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MIRA
INFORM REPORT
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Report Date : |
26.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
CENTURY PLYBOARDS
(INDIA) LIMITED |
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Registered Office : |
6, Lyons Range, Kolkata – 700 001, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
05.01.1982 |
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Com. Reg. No.: |
21-34435 |
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CIN No.: [Company
Identification No.] |
L20101WB1982PLC034435 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALC04599A |
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PAN No.: [Permanent
Account No.] |
AABCC1682J |
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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 : |
Manufacturers and
Sellers of Plywood and Veneer. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 8200000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track. Financial
position is good. Payments are usually correct and as per commitments. The
company is doing well. It can be considered good for any normal business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
6, Lyons Range, Kolkata – 700 001, West Bengal, India |
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Tel. No.: |
91-33-22104321/22/23/24/25/26 |
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Fax No.: |
91-33-22483539 |
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E-Mail : |
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Website : |
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Factory 1 : |
Plywood,
Veneer and Laminate Units Diamond Harbour Road, Kanchowki, Bishnupur, Dist: 24 Parganas (S),
(West Bengal) |
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Tel. No.: |
91-33-24709680/9155/9157 |
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Factory 2 : |
Ferro
Alloy & Power Units EPIP Area, Byrnihat, Dist. Ri-Bhoi, (Meghalaya) |
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Branches : |
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DIRECTORS
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Name : |
Mr. B. L. Agarwal |
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Designation : |
Chairman |
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Name : |
Mr. Satya Brata
Ganguly |
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Designation : |
Chairman |
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Name : |
Mr. Hari Prasad Agarwal |
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Designation : |
Vice Chairman |
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Qualification : |
B.Com. |
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Date of Appointment : |
05.06.1982 |
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Name : |
Mr. Sajjan Bhajanka |
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Designation : |
Managing Director |
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Qualification : |
B.Com. |
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Date of Appointment : |
05.12.1986 |
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Name : |
Mr. Sanjay Agarwal |
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Designation : |
Deputy Managing Director and Promoter Director |
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Qualification : |
B.Com. |
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Date of Appointment : |
05.06.1982 |
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Name : |
Mr. Prem Kumar Bhajanka |
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Designation : |
Joint Managing Director |
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Name : |
Mr. Vishnu Khemani |
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Designation : |
Joint Managing Director |
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Name : |
Mr.
Santanu Ray |
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Designation : |
Director |
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Name : |
Mr.
Manindra Nath Banerjee |
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Designation : |
Director |
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Name : |
Mr.
Ajay Baldawa |
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Designation : |
Executive Director |
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Name : |
Mr.
N. R. Tater |
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Designation : |
Executive Director |
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Name : |
Mr.
Mangi Lai Jain |
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Designation : |
Director |
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Name : |
Mr.
Sajan Kumar Bansal |
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Designation : |
Director |
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Name : |
Mr.
Brij Bhushan Agarwal |
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Designation : |
Director |
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Name : |
Ms. Plistina Dkhar |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr.
A. K. Julasaria |
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Designation : |
Company
Secretary / Finance Controller |
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Name : |
Mr.
Banwari Lal Agarwal |
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Designation : |
Chairman
Emeritus |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian Promoters |
17604851 |
89.07 |
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Mutual Funds |
360712 |
1.83 |
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Private Corporate Bodies |
633794 |
3.20 |
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NRIs |
17758 |
0.09 |
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Indian Public |
1148298 |
5.81 |
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Total |
19765413 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and
Sellers of Plywood and Veneer. |
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Products : |
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Brand Name : |
‘Centuryply’ |
PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Veneer |
CBM |
50200 |
25879* |
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Plywood |
CBM |
25400 |
22896 |
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Laminate Sheets |
Nos. |
2400000 |
2195176 |
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Pre-laminated Boards |
SQM |
800000 |
132536 |
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Ferro Silicon |
MT |
10620 |
11464 |
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Power |
KWH |
13.80 |
89403360# |
GENERAL INFORMATION
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No. of Employees : |
2500 |
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Bankers : |
Commercial Branch, N. S. Road, Kolkata 700 001, India
Flagship Corporate Centre, N. S. Road, Kolkata 700 001, India
Park Street Branch, Kolkata 700 016, India |
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Facilities : |
Notes
: 1. Rupee Term Loans of Rs.143.284 Millions
from banks are secured against first charge on fixed assets of company's
Laminate unit at Bishnupur, Joka, South 24 Parganas and second charge on
current assets of the company's Plywood and Laminate units at Bishnupur,
Joka, South 24 Parganas. 2. Rupee Term Loan of Rs.64.211 Millions
from banks and Rs.132.500 Millions from a financial institution and Letters
of Credit for Buyer's Credit of Rs.38.535 Millions from banks, arc secured
against first charge on fixed assets of company's Ferro Alloy and Power Units
at Byrnihat, Meghalaya and second charge on current assets of the said unit. 3. Working capital facilities of
Rs.413.385 Millions from banks and Letter of Credit for Buyer's Credit of
Rs.173.049 Millions are secured against first charge on current assets of
company's Plywood and Laminate Units, first charge on fixed assets of
company's Plywood Unit and 2nd charge on fixed assets of company's Laminate
Unit. 4. Working capital facilities of Rs.82.940
Millions from a bank is secured against first charge on current assets of
company's Fcrro Alloy and Power Unit, and 2nd charge on fixed assets of the
said units. 5. Term Loans and Working Capital
facilities from Banks/Financial Institution are also guaranteed by some of
the directors of the company. 6. Hire purchase finance from banks is
secured against hypothecation of assets procured from such finance. 7. Secured loans due within one year Rs.101.144 Millions. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Ashok
Kedia and Company Chartered
Accountants 4,
Gangadhar Babu Lane, Kolkata - 700 012, India Kailash
B. Goel and Company Chartered
Accountants 31,
Ganesh Ch. Avenue, 4th Floor, Kolkata – 700013, India |
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Subsidiaries : |
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Associates : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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57050000 |
Equity Shares |
Rs.10/- each |
Rs.570.500 Millions |
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Issued, Subscribed
& Paid-up Capital
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No. of Shares |
Type |
Value |
Amount |
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22750000 |
Equity Shares |
Rs.10/- each |
Rs.227.500 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
227.500 |
198.008 |
102.790 |
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2] Share Application Money |
0.000 |
0.000 |
95.219 |
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3] Reserves & Surplus |
1405.400 |
979.098 |
831.154 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1632.900 |
1177.106 |
1029.163 |
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LOAN FUNDS |
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1] Secured Loans |
1285.600 |
1054.688 |
791.361 |
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2] Unsecured Loans |
68.400 |
43.892 |
71.542 |
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TOTAL BORROWING |
1354.000 |
1098.580 |
862.903 |
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DEFERRED TAX LIABILITIES |
0.000 |
33.089 |
44.567 |
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TOTAL |
2986.900 |
2308.775 |
1936.633 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
912.700 |
756.579 |
805.202 |
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Capital work-in-progress |
10.800 |
11.999 |
15.989 |
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INVESTMENT |
328.400 |
363.827 |
321.472 |
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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 |
1277.000 |
741.375 |
676.957 |
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Sundry Debtors |
1064.400
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610.012
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468.714 |
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Cash & Bank Balances |
149.300
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120.359
|
78.577 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
395.700
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292.311
|
188.970 |
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Total
Current Assets |
2886.400
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1764.057
|
1413.218 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1032.700
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584.294
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587.671 |
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Provisions |
120.600
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4.455
|
32.292 |
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Total
Current Liabilities |
1153.300
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588.749
|
619.963 |
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Net Current Assets |
1733.100
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1175.308
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793.255 |
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MISCELLANEOUS EXPENSES |
1.900 |
1.062 |
0.715 |
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TOTAL |
2986.900 |
2308.775 |
1936.633 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
6319.000 |
4255.554 |
2676.539 |
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Other Income |
96.600 |
46.833 |
164.736 |
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Total Income |
6415.600 |
4302.387 |
2841.275 |
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Profit/(Loss) Before Tax |
619.600 |
243.779 |
152.016 |
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Provision for Taxation |
173.400 |
39.339 |
46.137 |
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Profit/(Loss) After Tax |
446.200 |
204.440 |
105.879 |
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Earnings in Foreign Currency : |
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Export Earnings |
NA |
165.321 |
66.680 |
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Total Earnings |
NA |
165.321 |
66.680 |
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Imports : |
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Raw Materials |
NA |
798.437 |
762.060 |
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Stores & Spares |
NA |
7.294 |
10.483 |
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Capital Goods |
NA |
2.330 |
2.188 |
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Others |
NA |
10.720 |
3.114 |
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Total Imports |
NA |
818.781 |
777.845 |
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Expenditures : |
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Cost of Materials |
3313.900 |
2521.176 |
1857.298 |
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Operating & Administrative Expenses |
681.000 |
1163.419 |
624.688 |
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Personnel Expenses |
1427.900 |
166.147 |
100.397 |
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Depreciation |
373.200 |
128.702 |
64.720 |
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Interest & Finance Charges |
0.000 |
79.164 |
42.156 |
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Total Expenditure |
5796.000 |
4058.608 |
2689.259 |
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QUARTERLY RESULTS
|
PARTICULARS |
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|
30.06.2008 |
|
Type |
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|
1st Quarterly |
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Sales
Turnover |
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|
1802.300 |
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Other
Income |
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|
151.300 |
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Total
Income |
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|
1953.600 |
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Total
Expenditure |
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|
1600.800 |
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Operating
Profit |
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|
352.800 |
|
Interest |
|
|
83.900 |
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Gross
Profit |
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|
268.900 |
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Depreciation |
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|
34.500 |
|
Tax |
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|
10.800 |
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Reported
PAT |
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|
222.700 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Debt-Equity
Ratio |
0.88 |
0.90 |
0.78 |
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Long
Term Debt-Equity Ratio |
0.26 |
0.37 |
0.42 |
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Current
Ratio |
1.32 |
1.28 |
1.39 |
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TURNOVER
RATIOS |
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Fixed
Assets |
4.72 |
4.01 |
3.64 |
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Inventory |
6.26 |
6.27 |
5.47 |
|
Debtors |
7.55 |
8.24 |
8.04 |
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Interest
Cover Ratio |
6.05 |
3.62 |
3.37 |
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Operating
Profit Margin(%) |
13.95 |
10.52 |
8.09 |
|
Profit
Before Interest And Tax Margin(%) |
11.75 |
7.63 |
5.81 |
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Cash
Profit Margin(%) |
9.27 |
7.50 |
5.10 |
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Adjusted
Net Profit Margin(%) |
7.06 |
4.60 |
2.82 |
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Return
On Capital Employed(%) |
28.37 |
16.34 |
12.13 |
|
Return
On Net Worth(%) |
32.38 |
19.52 |
11.19 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Subject was
incorporated on 5th January, 1982 at Kolkata in West Bengal having
Company Registration Number 34435.
Subject, makers of the
well known “Century” Brand of Plywood, was set up in the year 1986 in Kolkata
and today is the leading brand in India. Creating a special niche for itself in
a short period, the company manufacturers the entire range of commercial,
marine, concrete, shuttering and decorative plywood.
Century have the
distinction of becoming the first ISO – 9002 Company in India for Veneer and
Plywood. Most probably till now it is the only ISO – 9002 Company for Veneer
and Plywood.
It has its
manufacturing facilities at D. H. Road at Bishnupur, between Joka and Amtala.
The facility comprises of 10 acre plot of land with 4 acre covered area with
world class selection of plant and machinery.
AMALGAMATION OF
CENTURY PANELS PRIVATE LIMITED, SHARON VENEERS PRIVATE LIMITED AND SHARON WOOD
INDUSTRIES PRIVATE LIMITED AND ISSUE OF NEW SHARES:
During the year, a Scheme of Amalgamation (the scheme) of Century Panels
Private Limited (CPPL), Sharon Veneers Private Limited (SVPL) and Sharon Wood Industries
Private Limited (SWIPL) with the Company was approved by the members at the
court convened meeting held on 8th October, 2007 and was subsequently
sanctioned by Hon'ble High Courts of Judicature at Delhi and Kolkata on 27th
February, 2008 and 5th March, 2008 respectively. The Certified copies of orders
of Hon'ble High Courts were filed with Ministry of Corporate Affairs on 1st
April, 2008 and accordingly the scheme became effective from 1st April, 2008.
The appointed date of the scheme being 1st April, 2007, the effect of all
transactions of CPPL, SVPL and SWIPL had been given in financial year
2007-08.
SVPL and SWIPL were both engaged in manufacturing of plywood and related
products with a major market share in southern India and having manufacturing
unit in Chinnappolapuram, Gummidipoondi, and Chennai. CPPL was also engaged in
manufacturing of plywood and related products having its unit at Rambha Road,
Taraori, Haryana.
This merger is coherent with the current corporate trend of expansion via
strategic acquisitions at group level. The merger has resulted in:
- Creation of a combined base of higher profitability and assets.
- Benefits of horizontal integration, efficient utilization of their resources, greater economies of scale.
- Formation of a more coherent strategy for growth by providing an opportunity to plan for future growth avenues with greater choices and larger pool of combined resources.
- Providing an access to a combined pool of marketing set up and unhindered leveraging of common financial and managerial resources in pursuit of a unified strategy.
- Ensuring higher standards of corporate governance, assurance and risk management aspects.
- Increased production capacities and increased market share of organized plywood market.
- Logistic advantages as acquired manufacturing units are located in northern and southern part of India.
- Unlocking the true potential of the combined resources.
This merger has resulted in the formation of a larger and stronger entity
having a wider geographical reach and area of operations with a larger capital
and asset base and greater capacity for conducting its operations more
efficiently and competitively.
PERFORMANCE
/ OPERATIONS REVIEW
The Company achieved Gross Income of Rs.6415.600 Millions against Rs.4524.000 Millions during the previous year reflecting a growth of over 41%. The net profit also increased from Rs.204.400 Millions to Rs.446.200 Millions reflecting growth of over 118%. The company continued its dominance in plywood, veneer & allied products and further increased its market share. The merger of three companies resulted in substantial increase of plywood capacity and also logistic benefits of proximity of manufacturing set ups across the country. The profitability of plywood segment increased from Rs.207.100 Millions to Rs.397.500 Millions. The profitability of all segments increased considerably. The laminate division posted segmental profit of Rs.74.700 Millions against loss of Rs.37.500 Millions last year. With the assured availability of power from Captive Power Plant, the ferro alloy unit' s profitability increased from Rs.72.600 Millions to Rs.14.700 Millions.
With record performance of the cement plant of the subsidiary, on consolidated
basis also, the Company's operations grew significantly. The company achieved
Gross Income of Rs.10099.200 Millions against Rs.7182.500 Millions during the
previous year, reflecting a growth of over 40%. The net profit after minority
interest also increased from Rs.774.000 Millions to Rs.1116.700 Millions
reflecting growth of over 44%.
SAP
IMPLEMENTATION
The company has implemented SAP ERP system, which connects all offices and manufacturing locations across the country through single software and single server. The new system will greatly enhance the company's capability to capture and process real time and comprehensive range of data to be used for decision making and day to day operations. The system will enable automation of almost all processes which were not part of the IT legacy system. It will also integrate good governance practices into the business process through the use of IT tools and software components. It will incorporate internal control requirements through well defined authorization profiles and rigid systems. The system will ensure better transparency and corporate governance across organization.
SUBSIDIARIES AND ASSOCIATES
Cement Manufacturing Company Limited (CMCL), Megha Technical and
Engineers Private Limited (MTEPL) and Auro Sundaram Ply and Doors Private Limited
(ASPDPL) continued to be subsidiaries of the Company. During the Financial Year
2007-08, CMCL acquired 100% controlling interest in Star Cement Meghalaya
Limited (SCML) and as such SCML also became a subsidiary of the Company with
effect from 2nd June, 2007.
CMCL along with its subsidiary MTEPL operates integrated Cement plant at
Meghalaya with aggregate annual installed capacity of 1 million Tonne. During
the year, the cement production increased to 725196 MT as compared to 508150 MT
in the previous year. It has been able to maintain its EBIDTA margins of 44%
and improved net profit margin from 32.91% to 35.47%.
ASPDPL is operating a plywood unit at Raipur Industrial Area, Uttarkhand. This
unit is manufacturing plywood and allied products from eco-friendly
agro-forestry timber and is entitled to various incentives including excise
duty and income tax exemption.
SCML is setting up a 1.5 million tonne clinkerisation unit along with a captive
power plant at Lumshnong, Meghalaya.
FUTURE
OUTLOOK
Demand for Plywood, Laminates, Ferro Alloys and Cement is directly related to the growth of construction and infrastructure sector. With the ongoing boom in the infrastructure and construction sector, the demand for company and its subsidiaries' products is expected to remain comfortable. The present economic situation in the country and Government's fiscal policies also point to buoyancy in construction and infrastructure sector. In order to boost environment friendly interior materials, the Finance Minister has reduced excise duty on plywood and veneers from 16% to 8%, which will immensely benefit the organized sector of the industry.
In view of present shortage and additional future demand for houses the
construction activity is expected to remain in full swing. Although a temporary
cool down of construction activities may not be ruled out, the overall
situation is expected to remain tilted towards demand. The enormous amount of
activity in the construction industry has led to the growing demand for cement,
steel, plywood, laminates and related products. Boom time continues in the
commercial and residential construction sectors.
Since Cement, Steel, Plywood and laminate related products are
essential part of construction right from initial brick and mortar stage to
final stage of furnishing, the demand for these products is expected to remain
buoyant. With the increased urbanization and improvement in income and living
standard of average Indians, branded products, like 'Centuryply' are continuing
to command price premium and consumer preference.
FUTURE PLANS OF EXPANSION
Considering buoyant demand for the products and marketing strength of 'Centuryply' brand, the company has plans for green field projects, brown field expansions, mergers and acquisitions. The company had firmed up its plans to set up Medium Density Fibre (MDF) Board units, in Punjab, Uttarakhand and North Eastern states. The company has also planned India's biggest greenfield plywood unit in Punjab and double the capacity of its laminate unit.
The Company is also increasing its focus on logistic services sector. The
company is already operating a jetty at Falta, South 24 Parganas, West Bengal
with Ministry of Commerce, Government of India. The company has plans to
develop Container Freight Stations (CFS) and Inland Container Terminals.
Increasing volume of cargo at Kolkata Port has resulted in heavy congestion at
the port and in order to ease congestion, the port authorities have decided to
develop CFS. Kolkata Port Trust has allotted to the company two plots near
Kolkata Port which are being developed as CFS and are expected to commence
operations in the current financial year.
The subsidiaries of the company are also having ambitious growth plans and are
proposing to expand their cement manufacturing capacity from 1 million MT to 4
million MT.
PUBLIC DEPOSITS
The Company did not invite or accept any deposits from the public under Section
58A of the Companies Act, 1956.
MANAGEMENT DISCUSSION AND
ANALYSIS REPORT
INDUSTRY STRUCTURE AND DEVELOPMENT
The projected growth of Company's products (Plywood, Laminates, Cement and
Ferro Alloys) is based on the push-and-pull effects of supply and demand
determinants like the economic trends in India, growth of housing and
infrastructure sector.
The growing influence of technology, organization, information, education and
productive skills, acting on the foundation of India's increasingly dynamic and
vibrant economic base, lend credence to the view that India can achieve and
sustain higher than historical rates of economic growth in the coming decades.
The compounded effect of achieving the targeted annual GDP growth rate of 8.5
to 9 per cent over the next 12 years would result in a tripling of the real per
capita income and almost eliminating the percentage of Indians living below the
poverty line. This will mean, India will move from a low income country to an
upper middle income country.
In developed countries like United States 72.5% of citizens own their homes.
69% live in their own houses in UK. If they aspire to become a developed nation
by the Year 2020, they must ensure a decent home for each family of their
country. According to the Ministry of Urban Development, the total housing
requirement of the country is 200-225 million units out which they currently
have just 170 million. Hence the shortage is of around 30-55 million units.
Further the next 15-20 years will create an additional demand for 70 million houses.
They have to gear up to provide around 100 million houses. They will have to
build an average 8.5 million houses every year from now and until the year
2020. Even after recent hike in interest rates, the EMI on a 20 years home loan
works out attractive than the rent one pays. The capacity to pay exist is
evident from the fact that despite sub prime crisis all over the world, Indian
home loan lenders remained unaffected.
India has the potential to absorb US $150 billion in next five years in the infrastructure
sector alone. A huge sum is assigned for development of new airports and
modernization of existing ones. A number of SEZs are in progress. Hotel majors
and Retail majors have lined up their expansion plans to capitalize on the
rising opportunities.
For achieving the desired economic growth rate, India needs to rapidly develop
its infrastructure and herein lies a big opportunity for company's products as
the growth of demand for company's products is related directly to the growth
of the real estate sector (construction of residential and commercial spaces,
shopping malls, etc), infrastructure (construction of airports, SEZs, etc.) and
hospitality industries. As Cement, Steel, Plywood and laminate related products
are essential part of construction right from initial brick and mortar stage to
final stage of furnishing, the demand supply equation for these products is
expected to remain tilted towards demand.
OPPORTUNITIES AND THREATS
PLYWOOD AND LAMINATE SEGMENT:
It is quite evident from industry as well as their company volumes that, as a
result of booming infrastructure and housing, demand for Cement, Plywood,
Laminate and related products had remained and expected to remain
buoyant.
The Indian Plywood and panel market estimated around Rs.70000.000 Millions, is
highly fragmented, with unorganized sector controlling major market share. The
organized segment is highly concentrated, with only few players constituting
around 20% of the market. The unorganized segment has advantages in terms of
excise waivers and other benefits due to their SSI status. With rationalization
of excise duty (from 16% to 8%) and VAT across the country, organized sector is
consolidating and expected to grow rapidly and increase its share from 20% to
40% of estimated Rs.140000.000 Millions market by 2020. Consolidation of
organized sector may result in emergence of existing small players as big
players and new players entering.
Over heated real estate prices and rising home loan interest rates may
temporarily slow down construction activity in housing sector.
Cheap imported particularly Chinese products may eat away organized sector
market and hence slow down company's growth.
The Company is India's leading plywood manufacturing company with a very strong
brand image. 'CENTURY PLY' - the brand name under which the Company markets its
products is known for quality. The company deals in upper class segments, which
are highly brand conscious. Over the years the company had developed innovative
and quality products catering to niche segments, invested heavily on brand
building and maintained customer faith by providing guarantee on its products.
The company could ward off competition from other players and imported products
due to these reasons and expect to sustain its growth levels and continue to
command price premium. The company being unable to cope up with present demand
is expanding its capacities by mergers, acquisitions, brown and green-field
expansions.
Laminate is used to provide aesthetic look to plywood, its market scenario goes
along-with plywood market scenario. Despite late entry into this segment
Centuryply Mica is today a symbol of quality and company is planning expansion
of its laminate capacity.
FERRO ALLOYS:
The Company manufactures ferro silicon at its unit at Meghalaya. The production
system is continuous system and is highly power intensive. Disruption in power
supply will adversely effect production. The product is used as an ingredient
in steel industry and as such dependent upon steel demand.
The Company has installed a captive power plant to take care of power problem.
In view of growing infrastructure, demand for steel and in turn of ferro,
silicon is expected to remain stable. Apart from this, company's ferro, alloy
unit is located in Meghalaya and is entitled to various incentives and
concessions including excise and tax holidays applicable to units in North East
part of India. Due to all these, the company is already in an advantageous
position compared to other players.
CEMENT:
The Company's major subsidiary Cement Manufacturing Company Limited (CMCL) is
running a fully integrated composite cement plant in Meghalaya. CMCL's
subsidiaries Megha Technical and Engineers Private Limited (MTEPL) and Star
Cement Meghalaya Limited (SCML) are running and setting up cement and clinker
capacities in Meghalaya, Assam and West Bengal.
The recent boom in infrastructure and housing has boosted cement demand in country.
As per a report by the ICRA Industry Monitor, the installed capacity of cement
in India is expected to increase from present 186 mt per annum (mtpa) to 241
mtpa by 2010. The cement demand in country is expected to grow @ 10 per cent
per annum. On the price front, cement prices are expected to remain firm owing
to the continued buoyancy in demand, driven by housing and infrastructure
sectors.
The Company is having its cement plant located in North East part of India.
According to a report by Holtec, the demand for cement in the north east is
growing (P 15% against all India CAGR of 10%. The Government of India has
announced the North East Industrial and Investment Promotion Policy 2007, which
provides an extensive package of fiscal incentives to boost investment and
infrastructure in North East. The company is having its cement unit
strategically located and entitled to various fiscal incentives including
excise refund and income tax holiday for 10 years. It is having captive lime
stone mines and availability of coal within a radius of 50 kms. It is marketing
cement under brand name 'Star Cement' which is highest selling cement brand of
north east.
In order to meet opportunity created by growing demand, the Company during the
year expanded its clinker and cement capacity from 1200 TPD to 1800 TPD and has
now undertaken plan to expand further to 2400 TPD. During the year under
review, MTEPL also commissioned its 1400 TPD grinding unit with which the
consolidated cement capacity of the Company now stands at around 1 million
tonne per annum. In view of encouraging performances the company has set an
ambitious plan to expand its capacity to 4 million tonne per annum by 2010. The
capacities will be added in Meghalaya, Assam and West Bengal and will have
captive power plants of adequate capacity.
Cement is considered to be a cyclical industry. Addition of new capacities
particularly in north east may tilt industry more towards supply situation.
Cement is highly capital intensive and fairly long gestation industry.
The expansion plans may make the company very high leveraged to face any demand
set back. Rising interest rates may pose further threat.
The Company's plant is strategically located in north east. North east is
highest price zone with huge demand supply gap. The present demand for cement
in north-east is estimated at 3.5 Million MT per annum against supply of 2.00
Million NIT per annum. Cement being a bulky material, its transportation from
outside northeast involves high logistic cost. The Company is having its own
captive lime stone mines capable to feed its 40 million ton cement capacity for
the next 60 years. North east is demographically difficult place and as such
had never been choice of big players. The Company's expertise and experience
coupled with first mover advantage will always keep it into advantageous
position vis a vis other new players. The Company's continuing highest EBIDTA
margin coupled with entitlement to various fiscal incentives like excise duty
exemption, income tax holiday, transport subsidy, interest subsidy, capital
subsidy and VAT exemptions can be considered as cushions to face any adverse
situation, which is most unlikely in view of booming infrastructure and
housing.
OTHERS
Other segments consist mainly of logistic, adhesives and chemicals. The
logistic division of the company consist of operation of a jetty and upcoming
Container Freight Stations (CFS). The Company is running one jetty, at Falta
Export Processing zone near Kolkata, on profit sharing basis with Ministry of
Commerce, Government of India. Apart from providing logistic support to handle
its own timber cargo, this jetty also handles outside cargo. Increasing volume
of cargo at Kolkata port has resulted in heavy congestion at the port. The Authorities
have decided to develop CFS to ease port congestion. As the volume of cargo is
continuously increasing, CFS is considered to be a sunrise service with high
profitability. Based on company's experience of handling cargo at jetty, the
Company was taken as a qualified bidder for development of CFS on two ports.
The Kolkata Port Trust has already allocated its two plots to the Company for
developing as CFS. This CFS are expected to commence operations in current
financial year. The Company has not yet been able to focus much on the growth
prospects of its adhesive and chemical segment.
The logistic business of the Company is related to infrastructure and service
sector. The business may face problem only on slow down of economy and
substantial reduction in import cargo. In view of the global markets, the
possibility of such a situation is remote. Regarding adhesive and chemical
trading business, company is not having specific USP and as such will have to
devise suitable strategy to continue these businesses.
SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE
PLYWOOD:
Plywood segment achieved substantial growth and higher profitability. The
turnover of this segment was up from Rs.2598.700 Millions in 2006-07 to
Rs.4176.100 Millions in 2007-08 showing growth of over 60%. The profit of this
segment also increased from Rs.207.100 Millions to Rs.397.500 Millions showing
a growth of over 91%.
LAMINATES:
Laminate division also performed quite well. The Company's focus remained
to grab premium market share. The 'CENTURYPLY MICA' the brand under which
company's laminates are being sold is today a symbol of quality and is
attaining consumer preference. During current financial year this segment
earned profit of Rs.74.700 Millions.
FERRO ALLOYS & POWER:
Due to availability of uninterrupted power from Captive Power Plant the Ferro
Alloy unit operated at full capacity. The Profit of this segment increased from
Rs.72.600 Millions to Rs.146.700 Millions showing growth of over 102%.
CEMENT:
The cement capacities run by company's subsidiaries also posted impressive
performance. The turnover increased from Rs.2683.900 Millions to Rs.3674.100
Millions showing growth of over 36%. Net profit increased from Rs.1053.500
Millions to Rs.1112.300 Millions showing growth of over 5%.
OTHERS:
Other segments mainly jetty operations, adhesive and chemicals also performed
well during 2007-08.
OUTLOOK:
The Company's products mainly plywood, laminates, and others are linked with
the infrastructure and housing sector. In view of booming infrastructure and
housing activities, the company is hopeful to maintain its growth levels. With
modern plants, latest technologies, and precious brands the products of the
company have positioned them to fully exploit the emerging opportunities.
MATERIAL
DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATION FRONT, INCLUDING NUMBER
OF PEOPLE EMPLOYED:
The Company strictly adheres to ISO 9001:2000 mandated training. All employees
receive on going learning opportunities through customized programs that are
designed in-house. The Company encourages its employees to attend outside
seminars. The employees are encouraged to offer constructive suggestions for
improvement in their respective areas which are thoroughly discussed in departmental
meetings. Employees are covered by incentive system encouraging them to perform
to their best.
The Company maintains absolute harmony with its work force. Since inception
there has not been even a single instance of strike or lock-out at any of the
company's manufacturing establishments.
The total manpower strength of the Company as on 31st March,
2008 was 3657.
FIXED ASSETS
- Land and Site Development
- Factory Building
- Non Factory Building
- Leasehold Property
- Plant and Machinery
- Electrical Installation
- Furniture and Fixtures
- Office Equipment
- Computers
- Vehicles
AS PER
WEBSITE DETAILS
Profile
Subject makers of the well-known ‘Centuryply’ brand of
Plywood and decorative veneers, was set up in 1986 in Kolkata, a joint effort of
Mr. Sajjan Bhajanka and Mr. Sanjay Agarwal. The largest seller of plywood and
decorative veneers in the Indian organized plywood market, Company today is the
brand and in its short duration of existence has created a special niche for
itself in the industry.
Subject has the distinction of becoming the first ISO 9002
company in India for Veneer and Plywood. Beside this Century has proved to be
the pioneer in number of ways. In 1997, CPIL was the first to introduce the
borer proof plywood in India. Over the years company has introduced the boiling
water resistant decorative veneer, seven-year powder proof guaranteed PF
plywood, the revolutionary non – leachable Firesafe plywood. The year 2002
brought another laurel to Centuryply when Flexoply, the only flexible plywood
variety was introduced. Later, Architect Ply and the Fantasy range of
decorative veneer were introduced in India.
In the year 2004, Centuryply’s laminate plant started operation. The best
quality laminates ‘Centuryply Mica’ started rolling out and was an instant hit
in the market due to its quality and the brand equity of Centuryply.
The moment of pride came in when the Hon’ble Chief Minister of West Bengal,
Shree Buddhadev Bhattacharjee inaugurated the Pre – Lam particleboard plant on
March 26th 2005. Centuryply also started manufacturing Hi – Pressure Laminates,
Pre- Laminated Particle Board and MDF and with this Centuryply completed the
full range of manufacturing of plywood and veneer related items. Today
Centuryply stands as a one point-manufacturing unit of all kind of plywood
related items.
Centuryply, after its inception in 1986, never looked back and has created a
name today, which ensures quality and return worth every penny spent by the
customer. Centuryply has, over the years, maintained a consistent growth rate.
Centuryply was adjudged the Fastest Growing Company with the Highest Turnover
by the famous Journal ‘Construction World’ in the year 2003 and 2006. The
Centre for Monitoring Indian Economy (CMIE) has also given Centuryply the top
position in its surveys.
MANAGEMENT:
Mr. B.
L Agarwal is the Chairman of the company. A graduate in Commerce and
Law he has more than 45 years of experience in various industries. He had
successfully set up and managed a steel wool manufacturing plant, re rolling
mills, flour mills etc. He has vast experience in the industrial field of
Northeast India.
Mr.
Sajjan Bhajanka, the Managing Director of the company and a commerce
graduate, is considered a very experienced industrialist in the field of
plywood and veneer. He is also the Chairman of Cement Manufacturing Company Ltd
and Shyam Centuryply ferrous limited in Meghalaya. He is associated with
various economic, commercial and social organizations. He is the President of
the Federation of Indian Plywood & Panel Industry and All India Veneer
Manufacturers Association, Chairman of Indian Plywood Industries Research and
Training Institute (IPIRTI), Bangalore. He is also the President of the Marwari
Relief Society, Vice Chairman of Maharaja Agarsen Institute of Medical Research
and Education, Agroha (Hissar) and Vivekananda Kendra, Kolkata.
Mr.
Sanjay Agarwal is the Deputy Managing Director & a promoter Director
of the company. He is a commerce graduate with excellent knowledge in the plywood
related business and is the driving force behind the company. His market
winning sales strategies has helped the brand ‘Centuryply’ to gain its top
position and maintain it for the last few years. Beside Century Plyboards India
Limited also the Director of Cement Manufacturing Company Ltd, Meghalaya. He is
also associated with different trade and social organizations.
Mr. Hari Prasad Agarwal the Vice Chairman of the company is also a prominent figure in this field. He is in charge of the total financial part of the company and the day today administration. He is also associated with different social and trade related organizations.
MEDIA RELEASE
Century Plyboards (India) Limited crosses the 10000.000 Millions
mark
Registers a Growth of more than 100% in
Net Profit
STAND ALONE
CONSOLIDATED (Rs.In Millions)
|
Particular |
Nine
Month ended 31.12.2007 Unaudited |
Quarter
ended 31.03.2008 Audited |
Quarter
ended 31.03.2007 Audited |
Year
Ended 31.03.2008 Audited |
Year
Ended 31.03.2007 Audited |
Year
Ended 31.03.2008 Audited |
Year
Ended 31.03.2007 Audited |
|
|
|
|
|
|
|
|
|
|
Gross Sales |
4583.300 |
1751.500 |
1228.200 |
6334.800 |
4468.400 |
10014.500 |
7157.500 |
|
Net Income from Operations |
3936.300 |
1478.000 |
1048.400 |
5414.300 |
3918.500 |
8673.900 |
6378.900 |
|
Total Income |
4016.100 |
1479.000 |
1083.400 |
5495.100 |
3974.100 |
8758.600 |
6403.900 |
|
Net Profit |
370.600 |
75.600 |
53.500 |
446.200 |
204.400 |
1116.700 |
774.600 |
|
EPS |
166.800 |
34.000 |
27.100 |
200.800 |
103.400 |
502.600 |
391.900 |
Kolkata, June 26th, 2008… Century Plyboards (India) Limited, the leading plywood and veneer
manufacturing company in India, crossed the 10000.000 Millions mark,
registering an excellent growth on the previous year’s result. The audited
financial results of the company were announced today for the financial year 2007 - 08. The Gross Turnover
of the company has gone up to a figure of Rs.6334.800 Millions, marking an increase of 42% from Rs.4468.400 Millions in the financial
year 2006 - 07.
This year the net
profit has more than doubled to Rs.446.200
Millions from Rs.204.400
Millions in comparison to the net profit earned in the last financial
year.
The consolidated
result of the company has also marked a significant increase. The
consolidated Turnover of the
company has gone up to Rs.10014.500
Millions this time from Rs.7157.500 Millions last year, 2007 – 08, registering an increase of 40%. The net profit
has gone up to Rs.1116.700 Millions
from Rs.774.600 Millions.
The better performance has also boosted the EPS (Earning Per Share). Today the EPS for CPIL has increased from Rs.10.34 to Rs.20.08, showing nearly
100% upward movements. The
consolidated EPS has also gone up considerably from Rs.39.19 to Rs.50.26.
Mr. Bhajanka informed the media,
“The Board has unanimously appointed Mr. S.B. Ganguly, a very well
known figure in the corporate world, as Additional Director and Chairman of the
company. He is not only a multi faceted personality but his contribution goes
beyond the world of business”. Mr. Ganguly today took over the charge as the
Chairman of the company and also presided today’s meeting. He also assured the
Board that he would try to add value to the company as per the best of his
abilities
Commenting on the results, Mr.
Sajjan Bhajanka, Managing Director CPIL, said that, “We had taken a big
step when we decided to cross the figure of 10000.000 Millions. It was a big
challenge for the entire team but we were determined to achieve the target. My
team has done it and we are happy to see the result and the interesting part is
that the team is already working towards achieving another landmark target. The
result shows the hard work done by the team and the support given by our
dealers and the Architects and Interior Designers.”
He also told the media about the completion of the work on
the first CFS and its inauguration due for July 2008. This will be the first
CFS operational in the private sector in Kolkata. The area acquired for this is
22,000 sqm and another 80,000 sqm has been acquired for the opening of the
second CFS. This will be operational by Feb 2009.
Commenting on the work going on, on the expansion plans
undertaken; Mr. Bhajanka said that, the company has acquired various licenses
regarding the opening of the largest plywood factory at Hossiarpur, Punjab and
will be operational in this financial year itself.
The company has also undertaken the construction of another
plywood factory at Guwahati. The necessary clearance regarding the same has
been obtained from the Assam govt and the forest department. This will start
production by December 2008.
As far as Cement production is concerned he informed that
the expansion plan is on track and the present capacity of 1 million tonne per
anum would be expanded to 4 million tonne per anum by March 2010.
Century Plyboards (India) Limited, the first ISO 9002 Company
in India for plywood and veneer, started its operations in 1986. In a very
short span, it has created a niche for itself and is the market leader in this
sector. CPIL has its manufacturing unit at Bishnupur near Joka equipped with
the world-class technology. CPIL today manufactures the entire range of
commercial, marine, concrete, shuttering and decorative plywood. CPIL also has
the Hi – Pressure Laminates, Pre- Laminated Particle Board and MDF in its
product range.
CMT REPORT (Corruption,
Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.58 |
|
UK Pound |
1 |
Rs.80.31 |
|
Euro |
1 |
Rs.64.16 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |
|