MIRA
INFORM REPORT
|
Report Date : |
17.02.2011 |
IDENTIFICATION DETAILS
|
Name : |
NILKAMAL LIMITED (w.e.f. 05.01.2007) |
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Formerly Known
As : |
NILKAMAL PLASTICS LIMITED |
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Registered Office
: |
Survey No. 354/2 and 354/3, Near Rakholi Bridge, Silvassa Khanvel
Road, Village Vasona, Union Territory of Dadra and Nagar Haveli – 396 230,
Silvassa |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of Incorporation
: |
05.12.1985 |
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Com. Reg. No.: |
54-000162 |
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CIN No.: [Company Identification
No.] |
L25209DN1985PLC000162 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMN07184C |
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PAN No.: [Permanent Account No.] |
AAACN2329N |
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Legal Form : |
It is a public limited liability company. The company’s shares are listed in the
Stock Exchanges. |
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Line of Business
: |
Manufacturing of Moulded Plastic Chairs. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (58) |
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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 10047000 |
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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 and a reputed company having fine track.
Financials of the company appears to be sound. Trade relations are reported
as fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Paresh Mehta |
|
Designation : |
Financial Controller |
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Contact No.: |
91-22-26818888 |
|
Date : |
15.02.2011 |
LOCATIONS
|
Registered Office and Vasona Factory : |
Survey No. 354/2 and 354/3, Near Rakholi Bridge, Silvassa Khanvel
Road, Village Vasona, Union Territory of Dadra and Nagar Haveli – 396 230,
Silvassa, India |
|
Tel. No.: |
91–2551–221053 / 220156 / 220552 91-260-2699082 / 2699083 |
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Fax No.: |
91–2551–220772 91-260-2699215 |
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Email : |
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Website : |
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Area : |
10000 sq. ft. |
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Location : |
Owned |
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Corporate/ Administrative Office : |
Nilkamal House, 77/ 78, Road No. 13/14, M.I.D.C., Andheri (East),
Mumbai – 400 093, |
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Tel No.: |
91–22–28361366 / 28211172 / 28231471 / 26818888 / 26818628 |
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Fax No.: |
91–22–28367891 / 28361923 |
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Email : |
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Barjora Factory : |
Plot No. 1498/2613, WBIDC, |
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Plot No.1107, IGC, Phase – II, Samba – 184 121, |
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Kharadpada Factory : |
Survey No. 389, 391, 393, 396 and 401, Naroli – |
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Noida Factory : |
Plot No. 26, B/C Sector No. 31, Surajpur - |
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19/3-5, 18/1 and 21/6, Pit-Olaivaikkal Village, Koodapakam Villianoor
Road, Villianoor Taluk, Pondicherry - 605 110, India |
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Sinnar Factory : |
STICE, Plot No. 971/1A, |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr.
Vamanrai V. Parekh |
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Designation : |
Chairman |
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Name : |
Mr.
Sharad V. Parekh |
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Designation : |
Managing
Director |
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Date
of Birth : |
06.05.1945 |
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Qualification
: |
Inter
Commerce |
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Date
of Appointment : |
14.06.1990 |
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|
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|
Name : |
Mr.
D.B. Engineer |
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Designation : |
Director |
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Date
of Birth : |
01.12.1923 |
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Qualification
: |
B. A., LL. B., Advocate and Attorney |
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Date
of Appointment : |
07.01.1991 |
|
Other
Directorship: |
1. Atlas Copco Limited 2. Forvol International Services Limited 3. Fiora Services Limited 4. Foods and Inns Limited 5. Forbes and Company Limited 6. PCS Industries Limited 7. Welspun India Limited 8. Zuari Industries Limited |
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Name : |
Mr.
K.R. Ramamoorthy |
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Designation : |
Director |
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Date
of Birth : |
08.07.1940 |
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Qualification
: |
B.A., B.L, F.CS |
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Date
of Appointment : |
31.10.2003 |
|
Other
Directorship : |
·
ING Vysya Bank Limited ·
Clearing Corporation of India Limited ·
Subros Limited ·
Murdeshwar Ceramics Limited |
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Name : |
Mr.
Mahendra V. Doshi |
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Designation : |
Director |
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Date
of Birth : |
29.11.1949 |
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Qualification
: |
M.B.A. ( |
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Date
of Appointment : |
03.12.1990 |
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Other
Directorship : |
· LKP Merchant Financing Limited · LKP Securities Limited · G L Hotels Limited ·
MKM Share and Stock Brokers Limited |
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Name : |
Mr. R.P.
Goyal |
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Designation : |
Director |
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Date
of Birth : |
01.12.1923 |
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Qualification
: |
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Date
of Appointment : |
07.01.1991 |
|
Other
Directorship : |
·
Shree Rajasthan Syntex Limited, Shree
Rajasthan Texchem Limited, Mark Auto Industries Limited, ·
Kajaria Ceramics Limited, ·
Mark Exhaust Limited, ·
Rajendra Mechanical Limited |
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|
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|
Name : |
Mr.
Rajesh G. Kapadia |
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Designation : |
Director |
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Date
of Birth : |
02.11.1956 |
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Qualification
: |
B.Com (Hons), F.C.A. |
|
Date
of Appointment : |
29.01.2004 |
|
Other
Directorship |
·
Asianet Satellite Communications
Limited ·
Exide Industries Limited ·
Goldiam International Limited ·
H and R Johnson ( ·
Bhoruka Power Corporation Limited ·
Prism Cement Limited |
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|
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|
Name : |
Mr.
Hiten V. Parekh |
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Designation : |
Executive
Director |
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Date
of Birth : |
27.05.1963 |
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Qualification
: |
B.Com, Diploma in Quality System and Management |
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Date
of Appointment : |
09.12.1985 |
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Name : |
Mr.
Manish V. Parekh |
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Designation : |
Executive
Director |
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Date
of Birth : |
04.02.1969 |
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Qualification
: |
B.Com |
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Date
of Appointment : |
01.04.2000 |
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|
|
|
Name : |
Mr.
Nayan S. Parekh |
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Designation : |
Executive
Director |
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Date
of Birth : |
08.03.1972 |
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Qualification
: |
B.S.
Plastics Engineering U.S.A |
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Date
of Appointment : |
01.04.2000
|
KEY EXECUTIVES
|
Name : |
Mr. Paresh B. Mehta |
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Designation : |
Financial Controller |
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Name : |
Ms. Priti P Dave |
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Designation : |
Company Secretary and Compliance Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
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|
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6,730,885 |
45.11 |
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2,376,500 |
15.93 |
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9,107,385 |
61.03 |
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Total shareholding
of Promoter and Promoter Group (A) |
9,107,385 |
61.03 |
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(B) Public
Shareholding |
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|
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|
2,377,240 |
15.93 |
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|
300 |
- |
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|
138,386 |
0.93 |
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|
237,785 |
1.59 |
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|
2,753,711 |
18.45 |
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|
|
|
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|
687,128 |
4.60 |
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|
|
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|
1,382,000 |
9.26 |
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|
743,205 |
4.98 |
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|
249,096 |
1.67 |
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|
249,096 |
1.67 |
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|
3,061,429 |
20.52 |
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Total Public
shareholding (B) |
5,815,140 |
38.97 |
|
Total (A)+(B) |
14,922,525 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
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|
- |
- |
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|
- |
- |
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Total
(A)+(B)+(C) |
14,922,525 |
- |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing of Moulded Plastic Chairs. |
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Products : |
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Exports : |
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Products : |
Plastic Moulded Goods |
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Countries : |
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Imports : |
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Products : |
Raw Materials |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash and Credit (30 / 60
/ 90 days) |
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Purchasing : |
L/C, Cash and Credit (30 / 60
/ 90 days) |
PRODUCTION STATUS (As on 31.03.2010)
|
Particulars |
Installed
Capacity ** |
Actual
Production (pcs. In Lacs) |
|
Moulded Plastics Articles |
75,120 TPA |
362.74 |
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|
** As certified by the Management and being a technical matter, accepted
by the Auditors as correct.
GENERAL INFORMATION
|
Customers : |
Wholesalers, Retailers, End users and OEM’s |
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No. of Employees : |
3000 (Approximately) |
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Bankers : |
·
State Bank of ·
Corporation Bank ·
IDBI Bank Limited ·
Citi Bank N.A. ·
HSBC Limited ·
DBS Bank Limited |
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Facilities : |
Notes: a) The Working
Capital Facilities amounting to Rs. 1728.412 millions and a Term Loan
amounting to Rs.112.500 millions from Banks are secured on first pari passu basis
by way of hypothecation of current assets of the Company, second pari passu
charge by way of equitable mortgage on the Company’s immoveable property and
personal guarantees of Director/s. b) Other Term
Loans from Banks amounting to Rs.940.859 millions are secured on first pari
passu basis by way of Equitable mortgage created on Company’s immoveable
properties situated at Sinnar (Maharashtra), Barjora (West Bengal), Noida
(Uttar Pradesh), Vasona (UT of D and NH), Puducherry, Kharadpada (UT of D and
NH), Jammu (Jammu and Kashmir) together with all building and structures
thereon and all Plant and Machinery, second pari passu charge by way of
hypothecation of current assets of the Company and personal guarantees of
Director/s. c) Vehicle Loans
amounting to Rs.5.568 millions are secured against respective assets. |
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Banking
Relations : |
-- |
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Auditors : |
Dalal
and Shah Chartered
Accountants Vora
and Associates Chartered
Accountants |
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Subsidiaries : |
Foreign
Indian
|
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Joint Venture : |
Nilkamal
Bito Storage Systems Private Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
22000000 |
Equity Shares |
Rs.10/- each |
Rs.220.000 millions |
|
3000000 |
Preference Shares |
Rs.10/- each |
Rs.30.000 millions |
|
|
Total |
|
Rs.250.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12782344 |
Equity Shares |
Rs.10/- each |
Rs.127.823
millions |
|
|
|
|
|
(Of the above
4207644 Equity Shares of Rs. 10/- each have been issued pursuant to the Scheme
of amalgamation for consideration other than cash)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
127.823 |
127.823 |
127.823 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2383.918 |
1986.158 |
1952.055 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2511.741 |
2113.981 |
2079.878 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2787.339 |
2552.046 |
2831.441 |
|
|
2] Unsecured Loans |
0.000 |
300.000 |
380.944 |
|
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TOTAL BORROWING |
2787.339 |
2852.046 |
3212.385 |
|
|
DEFERRED TAX LIABILITIES |
135.168 |
137.803 |
120.024 |
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|
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|
|
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TOTAL |
5434.248 |
5103.830 |
5412.287 |
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APPLICATION OF FUNDS |
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|
|
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FIXED ASSETS [Net Block] |
2152.164 |
2269.383 |
2141.794 |
|
|
Capital work-in-progress |
86.944 |
59.403 |
139.267 |
|
|
|
|
|
|
|
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INVESTMENT |
242.909 |
237.759 |
289.791 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1564.003
|
1362.464 |
1598.532
|
|
|
Sundry Debtors |
1325.000
|
1052.045 |
1298.702
|
|
|
Cash & Bank Balances |
130.311
|
135.545 |
133.565
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
974.148
|
809.116 |
634.946
|
|
Total
Current Assets |
3993.462
|
3359.170 |
3665.745
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
445.625
|
|
742.374
|
|
|
Other Current Liabilities |
456.661
|
340.043 |
|
|
|
Provisions |
138.945
|
105.354 |
81.936
|
|
Total
Current Liabilities |
1041.231
|
821.885 |
824.310
|
|
|
Net Current Assets |
2952.231
|
2537.285 |
2841.435
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5434.248 |
5103.830 |
5412.287 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
10280.502 |
8890.864 |
7803.032 |
|
|
|
Other Income |
47.691 |
17.769 |
11.696 |
|
|
|
TOTAL (A) |
10328.193 |
8908.633 |
7814.728 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials consumed / Cost of goods traded
/ Variation in stocks |
6270.949 |
5619.016 |
5130.036 |
|
|
|
Employees' Remuneration and Benefits |
566.056 |
509.018 |
364.807 |
|
|
|
Operating and other expenses |
2263.599 |
1954.356 |
1511.017 |
|
|
|
Trial Run Expenses
Capitalised |
0.000 |
0.000 |
(4.411) |
|
|
|
TOTAL (B) |
9100.604 |
8082.390 |
7001.449 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1227.589 |
826.243 |
813.279 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
246.963 |
396.276 |
266.128 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
980.626 |
429.967 |
547.151 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
321.751 |
311.710 |
232.981 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
658.875 |
118.257 |
314.170 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
186.489 |
57.244 |
(259.412) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
472.386 |
61.013 |
573.582 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
489.187 |
468.084 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
38.347 |
25.565 |
NA |
|
|
|
Interim Dividend |
25.565 |
0.000 |
NA |
|
|
|
Tax on Dividend |
10.714 |
4.345 |
NA |
|
|
|
Transfer to General Reserve |
190.000 |
10.000 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
696.947 |
489.187 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of exports |
150.783 |
|
129.999 |
|
|
|
Technical and Management Fees |
8.479 |
7.630 |
|
|
|
|
Income earned from export of services |
9.679 |
3.495 |
|
|
|
|
Dividend Received from a Subsidiary Company |
8.687 |
1.271 |
|
|
|
TOTAL EARNINGS |
177.628 |
162.688 |
129.999 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
59.383 |
125.329 |
210.347 |
|
|
|
Raw Materials |
676.713 |
127.706 |
119.819 |
|
|
|
Traded Goods |
432.841 |
569.302 |
432.769 |
|
|
|
Stores, Spares and Others |
9.021 |
3.106 |
0.843 |
|
|
TOTAL IMPORTS |
1177.958 |
825.443 |
763.778 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
36.96 |
4.77 |
44.87 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
2854.000 |
3185.330 |
3047.450 |
|
Total Expenditure |
2534.290 |
2820.570 |
2751.100 |
|
PBIDT (Excl OI) |
319.710 |
364.760 |
296.350 |
|
Other Income |
0.000 |
0.000 |
6.060 |
|
Operating Profit |
319.710 |
364.760 |
302.410 |
|
Interest |
58.730 |
62.840 |
68.280 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
260.980 |
301.920 |
234.130 |
|
Depreciation |
77.170 |
81.000 |
84.330 |
|
Profit Before Tax |
183.800 |
220.920 |
149.800 |
|
Tax |
51.910 |
60.640 |
34.150 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
131.890 |
160.280 |
115.660 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
131.890 |
160.280 |
115.660 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
4.57
|
0.68 |
7.34
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.41
|
1.33 |
4.03
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.72
|
2.10 |
5.41
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.06 |
0.15
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.52
|
1.74 |
1.94
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.84
|
4.09 |
4.45
|
LOCAL AGENCY FURTHER INFORMATION
SUNDRY
CREDITORS DETAILS :
(Rs. in Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
445.625
|
376.488 |
NA |
|
Total |
445.625 |
376.488 |
NA |
Note:
The company’s registered office at Plot No. 977- 1 A,
HISTORY:
Promoted by the Parekh family, Nilkamal Plastics, incorporated
in Dec.'85 as Creamer Plastic a private limited company, was converted into a
public limited company in Jul.90. In Aug.'90, the name was changed to the
present one. It is
YEAR IN RETROSPECT
The financial year
2009-2010 has shown signs of recovery in the major economies of the world which
were affected by the economic slowdown in the previous financial year. During
the year, Governments around the world acted quickly and decisively, and in a
coordinated manner, which helped to prevent the situation slipping into a full
scale depression.
The Company has
successfully managed to overcome the effects of the global economic downturn
which became evident with its performance during the year. The gross turnover
of the Company has increased to Rs.11616.300 millions as compared to
Rs.10302.600 millions in the previous year. During the financial year
2009-2010, the operating profit of the Company has increased to Rs.1227.600
millions as compared to Rs.826.200 millions in the previous year. The plastic
business has achieved a volume growth of 27% and value growth of 21%.
The retail
business of the Company i.e. @home division has achieved a gross turnover of
Rs.1327.800 millions resulting into a growth of 7% as compared to the previous
year. During the year the Company had sixteen @home stores in eleven cities.
The Company’s development programs for its retail business are progressing
satisfactorily and further it has plans to expand its presence, product range
and reach towards becoming a strong player in this market.
AWARDS AND
RECOGNITIONS
During the year,
the moulded plastic furniture business of the Company have been awarded the
“Top Exporter of Plastic Furniture” for the year 2008-09 by the Plastics Export
Promotion Council. They have been accorded the status of “Star Export House” by
the Ministry of Commerce and Industry for a period of five years, effective
from 1st April, 2009.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENT OPPORTUNITIES, THREATS, RISKS, CONCERNS AND OUTLOOK:-
The financial year
2009-2010 started with a bleak mindset on global economy. The year was expected
to face the force of the economic crisis across the world. However, the Indian
economy displayed a remarkable resilience and has almost bounced back from the
after effects of the recent global melt-down.
There were visible
signs of recovery indicated by the emergence of the manufacturing sector from
stagnant or negative growth, the strong rally in equity markets, the huge
mobilisation of funds by private corporates from the capital market etc.
However, the poor monsoon during 2009-10, after successive good rains in the
past seven years, casted a shadow on recovery. As a result the annual inflation
climbed to a high of 9.8% in February, 2010.
The continued
recession in the developed world, for the better part of 2009-10, meant a
sluggish export recovery and a slowdown in financial flows into the economy.
Yet, over the span of the year, the Indian economy posted a remarkable
recovery, not only in terms of overall growth figures but, more importantly, in
terms of certain fundamentals, which justify optimism for the Indian economy in
the medium to long term.
The Company has
successfully managed to overcome the effects of the global economic downturn
which became evident with its performance during the year. The Company has
shown its enormous potential that lies on the horizon. Their focus on business
has made them improve quarter by quarter in the financial year 2009-10. On the
business front, the Company had delivered a healthy performance by achieving
the gross turnover of Rs.11616.300 millions against Rs.10302.400 millions in
the previous year. During the financial year 2009-2010, the operating profit of
the Company has increased to Rs.1227.600 millions as compared to Rs.826.200 millions
in the previous year.
Plastic Division
The plastic
business has achieved a volume growth of 27% and value growth of 21%. During
the Financial Year 2009-10 it has achieved total turnover of Rs.10288.500
millions as compared to Rs.9049.600 millions in the previous year.
The Moulded
Furniture Business of the company saw a bounce back in terms of top line
growth of 30% in revenue terms and 34% in volume terms over the previous
financial year with a market share of 39% in the industry comprising of two
national players and around 60 regional players spread across the country. The
Furniture Business of the Company is enjoying the leading position in the
market with a sizeable gap between its closest competitors in this segment.
The prominent
reason behind the growth witnessed by the Furniture Business is the stability
in raw material prices unlike 2008-09 period wherein severe volatility impacted
the net realisations. The stability of raw material prices maintained an
uninterrupted consumer demand throughout 2009-10 and going forward they see
prices remaining stable without much volatility as the global supply situation
for polymers primarily used by the Company would be well balanced due to
commissioning of new plants in India and overseas. The Furniture Business is
gearing up for a 20% growth rate on an year-on-year basis mainly by building up
on the range of Seating Solution with introduction of more value added products
and pan India penetration by commissioning depots and increasing the service
quotient to augment the leadership position further.
One sees
consistent growth happening in their industry without a break in cycle for the
next few years. The challenge, however, would be constant innovations, a well
spread out distribution module and the ability to keep the products affordable
even during a fluctuating polymer price regime. They feel that with the
infrastructure in place and a formidable leadership position attained, the
Moulded Furniture Business is poised for a sustainable growth by offering value
added products like storage solutions, utility based products to the already
penetrated 3 Crore Nilkamal household who are by now well aware of the
strengths and value for money proposition of Nilkamal furniture. There is also
a growing trend for Hybrid designer chairs for commercial establishments like
food courts, malls and offices where vibrant colours and aesthetic looks
contribute to the overall ambience which is also a strength of the Company.
The Material Handling Business has
achieved volume growth of 18% and value growth of 14%. The Company is already a
Market leader for it’s One Stop
Material Handling Shop, philosophy of all under One Roof, consolidated its position in Plastic Crates, Bins,
Pallets, Material Handling Equipments, Vertical Storage Systems and also
Automated Storage and Retrieval Systems.
Various New
products introduced in the Roto Moulded, Vaccum Formed, Blow Moulding, PU
Filled Insulated segments have been received well in the market.
The Company
further consolidated its Business of Marketing of Range of Hospitality products
of World Leaders like CAMBRO Manufacturing of USA and TIGRE of
The Joint-venture
with BITO Lagertechnik,
The renewed Industrial and Infrastructure Developments on the recovery
of World economy, coming out recession, posses tremendous opportunities for
Material Handling Business as all such Development now focuses also on
efficient methods of material storage and handling.
Governments thrust
on development of Agriculture and Horticulture Sectors with focus on efficient
methods of handling of products, posses an enormous opportunity for the
Company.
The Implementation
of GST regime, would bring enormous opportunities for Material Handling
Business by requirements of large, efficient, planned Warehousing for all
sectors.
The rise in price
of crude and its effective rise in price of plastic raw material and
uncertainties in availability remain a major concern for the business.
Lifestyle
Furniture, Furnishing and Accessories Division:
@home – The Mega
Home Store is the Company’s retail business division. @home has become a
trusted brand among the consumers and acquired a reputation of a serious player
in the Indian retail industry in the home décor category. @home has currently
16 stores across
@home, in the year
2009 – 10 was spread across 12 major cities with 16 stores in
With economic upturn
and increase in consumer demand with positive sentiments back in market,
organized retail growth is poised to pick up in the FY 2010 – 11. With
encouraging trend in consumer buying, @home targets to achieve 25 – 30% same
store sales growth in the FY 2010 -11, which is the trend observed in the last
few months.
Economic
uncertainty coupled with adverse currency fluctuation are threat to the
business, as home furniture is not purchased frequently, the decision involves
a lot of deliberation and needs a larger outlay of funds for their target
customer.
@home has invested
significantly in back end systems and all the business functions, which are
ready to take on the expansion plans as per market requirements.
The total Indian
furniture market is estimated to be more than Rs.700000.000 millions. The
industry is dominated by the unorganised sector which constitutes more than 90%
of the market. The organised sector is growing at about 30% CAGR. Furniture
segment comprises 65% of the home market and 35% of institutional demand.
Management
believes that entry of more organised players will accelerate the shift from
unorganized to organized market. Organised sector will facilitate the consumers
with benefits such as wide product range, quality products, home décor ideas,
easy finance options, warranty and after sales service.
Subsidiary and
Joint Venture Performance
The Sri Lankan
Subsidiary has achieved turnover of SLR 8,129 Lacs and net profit of SLR 652
Lacs as compared to previous year turnover of SLR 7,239 Lacs and net profit of
SLR 278 Lacs.
During the year,
the Company has received towards Technical and Management Fees of Rs.8.500
millions (previous year Rs.7.600 millions) and dividend of Rs.8.700 millions
(previous year Rs.1.300 millions) from the said subsidiary. The subsidiary at
In July 2009, the
Company has sold it’s investment held in Indian Subsidiary engaged in real
estate development business at cost. With this the Company has exited from real
estate business.
In March 2010,
Company has exited from it’s operation in
The Joint Venture
Company – Nilkamal BITO Storage Systems Private Limited is in manufacturing of
storage systems of metal for providing intra-logistics solutions. In third year
of operation, it has achieved turnover of Rs.363.000 millions and has incurred
a total loss of Rs.80.400 millions as compare to Previous Year turnover of
Rs.281.000 millions and Net loss of Rs.37.200 millions. The Company has
contributed Rs.221.500 millions towards equity of the said joint venture. The
continuous growth of Indian economy shall provide growth opportunity for this
business in years to come. The Company has received Rs.11.900 millions
(previous year Rs.9.300 millions) towards Technical and Management Fees from
the said Joint Venture Company.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST DECEMBER, 2010
(Rs.
in millions)
|
Particulars |
Quarter Ended 31/12/2010 |
Nine Months Ended 31/12/2010 |
|
|
Reviewed |
Reviewed |
|
1. (a) Gross Sales/ Income from Operations |
3479.176 |
10324.829 |
|
Less: Duties & Levies Net Sales / Incomes from Operations |
438.184 |
1256.952 |
|
(b) Other Operating Income |
3040.992 |
9067.877 |
|
Total Income |
6.462 |
18.899 |
|
2 Expenditure |
3047.454 |
9086.776 |
|
(a) (Increase) I Decrease in stock in trade |
(242.826) |
(624.277) |
|
(b) Consumption of Raw Material |
1189.481 |
3513.878 |
|
(c) Purchase of Traded Goods |
899.564 |
2698.164 |
|
(d) Employees Cost |
204.225 |
548.083 |
|
(e) Depreciation |
84.331 |
242.502 |
|
(f) Other expenditure |
700.653 |
1970.113 |
|
(g) Total |
2835.428 |
8348.463 |
|
3 Profit from Operations before Other income, Interest |
212.026 |
738.313 |
|
and Exceptional Items |
6.064 |
6.069 |
|
4 Other Income |
218.090 |
744.382 |
|
5 Profit before Interest and Exceptional Items |
68.280 |
189.849 |
|
6 Interest and Finance Charges (net) |
149.810 |
554.533 |
|
7 Profit after interest but before Exceptional Items |
-- |
-- |
|
8 Exceptional Items |
149.810 |
554.533 |
|
9 Profit from Ordinary Activities before Tax |
34.146 |
146.695 |
|
10 Tax Expense (Net of Tax for earlier years) |
115.664 |
407.838 |
|
11 Net Profit from Ordinary Activities after Tax |
-- |
-- |
|
12 Extra Ordinary Items |
115.664 |
407.838 |
|
13 Net Profit for the period |
149.225 |
149.225 |
|
14 Paid-up Equity Share Capital (Face Value of 10/- per Share) |
|
|
|
15 Reserves excluding Revaluation Reserves |
-- |
-- |
|
16 Earnings Per Share (EPS) |
|
|
|
(a) Basic and diluted EPS before exceptional Item for the period (Rs.) |
7.75 |
29.06 |
|
(b) Basic and diluted EPS after exceptional Item for the period (Rs.) |
7.75 |
29.06 |
|
17 Public Shareholding: |
|
|
|
(a) Number of shares |
5,815,140 |
5,815,140 |
|
(b) Percentage of Shareholding |
38.97% |
38.97% |
|
18 Promoters and Promoter Group Shareholding (a) Pledged / Encumbered |
|
|
|
- Number of Shares |
Nil |
Nil |
|
- Percentage of shares (as a % of the total shareholding of promoter
and promoter group) |
Nil |
Nil |
|
- Percentage of shares (as a % of the total share capital of the
company) |
Nil |
Nil |
|
(b) Non - encumbered |
|
|
|
- Number of Shares |
9,107,385 |
9,107,385 |
|
- Percentage of shares (as a % of the total shareholding of promoter and
promoter group) |
100.00% |
100.00% |
|
- Percentage of shares (as a % of the total share capital of the
company) |
61.03% |
61.03% |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs.
in millions)
|
Particulars |
Quarter Ended 31/12/2010 |
Nine Months Ended 31/12/2010 |
|
|
Reviewed |
Reviewed |
|
1. Segment
Revenue |
|
|
|
(a) Plastics |
2642.955 |
2194.679 |
|
(b) Lifestyle Furniture, Furnishings and Accessories |
415.479 |
300.290 |
|
Total |
3058.434 |
2494.969 |
|
Less: Inter Segment Revenue |
17.442 |
10.321 |
|
Net Income from Operations |
3040.992 |
2484.648 |
|
2. Segment
Results |
|
|
|
(a) Plastics |
230.338 |
315.328 |
|
(b) Lifestyle Furniture, Furnishings and Accessories |
(5.019) |
(28.245) |
|
Total |
225.319 |
287.083 |
|
Less: |
|
|
|
Interest and Finance Charges (Net) |
68.280 |
54.818 |
|
Other Un-allocable expenditure net of un-allocable income |
|
|
|
Total Profit before Tax |
7.229 |
1.256 |
|
3. Capital Employed
[Segment Assets-Segment Liabilities] |
149.810 |
231.009 |
|
(a) Plastics |
5207.315 |
3889.202 |
|
(b) Lifestyle Furniture, Furnishings and Accessories |
810.208 |
674.922 |
|
(c) Unallocable |
(2507.099) |
(2048.407) |
Notes:
1. The above results which have been subjected to ‘Limited Review’ by
the Auditors of the Company, have been reviewed by the Audit Committee and
approved by the Board of Directors at their meeting held on 25th
January, 2011.
2. The Company did not have any investor complaints pending as on 1st
October, 2010 and as on 31st December, 2010. One complaint was
received and disposed off during the quarter.
3. Previous Period / Year figures have been regrouped and reclassified,
wherever necessary.
Contingent Liabilities not provided for in respect of:
|
Particulars |
31.03.2010 (Rs.
in millions) |
|
i) Excise matters |
1.094 |
|
ii) Sales Tax matters * |
92.323 |
* Includes
Rs.84.400 millions towards disputed Sales Tax liability under the Kerala
General Sales Tax Act, 1963 against which the Company has received conditional
stay from Hon’ble Supreme Court of India.
Note: The Excise
and Sales Tax demands are being contested by the Company at various levels. The
Company has been legally advised that it has a good case and the demands are
not tenable.
FIXED ASSETS
·
·
·
Buildings
·
Plant and Machinery
·
Furniture, Fixtures and Office Equipments
·
Vehicles
·
Vehicles under hire purchase arrangement
·
Interiors at Showroom
·
Models, Designs and Other Commercial Rights
·
Software
WEBSITE DETAILS
PROFILE:
Subject is listed on the National Stock Exchange
and Bombay Stock Exchange since 1991. Nilkamal’s (FY 0809) turnover exceeds
INR.10000 millions/US$.200 million.
Subject is in 4 Key Businesses:
·
Material Handling Crates, Containers and Bins.
·
Moulded Furniture such as Chairs, Tables and
Cabinets.
·
Custom Mouldings and OEM supplies for specific
Customers.
·
@home, the Mega Home Store Retail Chain.
The Company has 7 large manufacturing plants in
·
North – Samba (
·
South –
·
East - Barjora (
·
West - Sinnar, Nashik (
The Company has advanced machinery in Injection Moulding, Rotational
Moulding, Vaccum Forming, Polyurethane Injection (of insulation) and
capabilities for SMC and Blow Moulding. Each of these plants have dedicated
Tool Rooms.
The Company has Joint Ventures in
The Company also has a Joint Venture with Bito Lagertechnik Bittman GmbH
for the manufacture of Material Handling and Storage Systems in Metal, with a
manufacturing plant at Samba, Jammu and Kashmir.
All the manufacturing plants are ISO 9001/2000 Certified and practice 6 Sigma
manufacturing process. This extensive manufacturing infrastructure is ably
supported by the wide and strong sales network, operating through 45 Regional
Offices and 33 Warehouses spread across
Subject has exclusive tie ups
with:
·
Hanel Buro-Und Lagersystems,
·
ConTEyor Multibag Systems NV of Belgium for
manufacture of Textile Partitions for Crates and Metal Racks to provide
valuable in-transit protection for scratch sensitive products.
·
Plastic Omnium Systems Urbains, France, for supply
of their International Standard Waste Bins of all sizes conforming to EN/DIN
Standards.
·
CAMBRO Manufacturing Company,
All the subject plants,
warehouses and offices are connected to the Head Office in real time by ERP,
SAP-R3.
In material handling, Subject is
a "One Stop Shop for Material Handling Solutions" and offers a
comprehensive product mix comprising of Material Handling Equipment ranging
from Pallet Trucks to Stackers, Forklifts and all equipment required for the
logistics industry which is growing at a rapid pace in
Subject's quality is widely accepted
internationally and they have an office in
The Company's New Venture @home, the Mega Home Retail Chain is recognized as a
pioneer and leader in this category in
@home retails complete bedroom sets, living room units, upholstered sofas,
dining sets apart from a large variety of home décor products like artificial
flowers, vases, show pieces, picture frames, paintings etc. and daily used
items such as mattresses, bed sheets, towels, curtains, etc. @home is targeted
to the middle and middle high mass market of the new youth of India.
The Company has aggressive plans to build this business with a wide footprint
across all major cities and towns of
DIRECTORS
MR VAMAN V PAREKH, 70 (Chairman)
Mr. Vaman Parekh, one of the
founders of Nilkamal Group has been instrumental in making Nilkamal a name to
reckon with in the plastics industry. Under his supervision, the production and
technical activities of the Group have helped Nilkamal emerge as the most
revered brand name in the plastics industry. Besides these, he has also taken
part in many social activities; he has been the Chairman of many plastics
organization and other social groups.
MR. SHARAD V PAREKH, 60 (Managing Director)
Mr. Sharad V Parekh, the co-founder of Nilkamal Group can be credited with
having pioneered the Material Handling business in
MR. HITEN V. PAREKH, 42 (Executive Director)
Mr. Hiten V. Parekh monitors the day to day operations of the company. With his
hands on experience in the production and technical activities, he supervises
the overall functions of the Group. He has been instrumental in launching @HOME
-The complete Home Solutions Store with refreshing furniture and accessories
which is the Group's new venture in Furniture.
MR. MANISH V. PAREKH, 37 (Director)
Mr. Manish V. Parekh, the Head of the furniture division presides over one of
the fastest growing business in the country. He is the pillar behind the
enormous dealer network which is responsible for catering to requirements from
the remotest region of the country. He monitors the daily functions of the
plastic furniture division. Under his guidance, @HOME has grown in a short span
of time to provide quality furniture, accessories, design solutions,
professional guidance, interest free loans, etc
MR. NAYAN S. PAREKH, 33 (Director)
Mr. Nayan S. Parekh, the Head of the Material Handling Division, is steering
Nilkamal to a strong position in the international Material handling industry.
A Bachelors in Plastics Engineering from UMASS,
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 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.45.45 |
|
|
1 |
Rs.72.90 |
|
Euro |
1 |
Rs.61.43 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
|
58 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.