MIRA
INFORM REPORT
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Report Date : |
06.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
NILKAMAL LIMITED |
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Formerly Known As : |
NILKAMAL PLASTICS LIMITED |
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Registered Office : |
Survey No. 354/2 and 354/3, Near Rakholi Bridge, Silvassa Khanvel
Road, Village Vasona, U.T. of D & NH, Silvassa |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
05.12.1985 |
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Com. Reg. No.: |
162 |
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CIN No.: [Company
Identification No.] |
L25209DN1985PLC000162 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMN07184C |
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PAN No.: [Permanent
Account No.] |
AAACN2329N |
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Legal Form : |
It is a public limited liability company. The company’s shares are listed in the
Stock Exchanges. |
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Line of Business : |
Manufacturing of Injection Moulding Items. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 5200000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track. Available
information indicates high financial responsibility of the company.
Fundamentals are strong and healthy. Payments are reported as usually correct
and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in a medium to
long-run. |
LOCATIONS
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Registered Office and Vasona Factory : |
Survey No. 354/2 and 354/3, Near Rakholi Bridge, Silvassa Khanvel
Road, Village Vasona, U.T. of D & NH, Silvassa |
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Tel. No.: |
91–2551–221053 / 220156 / 220552 91-260-2699082 / 2699083 |
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Fax No.: |
91–2551–220772 91-260-2699215 |
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Email : |
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Website : |
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Corporate Office : |
Nilkamal House, Plot No. 77/78, Road No. 13/14, Ml DC, Andheri (E),
Mumbai - 400 093, Maharashtra, India |
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Tel No.: |
91–22–28361366 / 28211172 / 28231471 / 26818888 / 26818628 |
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Fax No.: |
91–22–28367891 / 28361923 |
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Email : |
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Barjora Factory : |
Plot No. 1498/2613, WBIDC, Barjora Mejia Road, P.S.: Barjora, District
: Bankura, West Bengal |
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Noida Factory : |
Plot No. 26, B/C Sector No. 31, Surajpur - Kasna Road, Greater Noida 203
207 (U.P.) |
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Pondicherry Factory : |
21/6, Olaivaikkal Village, Kpodapakam Villianoor Road, Villianoor
Taluk, Pondicherry 605 110 |
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Sinnar Factory : |
STICE,
Plot No. 971/1A, Sinnar Shirdi Road, Sinnar-422 103, Dist. Nashik, Maharashtra, India |
DIRECTORS
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Name : |
Mr. D.B. Engineer |
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Designation : |
Director |
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Date
of Birth : |
2nd May 1933 |
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Qualification
: |
Advocate and Attorney |
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Date
of Appointment : |
31st October 2003 |
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Other
Directorship: |
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Name : |
Mr. Hamid A. Moochhala |
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Designation : |
Director (upto 25-09-2006) |
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Name : |
Mr. Hiten V. Parekh |
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Designation : |
Executive Director |
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Name : |
Mr. K. R. Ramamoorthy |
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Designation : |
Director |
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Date
of Birth |
8th July 1940 |
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Qualification |
B.A., B.L, F.CS |
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Date
of Appointment |
31st October 2003 |
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Other
Directorship |
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Name : |
Mr. Mahendra V. Doshi |
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Designation : |
Director |
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Name : |
Mr. Manish V. Parekh |
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Designation : |
Whole-time Director |
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Name : |
Mr. Nayan S. Parekh |
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Designation : |
Whole-time Director |
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Name : |
Mr. R. P. Goyal |
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Designation : |
Director |
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Date
of Birth |
1st December 1923 |
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Qualification |
M.Com, C.A., L.L.B. |
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Date
of Appointment |
7th January 1991 |
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Other
Directorship |
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Name : |
Mr. Rajesh G. Kapadia |
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Designation : |
Director |
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Date
of Birth |
2nd November 1956 |
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Qualification |
B.Com (Hons), F.C.A. |
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Date
of Appointment |
29th January 2004 |
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Other
Directorship |
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Name : |
Mr. Sharad V. Parekh |
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Designation : |
Managing Director |
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Name : |
Mr. Vamanrai V. Parekh |
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Designation : |
Chairman |
KEY EXECUTIVES
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Name : |
Mr. Paresh B. Mehta |
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Designation : |
Financial Controller |
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Name : |
Mr. Manoj Gagvani |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.09.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Individuals / Hindu Undivided Family |
2544861 |
29.68 |
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Bodies Corporate |
2376500 |
27.72 |
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Public
Shareholding |
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Institutions |
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Mutual Funds / UTI |
522025 |
6.09 |
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Financial Institutions / Banks |
300 |
0.00 |
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Foreign Institutional Investors |
1029721 |
12.01 |
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Non-institutions |
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Bodies Corporate |
315191 |
3.68 |
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Individuals - |
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i) Individual shareholders holding
nominal share capital up to Rs. 0.100 Million |
1439900 |
16.79 |
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ii) Individual shareholders holding
nominal share capital in excess of Rs. 0.1 Million |
309184 |
3.61 |
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i) Non- Resident Indians |
23559 |
0.27 |
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ii) Non Resident (Non Repartriable) |
13459 |
0.16 |
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TOTAL
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8574700 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Injection Moulding Items. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Injection Moulding Items |
Quantity (pcs. in Lacs) |
11.22 |
186.91 |
GENERAL
INFORMATION
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No. of Employees : |
956 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Dalai and Shah Chartered Accountants Vora and Associates Chartered Accountants |
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Subsidiaries : |
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Associates : |
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Joint Venture : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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9000000 |
Equity Shares |
Rs.
10/- each |
Rs.
90.000 millions |
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3000000 |
Preference Shares |
Rs.
10/- each |
Rs.
30.000 millions |
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Total |
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Rs. 120.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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85,74,700 |
Equity Shares |
Rs.
10/- each |
Rs.
85.747 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
85.747 |
85.747 |
85.700 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1221.468 |
1182.082 |
1133.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1307.215 |
1267.829 |
1218.700 |
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LOAN FUNDS |
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1] Secured Loans |
1022.034 |
713.061 |
686.400 |
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2] Unsecured Loans |
452.598 |
50.000 |
100.000 |
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TOTAL BORROWING |
1474.632 |
763.061 |
786.400 |
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DEFERRED TAX LIABILITIES |
71.817 |
79.267 |
0.000 |
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TOTAL |
2853.664 |
2110.157 |
2005.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
960.075 |
921.606 |
948.700 |
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Capital work-in-progress |
137.614 |
47.813 |
36.200 |
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INVESTMENT |
197.830 |
82.826 |
72.500 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
635.367
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449.470 |
477.100 |
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Sundry Debtors |
632.643
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550.099 |
570.800 |
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Cash & Bank Balances |
78.289
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53.339 |
45.500 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
622.402
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378.627 |
303.000 |
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Total
Current Assets |
1968.701
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1431.535 |
1396.400 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
366.071
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333.532 |
414.500 |
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Provisions |
44.485
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40.091 |
34.200 |
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Total
Current Liabilities |
410.556
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373.623 |
448.700 |
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Net Current Assets |
1558.145
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1057.912 |
947.700 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2853.664 |
2110.157 |
2005.100 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
4607.267 |
3623.608 |
3552.100 |
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Other Income |
12.462 |
35.813 |
37.100 |
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Total Income |
4619.729 |
3659.421 |
3589.200 |
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Profit/(Loss) Before Tax |
73.969 |
96.221 |
131.200 |
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Provision for Taxation |
4.487 |
17.759 |
2.300 |
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Profit/(Loss) After Tax |
69.482 |
78.462 |
128.900 |
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Earnings in Foreign Currency : |
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Export Earnings |
66.438 |
47.307 |
NA |
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Total Earnings |
66.438 |
47.307 |
NA |
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Imports : |
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Raw Materials |
38.893 |
21.897 |
NA |
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Stores & Spares |
4.676 |
0.022 |
NA |
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Capital Goods |
54.904 |
46.366 |
NA |
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Others |
96.169 |
58.313 |
NA |
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Total Imports |
194.642 |
126.598 |
NA |
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Expenditures : |
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Materials
consumed / Cost of goods traded / Variation in stocks |
3457.457 |
2705.468 |
2847.600 |
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Employees'
Remuneration and Benefits |
177.436 |
131.011 |
99.800 |
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Operating and
other expenses |
671.609 |
498.455 |
322.500 |
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Financial
Expenses |
85.386 |
61.120 |
60.500 |
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Depreciation/Amortisation |
153.872 |
167.146 |
159.600 |
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[35.700] |
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Total Expenditure |
4545.760 |
3563.200 |
3454.300 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 |
30.09.2007 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
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Sales Turnover |
|
1320.500
|
2181.500
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Other Income |
|
2.800
|
5.300
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Total Income |
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1323.300
|
2186.800
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Total Expediture |
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1222.900
|
1906.800
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Operating Profit |
|
100.400
|
280.000
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Interest |
|
30.900
|
84.800
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Gross Profit |
|
69.500
|
195.200
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Depreciation |
|
36.600
|
64.500
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Tax |
|
9.000
|
37.500
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Reported PAT |
|
25.800
|
85.200
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KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
0.87 |
0.62 |
0.67 |
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Long Term Debt-Equity Ratio |
0.41 |
0.18 |
0.28 |
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Current Ratio |
1.59 |
1.41 |
1.49 |
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TURNOVER
RATIOS |
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Fixed Assets |
2.31 |
1.97 |
1.87 |
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Inventory |
9.20 |
8.58 |
7.74 |
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Debtors |
8.44 |
7.09 |
7.35 |
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Interest Cover Ratio |
1.67 |
2.48 |
3.17 |
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Operating Profit Margin(%) |
6.76 |
8.26 |
9.89 |
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Profit Before Interest And Tax
Margin(%) |
3.68 |
4.06 |
5.40 |
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Cash Profit Margin(%) |
4.47 |
6.18 |
8.12 |
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Adjusted Net Profit Margin(%) |
1.39 |
1.97 |
3.63 |
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Return On Capital Employed(%) |
7.63 |
7.99 |
9.76 |
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Return On Net Worth(%) |
5.40 |
6.31 |
10.94 |
LOCAL AGENCY
FURTHER INFORMATION
The company’s registered office at Plot No. 977- 1 A, Sinnar
Shirdi Road, Sinnar, Nashik – 422 103, Maharashtra has shifted to the above
address.
BACKGROUND:
The company’s 54% equity is held by the promoters namely the
Parekh family while 42% is held by the public.
Currently the company has 4 plant locations situated at different parts
of the country. Th unit are located at
Sinnar in Maharashtra, Silvassa in Gujarat, Pondicherry in Tamil Nadu and Noida
in Uttar Pradesh. The company is in the
process of setting up two new manufacturing units at Silvassa and another in
West Bengal to cater to increased demand for its products. The company has set up a subsidiary in Sri
Lanka to directly cater to the export market.
The company is a market leader in many sectors and has established
“Nilkamal” as a strong brand in the country.
The company promoted by the Parekh family, incorporated in
December, 1985 as Creamer Plastic a private limited company, was converted into
a public limited company in July, 1990. In August, 1990, the name was changed
to present.
It is India's largest manufacturer of materials handling
plastic creates and a leader in moulded furniture. It is one of the companies
to benefit from moulded plastic, which is fast replacing conventional materials
in the manufacture of innumerable products.
Today, using state-of-the-art machines and imported moulds
from Europe, the company manufacturers a range of products, material handling
creates, moulded furniture, houseware, multilayer packaging films and custom
moulding. The company has been exporting its quality products since 1986 and
has won several export awards.
The company's has achieved ISO 9000 certification resulting
in a consistent quality irrespective of whichever plant the material is
produced. Its units are located at Sinnar in Maharashtra, Silvassa in Gujarat,
Pondicherry and Noida in Uttar Pradesh. The company is in the process of
setting up two new manufacturing units at Silvassa and another in West Bengal
to cater to increased demand for its products. The company has set up a
subsidiary in Sri Lanka to directly cater to the export market.
The company is planning to get its Pondicherry factory
ISO-14001 certified in line with the policy of the company at Environment
friendly.
YEAR
IN RETROSPECT:
The year under review was indeed a challenging year for the Company.
Persistent
efforts have been made by the Company to maintain higher sales volume. Net
Sales were Rs. 4607.268 Millions as against Rs. 3623.608 Millions in the
previous year. Operational figures were affected due to steep increase in raw
material prices and volatile market scenario. Net profit after tax was Rs.
69.482 Millions as compared to Rs. 78.462 Millions in the previous year.
The
Company has endeavoured to bring out unique moulded furniture, material
handling crates and mark its presence in the market thereby maintaining a
leadership position. The Company is heading to be a one-stop-shop for material
handling business.
The
Company has already commenced operations for its seven retail stores of
lifestyle furniture, furnishings, decor items and accessories under its trademark
'@home'-at various locations across India. The eighth '@home' store has been
opened at Vashi (Mumbai) in the first quarter. The retail business has achieved
a turnover of Rs. 258.200 Millions as compared to last year of Rs. 48.400
Millions; resulting into the growth of 433%. During this year the retail
business has made a loss (before charge of interest) of Rs. 70 Millions as
compared to last year of Rs. 61.500 Millions.
SUBSIDIARIES
& JOINT VENTURE
Total net income of Sri Lanka subsidiary was SLR 9,307 Lacs as compared to SLR
9,132.75 Lacs in the previous financial year, thereby resulting into increase
by 3%. There has been a decline in the Net profit from SLR 369.61 Lacs in
previous year to SLR 190 Lacs in the current year. Reasons for such decrease in
profitability was due to increase in input cost, volume de-growth due to
increase competition and political instability, increase in interest cost and
effective devaluation of SLR by 11% during the year.
The Bangladesh subsidiary performance was under pressure during the year under
review. The. reason for continued adverse performance was increase in input
cost and continuous business disruption because of political instability.
Accumulated losses has increased from BDT 765.64 Lacs to BDT 1,107.38 Lacs
During the year the company has made further investment of Rs. 22.800 Millions
towards equity contribution in the said subsidiary.
With the experience of Indian and Sri Lankan market, introduction of various
new products, expected stability of raw material prices and acceptability of
increase in end product price by the market will enable to revive the
performance of the subsidiaries in near future.
Nilkamal Bhoomi Developers Private Limited has acquired property at Mumbai for
real estate development, which is expected to be completed within a period of
eighteen months.
The business of Indo German joint venture company viz. Nilkamal Bito Storage
Systems Private Limited is on move and manufacturing unit adhering German
standards has been set up at Jammu, India. The trial run production for the
said subsidiary has commenced during April, 2007 and expected to stabilise its
operations shortly.
EXPORTS:
Company's Exports during the year were Rs. 66.438 Millions
as compared to Rs.47.307 Millions in the previous year.
PROSPECTS:
For its retail business, the Company has plans to start nine such '@home'
stores across India during this year. The plastics business is also likely to
increase during current year.
The consolidation of group entities Nilkamal Crates and Bins
Private Limited and Stackwell Marketing Services Private Limited with the
Company is also expected to be completed during this year. By such
consolidation the Company seeks to enhance shareholders value.
The Company has signed Business Transfer Agreement (BTA) to acquire for a total
consideration of Rs. 250 Millions, the Material handling business of Prince
Containers Private Limited and Prince Multiplast Private Limited They were one
of the prominent players in the material handling business. This acquisition
will help the company to further consolidate its position in the plastic
processing industry.
With such developments and new business avenues, the Company foresees a better
performance during the current financial year.
MANAGEMENT DISCUSSION AND ANALYSIS:
INDUSTRY STRUCTURE AND DEVELOPMENT;
The Company
mainly operates in two segments; a) Manufacturing and trading of Injection
Moulded Plastic Articles and b) Retailing in Lifestyle home furniture,
furnishings, home decor and accessories.
Plastics Business:
The Company's
business of Injection Moulded Plastic articles consists mainly of material
handling crates and furniture. In both the product segments, the Company is an
undisputed market leader.
In the
Furniture Segment the Company is the world's largest moulded furniture company
producing more than a million chairs a month and enjoying an Indian market
share of around 33%. The moulded furniture market comprises of two national
players and around Forty five regional players spread over the country.
For the year
under review, the Company has witnessed volume growth of approx. 8% and value
growth of 11% against industry value growth of 3% and no volume growth. The
Company has achieved a turnover in excess of Rs.3010 Millions, which is almost
twice the turnover of closest competitor.
The continued
volatility in raw material price movement made it very difficult for the
Industry & Company to pass on increased input cost to the customers.
During the year
under review the Company's emphasis was on introduction of value added
products, opening of depots to ensure proximity to customers and innovative
promotional initiatives, which has helped in triggering the growth.
The Company has invested Rs. 50 Millions in various new designs and products
and is envisaged to further spend apporx. Rs. 150 Millions over a period of two
years.
The Company's
focus on introduction of value added products, catering to the modern trade,
expansion of existing market and going rural along with strong brand value and
customer centric approach will lead to high growth with improved financial
performance.
The Material
Handling division has witnessed a 2% volume growth while in value terms it has
achieved a growth of 12%. This increase is not only due to increase in input
costs but also due to improved sales realization.
The Company has envisaged a journey to become One Stop Material Handling
Solution Provider for the Indian and international market.
With this aim
and to consolidate its position, the Company has acquired material handling
business of Prince Containers Private Limited and Prince Multi Plast Private
Limited, with this acquisition, the Company with its existing strong marketing
network, wide range of material handling solution products and other resources
will be able to grow rapidly and further consolidate its position in the
plastics processing industry.
The Company has
also proposed the amalgamation of group Companies. The proposed amalgamating
companies namely Nilkamal Crates and Bins Private Limited ('NCBPL') and
Stackwell Marketing Services Private Limited ('SMSPL') have clocked turnover of
Rs. 1550 Millions for the financial year 2006-07 resulting in a growth of 46%
viz a viz previous year. The Company will be immensely benefited on account of
integrations of operations, concentration of core activity under single entity
and further rationalization of administrative, operating and marketing costs.
This will eventually result in enhancement of financial strength and flexibility.
LIFESTYLE FURNITURE, FURNISHING, HOME DECOR AND
ACCESSORIES:
The Company
carries on the business of readymade furniture, furnishing, lights, flooring
& accessories under the brand '@home' which is a chain of retail
stores.
With growing
disposable Income, changing consumer patterns, growing nuclear family and time
poverty setting in, the demand for lifestyle readymade furniture is spiraling.
The Indian home furniture, furnishings and accessories market is set to boom on
the back of growing new home market as well as latent demand from an existing
million of homes. '@home' is a specialty store and being the first organized
mover in this business is better equipped and placed to create it's own
identity in the market. At present eight stores across six cities, have become
operational and have achieved an aggregate turnover of Rs. 258.200 Millions
against Rs. 48.400 Millions in the previous year. Gestation period of lifestyle
readymade furniture retail chain is time intensive. This segment had incurred a
loss before charge of interest of Rs. 70 Millions against Rs. 61.500 Millions
in the previous year. The Company will be putting up another nine stores during
the financial year 2007-08 and twelve stores in 2008-09. This will result in to
operation of having more than four Lacs Sq. Ft. of carpet area across pan
India.
The Company has
successfully implemented 15 Retail - SAP software connecting all stores,
distribution centers, local warehouses and head office. The Company has also initiated
the process of ISO 9001 across all the stores. This initiatives will further
help 'home' to serve it's customers in far more efficient and effective
manner.
The Company has also established representative office in China for procurement
of contemporary and qualitative products from South East Asia region. At
present the Company offers more than 9,500 SKU's and has a repertoire of more
than 120 exclusive designs in contemporary styles with approx 39 suppliers of
which 11 are exclusively catering to '@home' requirement. The Company has also
entered into shop-in-shop arrangement with over 15 reputed national and
international brands with diverse product categories and has initiated a
process of establishing a robust institutional sales network at national level.
It has more than 200 dedicated staff and the same is growing continuously to
offer customer, products and services at affordable price.
OPPORTUNITIES, THREATS, RISKS, CONCERNS AND
OUTLOOK:
Continuous
introduction of various value added products, expansion of rural market,
evolution of organized retail market and consolidation of businesses will
provide tremendous opportunities for Plastics business. Low capital investment
and standard technology which attracts more players in the industry, unfair and
unethical practice by regional players, volatility of input cost are concern
area. This concern can be mitigated by reinforcement of brand, customer centric
approach and wide spread & deep market penetration with range of products
& increase in modern trade who are willing to only sell branded
products.
Robust economic
growth, higher disposable income, non availability of skilled labour and
carpenters for making furniture, evolution of organized retail market across
product segment and acceptability of the said format, entry of large business
houses with long term vision and availability of quality product at affordable
prices are some of the key growth driver for life style furniture, furnishing
and accessories business.
For any sun
rising industry (including retail sector), the competition amongst the player
within the industry is inevitable. Amongst other known reason, mismatch in
demand and supply has resulted into steep increase in lease rent with an added
burden of service tax. The high initial brand establishment expenditure,
logistic costs coupled with high learning cost in evolution of customer
friendly formats, sourcing of quality products, retention of skilled, dedicated
human resources etc, are some of the factors which the industry and the Company
is required to address on an ongoing basis.
Hands on
approach, capitalization of manufacturing and engineering experience to design
and deliver long lasting aesthetic products, Consultative selling with a focus
to become the most preferred destination for Home Decor solutions will lead the
Company to create it's own space in this market.
SUBSIDIARY AND JOINT VENTURE PERFORMANCE:
Steep increase
in input cost coupled with intense competition and political instability has
adversely affected operations and performance of Company's foreign subsidiaries
situated in Sri Lanka and Bangladesh. The Sri Lankan Subsidiary has achieved
turnover of SLR 9,307 Lacs and Net Profit of SLR 190 Lacs. Bangaldesh
Subsidiary has achieved turnover of BDT 1,306 Lacs and Net Loss of BDT 317
Lacs. The devaluation of Sri Lankan currency by more than 11% and increase in
interest cost has further contributed to the adverse performance of the Sri
Lankan subsidiary.
During the year
under review, the Company has received towards Technical and Management Fees of
Rs. 11.500 Millions (previous year Rs. 12.076 Millions) from its Sri Lankan
subsidiary.
The Company has
further contributed Rs. 22.800 Millions towards Equity contribution for
strengthening operations at Bangladesh.
The Company is
optimistic on the turn around for both the subsidiaries.
Nilkamal Bhoomi
Developers Private Limited has completed acquisition of property at Mumbai for
commercial exploitation. The property development is expected to be completed
within a period of eighteen months.
The Joint Venture Company, Nilkamal Bito Storage Systems Private Limited, has
set up manufacturing facilities at Jammu to manufacture storage systems of
metal for providing intra logistic solution to the national and international
market. It has commenced trial run production in April 2007 and is expected to
stabiliz it's operations shortly. The Company has contributed Rs. 92.500
Millions towards Equity for the said Joint Venture.
Nilkamal brand used by Nilkamal Limited, is owned by Nilkamal Crates
& Containers for which no payment of royalty is made by Nilkamal Limited to
Nilkamal Crates and Containers.
The
company is in trade terms with:
v Mixwel
Polymers
v Rajiv
Plastic Industries
v Venus
Arts
v True
Cartons
v Mudra
Art
v Canbara
Industries
v Interpack
Industries
v Lohia
Fibres
v Pioneer
Packaging India Private Limited
v Periwal
Plastics Private Limited
v Eagle
Furnitures Private Limited
v Mudrika
Lables Private Limited
v M.
Colour Concentrate
FIXED
ASSETS
- Freehold Land
- Leasehold Land
- Building
- Plant and Machinery
- Furniture Fixtures and Office Equipment
- Vehicles
AS PER WEBSITE
NILKAMAL GROUP OF COMPANIES, with
a turnover of over Rs. 500 crores/ USD 125 million is the world leader in the
field of plastic Molded Furniture and India's number one in the Material
Handling plastic crates industry. Nilkamal, a name to reckon with in the
plastic processing industry since the last three decades, is into Injection
molding of plastic furniture, material
handling crates and bins. They process fifty thousand metric tons of
polyethylene and polypropylene Per Annum.
Their
array of furniture products includes a large variety of models in chairs,
dining tables, coffee tables, cupboards, trolleys, shoe racks, multipurpose
racks, baby chairs, stools, etc. which are highly popular in homes,
restaurants, gardens, party halls, etc. They have also diversified into
lifestyle furniture business by launching @home - the complete Home Solutions Store with contemporary
readymade knockdown wooden furniture and home accents. Besides refreshing
furniture and accessories, these stores provide design solutions, professional
guidance, interest free loans, etc. With 8 stores already operational ( 2 in
Mumbai, 1 each in New Mumbai, Pune, Ahmedabad, Nasik, Hyderabad and Bangalore )
as on June 2007, they plan to launch 4 more stores by the end of 2007.
Their Material Handling range includes crates and bins designed to cater to
material handling, storage and transport requirements generated at almost all
sectors of industries; be it Automobile, Pharmaceutical, Engineering,
Electrical, Hospitality & Catering, Logistics, Textiles, Supermarkets,
Electronics, Retail, Food and Beverages, Agriculture & Seafood, etc. They
have entered into a Joint Venture with BITO-Lagertechnik
Bittmann GmbH (Germany) to manufacture storage systems in metal in
India. Another product line is that of Automated Storage and Retrieval Systems
manufactured by Hanel Buro- und
Lagersysteme, Germany for whom they are the sole dealers in India. They
are working with Plastic Omnium
Systemes Urbains S.A of France for supply of high tech plastic waste
bins to municipalities, supermarkets, multiplexes, housing colonies, etc. They
are constantly striving and progressing to become a One Stop Material Handling Shop.
The
Group's manufacturing facilities include eight plants located all across India.
Of these, there are three in the West and one each in the North, East and
South. These are all accredited with quality certificates like ISO 9001 and ISO 14000. The two
factory situated in Jammu in Northern India out of wage started production in
April 2007. They have Joint Ventures in Bangladesh and Sri Lanka which
manufacture and sell plastic furniture and material handling crates.
The
Group's major strengths are a wide direct sales network of 350 members, a
strong dealer network of 350 plus, 33 regional offices located in all major
industrial cities and 24 warehouses situated all across India. They also have a
warehousing facility alongwith a marketing office set up in Ajman Free Zone,
UAE which caters to the requirements in the Middle East and the African
continent.
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.39.47 |
|
UK Pound |
1 |
Rs.80.09 |
|
Euro |
1 |
Rs.57.65 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|