MIRA
INFORM REPORT
|
Report Date : |
22.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
COSMO FILMS
LIMITED |
|
|
|
|
Registered Office : |
30, Community
Centre, Saket, New Delhi – 110 017, India |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
07.10.1976 |
|
|
|
|
Com. Reg. No.: |
11-8355 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U92114DL1976PLC008355 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
NSKC01059C |
|
|
|
|
Legal Form : |
It is a public
limited liability company. The
company’s shares are listed on the Stock Exchanges. |
|
|
|
|
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 |
|
Maximum Credit Limit : |
USD 5000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an
established company engaged in the business of manufacturing and marketing
Biaxiall Oriented Polypropylene Film and Synthetic Paper. 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 |
|
Tel. No.: |
91-11-2686 3968 /
2686 3969 / 2668105 |
|
Fax No.: |
91-11-2686 2969 /
2685 3166 / 26868093 |
|
E-Mail : |
ashok@dl.cosmo.sprintsmx.ems.vsnl.net.in |
|
Website : |
|
|
|
|
|
Corporate
Office : |
30, Community
Centre, Saket, New Delhi – 110 017, India |
|
Tel. No.: |
91-11-2686 3968 /
2686 3969 |
|
Fax No.: |
91-11-2686 2969 /
2685 3166 |
|
E-Mail : |
|
|
|
|
|
Plants : |
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 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 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 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 E-mail : cosmofilmsusa@hotmail.com |
|
|
|
|
Branches : |
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 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-mails:- kcp@cosmofilms.com 1405/B, 14th
Floor, Babu Khan Estate, Basheer Bagh, Hyderabad – 550001, Andhra Pradesh,
India Tel. No. 91-40-2359 7620 / Fax No. 91-40-2323 2387 Contact Person
: Mr. P. K. Gupta 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 |
|
Designation : |
Chairman and
Managing Director |
|
Date of
Birth/Age : |
52 years |
|
Qualification
: |
Degree in
Associates of Arts in Business Administration & Diploma in Marketing
Science |
|
Experience : |
34 years |
|
Date of
Appointment : |
02.04.1980 |
|
|
|
|
Name : |
Mr. B V Bhargava |
|
Designation : |
Director |
|
Qualification
: |
M Com, LLB |
|
Other
Directorship : |
Former Managing
Director of ICICI Limited |
|
|
|
|
Name : |
Mr. H K Agarwal |
|
Designation : |
Director |
|
Qualification
: |
B E and MBA
(IIM), Management Consultant |
|
|
|
|
Name : |
Mr. Mahendra
Sanghvi |
|
Designation : |
Director |
|
Qualification
: |
A Polymer
Scientist, |
|
Other
Directorship : |
Promoter and
Managing Director of Shaily Engineering Plastics, Baroda |
|
|
|
|
Name : |
Dr. Surinder
Kapur |
|
Designation : |
Director |
|
Qualification
: |
Ph.D. in
Mechanical Engineering |
|
Other
Directorship : |
Managing Director
of Sona Koyo Steering Systems |
|
|
|
|
Name : |
Mr. Rajeev Gupta |
|
Designation : |
Director |
|
Qualification
: |
B E and MBA |
|
Other
Directorship : |
Joint Managing
Director of DSP Merrill Lynch Limited Managing Director
– Carlyle India Advisors Private Limited |
KEY EXECUTIVES
|
Name : |
Mr. S K Mittal |
|
Designation : |
Executive Director,
C A and CEO |
|
Date of
Birth/Age : |
53 years |
|
Qualification
: |
B. Com, ACA |
|
Experience : |
29 years |
|
Date of
Appointment : |
15.03.1996 |
|
Other
Directorship : |
General Manager
of Samtel Color Limited |
|
|
|
|
Name : |
Ms. Vimal
Bhandari |
|
Designation : |
Director |
|
Qualification
: |
Chartered
Accountant |
|
Other
Directorship : |
Country Manager –
India, AEGON International N. V. |
|
|
|
|
Name : |
Mr. Hasmukh Shah |
|
Designation : |
Industry
Management (Polymer) |
|
|
|
|
Name : |
Mr. R Mukherjee |
|
Designation : |
President |
|
Date of Birth/Age
: |
56 years |
|
Qualification
: |
Mechanical
Engineering |
|
Experience : |
31 years |
|
Date of
Appointment : |
01.11.1997 |
|
Other
Directorship : |
Senior General
Manager of Philips India |
|
|
|
|
Name : |
Mr. A G Deshpande
|
|
Designation : |
Vice President –
Operations |
|
|
|
|
Name : |
Mr. Janardhan
Gupta |
|
Designation : |
General Manager –
Commercial |
|
|
|
|
Name : |
Mr. S D Gosavi |
|
Designation : |
Dy. General
Manager – Manufacturing |
|
|
|
|
Name : |
Mr. S C Maity |
|
Designation : |
Dy. General
Manager – Manufacturing |
|
|
|
|
Name : |
Mr. Mr. Sanjay
Chincholikar |
|
Designation : |
General Manager –
Projects and Domestic Marketing |
|
|
|
|
Name : |
Mr. P C Garg |
|
Designation : |
Dy. General
Manager – Commercial |
|
|
|
|
Name : |
Mr. H L Paranjpe |
|
Designation : |
Director |
|
Qualification
: |
M. Sc. (Chemical
Engineering), University of Birmingham, UK Polymer Technologist |
|
|
|
|
Name : |
Mr. Badri Agarwal
|
|
Designation : |
Director |
|
Qualification
: |
C A, Corporate
Director – Bharti Enterprises Limited
|
|
|
|
|
Name : |
Mr. Avinash
Kulkarni |
|
Designation : |
General Manager –
Manufacturing |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters |
8509817 |
43.78 |
|
Institutional
Investors |
3302488 |
16.98 |
|
Private Corporate
Bodies |
1551012 |
7.98 |
|
Others |
6076759 |
31.26 |
|
Total |
19440076 |
100.00 |
|
|
|
|
|
As on
30.09.2006 |
|
|
|
Promoters Indian Promoters |
8485717 |
43.65 |
|
Institutional Investors |
|
|
|
Mutual Funds and
UTI |
758924 |
3.90 |
|
Bank, Financial
Institution, Insurance Companies (Central/State Government / Non-Government) |
30400 |
0.16 |
|
Fll’s |
4400 |
0.02 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Plastic Films, Packing & Packaging, Printing Industry Services and BOPP
Film. |
||||
|
|
|
||||
|
Products : |
|
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Biaxially
Oriented Polypropylene (BOPP) Film & Synthetic paper |
MT |
77000 |
71000 |
56773 |
|
Thermal
Lamination Machines |
Qty.(Units) |
100 |
NA |
15 |
GENERAL
INFORMATION
|
No. of Employees : |
Around 250 |
||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
v
Union Bank
of India, 26 / 28-D, Connaught Place, Delhi - 110 001 v
Canara Bank,
6, Bhagwandas Road, Delhi - 110 001 v
State Bank
of India, 11, Parliament Street, Delhi - 110 001, Indian v
International
Financial Corporation, Washinton v
Rabo Bank v
ING Vysya
Bank Limited v
HDFC Bank
Limited v
Bank of
Maharashtra v
Export
Import Bank of India v
Bank of
Bahrain and Kuwait v
Industrial
Development Bank of India v
ICICI Bank v
Cooperative
Centrale Raiffeisen – Boerenleenbank B. A. v
Landesbank
Baden – Wurttemberg |
||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
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 mortgage 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.
|
|
|
|
|
Banking Relations
: |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
B.K. Shroff &
Company Chartered
Accountants |
|
|
|
|
Memberships : |
Confederation of
Indian Industry |
|
|
|
|
Collaborators : |
Nil |
|
|
|
|
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 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs. 10/- each |
Rs. 250.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
19440076 |
Equity Shares |
Rs. 10/- each |
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 |
|
|
|
|
|
TOTAL
|
3454.689 |
3594.518 |
3702.729 |
|
|
|
|
|
|
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 |
|
|
|
|
|
|
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 |
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2006 (1st Quarter) |
30.09.2006 (2nd Quarter) |
31.12.2006 (3rd
Quarter) |
|
Sales Turnover |
1252.800 |
1346.700 |
1376.700 |
|
Other Income |
6.100 |
8.100 |
10.600 |
|
Total Income |
1258.900 |
1354.800 |
1387.300 |
|
Total Expenditure |
1096.800 |
1174.200 |
1230.000 |
|
Operating Profit |
162.100 |
180.600 |
157.300 |
|
Interest |
35.500 |
43.900 |
39.900 |
|
Gross Profit |
126.600 |
136.700 |
117.400 |
|
Depreciation |
62.000 |
64.700 |
66.700 |
|
Tax |
8.900 |
23.800 |
9.500 |
|
Reported PAT |
61.300 |
47.500 |
43.300 |
2006-06 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.
2006-09 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.
200612
Quarter 3
Expenditure Includes Raw Materials consumption Rs 796.00 million Power, Water & Fuel Rs 84.00 million Staff Costs Rs 62.00 million Other Costs Rs 183.90 million (Increase) / Decrease in Stock Rs 104.10 million Tax Includes Provision for Income Tax Rs 8.20 million Fringe Benefit Tax Rs 1.30 million Deferred Tax Rs (2.10) million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 11 Complaints disposed off during the quarter 11 Complaints unresolved at the end of the quarter Nil 1. Extrusion Coating Line No - V and one more Line for high end coated products is targeted to be commissioned in the current financial year. 2. Exports during nine months ended December 2006 have increased to Rs 2054.10 million (Previous period Rs 1214.70 million). 3. The impact of foreign exchange fluctuations on the amounts outstanding in assets and liabilities as on December 31, 2006 has not been considered. The same will be considered at the year end. If considered, the profit before tax would have been higher by Rs 11.40 million. 4. Figures for the previous year have been regrouped wherever required.
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/- |
|
High |
Rs.73.50/- |
|
Low |
Rs.73.50/- |
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.
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
202000. Members have the option of holding their shares in clemat form through
any of the depositories by opening account with the authorized 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
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.
They are committed to quality in all respects meeting customer
requirements and closely monitoring cost.
They shall strive to achieve this through their world-class facilities,
dedicated and trained personnel & continuous improvement programmes.
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.
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.
This policy shall be revietheyd periodically for continuing suitability.
Energy Policy
Cosmo shall strive for continuous energy economy through
Ř Formulation of overall energy strategy and targets.
Ř Promoting awareness among employees to encourage participation.
Ř Improved capacity utilization.
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.
Awards and Recognition
PFFCASTAR 2005
Awarded to Cosmo
films Limited
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 Limited 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 Limited have been assessed by
International Certification Limited 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.
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:
Ř Transparency
Ř Customer Orientation
Ř Innovation
Ř Cost Consciousness
Ř Housekeeping
Ř Fair Business Practices
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:
Ř In all the plants Enterprise Resource
planning (ERP) Package implemented to process the business processes.
Ř Web base application for Customer order
management system using XML technology
Ř Web base application for Supplier order
Management system using XML technology
Ř Facility is also built into system to
exchange the Customer Invoices and Supplier Order in XML format
Ř Company has its on Web server and e-mail
facility to communicate effectively.
Ř 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 they know believe that they 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.
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.43.70 |
|
UK Pound |
1 |
Rs.85.90 |
|
Euro |
1 |
Rs.58.25 |
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
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/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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|