MIRA
INFORM REPORT
|
Report Date : |
13.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
VAPI
PAPER MILLS LIMITED |
|
|
|
|
Registered Office : |
213, Udyog Mandir No. 1, 2nd Floor, 7/C Pitamber Lane, Mahim (West), Mumbai – 400 016 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
23.07.1974 |
|
|
|
|
Com. Reg. No.: |
11-32457 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L21010MH1974PLC032457 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMV11102A |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACV1259P |
|
|
|
|
Legal Form : |
Public Limited Liability company. The company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturing and marketing of Paper & Paper Boards and also in processing of Synthetic Yarn (Texturising & Twisting). |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
Maximum Credit Limit : |
|
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow and Delayed |
|
|
|
|
Litigation : |
-- |
|
|
|
|
Comments : |
Subject is an old and established company, but currently passing through difficult times. The company’s profitability is under severe pressure. The company continue to incur losses. Payments are reported to be slow and delayed. The company can be considered normal for business dealings at usual trade terms and conditions, with slight caution. No clean credit can be granted. |
LOCATIONS
|
Registered Office : |
213, Udyog Mandir No. 1, 2nd Floor, 7/C Pitamber Lane, Mahim (West), Mumbai – 400 016, India |
|
Tel. No.: |
91-22-24449826 / 24457528 / 24449039 / 24449753 |
|
Fax No.: |
91-22-24449752 |
|
|
|
|
Factory
1 : |
PAPER
DIVISION 298-301, GIDC Industrial Area, Vapi – 396 195, Valsad, Gujarat, India |
|
|
|
|
Factory
2 : |
YARN
DIVISION 95, Danudyog Sahakari Sangh Limited, Silvassa – 396 230, Dadra and Nagar Haveli (U.T.), India |
DIRECTORS
|
Name : |
Mr. Popatlal T. Shah |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Manoj R. Patel |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Anilbhai R. Patel |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Surendrabhai K. Patel |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shantilal L. Patel |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dhirubhai B. Patel |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Rajeev R. Patel |
|
Designation : |
Wholetime
Director |
|
|
|
|
Name : |
Mrs.
Laxmiben J. Patel |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name
: |
Mr. Prakash V. Kotak |
|
Designation
: |
Financial Controller-cum-Company Secretary |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and marketing of Paper & Paper Boards and also in processing of Synthetic Yarn (Texturising & Twisting). |
||||
|
|
|
||||
|
Products : |
|
PRODUCTION
STATUS
|
Particulars |
Unit |
|
Installed Capacity |
Actual Production |
|
Paper and Paper Board |
MT |
|
15000 |
11.97 |
GENERAL
INFORMATION
|
No. of Employees : |
300 |
||||||||
|
|
|
||||||||
|
Bankers : |
Ø State Bank of India Ø
The Zoroastrian
Co-Op Bank Limited |
||||||||
|
|
|
||||||||
|
Facilities : |
Secured Loans :
|
|
|
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Auditors : |
Manubhai G. Patel & Company Chartered Accountants, Ahmedabad, Gujarat, India |
|
|
|
|
Associates/Subsidiaries : |
Ø
Polycone Paper
Limited, Common key management personnel Ø Laj Investments Private Limited, Common key management personnel |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
3000000 |
Equity
Shares |
Rs.10/- each |
Rs.30.000 millions |
|
20000 |
12%
Tax Free Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.2.000 millions |
|
|
Total |
|
Rs.32.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
2281450 |
Equity
Shares |
Rs.10/- each |
Rs.22.815 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
22.815 |
22.815 |
22.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
43.406 |
44.035 |
52.300 |
|
|
4] (Accumulated Losses) |
(12.457) |
0.000 |
0.000 |
|
|
NETWORTH |
53.764 |
66.850 |
75.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
29.458 |
16.140 |
14.800 |
|
|
2] Unsecured Loans |
45.366 |
35.557 |
28.900 |
|
|
TOTAL BORROWING |
74.824 |
51.697 |
43.700 |
|
|
DEFERRED TAX LIABILITIES |
0.081 |
0.325 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
128.669 |
118.872 |
118.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
86.673 |
91.166 |
87.900 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.200 |
0.100 |
1.100 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
11.151
|
9.476 |
8.400 |
|
|
Sundry Debtors |
34.599
|
32.111 |
44.200 |
|
|
Cash & Bank Balances |
0.851
|
2.456 |
2.900 |
|
|
Other Current Assets |
1.003
|
1.025 |
0.000 |
|
|
Loans & Advances |
14.674
|
15.644 |
20.000 |
|
Total Current Assets |
62.278
|
60.712 |
75.500 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
19.395
|
32.577 |
45.600 |
|
|
Provisions |
1.087
|
0.529 |
0.100 |
|
Total Current Liabilities |
20.482
|
33.106 |
45.700 |
|
|
Net Current Assets |
41.796
|
27.606 |
29.800 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
128.669 |
118.872 |
118.800 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
148.484 |
208.075 |
261.300 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
4.883 |
8.170 |
(8.500) |
|
Provision
for Taxation |
0.117 |
0.000 |
(16.900) |
|
Profit/(Loss)
After Tax |
4.776 |
8.170 |
8.400 |
|
|
|
|
|
|
Import
Value |
15.793 |
NA |
NA |
|
|
|
|
|
|
Total
Expenditure |
153.367 |
216.245 |
269.800 |
QUARTERLY
/ SUMMARISED RESULTS
|
PARTICULARS |
|
30.06.2006 (1st Quarter) |
30.09.2006 (2nd Quarter) |
|
Sales Turnover |
|
3.61 |
4.18 |
|
Other Income |
|
0.01 |
0.01 |
|
Total Income |
|
3.62 |
4.19 |
|
Total Expenditure |
|
3.31 |
3.94 |
|
Operating Profit |
|
0.31 |
0.25 |
|
Interest |
|
0.11 |
0.12 |
|
Gross Profit |
|
0.20 |
0.13 |
|
Depreciation |
|
0.18 |
0.19 |
|
Tax |
|
0.00 |
0.00 |
|
Reported PAT |
|
0.02 |
(0.06) |
200606
Quarter 1
Expenditure Includes (Increase) / Decrease in Stock in Trade Rs 0.592 million Consumption of Raw Materials Rs 16.191 million Staff Cost Rs 1.547 million Other Expenditure Rs 14.705 million Tax indicates Provision for Fringe Benefit Tax EPS is Basic & Diluted Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter Nil Complaints disposed off during the quarter Nil Complaints unresolved at the end of the quarter Nil 1. The Company has only one business segment 'Paper & Paper board' as primary segment. 2. The above results have been taken on record by the Board of Directors at its meeting held on August 22, 2006.
200609
Quarter 2
Expenditure Includes (Increase) / Decrease in Stock in Trade Rs 1.219 million Consumption of Raw Materials Rs 22.146 million Staff Cost Rs 1.695 million Other Expenditure Rs 14.390 million Tax indicates Provision for Fringe Benefit Tax EPS is Basic & Diluted Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter Nil Complaints disposed off during the quarter Nil Complaints unresolved at the end of the quarter Nil 1. The Company has only one business segment 'Paper & Paper board' as primary segment. 2. The above results have been taken on record by the Board of Directors at its meeting held on November 08, 2006.
KEY
RATIOS
|
PARTICULARS |
30.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
1.05 |
0.68 |
0.52 |
|
Long Term Debt-Equity Ratio |
0.68 |
0.46 |
0.32 |
|
Current Ratio |
1.24 |
1.24 |
1.05 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.95 |
1.42 |
1.70 |
|
Inventory |
15.44 |
25.54 |
29.11 |
|
Debtors |
4.79 |
5.99 |
6.28 |
|
Interest Cover Ratio |
(3.03) |
(2.50) |
(0.29) |
|
Operating Profit Margin(%) |
(2.44) |
(0.83) |
1.36 |
|
Profit Before Interest And Tax Margin(%) |
(7.01) |
(3.06) |
(0.54) |
|
Cash Profit Margin(%) |
(4.82) |
(2.06) |
6.02 |
|
Adjusted Net Profit Margin(%) |
(9.39) |
(4.29) |
4.11 |
|
Return On Capital Employed(%) |
0.00 |
0.00 |
(1.18) |
|
Return On Net Worth(%) |
0.00 |
0.00 |
12.56 |
STOCK PRICES
|
Face
Value |
Rs.10.00/- |
|
High |
Rs.15.40 |
|
Low |
Rs.14.60 |
LOCAL AGENCY
FURTHER INFORMATION
INDUSTRY
Domestic paper industry is passing through an unprecendented crisis. A general slowdown in the main economy resulting in declining growth in Gross Domestic Product and industrial production for the last years has adversely affected paper industry in India. On the other hand, capacity remained well in excess of demand. Commissioning of two large plants in the last two years has only worsened the scenario. The entry of Sinar Mas, a large Indonesian paper marker, in India (which has setup a 115,000 tpa plant to manufacture W&P paper) created over-supply in the writing & printing segment. In the paperboard segment, the commissioning of ITC-Bhadrachalam’s new 120,000 tpa plant and Several’s 90,000 tpa plant adversely affected the demand supply balance.
Paper demand is strongly accelerated with overall growth in the economy. Per capita consumption in India is very low (nearly 4 Kg p.a.). This means, with the growth in literacy rate and population, consumption of cultural paper should grow at a healthy rate. On the other hand, demand for industrial paper is greatly depended on industrial growth.
The medium term outlook doesn’t seem very encouraging. The slowdown in the economy- especially industrial activity and exports could drag the demand for industrial paper down. While the demand growth for W & P paper may continue to stay close to 5-6% that for industrial paper may remain in single digit in the medium terms against the growth projections of 12-14%, which spurred fresh capacities in the recent past. The shelving of new projects is expected to slow down the capacity creation, which is good for the industry. Nevertheless, imports, slow demand growth and over-capacity are expected to continue the trend in the medium term.
The Company’s Fixed assets include Leasehold Land, Factory Office &
Godown Building, Staff Quarters, Plant & Machinery, Office Equipments,
Fixtures and Vehicles.
OPERATIONS:
During the year, Company achieved a Production of 11,097 MT as compared
to Production of 16,447 MT in the previous year. The Gross turnover during the year
was Rs. 159.8 millions as compared to Rs.228.6 millions in the previous year.
Subject was promoted by the late Rambhai H Patel, Jayantibhai R
Patel and their associates, Subject was set up as Kraft Paper & Board Mills
(cap. : 6000 tpa). The installed capacity has been gradually increased to
19,000 tpa. The products are used mainly in the packaging industry --
corrugated boxes, textile tubes, paper cones, etc.
In 1985, VPM diversified into processing, twisting and texturising yarn at
Silvassa, Dadra & Nagar Haveli. The present installed capacity of the plant
is 1500 tpa for 80 denier yarn. Its yarn is marketed under the Viptex brand,
which is well established in the market.
Subject along with its associate companies has been manufacturing paper, packaging
and related products for the last two decades. Sharp Industries is a pioneer in
the manufacture of laminated packaging products. P&P Containers Private
Limited is a pioneer in the manufacture of flexible printed packaging
materials. Poly-Cone Paper and its group companies are pioneers in the
manufacture of textile tubes, paper tubes, corrugated boxes, etc.
Companies like Hindustan Lever, Balsara Products, Godrej & Boyce
Manufacturing Company, Glaxo, Colour Cartons, Metal Box (India), TPI (India), Garware
Nylon, etc, consume the company's products directly or indirectly.
Atlas Paper Mills Private Limited has been amalgamated with the company during
1998 and according to the scheme of arrangement, for every One Equity Share of
Rs.10/- each held by the shareholders of Atlas Paper Mills Private Limited,Ten
Equity Shares of Rs.10/- each of subject have been issued.
In 2000-2001, the manufacturing operations of `VIPTEX' at Silvassa Plant have
been discontinued fully and it is intended to hive off the plant due to the
sluggish market conditions, volatility in prices of raw materials and intense
competition.
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 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] 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.44.61 |
|
UK
Pound |
1 |
Rs.86.80 |
|
Euro |
1 |
Rs.57.54 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|