established as proprietary firm on August 2015 and Mr. Mahendra Malakodaiah Muppavarapu was the proprietor.

 

Subsequently as on 01st October 2015 the subject got converted into partnership firm and partners are namely Mr. Nagayya Kondayya Muppavarapu and Mr. Mahendra Malakodaiah Muppavarapu.

 

The firm is established to undertake business of manufacturing and trading of rice and other pulses.

 

Mr. Mahendra Malakodaiah Muppavarapu, Partner has provided information to us and claimed that operations under partnership firm will be start from March 2016.

 

Payments are reported to be unknown.

 

In view of aforesaid, the firm can be considered for business dealings on a safe and secure 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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

NOT AVAILABLE

 

 

INFORMATION PARTED BY

 

Name :

Mr. Mahendra Malakodaiah Muppavarapu

Designation :

Partner

Contact No.:

91-9730004331

Date :

24.12.2015

 

 

LOCATIONS

 

Registered Office/ Factory :

Kh. No. 915, Kanhan Tarsa Road, Mouda, Nagpur - 441106, Maharashtra, India

Tel. No.:

Not Available

Mobile No.:

91-9730004331 (Mr. Mahendra Malakodaiah Muppavarapu)

Fax No.:

Not Available

E-Mail :

mahendra.dhhara@gmail.com 

camahendramuppavarapu@gmail.com

Location :

Leased

 

 

PARTNERS

 

Name :

Mr. Mahendra Malakodaiah Muppavarapu

Designation :

Partner

Address :

Plot No. 35-36, Tukaram Nagar, Old Kamptee Road, Kalamana, Nagpur – 440026, Maharashtra, India

Date of Birth/Age :

26.01.1992

Qualification :

Degree

Experience :

5 Years

Work Experience :

Mr. Mahendra M. Muppavar which also having experience in the line of business By looking after the whole Bolla Group’s, Financial Matters Administration, Sale Purchase and Recovery Since last 03 years and now looking towards the potential in the grains business now decided to start the rice mill and entered in to the partnership from October 2015.

 

 

Name :

Mr. Nagayya Kondayya Muppavarapu

Designation :

Partner

Address :

Plot No. 250, Behind Hotel Gomati, Bharat Nagar, Nagpur – 440008, Maharashtra, India 

Date of Birth/Age :

26.01.1962

Qualification :

Degree

Experience :

25 Years

Work Experience :

He is one of the Partner in the firm and is having experience in the line of activity since last 20 year and also having proprietorship firm in the name of V.L. Enterprises and from the month of August 2015. Mr. Nagyya K. Muppavarapu has decided to close the proprietorship firm and entered in the partnership firm and to start the manufacture of all types of rice (agro based) rice mill.

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Trader of Rice and Other Pulses. (Confirmed by Management)

 

 

Brand Names :

·         Bahubali Part 2

·         Deepak

 

 

Agencies Held :

--

 

 

Exports :

--

 

 

Imports :

 

 

 

Terms :

 

Selling :

Credit (30 Days)

 

 

Purchasing :

Credit (30 Days)

 

PRODUCTION DETAILS

Products

 

Installed Capacity

 

 

Rice

12 T/per hour

 

 

GENERAL INFORMATION

 

Suppliers :

Reference:

--

Name of the Person (Designation):

--

Contact Number:

--

Since how long known:

--

Maximum limit dealt:

--

Experience:

--

Remark

--

 

 

Customers :

Wholesalers and Retailers

 

Reference:

--

Name of the Person (Designation):

--

Contact Number:

--

Since how long known:

--

Maximum limit dealt:

--

Experience:

--

Remark

--

 

 

No. of Employees :

4 (Approximately) (In Office)

 

 

Bankers :

Bank Name:

Dena Bank

Branch:

Nagpur (itwari) Branch, Nagpur, Maharashtra, India

Person Name (with Designation):

Mohit Tiwari (Officer)

Contact Number:

91-8446138669

Name of Account Holder:

Latha Rice Industries

Account Number:

013811023978

Account Since (Date/ Year of A/c Opening):

Not Divulged

Average Balance Maintained (Optional):

Not Divulged

Credit Facilities Enjoyed (CC/OD/Term Loan):

Not Divulged

Account Operation:

New Account

Remarks: Subject is having New Account with Bank.

 

 

 

 

 

Auditors :

 

Name :

Ajay and Amar Associates

Chartered Accountants 

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Associates/Subsidiaries :

Not Available

 

 

CAPITAL STRUCTURE

 

Capital Investment :

 

Owned :

Not Divulged

Borrowed :

Not Divulged

Total :

Not Divulged

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

NEW BUSINESS

 

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report

(Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

No

17

Details of sister concerns

No

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

No

22

Conduct of the banking account

Yes

23

Financials, if provided

No

24

Capital in the business

No

25

Last accounts filed at ROC, if applicable

No

26

Turnover of firm for last three years

No

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

Yes

29

Profitability for last three years

No

30

Major shareholders, if available

No

31

External Agency Rating, if available

No

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

Yes

35

Negative Reporting by Auditors in the Annual Report

No

 

------------------------------------------------------------------------------------------------------------------------------

 

COST OF PROJECT

 

(RS. IN MILLION)

 

Project Cost

 

%

Amount

 

 

 

1. Factory Land (Family Owned)

0.00%

0.000

 

 

 

2. Factory Building and Shed

35.57%

39.914

 

 

 

3. Deposits

0.45%

0.500

 

 

 

4. Plant and Machineries

50.06%

56.165

 

 

 

5. Electric Installation

5.36%

6.019

 

 

 

6. Interest during construction

2.55%

2.860

 

 

 

7. Margin Money for Working Capital

6.01%

6.742

 

 

 

Total

 

100%

112.200

 

------------------------------------------------------------------------------------------------------------------------------

 


MEANS OF FINANCE

 

(RS. IN MILLION)

 

Means of Finance

 

%

Amount

 

 

 

Own Contribution

17.83%

20.000

 

 

 

Unsecured loan

14.44%

16.200

 

 

 

Term loan

67.74%

76.000

 

 

 

Total

 

100%

112.200

 

------------------------------------------------------------------------------------------------------------------------------

 

PROFITABILITY PROJECTIONS

 

(RS. IN MILLION)

 

PARTICULARS

 

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

 

 

 

 

 

 

 

Capacity (Tons per year)

48000

48000

48000

48000

48000

48000

Utilisation

0.00%

30.00%

40.00%

50.00%

55.00%

60.00%

No of Working in Days

0.00

150.00

300.00

300.00

300.00

300.00

Production proposed

 

 

 

 

 

 

Rice (75%)

--

5400

14400

18000

19800

21600

By Products

 

 

 

 

 

 

Husk (15.00%)

--

1080

2880

3600

3960

4320

Bran (10.00%)

--

720

1920

2400

2640

2880

 

 

 

 

 

 

 

Selling Price (per ton)

 

 

 

 

 

 

Rice

--

48400

53240

58564

64420

70862

Husk

--

8500

9350

10285

11314

12445

Bran

--

15000

16500

18500

19965

21962

 

 

 

 

 

 

 

INCOME

 

 

 

 

 

 

Rice

0.000

261.360

766.656

1054.152

1275.524

1530.629

Husk Sales

0.000

9.180

26.928

37.026

44.801

53.762

Bran Sales

0.000

10.800

31.680

43.560

52.708

63.249

 

 

 

 

 

 

 

TOTAL RECEIPTS

0.000

281.340

825.264

1134.738

1373.033

1647.640

 

 

 

 

 

 

 

EXPENDITURE

 

 

 

 

 

 

To   Material Consumed

0.000

248.986

749.340

1037.718

1259.071

1513.357

To   Power Expenses

0.000

3.235

10.316

13.049

15.790

18.948

To   Wages and Salaries

0.000

7.034

20.632

28.368

34.326

41.191

To   Other Direct Expenses

0.000

0.844

2.476

3.404

4.119

4.943

To   Depreciation

0.000

6.874

12.817

11.084

9.592

8.307

Manufacturing Exp.

0.000

266.973

795.580

1093.624

1322.898

1586.745

 

 

 

 

 

 

 

Gross Profit

0.000

14.367

29.684

41.114

50.135

60.894

G.P. Ratio

0.00

5.11

3.60

3.62

3.65

3.70

 

 

 

 

 

 

 

To   Interest on Term Loan

0.000

6.233

7.663

6.763

5.511

4.114

To   Interest on Cash Credit

0.000

0.770

1.980

1.980

1.980

1.980

 

 

 

 

 

 

 

Financial Expenditure

0.000

7.003

9.643

8.743

7.491

6.094

 

 

 

 

 

 

 

Administrative & Selling Exp.

0.000

3.376

11.554

19.291

24.715

31.305

 

 

 

 

 

 

 

Selling & Admn. Exp.

0.000

3.376

11.554

19.291

24.715

31.305

 

 

 

 

 

 

 

TOTAL EXPENDITURE

0.000

277.352

816.777

1121.657

1355.104

1624.144

 

 

 

 

 

 

 

Profit before Tax

0.000

3.988

8.487

13.081

17.929

23.496

 

 

 

 

 

 

 

Less : Taxation

0.000

1.196

2.546

3.924

5.379

7.049

 

 

 

 

 

 

 

Profit after Tax

0.000

2.791

5.941

9.157

12.550

16.447

 

 

 

 

 

 

 

Net Profit Ratio

0.00

0.99

0.72

0.81

0.91

1.00

 

------------------------------------------------------------------------------------------------------------------------------

 

PROJECTION BALANCE SHEET

 

(RS. IN MILLION)

 

PARTICULARS

 

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

 

 

 

 

 

 

 

 LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 Proprietor's Capital

 

 

 

 

 

 

 Addition/Opening balance

20.000

20.000

22.300

27.700

36.200

48.000

 Add: Profit after tax

0.000

2.791

5.941

9.157

12.550

16.447

 Less: Withdrawals

0.000

0.491

0.542

0.656

0.750

0.847

 Closing Balance

20.000

22.300

27.700

36.200

48.000

63.600

 

 

 

 

 

 

 

 Secured Loan

 

 

 

 

 

 

 Term Loan From Bank  

57.333

65.333

55.833

43.333

29.167

11.667

 Cash Credit Limit

0.000

20.000

20.000

20.000

20.000

20.000

 Unsecured Loan

9.500

16.200

16.200

16.200

16.200

16.200

 

 

 

 

 

 

 

 Current Liabilities & Prov.

 

 

 

 

 

 

 Sundry Creditors

0.000

2.729

8.212

11.372

13.798

16.585

 Other current liabilities

0.400

0.500

0.600

0.650

0.700

0.800

 TL Instalment due

2.667

8.000

9.500

12.500

14.167

17.500

 

 

 

 

 

 

 

 TOTAL  (LIABILITIES)

89.900

135.062

138.045

140.256

142.032

146.352

 

 

 

 

 

 

 

 ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 Gross Block

 

 

 

 

 

 

 Fixed Assets Gross Block

77.199

106.130

99.256

86.440

75.356

65.764

 Less : Depreciation

0.000

6.874

12.817

11.084

9.592

8.307

 NET BLOCK

77.199

99.256

86.440

75.356

65.764

57.457

 

 

 

 

 

 

 

 Investment & Deposit 

0.500

0.500

0.700

1.000

1.200

1.400

 

 

 

 

 

 

 

 Current Assets, Loans & Advances

 

 

 

 

 

 

 Closing Stock

 

 

 

 

 

 

 Raw Material & WIP 

11.500

11.562

9.044

12.435

15.047

18.056

 Finished Goods 

0.000

16.187

18.088

24.871

30.094

36.113

 

 

 

 

 

 

 

 Sundry Debtors

0.000

6.937

22.610

24.871

26.332

31.599

 

 

 

 

 

 

 

 Cash & Bank Balance

0.701

0.620

1.163

1.723

3.595

1.727

 

 

 

 

 

 

 

 TOTAL  (ASSETS) 

89.900

135.062

138.045

140.256

142.032

146.352

 

------------------------------------------------------------------------------------------------------------------------------

 

PROJECTION CASH FLOW STATEMENT

 

(RS. IN MILLION)

 

PARTICULARS

 

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

 

 

 

 

 

 

 

SOURCES OF FUND

 

 

 

 

 

 

 

 

 

 

 

 

 

Net profit before Tax with interest added back but after depreciation

0.000

10.991

18.131

21.824

25.420

29.589

  

 

 

 

 

 

 

Increase in Current Liability

0.400

2.829

5.583

3.210

2.476

2.887

Increase in Term Loan

60.000

16.000

0.000

0.000

0.000

0.000

Increase in Own Contribution

20.000

0.000

0.000

0.000

0.000

0.000

Increase in Unsecured loan

9.500

6.700

0.000

0.000

0.000

0.000

Increase in Cash Credit Limit

0.000

20.000

0.000

0.000

0.000

0.000

Depreciation

0.000

6.874

12.817

11.084

9.592

8.307

 

 

 

 

 

 

 

Total ( A )

89.900

63.394

36.531

36.118

37.488

40.782

 

 

 

 

 

 

 

APPLICATION OF FUND

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in  Capital Cost

77.199

28.931

0.000

0.000

0.000

0.000

Increase in Current Asset.

11.500

23.186

15.056

12.435

9.296

14.295

Repayment of Term Loan

0.000

2.667

8.000

9.500

12.500

14.167

Increase in Deposits & NCA

0.500

0.000

0.200

0.300

0.200

0.200

Interest on  Bank Loan

0.000

7.003

9.643

8.743

7.491

6.094

Taxation

0.000

1.196

2.546

3.924

5.379

7.049

Drawings

0.000

0.491

0.542

0.656

0.750

0.847

 

 

 

 

 

 

 

Total ( B )

89.199

63.474

35.988

35.558

35.616

42.650

 

 

 

 

 

 

 

Opening Balance

0.000

0.701

0.620

1.163

1.723

3.595

 

 

 

 

 

 

 

Add. : Net Surplus

0.701

(0.081)

0.543

0.559

1.872

(1.868)

 

 

 

 

 

 

 

Closing Balance

0.701

0.620

1.163

1.723

3.595

1.727

 

------------------------------------------------------------------------------------------------------------------------------

 

FINANCIAL RATIOS

 

(RS. IN MILLION)

 

SR. NO.

RATIOS

 

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

 

 

 

 

 

 

 

 

1)

Gross Profit Ratio

-

5.11%

3.60%

3.62%

3.65%

3.70%

 

 

 

 

 

 

 

 

2)

Net Profit Ratio

-

0.99%

0.72%

0.81%

0.91%

1.00%

 

 

 

 

 

 

 

 

3)

Operating Profit Margin

-

6.35%

3.75%

2.90%

2.55%

2.30%

 

 

 

 

 

 

 

 

4)

Return on Capital Employed

0.00%

3.19%

7.11%

11.51%

16.26%

21.85%

 

 

 

 

 

 

 

 

5)

Current Ratio

30.50

1.52

1.77

2.00

2.18

2.34

 

 

 

 

 

 

 

 

6)

Instalment within -12- months

2.667

8.000

9.500

12.500

14.167

17.500

 

 

 

 

 

 

 

 

7)

CR (With TL of 12 months)

3.98

1.13

1.33

1.44

1.54

1.59

 

 

 

 

 

 

 

 

8)

CATO

0.00

8.11

16.59

18.25

19.21

19.21

 

 

 

 

 

 

 

 

9)

TOL / TNW

2.05

2.51

2.14

1.68

1.21

0.83

 

 

 

 

 

 

 

 

10)

Debtors Collection (days)

-

4

10

8

7

7

 

 

 

 

 

 

 

 

11)

RM & WIP Hold. Period (days)

-

8

4

4

4

4

 

 

 

 

 

 

 

 

12)

Finished Goods Period

-

11

8

8

8

8

 

 

 

 

 

 

 

 

13)

Creditors Period (days)

-

2

4

4

4

4

 

 

 

 

 

 

 

 

14)

Interest Coverage Ratio

-

2.55

3.21

3.76

4.67

6.22

 

 

 

 

 

 

 

 

15)

Tangible Net Worth

20.000

22.300

27.700

36.200

48.000

63.600

 

 

 

 

 

 

 

 

16)

D S C R

1.00

1.79

1.69

1.66

1.54

1.58

 

------------------------------------------------------------------------------------------------------------------------------

 

DEBT SERVICE COVERAGE RATIO

 

(RS. IN MILLION)

 

PARTICULARS

 

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

2022-23

 

 

 

 

 

 

 

 

 

Profit after tax

0.000

2.791

5.941

9.157

12.550

16.447

20.809

26.508

Add:   Depreciation

0.000

6.784

12.817

11.084

9.592

8.307

7.199

5.026

          Interest on Loan

0.917

6.233

7.663

6.763

5.511

4.114

2.326

0.481

 

 

 

 

 

 

 

 

 

Net Cash Accrual (A)     

0.917

15.899

26.421

27.003

27.654

28.867

30.334

32.015

 

 

 

 

 

 

 

 

 

Repayment of T. Loan

0.000

2.667

8.000

9.500

12.500

14.167

17.500

11.667

Interest on  Term Loan

0.917

6.233

7.663

6.763

5.511

4.114

2.326

0.481

 

 

 

 

 

 

 

 

 

Net Cash Paid (B)

0.917

8.900

15.663

16.263

18.011

18.280

19.826

12.148

 

 

 

 

 

 

 

 

 

D.S.C.R.

1.00

1.79

1.69

1.66

1.54

1.58

1.53

2.64

 

 

 

 

 

 

 

 

 

Average D.S.C.R

1.77

 

------------------------------------------------------------------------------------------------------------------------------

 


COMPANY PROFILE

 

INTRODUCTION

 

Latha Rice Industries is a partnership firm formed on 01.10.2015, earlier the firm was proprietorship concern in the name of Mr. Mahendra Malakodaiah Muppavarapu and from 01.10.2015 the firm was converted to partnership firm having partners Mr. Nagayya Kondayya Muppavarapu and Mr. Mahendra Malakodaiah Muppavarapu. The firm has approached them for term loan of Rs. 77.500 Million and working capital limit of Rs.20.000 Million for set up fully automatic rice mill. Total cost of project is estimated at Rs.112.200 Million. The firm has proposed to install machinery of standard makes from reputed suppliers/manufacturers and the cost of plant and machinery and electric installation is Rs.62.184 Million and construction of building and factory shed is Rs. 39.914 Million. The overall cost of project is Rs.112.200 Million, out of which the firm will contribute Rs.36.200 Million as margin by way of capital contribution and unsecured loan. The company has requested term loan of 76.000 Million for the construction of the factory building and shed and purchase plant and machineries, electrification.

 

The fully automatic rice mill is located at Survey No.915, having area of 0.96 HR Bogwatdar Class-I, Mouja-Tarsa, Mouja No.-149, P.H.No.63, Gram Panchayat Tarsa, Th. Mouda and District Nagpur. The factory land is owned by Mr. Ramnarao Bolla uncle of one of the director and the firm has entered in the lease agreement with the firm Latha Rice Industries. The earlier owner of land has taken all the necessary permission required for the rice mill i.e. pollution certificate (consent to operate), electric connection and has given affidavit to transfer the same in the name of present owner and the present owner Mr. Ramnarao Bolla has given consent for transfer of all the necessary permission through lease agreement to Latha Rice Industries required for set up of rice mill. the total area of land is 9334.08 Sq. Mtrs and the area under construction is 26600 Sq. feet activity has already been started and in full swing the partners has already done the construction to the tune of Rs.15.960 Million.

 

The firm is having installed capacity of 10 tons per hour and firm has single shift of 08 hours and the firm has estimated to worked in two shifts of 08 hours and the firm will work 25 days in a months, therefore the installed capacity worked out is 48000 tons per annum the firm has estimated to that commercial production will be starting from October 2016. In the first year of operation company will be operating at 30% capacity, in second year at 40%, third year 50% and so on.

 

 

Following will be the major Supplier of Raw Material (Paddy):

 

·         Govind Mill Stores, Guntur

·         Karan Trading Firm, Nagpur

·         Kavturi Shriniwas Rao, Lohadongri

·         Kovvuri Tata Reddy,Champa

·         Lakshmi K. Kancharla,Nimkheda

·         Mahalaxmi Enterprises,Sambalpur

·         Mahesh Trading Firm,Gondia

·         Paramount Profiles,Durg

·         Shree Dattatraya Traders, Rajanadgaon

·         Bajrang Agrawal, Broker Gondia

 

 

Following is the Proposed the major Customers of the Firm:

 

·         Erukulla Somalingam, Warangal

·         G.T.S. Food Products Private Limited, Chandrapur

·         I.A.S. Enterprises, Chandrapur

·         Jai Kisan Rice Mill, Nagpur

·         Jai Sadaram Traders, Bhilai

·         Kailas Anaj Bhandar,Nagpur

·         Kailash Trading Firm,Nanded

·         Mahalaxmi Transport, Kamptee

·         Maheshwara Enterprises, Warangal

·         Manish Pal, Nagpur

 

 

DETAILS OF THE PROPOSED PROJECT:

 

PROJECT IN BRIEF:

 

Latha Rice Industries is a partnership firm formed on 01.10.2015, earlier the firm was Proprietorship Concern in the name of Mr. Mahendra Malakodaiah Muppavarapu and from 01.10.2015 the firm was converted to Partnership Firm having partners Mr. Nagayya Kondayya Muppavarapu and Mr. Mahendra Malakodaiah Muppavarapu. The firm has approached them for term loan of Rs. 77.500 Million and working capital limit of Rs.20.000 Million for set up fully Automatic Rice Mill. Total Cost of Project is estimated at Rs.112.200 Million. The Firm has proposed to install machinery of standard makes from Reputed Suppliers/Manufacturers and the Cost of Plant and Machinery and Electric Installation is Rs.62.184 Million and Construction of Building and Factory Shed Is Rs. 39.914 Million. The Overall Cost of Project Is Rs.112.200 Million, out of which the firm will contribute Rs.36.200 Million as margin by way of Capital Contribution and Unsecured Loan. The Company has requested Term Loan of 76.000 Million for the construction of the Factory Building and Shed And Purchase Plant and Machineries, Electrification.

 

 

MANUFACTURING PROCESS

 

The process is very well standardized first of all, paddy is cleaned to remove unwanted matters like mud, stones, chaff etc. This cleaned lot is then fed to de-husker where with the help of rubber roller, husk is separated the brown rice is then taken to huller where polishing is done by mild friction created within the polishing chamber the resulting polished rice and bran are separated and collected recovery of edible rice is around 70-75% byproducts constitute about 20-25% whereas balance 1% is waste and process loss.

 

 

Description of Rice Milling Operation

 

Paddy in its raw form cannot be consumed by human beings it needs to be suitably processed for obtaining rice, rice milling is the process, which helps in removal of hulls and barns from paddy grains to produce polished rice, rice forms the basic primary processed product obtained from paddy and this is further processed for obtaining various secondary and tertiary products.

           

The basic rice milling processes consist of:

 

Process definition Pre Cleaning: removing all impurities and unfilled grains from paddy

 

1.     De-Stoning: separating small stones from paddy

2.     Parboiling (optional): helps in improving the nutritional quality by gelatinization of starch inside the rice grain. it improves the milling recovery percent during deshelling and polishing / whitening operation

3.     Husking: removing husk from paddy

4.     Husk Aspiration: separating the husk from brown rice/ unhusked paddy

5.     Paddy Separation: separating the unhusked paddy from brown rice

6.     Whitening: removing all or part of the bran layer and germ from brown rice

7.     Polishing: improving the appearance of milled rice by removing the remaining bran particles and by polishing the exterior of the milled kernel

8.     Length Grading: separating small and large broken from head rice

9.     Blending: mixing head rice with predetermined amount of broken, as required by the customer

10.  weighing and bagging : preparing the milled rice for transport to the customer

 

 

PRODUCTION CAPACITY:

 

PARTICULARS

15-16

16-17

17-18

18-19

19-20

20-21

21-22

22-23

Capacity (Tons per year)

48,000

48,000

48,000

48,000

48,000

48,000

48,000

48,000

Utilization

0.00%

30.00%

40.00%

50.00%

55.00%

60.00%

65.00%

70.00%

No. of Working Days

0

150

300

300

300

300

300

300

Production proposed

Rice (75%)

--

5,400

14,400

18,000

19,800

21,600

23,400

25,200

By Products

--

Husk (15.00%)

--

1080

2880

3600

3960

4320

4680

5040

Bran (10.00%)

--

720

1920

2400

2640

2880

3120

3360

 

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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. 66.20

UK Pound

1

Rs. 98.30

Euro

1

Rs. 72.41

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

BVA

 


 

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.