Standard Facility Rental Application: Fill & Download for Free

Hi there,cold rooms come in a range of standard sizes, or can be bespoke-structured to match a client’s requirements right down to the millimetre.Bespoke cold rooms are particularly valuable for larger blue chip companies with long-term leasing facilities, and we often work with clients who need to increase on-site storage for contracts that have been temporarily extended, such as food manufacturers that are supplying larger organisations or supermarkets.Industry usecold rooms can be used for a host of applications including storing foodstuffs, pharmaceuticals and medicines, ambient products, chilled produce and frozen products.The flexibility of bespoke cold storage can come in particularly handy at seasonal peak times, when the need for extra storage arises; or if a facility needs to move, the whole system can easily be relocated. The flexibility can accommodate site expansion, increase in production and any changes in legislation.SpecificationCold rooms can be tailor-made from anything from a small walk-in unit to a large warehouse. We work directly with the client to customise a solution to suit your application.I hope this helps! if you need more information on cold room storage you can check out our website here

Leases Protect Landlords, Not TenantsMost people rent before they buy, and thus most people first experience leases as a renters. As a renter, it may initially seem that a lease protects the renting party, but this could not be further from the truth. The rental agreement is actually in place to protect you, the landlord. All landlords need to understand this in order to sidestep any potential legal issues down the road. Tenants in all states are given certain rights immediately upon occupation of a property, even if they have not paid any rent or signed a lease. The lease is actually intended to limit tenants’ rights, making it vital that a lease be drawn up and signed before any tenant is given access to a property.Related: Consider Property Management Options for Your Rental PropertyTenancy Has Several MeaningsEvery state has something called the Landlord-Tenant code that prospective landlords should study, in addition to other state laws. These laws can greatly affect your property, and is especially true when defining tenancy. As a landlord, you should be aware that anyone allowed to stay on your property for a specific amount of time will automatically become a tenant and be offered the same rights as a tenant. The amount of time varies by state, but it is entirely possible that you could kindly offer your couch for a week only to find out that you have to give your initial guest a 45-day eviction notice. Something as simple as allowing a person to sleep in an apartment and use your common facilities, i.e. the kitchen, can be enough for a person to claim tenancy.You Should Never Cheat On Your TaxesMany landlords believe they can budget their rental figures, especially if renters pay in cash. Not only is the IRS savvy to these devices, but also it is just never worth the risk. Claiming losses on a rental property for more than a few years is enough to set a red flag on your account and potentially trigger an IRS audit. Ultimately, stating your rental income will be financially beneficial if you plan on investing in more rental properties in the future. Otherwise, you may find yourself approaching lenders for an investment loan with a tax return showing only losses for five straight years.Procedures Are There For a ReasonSkipping an expensive credit and background check may seem like an excellent way to save money at the time, but it will only cause heartache down the line. Tenancy applications and background checks exist for a reason. While people may usually seem trustworthy enough, they can also be extremely irresponsible. Instead of skipping standard protocol, you should consider transferring the cost of the application to the tenants. In many real estate markets, tenants will not bat an eye at a reasonable application fee. When looking at credit checks, make sure you look very carefully for any prior issues with landlords and/or evictions. Patterns form for a reason.It Is Almost Impossible to Evict SomeoneAnyone who has faced the terrifying threat of eviction may feel as though it is an incredible power wielded by all landlords. While eviction may seem frightening at first, landlords actually have very limited control over the situation. Evictions need to be officially filed, even if the tenant has stopped paying rent. Once the eviction has been filed, the tenant will still have 30 to 45 days vacate, depending on the local laws. This is 30 to 45 days that a non-paying tenant will have free run of your property and potentially damage it. Furthermore, even after the 30 to 45 days the landlord cannot take any physical action to evict the tenant. Landlords cannot shut off utilities or change the locks. Instead, you need to consult the local police department and petition to have the tenant removed. An actual eviction proceeding can go on for months, especially if the tenant chooses to contest it.Related: Four Things to Consider Before Purchasing an AirSource: Five Things You May Not Know About Becoming A Landlord

Shankara Building Products is a leading organised retailer of home improvement and building products in India. It operates its retail stores under the brand name Shankara Buildpro. It’s a unique kind of business.As on 31st December 2016(third quarter), it operated 103 Shankara Buildpro stores spread across 9 states and one union territory. Majority of its stores are located in the Western and Southern India - Shankara BuildPro outlets are concentrated in Karnataka, Telangana, Kerala, Andhra Pradesh, Tamil Nadu and Goa.As of December 31, 2016, the average size of its store was approximately 3,624 sq.ft., and of 103 stores, 86 stores were on leased premises while 17 stores were on owned premises. The average rental cost of leased retail store premises stood at Rs 15.97 and Rs 15.99 per sq.ft. per month for Fiscal 2016 and for the nine months period ended December 31, 2016, respectively.It essentially sells its products to three different categories of customers - Retail sales(B2C business), Enterprise sales(B2B) and Channel Sales(B2B).Retail sales(B2C)Under the retail operations, the company offers a comprehensive range of products at our stores, including structural steel, cement, TMT bars, hollow blocks, pipes and tubes, roofing solutions, welding accessories, primers, solar heaters , plumbing, tiles, sanitary ware, water tanks, plywood, kitchen sinks, lighting and other allied products.It carries third part brands such as Johnson, Sintex, Uttam Galva, Uttam Value, Futura, APL Apollo, Astral Pipes and Alstone. It also sells some products under its own brands such as CenturyRoof, Ganga and Loha at its retail stores.The company serves home owners, professional customers (such as architects and contractors), and small enterprises, through its retail stores. Additionally, in the semi urban markets, it also caters to specific agricultural requirements of individual customers and small enterprises.Retail sales is a B2C business and so it commands a higher margin than Enterprise sales and Channel sales. The company has consistently increased the share of Retail sales from less than 20% in 2012 to about 42% as on (9 months)Q3 FY-17. Retail revenue has grown at a CAGR of 28.67% between 2012 to 2016.The company has consistently grown its retail stores from 43 in 2012 to 95 at the end of 2016, which now stands at 103(Q3).From Fiscal 2012 to Fiscal 2016, the annual number of retail transactions increased from 97,639 to 395,697 thereby increasing its retail customer base, which is also evident from a decrease in average transaction size from Rs 30,185 to Rs 20,413.For Fiscals 2014, 2015 and 2016, its retail stores recorded same store sales growth of 13.25%, 24.19% and 28.29%, respectively.Enterprise and Channel sales(B2B)Enterprise sales caters primarily to large end-users, contractors, and OEMs, while the channel sales caters to dealers and other retailers through the company’s extensive branch network. In these operations it primarily offer steel based products, such as structural steel, TMT bars, pipes and tubes and other allied steel products.These products have wide application and cater to multiple sectors, including, among others, housing, general engineering, automotive, renewable energy, agriculture, construction and infrastructure.The company also provides customized solutions to its enterprise customers through its bespoke steel products such as bus bodies, scaffolding solutions and other allied products for select clients.During the nine months period ended December 31, 2016 and in Fiscal 2016, revenue from enterprise sales was Rs 570 crore and Rs 6,55 crore, respectively, and revenue from channel sales was Rs 423 crore and Rs 5,72 crore, respectively.For 9 months period at the end of Q3, Enterprise sales contributed 33.35% and channel sales contributed 25% to the total sales.Backward IntegrationSelect building products like steel pipes, colour coated roofing sheets, bright rods, galvanized strips and cold rolled strips are processes through the company’s own processing facilities.The company sells these products under its own brands like CenturyRoof, Ganga, Loha, Taurus and Prince Galva through its own retail and branch network. Own processing facilities help it to offer customised solutions and meet quality standards as well as timely delivery requirements of its customers.As on December 31, 2016, the company had 11 processing facilities having a total installed capacity of 323,200 MTPA operating at an average capacity utilization of 93.81% (annualized). In January 2017, the company commenced production at its stainless steel pipes and tubes processing facility in Jigani, Bengaluru which has an installed capacity of 1,200 MTPA. These capacities can be scaled in a modular manner as per requirement.Logistics NetworkTo cater to its customers, it has its own logistics network which, as of December 31, 2016, consisted of 56 warehouses (29 operated by the Company, 23 operated by TVSPPL and 4 operated by CRIPL) aggregating 0.59 million sq. 41 ft., and a fleet of 44 owned trucks to augment the last mile delivery. A large part of warehousing backbone is owned by the company which ensures stability of operations. It also helps in catering to the requirements of its retail outlets.Future StrategiesScaling retail presence: The company intends to enhance its retail presence by opening more Shankara Buildpro stores in the future. For 9 months of FY-17 it has opened 8 new stores. It also intends to leverage its logistics network and processing facilities to expand its retail presence across India.Enhancing product offerings: The company intends to increase its existing product portfolio by adding more product categories and more brands in existing product categories such as electrical and decorative paints. The company intends to increase third party brands and its own brands either through in-house capabilities or through contract manufacturing.Increasing presence in bespoke products : It intends to capitalize on its specialization in processing customized steel products by deepening its presence in bespoke products, where the company is backward integrated with its own processing facilities.Inorganic Integration: The company has in the past successfully acquired and integrated certain companies such as CRIPL for roofing solutions and VPSPL for tube and strips processing. This has enabled it to backward integrate its business operations and strengthen its value chain. It also intends to continue to explore such business opportunities, including through inorganic acquisitions, and foraying into new product verticals, depending on market conditions and emerging business opportunities.Key RisksUncertainty regarding the housing market, real estate prices, economic conditions and other factors beyond the company’s control could adversely affect demand for its products and services, its costs of doing business and our financial performance.Any disruptions in the company’s logistics or supply chain network and other factors affecting the distribution of its merchandise could adversely impact its operations, business and financial condition.The inflation or deflation of product prices could affect our pricing, demand for our products, sales and profit margins as can be seen from fluctuating EBITDA margins.Revenue and profit growth has been low in the past.Financial analysisBalance SheetThe company has kept its short term borrowings at the same levels over the last 4 years. For 31st December, it stands at Rs 263 crore. Meanwhile its reserves and surplus have increased consistently, resulting in a decline in debt/equity which is now less than one.The company’s long term borrowings are negligible. It has been increasing its fixed assets consistently over the last five years, mostly from internal accruals.The company has kept control over its working capital needs in the past, which is the main reason for less than one time D/E.Income StatementRevenue grew at 9.5% CAGR during FY-12 to FY-16.EBITDA grew at 14.4% CAGR during FY-12 to FY-16.Net profit grew at 8.6% CAGR during FY-12 to FY-16.The company has been able to improve its EBITDA margins in last two years from 4.5% to about 6.3% currently.ROE has witnessed a lot of fluctuations during the last 5.75 years. It declined from 18.6% in FY-12 to 8.9% in FY-15 only to rise to 14.2% in FY-16 and an estimated 16% for FY-17. The reason for this fluctuation was an increase in finance cost during FY-15 and FY-14, coupled with low EBITDA margins during these two years.ROCE has also shown the same trend, though it has improved a lot during last two years - above 20%.Cash Flow StatementCash Flow from operations improved a lot during FY-16, FY-15 and FY-14 because of a control over working capital. It declined to 8.7 crore for the 9 months period FY-17, because of an increase in working capital needs because of a bit faster growth in revenue for the current year.Cumulative CFO during the last 5.75 years is 50–60% of EBITDA.The company has been consistently investing in fixed assets resulting in a negative CFI.The company has been paying a small amount of dividend.ValuationTotal outstanding shares before the issue: 2.18 croreFresh issue : 45 crore(mostly for debt reduction)Price Band : Rs 440 - Rs 460 per shareTotal outstanding shares after the issue : 2.27 croreExpected Market Cap at the upper band : 1048 croreEstimated valuations:There are no comparable listed companies in the home improvement and building products retailing segment.ConclusionIf the company continues the strategy of increasing the share of its retailing business, which it has been doing, the business can show more improvement in profitability. High capacity utilization for existing processing facilities implies that the management is using capital for Capex very judiciously.The current share of retailing business is only 40%, so there is a lot of growth potential in this business. On the other hand, Enterprise and Channel businesses are low margin, high working capital businesses.Increasing share of retailing business has resulted in higher gross margins, which coupled with cost controls have resulted in higher EBITDA margins and ROCE during the last two years. However, revenue growth has been slow during the last 5 years.Valuation seems to be reasonable.