MIRA
INFORM REPORT
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Report Date : |
25.05.2007 |
IDENTIFICATION DETAILS
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Name : |
KAIRA CAN COMPANY
LIMITED |
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Registered Office : |
Tieciaon House, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
01.03.1962 |
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Com. Reg. No.: |
11-12289 |
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CIN No.: [Company Identification No.] |
U28129MH1962PLC012289 |
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TAN No.: [Tax Deduction & Collection Account
No.] |
MUMK11380F /
MUMK12715D |
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PAN No.: [Permanent Account No.] |
AAACK4319B /
AAACK4319B |
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Legal Form : |
A Public Limited
Liability Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Exporter and
Manufacturer of open top Sanitary Cans and general purpose Cans. |
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 : |
USD505984 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having fine track record. Trade relations are fair.
Financial position is good. Payments are correct and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
Tiecicon House, |
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Tel. No.: |
91-22-56608711 (4
lines) |
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Fax No.: |
91-22-56635401 |
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E-Mail : |
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Website : |
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Corporate
Office : |
Kairacan – GCMMF Complex,
Anand – 388001, |
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Tel. No.: |
91-2692-63237 /
63238 / 63239 |
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Fax No.: |
91-2692-62559 |
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E-Mail : |
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Factory 1 : |
Amul dairy compound,
anand – 388001, |
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E-Mail : |
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Factory 2 : |
District Kheda,
Kanjari – 387325, |
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Factory 3 : |
Dudhsagar Dairy Compound,
Mehsana – 384002, |
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Factory 4 : |
Unit Plot No.
704/1-2, Phase IV, GIDC, Vithal Udyog Nagar, Anand, |
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Location : |
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Factory 5 : |
D59, TTC
Industrial Area, MIDC, Turbhe, Navi Mumbai |
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Tel. No.: |
91-22-27612144 /
27612151 / 55902416 |
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E-Mail.: |
DIRECTORS
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Name : |
Mr. Premal N. Kapadia |
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Designation : |
Chairman |
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Name : |
Mr. Utsav R.
Kapadia |
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Designation : |
Managing Director |
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Name : |
Mr. Bharatkumar
M. Vyas |
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Designation : |
Nominee of GCMMF |
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Name : |
Mr. Vivek J.
Matthai |
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Designation : |
Nominee of GCMMF |
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Name : |
Mr. Nanak G.
Sheth |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Devang R.
Mehta |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Exporter and
Manufacturer of open top Sanitary Cans and general purpose Cans. |
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Products : |
Products and
Services
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Exports to : |
During the year
under review, the Company has achieved export earnings to the tune of Rs
108.000 Millions from export of Metal Containers, Printed Sheets and
Components. Product exports including
Deemed exports ---- Rs 126.300 Millions |
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Imports from : |
Import of
Tinplate (main raw material), Stores and Spares ---- Rs 288.800 Millions |
GENERAL INFORMATION
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Customers : |
End User |
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Bankers : |
Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
C. C. Chokshi and
Company Chartered
Accounts |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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20,00,000 |
Equity Shares |
Rs 10/- each |
Rs 2.000 Millions |
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20,000 |
11% Redeemable
Cumulative Preference Shares |
Rs 100/- each |
Rs 0.200 Millions |
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TOTAL |
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Rs 2.200 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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9,22,133 |
Equity Shares |
Rs 10/- each |
Rs 9.221 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
9.221 |
9.221 |
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2] Share Application Money |
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3] Reserves & Surplus |
117.275 |
113.976 |
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4] (Accumulated Losses) |
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NETWORTH |
126.496 |
123.197 |
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LOAN FUNDS |
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1] Secured Loans |
151.192 |
146.259 |
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2] Unsecured Loans |
44.569 |
38.688 |
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TOTAL BORROWING |
195.761 |
184.947 |
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DEFERRED TAX LIABILITIES |
13.755 |
14.785 |
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TOTAL |
336.012 |
322.930 |
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APPLICATION OF
FUNDS |
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FIXED ASSETS [Net
Block] |
102.598 |
103.933 |
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Capital
work-in-progress |
0.014 |
1.260 |
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INVESTMENT |
0.343 |
0.343 |
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DEFERREX TAX
ASSETS |
0.000 |
0.000 |
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CURRENT ASSETS,
LOANS & ADVANCES |
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Inventories |
340.067
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292.886 |
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Sundry Debtors |
94.294
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102.787 |
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Cash & Bank
Balances |
11.824
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5.704 |
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Other Current
Assets |
0.000
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0.000 |
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Loans &
Advances |
76.965
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64.125 |
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Total Current Assets |
523.150
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465.502 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current
Liabilities |
284.342
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242.928 |
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Provisions |
5.752
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5.180 |
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Total Current Liabilities |
290.094
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248.109 |
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Net
Current Assets |
233.056
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217.393 |
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MISCELLANEOUS
EXPENSES |
0.000 |
0.000 |
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TOTAL |
336.012 |
322.930 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
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Sales Turnover
[including other income] |
1659.114 |
1409.662 |
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Profit/(Loss) Before Tax |
10.028 |
9.494 |
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Provision for Taxation |
4.100 |
0.388 |
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Profit/(Loss) After Tax |
5.928 |
5.605 |
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Export Value |
105.540 |
928.141 |
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Total Expenditure |
1649.087 |
1400.168 |
SUMMARISED RESULTS
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PARTICULARS |
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31.03.2007 |
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Type |
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Full
Year |
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Sales
Turnover |
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1746.300 |
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Other
Income |
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30.900 |
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Total
Income |
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1777.200 |
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Total
Expenditure |
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1727.700 |
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Operating
Profit |
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49.500 |
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Interest |
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26.700 |
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Gross
Profit |
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22.800 |
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Depreciation |
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10.200 |
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Tax |
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5.500 |
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Reported
PAT |
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8.100 |
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Dividend
(%) |
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0.000 |
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Debt – Equity
Ratio |
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1.52
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1.47 |
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Long Tem Debt-Equity Ratio |
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0.39
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0.39 |
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Current Ratio |
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1.16
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1.15 |
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TURNOVER RATIOS |
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Fixed Assets |
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7.73
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6.68 |
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Inventory |
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5.22
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4.89 |
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Debtors |
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16.77
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16.31 |
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Interest Cover Ratio |
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1.38
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1.40 |
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Operating Profit Margin |
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2.76
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2.96 |
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Profit Before Interest and Tax Margin |
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2.18
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2.33 |
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Cash Profit Margin |
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0.94
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1.11 |
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Adjusted Net Profit Margin |
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0.36
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0.48 |
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Return On Capital Employed |
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11.42
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11.28 |
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Return On Net Worth |
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4.73
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5.73 |
STOCK PRICES
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Face Value |
Rs. 10/- each |
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High |
Rs. 209.00 |
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Low |
Rs. 190.00 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
- Buildings
- Machinery
- Furniture and Fixtures
- Vehicles
The Company is also
engaged in Processing, Packing and Marketing of Amul Milk in Mumbai and its
suburbs.
Amul Milk is
available in two brands:
Ř
Amul
Tazza
Ř
Amul
Gold
It is in Trade
Terms with:
·
Apex
Industries
·
Bhagwati
Metals
·
Century
Machine Tools
·
Deepak
Tools and Abrasives
·
Gayatri
Engineering Works
·
Gears
and Gears Drives
·
J.K.
Spring
·
·
Maskot
Marketing
·
Rajashree
Water Treatment
·
Shah
Industries
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Shivam
Rubber Chemical
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Silver
Lines
·
Shv
Energy Private Limited
·
Vijay
Engineering Works
·
World
Tech Industries
·
Tech Tool
Engineers
OPERATIONS
During the year
under review, Company’s aggregate sales volume recorded a growth of 16% by
achieving sales turnover of Rs 1692.900 Millions for the year as compared to Rs
1464.000 Millions in the previous year. Profitability has been maintained
despite pressure on margins during the year.
The Company has
achieved a turnover of Rs 779.800 Millions of Metal Cans and its Components,
etc. as against Rs 666.100 Millions for the previous year thereby registering a
growth of 17% consequent upon substantially improved volume of OTS and Export
business. The Company executed export orders worth Rs 108.000 Millions of Metal
Components as against Rs 95.700 Millions for the pervious year – a growth of
13%.
With growing thrust
given by the government for the Processed Food Industry, the Company expects to
capitalise the growth opportunities during the current year for OTS Cans
business. The changing life styles of consumers and rising disposable income of
the growing middle class have contributed to expanding market for Branded Food,
Health Food and Convenient Food. With the entry of larger corporate giants into
retail sector, there has been a change in the way a consumer buys and pays for
the products which till today was only differentiated on the basis of
price.
The Company expects
an improved performance during the current year as the prospects for OTS Cans,
Aerosol Cans and exports business seems to be comparatively favourable.
As mentioned in the
last year’s Directors Report regarding the damage to the Property and Tinplate
/ other Materials caused due to cyclone / heavy rains in
The sales volume of
Milk and Milk Products Division has remarkably increased from Rs 731.500
Millions in the previous year to Rs 847.900 Millions for the year 2005-2006
thereby showing a growth of 16%. With the valuable guidance and assistance from
the Gujarat Co-operative Milk Marketing Federation Limited (GCMMF) coupled with
various incentive schemes for area distributors and retailers, the Milk
Division is hopeful of achieving improved performance for the current year.
The Sugar Cone
Division has suffered a slight setback of lower turnover (inclusive of
job-work) of Rs 17.200 Millions for the year against Rs 17.700 Millions in the
previous year.
The Company is
operating nine Amul Food outlets (eight outlets and one kiosk) at the eight
Metro Railway Stations at
With continuous
focus on quality improvement, raising operational efficiencies and cost
reduction measures across all the business, the company expects an improved
growth during the current year.
AS PER WEBSITE
Subject is a manufacturer of Open Top
Sanitary Cans, General purpose Cans and Aerosol Cans. The Company started its
operations in the year 1962. The Company has its productions at its three
plants i e Anand, Kanjari and Mehsana for manufacturing of various types of OTS
and General Purpose Cans for packing Baby Food, Cheese, Butter, Fruit Juices,
Processed Foods, Fish, etc and the Aerosol Cans for packing Deodrants,
Insecticides, Room Freshner etc. The Company has production capacity to produce
100 million Cans per annum. The plants are equipped with Automatic Can
manufacturing lines to produce Cans of diameter ranging from 52 mm to 178 mm.
Since 1992, the Company has also diversified into the business of processing,
packing and distribution of Amul Milk in Mumbai and its suburbs.
Quality
The Company has a fully equipped
laboratory for testing all kinds of raw materials, products in process and
final products, manned by qualified quality control personnel. The company is
constantly in the process of developing new types of Cans and Components in
their R&D Department. It also advises customers on specifications of Cans
for packing variety of food products. The accumulated experience and use of the
most sophisticated technology enables a quick response of superior quality to
market demands. The quality enables a quick response of superior quality to
market demands. The quality of products and services are the prime
considerations of Kaira Can Company Limited.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.60 |
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1 |
Rs.80.65 |
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Euro |
1 |
Rs.54.55 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
8 |
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PAID-UP CAPITAL |
1~10 |
8 |
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OPERATING SCALE |
1~10 |
8 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
8 |
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--LIQUIDITY |
1~10 |
8 |
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--LEVERAGE |
1~10 |
8 |
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--RESERVES |
1~10 |
8 |
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--CREDIT LINES |
1~10 |
8 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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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/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 |
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