MIRA INFORM
REPORT
|
Report
Date : |
2nd
November, 2006 |
IDENTIFICATION
DETAILS
|
Name : |
COSMO FILMS LIMITED |
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Registered
Office : |
30, Community Centre, Saket, New Delhi – 110 017, India |
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Country
: |
India |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
07.10.1976 |
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Com.
Reg. No.: |
11-8355 |
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CIN No.: [Company Identification No.] |
U92114DL1976PLC008355 |
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TAN
No.: (Tax
Deduction & Collection Account No.) |
NSKC01059C |
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Legal
Form : |
It is a public limited liability company. The company’s shares are listed on the
Stock Exchanges. |
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Line
of Business : |
Manufacturer of Plastic Films, Packing & Packaging,
Printing Industry Services and BOPP Film. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum
Credit Limit : |
USD
5000000 |
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Status
: |
Satisfactory
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Payment
Behaviour : |
Usually
Correct |
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Litigation
: |
Clear |
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Comments
: |
Subject is an established company engaged in the business
of manufacturing and marketing Biaxiall Oriented Polypropylene Film and
Synthetic Paper. During the financial year 2004-2005, there has been slight
decline in the company’s sales and profits. The company’s expansion projects
have been completed as per schedule and within the budgeted cost. Trade
relations are reported as fair. Payments are usually correct and as per
commitments. The company can be considered normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
30,
Community Centre, Saket, New Delhi – 110 017, India |
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Tel.
No.: |
91-11-2686
3968 / 2686 3969 / 2668105 |
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Fax
No.: |
91-11-2686
2969 / 2685 3166 / 26868093 |
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E-Mail
: |
1.
ashok@dl.cosmo.sprintsmx.ems.vsnl.net.in |
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Website
: |
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Head
Office : |
30,
Community Centre, Saket, New Delhi – 110 017, India |
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Tel.
No.: |
91-11-2686
3968 / 2686 3969 / 2668105 |
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Fax
No.: |
91-11-2686
2969 / 2685 3166 / 26868093 |
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E-Mail
: |
5.
ashok@dl.cosmo.sprintsmx.ems.vsnl.net.in |
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Website
: |
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Corporate
Office : |
30, Community Centre, Saket, New Delhi – 110 017, India |
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Tel.
No.: |
91-11-2686 3968 / 2686 3969 |
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Fax
No.: |
91-11-2686 2969 / 2685 3166 |
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E-Mail
: |
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Plants
: |
Ř J-4, MIDC Industrial Area,
Chikalthana, Aurangabad – 431 210, Maharashtra Tel. No. :
91-240-2485080 Fax No. : 91-240-2485581 E-mail :- cflchk@cosmofilms.com Ř B-14/9, MIDC Industrial Area,
Waluj, Aurangabad – 431 136, Maharashtra Tel. No. :
91-240-2554612 / 13 Fax No. : 91-240-2554416 E-mail :- gopi@cosmofilms.com Ř
Vermardi
Road, Village Navi Hithardi, near Inox, Off. N.H. Road, Taluka-Karjan,
Vadodara-391240 Tel No :- 91-2666-232960/231635 Fax No :- 91-2666-232961 E-mail :- gks@cosmofilms.com
Ř
Plot
No. 359-B, Baska Village, Taluka-Halol, Panchmahals, Gujarat, India Tel No :- 91-2676-247021/247128 Fax No
:- 91-2676-247041 Cosmo International (US) Inc. 24, Middleneck Road, Suite # 2H, Roslyn, New
York, 11576 USA Phone :+516-869-8629 Fax: +516-869-0303 Cell: +917-834-211 Mr. Bittu Wallia |
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Branches
: |
Located
At : Ř 30, Community Centre, Saket, New
Delhi – 110 017, India Tel. No. 91-11-2686
3968 / 2686 3969 Fax No. 91-11-2686
2969 Contact Person :
Mr. B. Suresh Ř Flat No. 7, 3rd Floor,
148,North Usman Road, T. Nagar, Chennai-
600017, Tamilnadu, India Tel No :- 91-44-28143998 / 28143636 Fax No :- 91-44-17141247 E-mail s:- kcp@cosmofilms.com
Ř 1405/B, 14th Floor,
Babu Khan Estate, Basheer Bagh, Hyderabad –
550 001, Andhra Pradesh, India Tel. No. 91-40-2359
7620 / Fax No. 91-40-2323
2387 Contact Person :
Mr. P. K. Gupta Ř 303, 3rd Floor, Gokul
Arcade A, Subhash Road, Vile Parle (East),
Mumbai, Maharashtra, India Tel. No. 91-22-2826 1195 Fax No. 91-22-2826 1201 Contact
Person : Mr. P. K. Gupta |
DIRECTORS
|
Name : |
Mr. Ashok Jaipuria |
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Designation
: |
Chairman and Managing Director |
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Date
of Birth/Age : |
52 years |
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Qualification
: |
Degree in
Associates of Arts in Business Administration & Diploma in Marketing
Science |
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Experience
: |
34 years |
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Date
of Appointment : |
02.04.1980 |
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Name : |
Mr. B V Bhargava |
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Designation
: |
Director |
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Qualification
: |
M Com, LLB |
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Other
Directorship : |
Former Managing Director of ICICI Limited |
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Name : |
Mr. H K Agarwal |
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Designation
: |
Director |
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Qualification
: |
B E and MBA (IIM), Management Consultant |
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Name : |
Mr. Mahendra Sanghvi
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Designation
: |
Director |
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Qualification
: |
A Polymer Scientist, |
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Other
Directorship : |
Promoter and Managing Director of Shaily Engineering
Plastics, Baroda |
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Name : |
Dr. Surinder Kapur |
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Designation
: |
Director |
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Qualification
: |
Ph.D. in Mechanical Engineering |
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Other
Directorship : |
Managing Director of Sona Koyo Steering Systems |
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Name : |
Mr. Rajeev Gupta |
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Designation
: |
Director |
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Qualification
: |
B E and MBA |
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Other
Directorship : |
Joint Managing Director of DSP Merrill Lynch Limited Managing Director – Carlyle India Advisors Private Limited
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KEY EXECUTIVES
|
Name : |
Mr. S K Mittal |
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Designation
: |
Executive Director, C A and CEO |
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Date
of Birth/Age : |
53 years |
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Qualification
: |
B. Com, ACA |
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Experience
: |
29 years |
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Date
of Appointment : |
15.03.1996 |
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Other
Directorship : |
General Manager of Samtel Color Limited |
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Name : |
Ms. Vimal Bhandari |
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Designation
: |
Director |
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Qualification
: |
Chartered Accountant |
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Other
Directorship : |
Country Manager – India, AEGON International N. V. |
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Name : |
Mr. Hasmukh Shah |
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Designation
: |
Industry Management (Polymer) |
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Name : |
Mr. R Mukherjee |
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Designation
: |
President |
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Date
of Birth/Age : |
56 years |
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Qualification
: |
Mechanical Engineering |
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Experience
: |
31 years |
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Date
of Appointment : |
01.11.1997 |
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Other
Directorship : |
Senior General Manager of Philips India |
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Name : |
Mr. A G Deshpande |
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Designation
: |
Vice President – Operations |
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Name : |
Mr. Janardhan Gupta
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Designation
: |
General Manager – Commercial |
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Name : |
Mr. S D Gosavi |
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Designation
: |
Dy. General Manager – Manufacturing |
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Name : |
Mr. S C Maity |
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Designation
: |
Dy. General Manager – Manufacturing |
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Name : |
Mr. Mr. Sanjay Chincholikar |
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Designation
: |
General Manager – Projects and Domestic Marketing |
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Name : |
Mr. P C Garg |
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Designation
: |
Dy. General Manager – Commercial |
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Name : |
Mr. H L Paranjpe |
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Designation
: |
Director |
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Qualification
: |
M. Sc. (Chemical Engineering), University of Birmingham,
UK Polymer Technologist |
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Name : |
Mr. Badri Agarwal |
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Designation
: |
Director |
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Qualification
: |
C A, Corporate Director – Bharti Enterprises Limited |
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Name : |
Mr. Avinash Kulkarni |
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Designation
: |
General Manager – Manufacturing |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
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Promoters
|
8509817 |
43.78 |
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Institutional
Investors |
3302488 |
16.98 |
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Private
Corporate Bodies |
1551012 |
7.98 |
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Others |
6076759 |
31.26 |
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Total |
19440076 |
100.00 |
As on 30.09.2006
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
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Promoters
n
Indian
Promoters n
Foreign
Promoters |
8485717 -- |
43.65 -- |
|
Person
acting in concert |
-- |
-- |
|
Institutional Investors |
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Mutual
Funds and UTI |
758924 |
3.90 |
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Bank,
Financial Institution, Insurance Companies (Central/State Government /
Non-Government) |
30400 |
0.16 |
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Fll’s |
4400 |
0.02 |
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Other |
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Private
Corporate Bodies |
-- |
-- |
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Indian
Public |
-- |
-- |
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NRI/OCB’s
|
-- |
-- |
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Any other
|
-- |
-- |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturer of Plastic Films, Packing & Packaging,
Printing Industry Services and BOPP Film. |
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Products
: |
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PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Biaxially
Oriented Polypropylene (BOPP) Film & Synthetic paper |
MT |
77000 |
71000 |
56773 |
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Thermal
Lamination Machines |
Qty.(Units) |
100 |
NA |
15 |
GENERAL INFORMATION
|
No. of
Employees : |
Around 250 |
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Bankers
and Financial Institutions : |
Ř Union Bank of India, 26 / 28-D,
Connaught Place, Delhi - 110 001 Ř Canara Bank, 6, Bhagwandas Road,
Delhi - 110 001 Ř State Bank of India, 11, Parliament
Street, Delhi - 110 001, Indian Ř International Financial
Corporation, Washinton Ř Rabo Bank Ř ING Vysya Bank Limited Ř HDFC Bank Limited Ř Bank of Maharashtra Ř Export Import Bank of India Ř Bank of Bahrain and Kuwait Ř Industrial Development Bank of
India Ř ICICI Bank Ř Cooperative Centrale Raiffeisen –
Boerenleenbank B. A. Ř Landesbank Baden – Wurttemberg |
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Facilities : |
Secured loans
(Rs.
in millions)
Notes: (a)
Secured interse on pari-passu basis by way of mortgage of immovable
properties both present and future and hypothecation of all movable
properties except those on which charge has been created in favour of
company's bankers for working capital requirements. The loans
are additionally secured by personal guarantee of managing director. (b)
Secured by first pari-passu charge by way of mortagage of immovable assets
and hypothecation of all movable assets both present and
future and second pari passu charge on receivables and inventories charged
for short term debts incurred in ordinary course of business. (c) Secured
by first pari-passu charge over the entire fixed assets of the company. (d)
Secured by hypothecation of raw materials, work-in-progress,stores and
spares, finished goods, book debts and second charge on fixed assets secured
to financial institutions and personal guarantee of managing director. (e)
Secured by hypothecation of stocks and book debts on pari-passu basis. (f) Secured against pledge of the fixed deposits of the company. Unsecured Loans (Figures Rupees in millions)
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Banking Relations : |
Satisfactory |
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Auditors
: |
B.K.
Shroff & Company Chartered Accountants |
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Associates/Subsidiaries
: |
Ř Cosmo Plantgene Limited Hybrid Seeds Ř Cosmo Ferrites Limited Soft Ferrites Ř Gujarat Propack Limited Subsidiaries Ř Cosmo International Limited Ř Cosmo International Inc, US |
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Membership
: |
Confederation of Indian Industry |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity
Shares |
Rs. 10/- |
Rs. 250.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
19440076 |
Equity
Shares |
Rs. 10/- |
Rs. 194.401 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
SHAREHOLDERS
FUNDS |
|
|
|
|
1] Share
Capital |
194.401 |
194.401 |
169.734 |
|
2]
Reserves & Surplus |
1128.905 |
1089.615 |
963.919 |
NETWORTH
|
1323.306 |
1284.016 |
1133.653 |
|
LOAN
FUNDS |
|
|
|
|
1]
Secured Loans |
1705.317 |
1820.365 |
1892.118 |
|
2]
Unsecured Loans |
79.711 |
117.434 |
278.669 |
TOTAL
BORROWING
|
1785.028 |
1937.799 |
2170.787 |
|
DEFERRED
TAX LIABILITIES |
346.355 |
372.703 |
398.289 |
|
|
|
|
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TOTAL
|
3454.689 |
3594.518 |
3702.729 |
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APPLICATION
OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED
ASSETS [Net Block] |
2025.802 |
2167.499 |
2425.077 |
|
Capital
work-in-progress |
84.064 |
26.120 |
49.433 |
|
|
|
|
|
|
INVESTMENTS |
67.684 |
469.414 |
463.728 |
|
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CURRENT
ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
743.610 |
576.381 |
397.136 |
|
Sundry
Debtors |
760.460 |
583.736 |
450.806 |
|
Cash
& Bank Balances |
48.084 |
25.795 |
113.281 |
|
Loans
& Advances |
244.065 |
167.691 |
301.094 |
|
Total Current Assets |
1796.219 |
1353.603 |
1262.317 |
Less: CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
Current
Liabilities |
377.237 |
336.001 |
355.338 |
Provisions
|
143.316 |
88.432 |
145.666 |
Total Current Liabilities
|
520.553 |
424.433 |
501.004 |
|
Net Current Assets |
1275.666 |
929.170 |
761.313 |
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
1.473 |
2.315 |
3.178 |
|
|
|
|
|
TOTAL
|
3454.689 |
3594.518 |
3702.729 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
4396.689 |
4001.830 |
3234.311 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
167.090 |
88.183 |
388.060 |
Provision for Taxation
|
38.483 |
17.634 |
72.951 |
Profit/(Loss) After Tax
|
128.607 |
105.817 |
315.109 |
|
|
|
|
|
Export Value
|
1706.346 |
1394.157 |
1065.345 |
|
|
|
|
|
Import Value
|
657.274 |
526.314 |
691.599 |
|
|
|
|
|
Total Expenditure
|
3926.048 |
3913.338 |
2846.251 |
SUMMARISED RESULTS
|
PARTICULARS |
|
30.09.2006 |
30.06.2006 |
|
Type |
|
2nd
Qtr |
1st
Qtr |
|
Sales Turnover |
|
1346.700 |
1252.800 |
|
Other Income |
|
8.100 |
6.100 |
|
Total Income |
|
1354.800 |
1258.900 |
|
Total Expenditure |
|
1174.200 |
1096.800 |
|
Operating Profit |
|
180.600 |
162.100 |
|
Interest |
|
43.900 |
35.500 |
|
Gross Profit |
|
136.700 |
126.600 |
|
Depreciation |
|
64.700 |
62.000 |
|
Tax |
|
23.800 |
8.900 |
|
Reported PAT |
|
47.500 |
61.300 |
200606 Quarter 1 :-- Expenditure Includes Purchases /
Raw Materials Consumption Rs 737.00 million Power, Water and Fuel Rs 101.70
million Staff Costs Rs 72.20 million Other Costs Rs 181.00 million (Increase) /
Decrease in Stock Rs 4.90 million Tax Includes Provision for Income Tax Rs 7.90
million Fringe Benefit Tax Rs 1.00 million Deferred Tax Rs (5.60) million EPS
is Basic and Diluted Status of Investor Complaints for the quarter ended June
30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 04 Complaints disposed off during the quarter 04
Complaints unresolved at the end of the quarter Nil 1. FOB value of Exports
sales during the quarter was Rs 606.10 million (Previous year Rs 335.10
million). 2. Extrusion Coating Line 3 has been commissioned in Export Oriented
Unit at Aurangabad. The expansion projects of Extrusion Coating Line 4 and BOPP
Capacity enhancement by 30000 MT per annum are progressing as per schedule. 3.
Other costs include Rs 8.20 million due to Exchange rate fluctuation. 4. The
impact of foreign exchange fluctuation on the amounts outstanding in assets and
liabilities as on June 30, 2006 has not been considered. The same will be
considered at the year end. If considered, the profit before Tax would have
been lower by Rs 0.50 million.
200609 Quarter 2 :-- Expenditure Includes Raw Materials
consumption/purchases Rs 849.00 million Power, Water and Fuel Rs 107.10 million
Staff Costs Rs 52.20 million Other Costs Rs 185.60 million (Increase) /
Decrease in Stock Rs (19.70) million Tax Includes Provision for Income Tax Rs
22.90 million Fringe Benefit Tax Rs 0.90 million Deferred Tax Rs 0.70 million
EPS is Basic and Diluted Status of Investor Complaints for the quarter ended
September 30, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 18 Complaints disposed off during the
quarter 18 Complaints unresolved at the end of the quarter Nil 1. Exports
during half year ended September 2006 are Rs 1282.70 million. (Previous period
Rs 692.60 million) 2. Extrusion Coating line IV has been commissioned. 3. In
light of higher value addition in specialty films the Company is reviewing its
plans for capacity expansion in commodity films. 4. The impact of foreign
exchange fluctuations on the amounts outstanding in assets and liabilities as
on September 30, 2006 has not been considered. The same is being accounted at
the year end. If considered, the profit before tax would have been higher by Rs
4.70 million.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
1.43 |
1.70 |
1.87 |
|
Long Term
Debt Equity Ratio |
0.95 |
1.30 |
1.62 |
|
Current
Ratio |
1.08 |
0.99 |
1.12 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.13 |
1.10 |
0.99 |
|
Inventory
|
6.97 |
8.81 |
8.76 |
|
Debtors |
6.84 |
8.29 |
7.45 |
|
Interest
Cover Ratio |
2.27 |
1.84 |
5.25 |
|
Operating
Profit Margin (%) |
13.11 |
13.60 |
22.67 |
|
Profit
Before Interest and Tax Margin (%) |
6.50 |
4.96 |
3.88 |
|
Cash
Profit Margin (%) |
9.40 |
11.30 |
17.92 |
|
Adjusted
Net Profit Margin (%) |
2.80 |
2.66 |
9.14 |
|
Return on
Capital Employed (%) |
9.45 |
6.52 |
16.19 |
|
Return on
Net Worth (%) |
9.86 |
9.45 |
30.56 |
STOCK PRICES
|
Face Value |
Rs. 10.00 |
|
High |
Rs. 88.40 |
|
Low |
Rs. 87.00 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company
was incorporated on 7th October, 1976 at New Delhi having Company
Registration Number 8355.
The company
is a part of well diversified group with interest in plastics, chemicals and
agro industries. Mr. Ashok Jaipuria
promoted this group. Within a decade,
he promoted three companies.
The company
was promoted by Mr. Ashok Jaipuria (son of the late Mr. Sitaram Jaipuria,
former CMD of Swadeshi Polytex) is the pioneer in the manufacture of
biaxially-oriented polypropylene (BOPP) film which is widely used in the
consumer product industry for packaging. The company went public four years
after its incorporation in 1976.
The
company, the first ISO 9002 certified BOPP manufacturing company operates two
plants at Chikalthana and Waluj, both in Aurangabad district of Maharashtra
with a combined production capacity of 23100 MTPA of BOPP and Synthetic paper.
The company has taken up another expansion project of 10000 MTPA at the
existing location at Waluj. The company started exporting its products from
1994.
The company
is continuously scaling up its capacity in line with the demand and it has set
up a second plant (with an installed capacity of 2000 tpa) for manufacture of
BOPP film at the Waluj Industrial area in the Aurangabad district. Later the
combined installed capacity was increased to 10800 MTPA through an expansion
plan. In 1996-97 the company has undertaken a debottlenecking programme
(revamping of line III) thus increasing the installed capacity to 13200 MTPA.
And again in 1997-98 the installed capacity was increased to 14100 MT.
The company
is in the process of acquiring land at Nashik, Maharashtra for setting up a new
unit with an installed capacity of 17000 MTPA of BOPP film. The company has
plans to manufacture electrical-grade BOPP film in collaboration with General
Electric, USA. The company has won the Best BOPP Exporter Award from PLEXCONCIL
for the year 1998-99
The company
acquired 76.51% stake in Gujarat Propack (GPP) at a price of Rs. 29.25 per
share. The deal translates into an Enterprise Valuation of around Rs. 870
millions. In line with the take over the company shall make an open offer to
acquire a further 20% shareholding from public at the acquisition price of Rs.
29.25 per share.
Gujarat
Propack was established in 1986 and is the second largest player in the Indian
BOPP films industry with over 27% market share. GPP has an excellent track in
developing specialized products for high-end packaging applications and has an
impressive customer profile which includes Hindustan Lever, Nestle India, ITC,
Britania and Godfrey Phillips India among others. GPP has total of three
manufacturing lines and two plants located at Baroda with a capacity of 13000
MTPA.
During the
year 2002, Gurarat Propack Limited merged with the company in the ratio of 2:1
equity shares held.
The company had issued Bonus Shares in the Ratio of 1:1 to
its shareholders and the allotment was completed in 28.03.2003. The company has
increased BOPP’s installed capacity by 25500 MT and consequently the total
capacity has now stood at 48600 MT.
Biodata
Cosmo Films
(CFL), promoted by Ashok Jaipuria(son of the late Sitaram Jaipuria, former CMD
of Swadeshi Polytex) is the pioneer in the manufacture of biaxially-oriented
polypropylene(BOPP) film which is widely used in the consumer product industry
for packaging. The company went public four years after its incorporation in
1976.
CFL, the first ISO 9002 certified BOPP manufacturing company operates two
plants at Chikalthana and Waluj, both in Aurangabad district of Maharashtra
with an combined production capacity of 23100 MTPA of BOPP and Synthetic paper.
The company has taken up an another expansion project of 10000 MTPA at existing
location at Waluj. CFT start exporting its products from 1994.
The company is continuously scaling up its capacity in line with the demand and
it has set up a second plant(with an installed capacity of 2,000-tpa ) for
manufacture of BOPP film at the Waluj Industrial Area in the Aurangabad
district. Later the combined installed capacity was increased to 10800 mtpa
through an expansion plan. In 1996-97, CFL has undertaken an debottlenecking programme(revamping
of Line III) thus increasing the installed capacity to 13200 MTPA. And again in
1997-98 the installed capacity was increased to 14,100 MT.
The company is in the process of acquiring land at Nashik, Maharashtra for
setting up a new unit with an installed capacity of 17000 MTPA of BOPP film.
The company has plans to manufacture electrical-grade BOPP film in
collaboration with General Electric, US. The company has won the Best BOPP
Exporter Award from PLEXCONCIL for the year 1998-99.
The company acquired 76.51% stake in Gujarat Propack (GPP) at a price of Rs
29.25 per share. The deal translates into an Enterprise Valuation of around Rs
870 millions. In line with the take over Cosmo Films shall make an open offer
to acquire a further 20% shareholding from public at the acquisition price of
Rs 29.25 per share.
GPP was established in 1986 and is the second largest player in the Indian BOPP
films industry with over 27% market share. GPP has an excellent track record in
developing specialized products for high-end packaging applications and has an
impressive customer profile which includes Hindustan Lever, Nestle India, ITC,
Britania and Godfrey Philips India among others. GPP has total of three
manufacturing lines and two plants located at Baroda with a capacity of 13,000
MTPA.
During the year 2002, Gujarat Propack Ltd merged with the company in the ratio
of 2:1 equity shares held.
The company had issued Bonus Shares in the ratio of 1:1 to its shareholders and
the allotment was completed on 28.03.2003.The company has increased BOPP's
installed capacity by 25500 MT and consequently the total capacity has now
stood at 48600 MT.
INDUSTRY ANALYSIS
Cosmo Films
is in the business of manufacture and sales of BOPP films. World OPP films market
has been growing steadily in past several years. Growth in Asian region has
been the highest.
Indian
domestic BOPP market has been growing @ 12 to 15% per annum. Since per capita
BOPP consumption in India is much lower as compared to Western and other Asian
countries, potential for demand growth is quite high. In view of growth
potential, Cosmo as well as other BOPP manufacturers have expanded capacities.
Since the
present size of domestic market is quite small they have been focusing more to
expand their business in export market.
They have
already achieved full capacity utilization of their latest production line
commissioned in
March 2004.
They are continuously working with various FMCG and other end user companies
for development of new applications of BOPP to expand the market size. Cosmo is
one of the lowest cost BOPP producers in the world and can expand its customer
base by providing cost effective innovative packaging solutions to its
customers.
OPERATIONS & FINANCIAL
PERFORMANCE
Preparation of Accounts
The
financial statements have been prepared in compliance with the requirements of
Provision of Companies Act, 1956 and the Generally Accepted Accounting
Principles (GAAP) of India.
Sales
Net sales
during the financial year were Rs. 4219.900 millions (previous year Rs.
3907.300 millions). Exports have grown
from Rs. 1394.200 millions to Rs. 1706.300 millions a growth of 22%. This
Growth has been achieved despite over capacity in international markets.
Raw
Major Raw Materials used for production are Homopolymer, Copolymer, EVA
and certain additives. The ratio of raw materials cost to net sales was 63.81%
in 2005-06. (Previous Year 62.30%).
The company is sourcing its raw material requirements from overseas as
well as domestic suppliers.
Research & Developments
There is a
continuous thrust on the research & development activity. As a policy, the
Company charges off revenue expenditure on Research & Development in the
Profit and Loss account of the year in which it is incurred. Rs. 29.000
millions (approx) have been spent on R & D during the last year.
Provision for Tax
During the
year Company has made a provision of Rs. 59.200 millions (previous year Rs.
8.000 millions) towards income tax. Further an amount of Rs. 5.600 millions has
been provide as Fringe Benefit Tax. Besides, Rs. 26.300 millions written back
from deferred tax liability.
Profit
after Tax (PAT)
Company has
earned PAT of Rs. 128.600 millions during FY 2006-06 as against Rs. 105.800
millions in previous year.The company is continuing its efforts on cost
reduction and improvement in product mix and market diversification.
DIVIDEND
Equity
dividend of Rs. 4.00 per share (Previous Year Rs. 3.50 per share) has been
recommended by the Board of Directors for the year ended 31 ''March, 2006
amounting to Rs. 77.760 millions (Previous Year Rs. 68.040 millions) on equity
share capital.
DEPOSITORY SYSTEM
The company
shares have been notified for compulsory trading in demat form by SEBI w.e.f.
June 20,2000. Members have the option of holding their shares in clemat form
through any of the depositories by opening account with the authorised
depository participants.
OPERATIONS
Worldwide
over capacity in the industry continued to effect operating margins. Due to
internal cost cutting measures, increase in export sales, significant
improvement in quality and operational efficiencies, net profit after tax has
increased to Rs. 125.600 millions during the year as compared to net profit of
Rs. 105.800 millions in the previous year.
EXPORTS
Efforts
towards exports have been further accelerated. Exports have grown to a level of
Rs. 1706.300 millions during the year as compared to Rs. 1394.200 millions
during the previous year. Cosmo maintains its position of largest BOPP film
exporter from India.
OUTLOOK / EXPANSION PROJECTS
Gas supply
agreement has been entered into with GSPL for Vadodara unit. BOPP film capacity
enhancement of 30000 MT at Vadodara is being planned to cater to growing needs
of customers. Metalizer with additional capacity of 4000 MT and two extrusion
coating lines with additional capacity of 8000 MT are being considered.
Fixed Assets:
The
company’s fixed assets of important value include Land (Freehold and
Leasehold), Buildings, Plant & Machinery & Know-how, Development,
Furniture, Fixture & Fittings, Factory & Office Equipment and Vehicles.
As Per Web Details
Profile
Cosmo Films
was started in 1980 to manufacture Bi-axially Oriented Polypropylene Films
(BOPP) for the first time in India. Since inception they have maintained market
leadership in the Indian market and also Continues to be largest BOPP film
exporter from the Country. .
Their
current capacity is 68000 MT per annum. including 8000 MT of
Thermal
lamination film.
Apart from
ISO 9000, they have also got accredited with American Institute of Baking (AIB)
and British Retail Consortium (BRC) Certification for Safety and Hygiene of
Food related products.
At their
Waluj campus, they have their own Captive Power Plant of 8 MW capacity which
ensures good quality uninterrupted power supply for their production at an
economical cost.
Over a
period of time, they have earned respect from their customers for being one of
the most innovative and quality conscious BOPP suppliers in the world. They
have been able to do this because they constantly innovate; not just with their
products and processes but also with their organization and their business
practices.
Their core
values are their major driving force. They truly believe in customer
orientation, transparency, innovation and fair business practices with all
their business associates.
They are associated with leading FMCG Brands for providing cost-effective innovative packaging solutions to enhance their value.
In a recent
survey by "FORBES" Cosmo has been recognized one of the best 200
companies out of 19000 listed companies with revenue of less than 1 Billion US$
outside US.
Mission
Ř
They
will seek global market leadership
Ř Development and growth in oriented
films will be their focus
Ř They will continue to create a
winning culture; operating in the highest standards of ethics and values
Ř They will strive for excellence in
customer service, quality and R & D
Policies
Ř To develop, manufacture and supply
products and services of a quality that will meet or exceed the expectations of
their customers within India and abroad
Ř To improve upon its products and
services on continual basis by taking advantage of on-going developments in
technology.
Ř To improve productivity, timeliness
and responsiveness in all aspects of their operations so as to ensure
competitiveness and profitability
Ř To involve and develop their
employees so that they are qualified and committed to ensure customer
satisfaction
Ř This policy shall be implemented by
maintaining a Quality Management system in conformance with ISO 9000
international standard
Ř This policy shall ensure that they
will continue to be a competitive and successful enterprise
Environmental Policy
Ř Their Policy, which applies to all
parts of their organization operating from the Waluj, Chikalthana, Karjan &
Baska sites is:
Ř To comply with all the applicable
environmental legislations and regulations
Ř To continuously improve their
environmental performance to prevent air, water and soil pollution
Ř To continuously reduce waste
generated
Ř To continuously reduce the
consumption of resources such as water, energy and materials.
Ř To establish and maintain an
Environmental Management System according to ISO-14001 (1996)
Ř To train and involve all employees
of CFL, towards achieving the objectives derived from this policy
Product Safety and
Hygiene Policy
Ř They, Cosmo Films Limited are
India's premier export oriented enterprise engaged in the manufacturing of BOPP
film to be used for food packaging & other applications.
Ř
They
are committed to quality in all respects meeting customer requirements and
closely monitoring cost.
Ř
They
shall strive to achieve this through their world-class facilities, dedicated
and trained personnel & continuous improvement programmes.
Ř
As an
important link in the total food chain, they accept their responsibility in
processing, monitoring raw material into hygienic and safe products for food
packaging.
Ř
Being
the industry leader they are committed to preserving environment and ecological
balance of the surroundings and ensure that they surpass the applicable and
statutory environmental standards.
Ř This policy shall be revietheyd
periodically for continuing suitability.
Energy Policy
Cosmo shall strive forcontinuous energy economy through
Ř Formulation of overall energy
strategy and tragets.
Ř Promoting awareness among employees
to encourage participation.
Ř Improved capacity utilisation.
Ř Up gradation of process, technology
and equipments.
Ř Maximize recovery of waste heat.
Ř Monitor and control energy use
through effective energy management system.
Ř Benchmarking performance against
best, globally.
Ř Training of employees in the field
of energy management.
Chairman
Thank you
for visiting us at Cosmo Films. They are the largest producers of BOPP films in
India with a track record of pioneering introduction of new films. Their growth
focus has primarily been in exports with majority of their business in US and
Europe. Innovation, flexibility and highest standard of integrity are the
hallmark of their business. They are a listed company in the Stock Exchanges in
India and the management vests in a team of high performance professionals well
experienced in the field. They assure you of the highest standards of value and
commitment. The inputs are extremely valuable to us.
Awards and Recognition
PFFCASTAR 2005
Awarded to Cosmofilms Ltd.
Recognition of Excellence for Thermal
Lamination BOPP/BOPET Film
in the Category of Product Development
& New Structures
Presented at
Mumbai on 24th November 2005
ISO 9001: 2000 :-
( Registration Certificate)
The Quality Management System
of Cosmo Films Ltd has been assessed & found to comply with the
requirements of ISO 9001 : 2000
The Quality management System
is applicable to design ,development, manufacturing of BOPP films by biaxial
orientation process & its marketing for various applications
ISO 14001 :-
(Registration Certificate)
The Management Systems of Cosmo
Films Ltd. have been assessed by International Certification Ltd and found to
comply with the requirements of ISO 14001.
Department of
Scientific and Industrial Research, Ministry of Science and Technology,
Government of India, duly recognize their center as a premier research
laboratory. This is the only center of this nature in the entire Indian BOPP
film industry.
ISO 9001 certified:
Joins the elite group of few BOPP film manufacturers in the world.
1998-99: Best BOPP
film exporter by Plexconcil. Certificate of export recognition by Government of
Maharashtra
1998: "Highly
Recommended" recognition by Montell for innovative product development
1995: Award for best
in house R&D efforts from Government of India.
Indiastar, 1994:
Excellence in packaging from Indian Institute of Packaging.
Got accredited with
American Institute of Baking (AIB) Certification for Safety and Hygiene of Food
related products.
Got best BOPP
Exporter award for 1998-99, 1999-2000, 2000-2001.
Cosmo Films Listed
in top 19 Indian companies by "Forbes Magazine".
Awarded in
Recognition of Excellence for Exicusion Coatable BOPP Film by Paper, Film &
Foil converters' Association.
Management Team
Executive
Director & CEO
Mr.
S.K.Mittal
PRESIDENT
Mr. R
Mukherjee
VICE
PRESIDENT
Mr. A G
Deshpande
GM -
COMMERCIAL
Mr Janardan
Gupta
GM -
MARKETING & PROJECTS
Mr. Sanjay
Chincholikar
GM -
MANUFACTURING
Mr. Avinash
Kulkarni
DGM -
MANUFACTURING
Mr. A K.
Pathak
Mr. S. C. Maity
DGM -
COMMERCIAL
Mr. A K.
Pathak
Mr. S. C. Maity
DGM -
COMMERCIAL
Mr. P C Garg
Global Presence
Their
customers are spread all across the globe. It is only due to their valued
clientele that they take pride in having a global presence.
HR Approch
Human
Resource is the most precious resources for the prosperity of the organization.
This is the key resource which differentiate one organization with other. They
in Cosmo have fundamental belief in the potential of Human beings.
"Growth
& excellence thru People" is their motto.
They have
been constantly innovating HR processes to create the climate in company, where
every employee is striving from within to excel individually and collectively and
thereby contributing in creating world class Business Institution.
As on date
they have approximately 400 employees at all over business location. These
employees are exposed to various technical, behavioral and managerial training
programs to upgrade there skills. Scientific performance appraisal system to
ensure constant development of employees as well as fare reward and recognition
is in place.
Job
rotation and multi-skilling processes are carried out through structured job
evaluation and job classification. Business operations are managed by
empowered, competent team of professional with structural review mechanism and
best corporate governance practices.
Core
Values of the company are:
Transparency
Customer Orientation
Innovation
Cost Consciousness
Housekeeping
Fair Business Practices
Infrastructure (R and
D)
Recognized by the Department of
Scientific and Industrial Research (CSIR), their R&D center is equipped
with state-of-the-art with facilities like FTIR, HPLC, instruments capable
measuring OTR, MVTR. They also have pilot plant for coating, lamination and
packaging and a five layer die to make specialty products.
|
Quality
They are
committed to provide value for money to customers by improving the quality of
the product continuously.
Quality
Assurance System
a.
Verification
b. Audits;
and
c. Evaluation
of quality factors;
Cosmo
Film's Quality System is very effective for harmonizing the programs like
quality-development, quality- maintenance and quality-improvement so as to
enable production or service at the most economical and quality level, which
allow for full customer satisfaction.
Their
Quality Assurance System is based on the following prerequisites:
Commitment
to quality
Adopting
'Quality comes first', as a policy
Customer
oriented policy
Responsibility
lies with producer
Product
and process oriented quality assurance
Quality
in products as well services · Follow the quality system with commitment
They use
standard equipments in the Laboratory to test raw material as well as final
products
ISO
CERTIFICATION
Presently,
they are one among the only few ISO 9001 certified BOPP film manufacturers in
the world. The company has been certified by NQA QSR.
Excellent
Scoring by The American Institute of Baking for safety and Hygiene of food
related products.
IT
They
believe Information Technology is strategic tool for excellent customer service
and sustainable business growth.
The company
has following IT facilities:
In
all the plants Enterprise Resource planning (ERP) Package implemented to
process the business processes.
Web
base application for Customer order management system using XML technology
Web
base application for Supplier order Management system using XML technology
Facility
is also built into system to exchange the Customer Invoices and Supplier Order
in XML format
Company
has its on Web server and e-mail facility to communicate effectively.
It
has well developed and informative web site which is kept updated for the
benefit of the information to the customer, supplier and their business
associates.
Press Releases
Cosmo Films
Limited, a leading player in BOPP flexible packaging industry has posted a net
profit after tax to the tune of Rs. 4.100 millions for the first quarter ending
30th June 2005 as against Rs. 23.500 millions in the corresponding quarter of
previous year.
The
decrease in performance has come due to overcapacity in the BOPP Industry –
both globally and domestically. Pressures on margins have continued during this
quarter. Volatility in raw material and crude oil prices have also affected the
operating margins during the quarter. Continuous efforts are on for reducing
the operating costs and improving the product mix for better realizations.
Despite
over-capacity, company’s export sales have increased to Rs. 335.100 millions as
compared to Rs. 265.600 millions during the corresponding quarter of last year.
The company
is focusing on the growth of Thermal films worldwide.
The second
line for Thermal films has been commissioned as per schedule in the EOU
division. A MOU has been signed for distribution of Thermal films in the USA
with an experienced and leading company. Major successes have been achieved in
several countries and we know believe that we are poised for break through in
the largest market in the world for Thermal films – The USA. Order for two more
such lines has been placed and the same will be commissioned before March
2006.
Exports
Phone : +91-9823194844
Fax: +91-240-2554416
Mr. Dr S. Mishra
E-mail: smishra@cosmofilms.com
Phone +91-9823194838
Fax: +91-240-2554416
Mr. S. Mannan
E-mail: mannan@cosmofilms.com
Phone : +91-9823091850
Fax: +91-240-2554416
Mr. Milind Tilak
E-mail: milind@cosmofilms.com
Phone : + 91-0240-2554347
Fax: +
91-0240-2554416
Mr. V Ramachandran
E-mail: expvrc@cosmofilms.com
Sohini Mukherjee
E-mail: sohini@cosmofilms.com
CMT REPORT
[Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No
records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money Laundering
Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.84 |
|
UK Pound |
1 |
Rs.85.55 |
|
Euro |
1 |
Rs.57.28 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
6 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT
LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
52 |
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 |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound
financial base with the strongest capability for timely payment of interest
and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |