­Goa based Borkar Packaging Private Limited (BPPL) incorporated in 1994 is the flagship company of the Borkar Group and manufacturers printed cartons for FMCG, Food& Beverage, Pharmaceuticals and Liquor industries. The company has four state of the art manufacturing plants at Goa, Nalagarh (HP), Daman and Kolkata providing access to PAN India customers. Mr. Amol Borker currently spearheads the company and Mr. Nikhil Borker is guided under the leadership of Mr. Vinay Borker and Mr. Deepak Boker and has more than 3 decades of strong relationship with large MNCs like HUL, Nestle, P & G, Mondelez, Colgate Palmolive, Diageo, Pernod Recard, Abbott, etc. The company also has a wholly owned subsidiary Universal Cartons Solutions Pvt. Ltd. which has one manufacturing plant at Nalagarh (HP). 

­Borkar Group was established in the year 1910 with retail stores and over decades has evolved as a business conglomerate with business interest in various sectors such as Packaging, Retail, Real Estate and Financial Consultancy. The group ventured into printing & packaging business in 1984 under the company (Borkar Industries) and later it was amalgamated into Borkar Packaging Private Limited. Borkar group acquired Universal Carton Solutions Private Limited (UCSPL) in March 2015. Universal Carton Solutions Private Limited (UCSPL) was incorporated on August 04, 1995, and is involved in the same line of business as BPPL such as printing of cartons, labels, aluminum foils and others packaging materials by way of art printing and colour printing. The company has its own manufacturing unit located at Nalagarh, Himachal Pradesh.

­Substantial improvement in the business risk profile of the group.
Any substantial increase in the investment in group companies impacting a cash flow management of Borkar Group.
Any deterioration in the financial risk profile.
Further stretch in the liquidity position of the group.

­Not Applicable

­­The group has a stretched liquidity position as reflected by the low cash accruals against the maturing debt obligations. The group generated cash accruals of Rs.17.72 crore in FY23(Prov) as against maturing debt obligations of Rs. 22.14 crore over the same period. The gap in funding was met through realisation of advances given to group companies and other sources. The company is estimated to generate cash accruals of Rs.21.08-26.04 crore over the period 2024-2025 against maturing debt obligations of Rs.13.79-14.20 crore over the same period. The working capital limits are almost fully utilized and the group also takes ad hoc limits for working capital requirements reflecting a stretch liquidity position. However, the group has unencumbered fixed deposits to the tune of ~Rs.35.20 crore and cash and bank balance of Rs.0.42 crore as on March 31, 2023(Prov), which provides a comfort in terms of the liquidity position. The current ratio stood at 1.67 times as on March 31, 2023(Prov).

­Acuité has revised the outlook on BG from ‘Negative’ to ‘Stable’ on account of improvement in the business risk profile of the group. Further, the outlook also takes into account the moderate financial risk profile of the group and improvement expected in medium term in the coverage indicators. The outlook may be revised to ‘Positive’ in case the group continues to register consistent growth in revenues while achieving sustained improvement in operating margins, capital structure and working capital management. Conversely, the outlook may be revised to ‘Negative’ in case of deterioration in the group’s financial risk profile and liquidity position and lower than expected revenue generation and decline in profitability margins.
 

­None

­None

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.